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white paper Understanding Luxury in the Hospitality Business

SUMMARY

• What is luxury, and how it is experienced

Marketers of high end and upscale hotel brands are gradually coming to grips with the fact that there is a difference between “traditional luxury” and “modern luxury.” This difference is can be understood and leveraged by understanding the nature of the luxury experience.

• Why traditional approaches to delivering luxury are becoming irrelevant to younger travelers

A quick look at hotel brand advertise-

More importantly, they find themselves

ments in any business publication cer-

unable to differentiate their brands in

tainly gives the impression that hotel

relevant and sustainable ways.

• The difference between “modern luxury” and “traditional luxury” • Advertising luxury

brand managers have a pathological need to see themselves and their brand

Asking the Question

in the “luxury” category. The exceptions

In developing the brand essence for a

to the rule are a few mass brand compa-

well known chain of deluxe boutique ho-

nies that understand, like Motel 6, that

tel properties, we realised we needed to

it’s not a bad thing to be the Wal-Mart of

understand the underpinnings of luxury:

the hospitality industry. Of course, Holi-

what it is, how it is perceived and what

day Inns first understood the importance

are the attributes or triggers that make

of customer focused positioning, and led

luxury work. We also wanted to under-

the way in developing a hierarchy of

stand whether the experience of luxury

clearly positioned brands.

is changing, and whether we should be

Luxury brands, however, are still mired in their own worlds of “what we do” rather than “what you experience,” and as a result, many of these companies,

416.967.3337 www.proteanstrategies.com

looking at a different kind of luxury for travellers entering the marketplace now, as opposed to the more traditional luxury buyers.

find themselves playing a game of

To answer these questions, we devised a

“brand catch-up,” demonstrated by the

qualitative study that would explore the

business need to moderate rate struc-

underpinnings of luxury at an emotional

tures, develop two or even three tier

and experiential level. Interactive con-

pricing systems and suppress margins.

sumer response workshops were held in

Protean White Paper Understanding Luxury in the Hospitality Business  

Marketers of high end and upscale hotel brands are gradually coming to grips with the fact that there is a difference between “traditional l...

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