Ring Out the Old, Ring In the New: Regroup, Reinvent, or...POOF!
By Harvey Chipkin
Luxury Interactive's June 2009 Conference in NYC heard speakers from across the luxury brand spectrum talk about how it's no longer business as usual - but time to regroup and reinvent in order to rebound. One example: Ritz-Carlton lets employees take care of guest problems - even if it costs $2,000. Another: Montage CEO All A- Twitter.
This year, in the midst of a luxury letdown, speakers shared ideas on coping and curing. Following are highlights.
Luxury Institute's Milton Pedraza Offers New Rules for Old Luxury Marketing
He began with how luxury operators have been doing business - and then how they should be doing it.
Customers must be welcomed and nourished - not met with arrogance and snobbishness.
A price premium has to be earned, not imposed
Traditional luxury marketing (and that should now include internet) should be aimed at generating word of mouth and referrals (for more, visit www.luxuryinstitute.com)
Ritz-Carlton Reinvents Service Delivery-John Timmerman
John Timmerman, corporate vice president-operations for Ritz-Carlton,
gave a brief overview of how his company reinvented its "service
delivery" in recent years after its guest satisfaction levels had
"plateaued." He recalled the challenge as: "How do you blow the dust
off the lion? (the lion being part of Ritz-Carlton's logo.)
Among his points:
A "dichotomy" of customers has evolved - with the traditional
formality-loving customers - and jean/tee shirt wearers; the trick was
to please both. One solution, as suggested by a staffer: "Treat each
customer as they see themselves."
Part of the service delivery change was to empower employees to incur up to $2,000 in expenses to deal with a customer problem.
Montage CEO Fuerstman Speaks Up for Twitter and Tweet
Alan Fuerstman, who founded and is CEO of the highly successful Montage
resort in Laguna Beach and the new Montage in Beverly Hills started
using the Twitter social network a month ago and is a convert. He posts
daily and has found "opportunities for one to one communication very
powerful." He said he will even plug competitive hotels to keep things
non-commercial. As he points out, "One of my tweets might be picked up
by someone who has 3000 Twitter followers so it can get really viral.
In other comments, Fuerstman said:
Luxury Marketing Council's Greg Furman Raises Eyebrows with:
"Focus on your best customers and that means the ones with the most to
spend. The aspirational customer is gone - maybe forever. "
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.
Issues & Insights 
Alan Fuerstman, who founded and is CEO of the highly successful Montage
resort in Laguna Beach and the new Montage in Beverly Hills started
using the Twitter social network a month ago and is a convert. He posts
daily and has found "opportunities for one to one communication very
powerful." He said he will even plug competitive hotels to keep things
non-commercial. As he points out, "One of my tweets might be picked up
by someone who has 3000 Twitter followers so it can get really viral.
In other comments, Fuerstman said:
