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Defining luxury in the hospitality industry


 

The blurb appearing in a hotel advertisement that said, “Please cast your valuable vote for the Kxxxxxxxx Hotel in the 2017 World Luxury Hotels Awards...” caught my eye and immediately and had me thinking. Have you noticed that everything has its "luxury" component nowadays…from cereals to air fresheners. The concept of luxury is a moving target. Definitions and perceptions are changing and as a consequence the market for luxury is splintering (not cleanly though) into those for whom experiences are becoming more important and those for whom trophy consumption is key.

 

In the words of Paul Kerr, Joint Managing Director, Small Luxury Hotels of the World, “The word luxury has certainly become an overused term … but that said, the standard of luxury is now defined by the consumer’s expectations and experience” How true. In the view of experienced, demanding luxury travelers, "luxury hotel" has to mean something specific. Our sense of luxury is constantly changing. A luxury isn't absolutely necessary to survival - but whose standards apply? In the hospitality industry, in-room Wi-Fi, flat screen televisions, and high thread counts are no longer considered luxurious. As technology evolves, guests become more discerning, and hotels step up their services and in the process, many hoteliers are struggling to stand up – let alone stand out, in the crowded luxury market. So, how do you define luxury?

 

The former editor of the ‘Hotels’ magazine Jeff Weinstolz had this to say: “For me personally, it is mostly about service. I can be quite content in simple accommodations as long as my needs are anticipated everywhere on the property, and I receive friendly but not familiar attention. Many hotels pretend to offer just that and have awards and plaques on the wall (some paid for) to prove they are worthy of the luxury classification. But for every truly great hotel, there are as many so-called luxury properties that need to look in the mirror and re-examine their practices and approaches to hotelkeeping.”  I think one of the best ways to start is to define luxury.

 

During the Leading Hotels of the World annual convention held some years ago, one of the sessions titled ‘Delivering Luxury in Challenging Times’ brought together business leaders of some of the finest products in other industries to talk about their definitions of luxury and service excellence. Umberto Angeloni, president and CEO of Brioni, a manufacturer and seller of high-end men’s clothing, spoke of “delivering serendipity”, which he defined as “finding great things you were not looking for”. He urged everyone listening to talk to individual customers and identify what he termed “collaborative value.” What he meant is to find a way to recognise what is precious to your guests and delivering it. Then you have created serendipity.

 

Luxury means different things to different people. A true luxury hotel provided extraordinary experiences that exceeded customer expectations and created life-long memories. There is no doubt that like beauty; luxury is in the eye of the beholder. To some, privacy is the ultimate luxury whereas to others it's about antique furniture and priceless chandeliers adorning a lavishly decorated room. There are those to whom a luxury hotel, is one which operates around the guest’s schedule and convenience and not the other way around, To a certain extent it's horses for courses, but what is clear is that too many hotels are using the word ‘luxury' to define their product. This will ultimately confuse and disillusion the customer. What is desperately required is a worldwide rating system to set the record straight once and for all. No longer can something be considered luxury just based on cost, marketing campaigns, desires or by canvassing for votes.

 

Who Decides Whether a Hotel Is Luxury or Not?

 

The hospitality industry generally accepts hotel star ratings designated by critically-minded organizations. But there are no set standards for "luxury hotels," and both four-star and five star hotels generally describe themselves as "luxury. Expedia Travel describes a five star hotel as “characterized by luxury appointments, superlative service, and the highest standards of comfort. Five-star hotels offer originality in architecture and interior design, high-grade materials in construction and decor, and such special touches as fresh flowers and plants in abundance. These properties also maintain a high staff-to-guest ratio, gourmet dining, and 24-hour room service." I would add “fancy gyms, swimming pools and spas, and more” to an endless list of offerings that comes with a steep price. However, luxury is not about claiming to be a 5 star hotel and 5-stars is not an award, it's a declaration by the hotel that good is not in its vocabulary; only excellence.

 

A 5 star hotel that delivers functional service – however efficient is not a luxury hotel. Only when it provides service that is purposefully efficiently does it enter the realms of luxury. Translated into one of the numerous staff-guest interactions, it is the difference between the doorman opening the hotel's door and the doorman providing a welcoming experience .Hotel guests paying high luxury-hotel rates have a right to expect certain luxury hotel standards, in service, in rooms, in dining, and in everything else a “luxury” hotel offers. In short, the guest experience (also referred to as ‘experience customisation’), that Paul Kerr mentioned must go way beyond expectations. A luxury hotel is thus enormously different. It prides itself on being different. It flaunts each unique piece of its service offering. As a result, luxury hotels get talked about.

 

To be continued



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