His Agency "Outlaws" the Word 'Luxury' But Marketer Sees Path To Survival For, Well...Luxury Hotels
Andrew Sacks is president of New York City-based AgencySacks, a luxury marketing firm that boasts clients like The Peninsula Hotel Group, Trump Hotel Collection and Sea Island Resorts. Sacks recently talked to Hotels Magazine about the dilemma in which many luxury hotels find themselves; his advice follows:
"The trick for luxury hotels is to be working on two tracks: figure out what to do today - how to gain occupancy and share over this however-many-months period, and doing that means promotions to incent people to come - but they have to protect their brand at the same time. It's a really tricky balancing act: how does a great 5-star brand go on sale but still maintain their brand image?"
Embrace value-added promotions: Since many resorts, luxury
and non-luxury, are doing things like resort credits or extra room
night free, luxury properties should move toward customized promotions
based on intelligence gleaned from loyalty programs and CRM software.
Don't panic. Absolutely do not put inventory on "opaque" channels like Priceline - that's "dangerous."
Conspicuous
consumption is not in; that's why Sacks' copywriters cannot use the
word luxury. He says of the perception that the affluent want "glitz
and bling": "90% of affluent consumers grew up in middle-class
surroundings. Most affluent consumers don't want glitz."
We
are now entering the Era of Appreciation - of experiences, of family,
of relationships. To that end, luxury hotels have an edge over other
luxury products since the affluent are no longer craving as much
"stuff." It's a little easier, says Sacks, "to rationalize a family
vacation than to make another watch purchase."
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.
Andrew Sacks is president of New York City-based AgencySacks, a luxury marketing firm that boasts clients like The Peninsula Hotel Group, Trump Hotel Collection and Sea Island Resorts. Sacks recently talked to Hotels Magazine about the dilemma in which many luxury hotels find themselves; his advice follows: 
