The new luxury is lifestyle

How does the concept of luxury hospitality change? According to Stanislas Helou, Hospitality Executive and Guest Lecturer at the prestigious Glion Institute of Higher Education, he is continually being redefined by an ever-increasing number of new brands from large groups. An international vision to face new trends and meet the needs of new travelers

Stanislas Helou, Hospitality Executive and Guest Lecturer at the Glion Institute of Higher Education, offers an illuminating intervention on how the concept of luxury hospitality is evolving.

“What does luxury mean? If this question were asked directly to someone, you would probably get almost as many answers as if you asked what your favorite song is!

The concept of luxury is declined in all its possible contexts: “niche” luxury and therefore for the few, accessible luxury, luxury lifestyle, ultra-luxury … literally, new meanings of luxury are born every day for all budgets.

Large hospitality groups are aware of this trend. While the “luxury” label was once associated primarily with individual independent hotels, it is now an attribute of several brands in the portfolios of “majors” such as Marriott and Accor.

These brand portfolios have grown exponentially in recent years – both Marriott and Accor now boast around 30 distinct brands – while luxury hospitality has also come to encompass alternative accommodations, including private homes and rental villas.

Thanks to my role at Onefinestay, which is now part of the Accor group, I get to know this last market segment closely. Like other divisions of the hospitality sector, it could not escape the disruptive influence of Airbnb, which changed the rules of the game by acquiring Luxury Retreats in 2017, before renaming it Airbnb Luxe.

We have seen the big players in the industry react to this trend in their own way: for example, Marriott has organically developed its luxury rental business, while Accor has acquired Onefinestay and Travel Keys.

Luxury and lifestyle converge
One of the most intriguing market developments in recent years has been the convergence of luxury and lifestyle. This has opened a new chapter in luxury hospitality, where some of the traditional and formal elements of a luxury stay have been pushed aside in favor of a more relaxed and informal approach.

A proposal that is undoubtedly better suited to targets such as Millennials and Generation Z, which are rapidly growing among today’s luxury clientele. Some examples of a “luxury lifestyle” approach are certainly EDITION, W Hotels and Andaz. In hotels that follow this approach, you are generally more likely to find a resident DJ in the reception area rather than starched uniformed staff; or again, the hotel is often connected to the surrounding neighborhood rather than being isolated, albeit surrounded by a beautiful landscape.

The challenge of choice
For a wealthy traveler, all of this translates into an unprecedented range of choices. This element also represents a challenge for the sector itself, as a greater capacity to understand the options one has must derive from a greater choice. Otherwise, guests will make the mistake of staying in a hotel that is not suitable for them. A clear example would be to visit a pizzeria with a menu full of pages and pages with different pizzas. This is much more likely to lead us to confusion and therefore to make a bad choice when faced with too many options!

Are there too many options in hospitality today? In my view no, but this is because I have a passion for the sector and I love to discover new approaches. From a business point of view, I am less sure of it. There is a lot of work for these brands to do, both to find their ideal customer segments and to communicate to them clearly and effectively.

Surely the guests of today’s hotels are very different from those of 30 or 40 years ago: at the time when you arrived in a new city there was no internet or even social media through which to get to know the destination.

In particular, for business travelers, a familiar and comfortable environment was a real advantage and therefore an important factor in customer loyalty.

Today’s tech-savvy luxury traveler will surely arrive at their destination with plenty of information already on it. Hotel chains are aware that today’s guest, as well as a familiar place, wants a fresh and, essential factor, that is instagrammable and in line with their feed!

Is this a growing trend? Consultants Oliver Wyman predict an annual growth of 6.2% in the luxury travel market between now and 2030. Growing markets are always attracting new brands and new realities eager to conquer their own space. This is great news for guests, who will have a place to stay that suits any mood and personal circumstance.

The owners of those brands, be they independent or major, just have to be careful about how they position each brand, and then give each one its own distinctive voice in an increasingly crowded market ”.

About Glion Institute of Higher Education
Founded in 1962, Glion Institute of Higher Education is a private Swiss institution that offers undergraduate and master’s degrees in hospitality, luxury and event management to an international student body, across its three campuses in Switzerland and London. Glion also offers a postgraduate MBA program combined with an MSc in International Hospitality Business in partnership with Grenoble Ecole de Management.

Info
www.glion.edu