"The Luxury of Being Yourself" –Reinventing Conrad (as in Hilton, of Course)
Conrad Hotels has been around for many years – created at a time when Hilton Hotels (in the U.S.) and Hilton International (headquartered in the U.K.) were two separate companies and Hilton Hotels was not permitted to use the brand name outside the country – thus, Conrad, Hilton's luxury entry. After a number of efforts to grow the brand, efforts seem to be taking hold and Richard Blamey, senior vice president-brand management, believes that this time is the charm. Some brand insights from a recent LT360 interview by Harvey Chipkin:
• Conrad´s message to the consumer lies in its advertising slogan: "The luxury of being yourself." The rationale behind that, says Blamey, is that, "We provide an individualized guest experience based on two platforms: 1) the hotels are different from one another; and 2) We are intent on tailoring a stay to the guest's needs."
• "We don't position ourselves as a lifestyle brand," says Blamey, "but as a contemporary brand. We talk about contemporary attitude as much as contemporary design and contemporary architecture.
• The days of building brand through glossy ads are numbered. The online communication medium is up to 30 to 40 percent of our budget. We invested a lot of resources last year photographing our entire Conrad portfolio, but that´s still less expensive than a full page ad.
• "Travelers are less compartmentalized , so we must provide a
greater degree of flexibility in terms of services and amenities. They
may be switching from business to leisure to family mode in the same
stay, so it´s quite a challenge to anticipate in the way we used to. We
interact with them before the trip to find out what they expect to get
out of that particular trip.
• Many of our guests have been to
Singapore and Hong Kong dozens of times, but they are looking to enrich
that experience. If we can help introduce them to cultural events or
new developments in the city, we have created an experience. We have to
go beyond the four walls of the hotel."
• Blamey says it is
important that Conrad be recognized as being part of the Hilton "family
" But he adds that much of the benefit of being part of Hilton is
behind the scenes – for example, the power of a company the size of
Hilton to invest in technology and distribution."
Melissa Bradley’s On My Mind message in the Sept-Oct issue of Indagare—family focused travel--just happened to be what was on my mind as I reviewed some of the most recent surveys on consumer travel behavior in a struggling economy.
All the evidence—whether you are looking at the Amex-Harrison Group study we reviewed in our last issue, or the Ipsos Mendelsohn Affluence Report completed in September,--shows Family First when it comes to disposable dollars.
For travel in particular, Bradley says, ” More than just being inspired by reading about beautiful places, Indagare’s members have expressed a desire for guidance, especially when it comes to life’s most cherished journeys: those with their families”
“ What’s important on such trips,” she adds, “ is spending uninterrupted quality time with loved ones.”
We believe family focus is going to be front of mind for a long time to come, long after the punishing economic climate has subsided. Provider brands will be hard pressed to provide much more than kiddie or junior, or young adult activities. Smart travel agents will have to rise to higher levels of creativity and performance on the family front to sustain customer loyalty and earn the benefits of word of mouth in the neighborhood.
At the American Express Publishing –HarrisonGroup presentation last month Cara David, co-director of the study and Senior Vice-President, Strategic Insights, Marketing and Sales, American Express Publishing said, ”We will see significant reductions in intended spending for jewelry, fashion, accessories and other personal items.”
At the same time, spending for the family – automobiles, travel, children’s clothing and home décor – are trending up, even over June numbers, according to David.
We’ll be tracking the trend carefully, and we are seeing evidence of some smart marketing in that direction—including Indagare, of course—that will be featured in upcoming hospitality brand interviews Hershel Sarbin
Our lead story in this issue, covering the Latest Quarterly Survey from American Express Publishing/Harrison Group on Affluence and Wealth in America, is a most informative visit to spending in a troubled economy.
One thing that struck us, as we listened to the October 2 presentation, was how the term affluent covered so much territory - There is “ Bedrocks” Affluent, “Upper Middle Class” Affluent, “Pinnacle” Affluent, “Super” Affluent and finally, just plain Wealthy – all together, some 20 million households.
Karen Weiner Escalera, a veteran luxury marketing and public relations executive who heads up KWE Group in Coral Gables, recently took a look at the current economic situation and offered her outlook and advice; here’s a summary:
AVOID DISCOUNTING:
• As former Ritz-Carlton executive Joseph Freni, famously said in a previous downturn, “When times are tough, raise your rates.” Instead, highlight ways to save by traveling smart (off- season and midweek for resorts; weekend and holidays for urban hotels).
• A recent survey of millionaires by the authors of the book, “Middle Class Millionaire” revealed that close to 90% of U.S. millionaires with household incomes of $1 million to $10 million say they would increase their spending if offered a special value add.
UP THE SERVICE ANTE:
• Seek to elicit the “wow factor” among consumers. According to an Accenture study, more than half of consumers reported their expectations for better service increased over the past five years. One third said they were higher than a year ago. Guests require their every desire – expressed or unspoken – be met.
• Gather all the information you can about guests’ likes and dislikes and add to the database – down to packets of gum for the gum chewer and up to a crib from Neiman Marcus to the loyal guest/expectant mother. But beware of overly attentive service, which can become obtrusive or overbearing – a “no-no” for younger travelers in particular.
A new report, The NEXT gen Traveler—co-authored by PhoCusWright and Ypartnership—declares that "next generation" travelers, heavy users of the latest technology, are highly educated, affluent, and are equally likely to be Echo Boomers (18-28) as Baby Boomers (43 to 61), thereby debunking the belief that the usage of new technology is concentrated among younger travelers. They have a zest for travel and spend, on average, over 50% more on travel services annually than their less tech-savvy.
Nat Ives, in Ad Age Online Sept 6, cites new data from Ipsos MMR which assures that well-off readers read print publications just as much now as they did 5 years ago.
Also, survey respondents making more than $100,000 annually said their average hours online had grown to 22.1 each week from 10.7, while the time they said they spent watching TV sunk to 18.6 hours from 23.7 in the 2003 survey. Read the full Ives story at http://adage.com/mediaworks/article?article_id=130685. Lux 360 attended the client briefing this week and will provide additional perspective in our Sept. 30 issue, interviewing Ipsos MMR President Bob Shullman.
Conrad Hotels has been around for many years – created at a time when Hilton Hotels (in the U.S.) and Hilton International (headquartered in the U.K.) were two separate companies and Hilton Hotels was not permitted to use the brand name outside the country – thus, Conrad, Hilton's luxury entry. After a number of efforts to grow the brand, efforts seem to be taking hold and Richard Blamey, senior vice president-brand management, believes that this time is the charm. Some brand insights from a recent LT360 interview by Harvey Chipkin:
