Luxury hotels are constantly striving to improve their services by focusing on changing consumer preferences
With a growing economy and disposable income, emergent middle class, people’s propensity to spend on the vacations to make it memorable, rising consumer brand consciousness along with changing lifestyle and consumer shift towards luxurious living amongst others are propelling the demand for luxury travel globally. Industry trends suggest that an increasing number of people are ready to spend a lot of money for quality and unique experiences. According to a report by ITB Berlin and IPK International, luxury travel has grown twice with a 48 per cent increase in the last five years while other types of international trips grew only by 24 per cent. The report further states that 46 million travellers undertook international luxury trips in 2014 and the market share of these trips increased from 3.9 per cent in 2009 to 4.6 per cent in 2014. This trend is expected to accelerate over the next decade, with a CAGR of 6.2 per cent projected for luxury travel against an overall growth rate of 4.8 per cent.
Realising the pace of growth and a consistently growing market, global hotel chains are trying their level best to tap the potential of this market. The global luxury hotels market stood at US$148.6 bn in 2014 and is predicted to reach US$195.2 bn by 2021. Luxury hotels have consistently been innovating to improve their services to meet the increasing demand for unique customer services. They have upgraded their services and offerings such as complimentary champagne on arrival, spa and massage treatment for guests and special dinner arrangements for customers.
Defining Luxury
Luxury means different things to different people and this is especially true today. “Luxury travel is about exceptional experiences. It has less to do with Michelin stars, thread count and other hardware aspects, while leaning more towards unique and memorable experiences. It is an amalgam of privacy and uniqueness. Personalised and intuitive service is the cornerstone of luxury travel ,” opines Raghu Menon, General Manager, The Ritz-Carlton, Bangalore. TJ Joulak, General Manager, W Goa, says that luxury today is shifting rapidly from ‘having’ to ‘being’ from owning a product to experiencing one. “Each person has their own individual definition of luxury. Today, our guests are the true arbiters of what luxury is, which is really important. To me, luxury is still about exclusivity, about attention to detail, sumptuous atmosphere and discerning good taste,” Joulak says and adds that the luxury travellers today are much more knowledgeable, adventurous and their expectations of their experiences have also radically changed. According to Srijan Vadhera, General Manager, Fairmont Jaipur, various lifestyle arenas have evolved to include services and goods, initially categorised as luxurious as an inclusive offering to enhance the overall experiences for customers. “While addressing emerging trends in luxury travel, the hospitality industry is an ideal example wherein luxury as an experience is continuously evolving. While the definition of luxury changes from one person to the next, we hoteliers are entrusted with the task of identifying the requirements of each guest and finding innovative ways to cater to them,” Vadhera adds. According to him, luxury as a concept is synonymous with India’s rich cultural and social heritage. “Thus the global luxury traveller is drawn to India owing to the diverse experiential possibilities our country has to offer; be it the mystical lure of our majestic architecture and the varied cultures or the geographical layout that could take a visitor from the Himalayan peaks to the beaches along the Indian Ocean,” he adds.
Growing potential
The millennial generation is geared to pleasure rather than possessions. “The Indian luxury travel market is expected to cross US$18.3 bn by the end of 2016. Indian Luxury market is poised to expand fivefold in next three years and the number of millionaires are expected to multiply three times in another five years,” Joulak says and opines that India is on the cusp of a new golden age of luxury travel as technology and globalisation drive new trade routes, capital flows and wealth creation. “As domestic travel increases and Indian travellers continue to demand more sophistication in terms of both quality and experience, we have significant opportunity to grow our brands across the spectrum in gateway cities as well as in resort destinations,” Joulak adds.
Vadhera also feels the same. “The luxury travel segment in India is growing by leaps and bounds. We are beginning to see many international brands entering the market with properties that are synonymous with luxury in every which way. Our economy is booming comparatively to many other scenarios thus boasting a healthier spend ratio. So, while the growing number of HNIs in India are very lucrative outbound travellers for various countries, their spend within the country plays a major role in many ways. Destination weddings within India at exotic locales, FITs etc. all contribute to the growth of our luxury travel industry,” Vadhera says.
According to Menon, luxury travel market in India is certainly on an upswing and more unique cultural experiences and exceptional activities are being offered within that segment. “Indians are now seeking a new and evolved kind of luxury travel –where an exclusive and personalised experience is the watchword. The Indian destination wedding market is booming, with unique and special destinations emerging the favourite with new couples. Though mass market travel is something we can’t rule out, the slice of luxury travel is firm and possibly growing,” Menon adds.
Changing profile
Replying to a question over how today’s luxury travellers are different from older luxury travel consumers, Joulak says that today 85 per cent of our guests hail from generations X and Y, and the brand is uniquely positioned to cater to this emerging and ever-more global generation of affluent travelers, which we call as “The Disruptors”. “These are guests who want to experience what’s new and next in the most unconventional way. The Indian traveler is a lot more sensitive and demanding towards luxury and W‘s lifestyle positioning is perfectly poised to leverage this opportunity. An obsessive lust for a life drives the typical W guest to push boundaries, demand more, experience it all and hit repeat,” Joulak adds.
Vadhera also echoes the similar opinion. “I would consider the former to be a more exploratory avatar of the latter – while both exist and have their own distinct contributions towards the luxury travel industry. The more traditional luxury traveller is a major steady contributor to various institutions within the travel sector. They are of a more conservative mindset, comfortable with choices that stem from earlier experiences,” he says.
As affluent millennial travellers are emerging as one of the important segments for luxury travel, Vadhera sees change in trends from joint households to more nuclear families wherein global exposure comes at a very early age. “With younger people fueling more important jobs across the globe in every arena, incomes are on the rise and so are spend. Adventure, luxury goods, bespoke experiences all play an important role in their day-to-day lives. The world is their oyster and they won’t have it any other way,” Vadhera says.
Menon feels that wealthy millennials are increasingly setting new travel trends, especially in Asia. “What these travellers are looking for, are unique and experiential holidays. Local flavors in the destinations they arrive by way of culinary experiences or craft cocktails are what they are seeking. Social media and friends’ recommendations are their yardstick for the coolest destinations. Studies indicate that ‘stuff’ is unimportant, millennials are not seeking to own. They simply want fluid access in the form of experiences.”
Indira Banerjee, Director – Sales and Strategic planning, The Imperial, New Delhi says that millennials do not believe in the concept of ‘tomorrow’, for them everything is ‘Now’. “They are prepared to go to offbeat destinations rather than the ‘usual suspects’ and this is what sets them apart from the previous generation of travelers,” she says.
Offering authentic experiences
“W Hotels are unique and individual expressions of modern living, which is reflected in the brand’s sensibility of holistic lifestyle experiences. Goa, with its vibrant, cosmopolitan vibe and beautiful surroundings- beach, cliffs, rocks and the warmth and cheer of the people- it has it all. Our brands are differentiated from a lifestyle perspective and not from a price point, with every brand and each hotel; we constantly try to create unique experiences which are true to the brand’s identity. W Goa offers a chance of detox, retox and repeat experience at one place. One can unwind completely in our boldly-decorated guestrooms, suites, chalets and villas spread out across our secluded coastal setting. Adding to this our very own W Insider Rashila Lobo, is always there to make sure your endless appetite to discover what’s new/next is never missed, breaking norms to see more, feel more, go longer, stay later,” Joulak informs.
The Ritz-Carlton’s afternoon tea is an experience most luxury travellers don’t want to miss as it gives them a sense of place and abundance. “Product innovations can never undermine experiences, so for us, we would like to focus more on the experiential journey of a guest. One on one cooking experiences led by our chef and a crafted meal at the Chef’s Table make for an unforgettable experience as much as evening sundowners where craft cocktails jostle for supremacy with stunning city views from our rooftop bar, Bang,” Menon says.
Fairmont offers adventure excursions, heritage walks, hot air balloon rides and cultural performances amongst others. “We are truly a modern day palace hotel, one which resonates the architectural brilliance of the land it is situated in. We offer experiences that are authentically local, in hotels and resorts of unrivalled presence. At Fairmont Jaipur we believe in turning moments into memories for our guests through our engaging service, the unrivalled presence…,” Vadhera says.
Banerjee says that to The Imperial is authentic in the real sense of the words. “From the greeting of ‘Namaskar’ with folded hands to a traditional ‘Arti Tikka Welcome’ – the experience is authentic and unique. Apart from this guests can choose to learn traditional Indian cooking with our highly qualified chefs, learn how to drape a traditional saree, and even engage with our staff during one of the many festivals that we celebrate in the hotel,” she adds.
An arty affair
Along with food, art is now also taking a central place in luxury travel. Vadhera feels that art is a healthy cross connects to see various aspects within what we define as the ‘luxury & lifestyle’ specter come together in any manner. “Art is and always has been an important player within the lifestyle arena and has seen constant growth owing to its rising demand as a luxury good throughout the world,” he opines.
“The carefully curated art collection comprising of more than 1200 pieces from acclaimed national as well as international artists and sculptors gives guests a unique experience. The Ritz Carlton Bangalore showcases some of the most majestic designs to ever be adorned in an international hotel by eminent artists from around the world. Each piece of art, display or carving, exemplifies the ultra luxurious elegance of the hotel,” Menon informs. The Ritz Carlton Bangalore features the work of artists such as the master of life-size figurative Robert St. Croix, the renowned sculptor Alexandra Gestin, the legendary Cuban sculptor Manuel Carbonell, our home-bound landscape artist PareshMaity and the celebrated Indian abstract painter Revati Sharma Singh.
According to Joulak, design is one of the key passion points of W hotels, it defies expectations and sparks imaginations. “Art is one of the elements that sums up to a design and it is becoming a key element in a luxury place. However, in W we do not see art in a conventional way, especially in a hotel space. W Goa has craftsmanship from different artistes, selected from different dialects and none of them have any similarity in their work, but still the way they blend with the whole design is quite amusing,” Joulak says.
The Imperial and ‘Art’ can actually be used as synonyms – with Imperial boasting of some of the finest collection of art at display in the entire country. “It is no less than an art museum in itself – with a collection of over 4500 paintings and artefacts on display. We also conduct an ‘Art Tour’ of the hotel where one of our executives gives the guests a description of the art on display in our public areas – and this art tour is extremely popular with our guests,” Banerjee says.
Sustainability
While focusing on offering luxury services, these hotels do not forget their role of keeping the environment intact. “Responsible or mindful luxury is what we profess and we are very vigilant of the impact that our luxury has on the environment. This falls directly under the purview of our Community Footprints, an initiative integral to every Ritz-Carlton across the world,” Menon says.
According to Joulak, ‘going sustainable’ has become a vital aspect for any business venture of any industry. “At W Goa we have a legacy of caring for the communities in which we operate, so Global Citizenship comes naturally to us. Our work focuses on the environment and our communities and leverages our people, our brands, our relationships and our global reach, because we are uniquely equipped to help our talents and guests create a better world to experience,” he says. Fairmont Hotels & Resorts also embraces environmentally sustainable business practices and continues to seek new ways to proactively green our operations.
