2400 Hoteliers Gather To Hear "Good, Bad, Ugly" for 2009
Ross Klein, Hilton's luxury guru, sees luxury as going through "identity crisis."
Americas Lodging Industry Summit (ALIS), meeting in San Diego last week, is the first big industry conference since the industry really turned south in the last quarter of 2008. Interviews with attendees and attendance at panels revealed a consensus that rough times lie ahead but opportunities are there for the savviest.
One of the savviest, Ross Klein, who heads up Hilton's luxury and lifestyle group - including Waldorf-Astoria, Waldorf-Astoria Collection, Conrad - and a brand to be announced in March - built the successful W Hotels brand. Following are highlights of our chat with Klein - then a quick look at other conference goings-on.
Ross Klein On Luxury
The "identity crisis" involves the end of "traditional rationales" for a luxury vacation - to be replaced by luxury versions of new styles of travel -like eco-tours, and "road maverick" vacations.
Ross Klein
Retro Destinations: Klein sees cachet in once glamorous locations
like The Bahamas, St. Kitts and Acapulco, with "a jet set flavor"
lacking in newer destinations
Klein said his hotels will not
cut corners but will seek other ways to maintain margins - improving
productivity, motivating staff. "The burden should be on us, not the
customer. And the customers notice everything. "
The new Hilton brand, with the project name Global 21, "will not be
at the luxury level," said Klein, but will be more in the lifestyle
category. He said the project name means that the project is
international and modern, "born in the 21st century."
"The coolest thing about Hilton" is that "it was always about luxury.
Conrad Hilton loved luxury and the Waldorf was always his jewel."
Other Voices and Views from ALIS Lodging Summit
Jean-Claude Baumgarten, president of the World Travel & Tourism
Council, said travel would eventually come out of this because "travel
still has a high priority." But he noted that the BRIC countries
(Brazil, Russia, India, China) in which so many had put so much stock
were seeing deteriorating economies. Still in looking ahead to 2018, he
said China would have the largest tourism economy while countries like
Canada would fall from the top tier.
James Burba, who runs ALIS, said that attendance was down from almost
3000 to about 2400 because of the economy. He said that nobody a year
ago knew what was coming. A poll of ALIS attendees showed 47% see a
turnaround in 2010, 53% in 2009, "more optimistic than we would have
expected." Burba was also surprised that 65% of delegates, a
politically conservative group, think the federal stimulus is necessary.
Gerald Lawless, executive chairman of the Jumeirah Group, the
Dubai-based luxury group, said he is "cautiously pessimistic" because
"I would prefer to be cautiously pessimistic and wrong than cautiously
optimistic and wrong." Lawless said, "The sovereign funds won't save
us."But Lawless was one of the few to see a hopeful sign, saying since
the beginning of the year bookings had picked up strongly so that the
chain was achieving occupancies "in the mid-70's."
On a leaders panel of six CEO's, all agreed that things would get better "sometime."
Chris Nassetta, the new CEO of Hilton said, "The mega-trend is to value
even if it's in luxury. People will be more value minded and there will
be less gloss and glamour than in the past ten years
Ipsos Mendelsohn and American Express Publishing-Harrison Group OfferFreshInsight on Consumer Behavior in 2010
According to new studies from two blue-chip research sources, Ipsos Mendelsohn and American Express Publishing - the affluent are not only ready to travel -- they are frequently going to spend more on it. While the Ipsos study focused on intent and American Express Publishing on mindset, they both point to a surge in affluents taking to the road (Amex sees an increase of 6 to 8% in spending on all luxury categories).Interestingly, both studies agree on a positive attitude despite lingering concerns about the economy. Here's a look at the highlights of both 2010 studies.
LuxuryTravel 360 has long looked to the affluent as a burgeoning market in business and leisure travel, fueling growth in more affordable, common sense luxury - less glitz and glamour, but ready to pay extra for memorable family experiences and genuine local culture.