Article published by Luxury Hoteliers.
An insider look at what Asset Managers are looking for when considering a new property. Romy shares how the industry has changed over the last ten years and how the experiential factor and the psychographics behind the decisionmaking process really matter.
What do you believe are the top 3 criteria for a successful hotel brand?
- Clear and well-defined positioning
- Distribution and customer-reach
- Consistent ability to make an emotional connection with their customers
What are you doing differently to what you did ten years ago?
The hospitality business has never been so dynamic. We are focused more than ever on the constantly evolving online distribution and marketing area, understanding and responding to consumer’s buying preferences, and creating touch points and experiences that have a long-lasting impact. Unlike 10 years ago, when the consumer was seeking “things” and “opulence” in a luxury experience, today’s luxury consumer is seeking experiences and the opportunity to create long lasting memories. therefore, everything in the luxury hospitality service chain has to be re-thought to meet that objective.
How important is the F&B program in a hotel nowadays?
F&B is extremely important in the luxury segment. The luxury consumer is looking for a culinarily unique F&B experience in a design-forward setting, with friendly and enthusiastic service. The mindset and related business model for F&B has evolved over time. F&B in a luxury hotel is no longer the loss leader it once used to be. Restaurants and bars in luxury hotels can and should be profitable (and meaningfully so) if they can cater to both the local and in-house consumer, provide that unique experience that the consumer is looking for and is willing to pay a premium for. If brands do not have the F&B expertise in-house, they should be open to partnering with celebrity chefs via licensing or operating agreements, to provide a seamless and high-quality experience for the consumer across the entire hotel. Brands and F&B operators who can continue to innovate and consistently deliver on the fundamentals of the food and beverage experience have the competitive edge – both from a consumer and owner perspective.
Are you still thinking millennial, or multigenerational, or have you moved on?
While evolving demographics are an important consideration, focusing on psychographics is more relevant in the luxury segment of the hospitality segment. Moving from the “who” is buying, to the “why” they are buying thought process, can help brands and operators create more relevant offerings and experiences. Understanding consumers’ habits, preferences, and aspirations are critical to establishing that emotional connection between the brand and the consumer.
How important are design and instagrammable moments?
Design is a critical element of the overall luxury experience. Design forward spaces with unique architecture and interior elements are proven to drive greater guest satisfaction as well as premium rates. For example: A rooftop bar on the tallest building in an urban market, or a spa designed around a natural cenote, or an outdoor restaurant offering a 180-degree view of the Pacific coastline are unique competitive advantages, that are not easy to replicate. These unique architecture and design elements provide unique experiences and instagrammable moments – all of which drive low cost and targeted marketing, resulting in enhanced awareness and visibility.
Original article available here.