Guess Who's Leading The Way To Recovery? Luxury Hotels!
Nuggets From 2010 ALIS - Luxury Segment Panel - By Harvey Chipkin
Terry Stinson, president of Mandarin Oriental hotels, said that the much-vaunted
"AIG effect" is "fading away, market by market." He said
that even group business was returning to luxury hotels, though again with an
ever-diminishing booking cycle.
Homi Vazifdar, managing director of Canyon Equity which owns properties at the very
top of the market like Amangani in Jackson Hole, said his hotels had actually
raised rates last year and except for the occasional value-added element for a
regular customer, had not discounted at all.
In a post-panel interview with LT360, Robert Lowe, Jr.,
president of Lowe Hospitality Group (Destination Resorts), said that a number
of trends in luxury pre-dated the recession including the move to vacations as
"memorable and meaning experiences that are local, cultural and
authentic" - and that the recession had only enhanced that trend..
"The only change since the recession," he said, is that "value
has been added to the equation. Guests are abandoning "extravagant, showy
vacations."
Laurence Geller, CEO of Strategic
Hotels & Resorts,
which owns luxury properties like the Four Seasons Washington D.C. and the
Ritz-Carlton Laguna Niguel, said, "I am shocked at the last eight to nine
weeks that I have had no bad news, and I'm seeing an increasing amount of good
news. I am astonished at the level of business and the level of spending that's
coming back. I'm pleased with what I'm seeing in group pace for the entire
portfolio. I'm feeling much better than I was two or three months ago. If
things stay the same, I think we'll have a better year than expected."
While business is picking up, bookings are frequently last minute. Charles Henry,president of Hotel Capital Advisors, which has ownership in chains
like Four Seasons and Fairmont, said, "It's scary doing business without
seeing anything on the books."
During a panel on "Brand Extension Into Lodging," Neil Jacobs, president of BaccaratHotels, a subsidiary of Starwood
Capital, said, "The customer is looking for a different luxury experience.
The five-star brands are beginning to look a lot alike and guests want a
different feel at that level. Through Baccarat, we aim to create a feeling of
celebration and socialization."
On the same panel, Gordon McKinnon,
brand leader for Missoni, a subsidiary of Carlson Hotels, said, "As
soon as we met with Missoni we wondered how we could bottle the DNA and
lifestyle of the brand. It is a distinct iconic design that is not trendy. And
it's not a particular look or idea but an experience of energy and fun,
providing good value."
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.
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