Luxury Travel, Lifestyle and Marketing Trends

Insatiable Luxury in China

luxury in china

Peninsula Shanghai image from www.sienacharles.com

Post by Karen Weiner Escalera

We’ve all read about the boom in sales of luxury products in China. But nothing prepared me for the reality — the quantity and size of stores of the big names in luxury brands. Staying at The Peninsula Beijing, within two blocks there were several Chanel stores, one larger than the next. Within the hotel itself, besides the entrance being flanked by Chanel and Louis Vuitton shops, there’s a two story arcade exclusively with all the big brands. And this is repeated throughout the city.  Curiously, walking past the shops there was seldom anyone inside. Why? Our guide said that wealthy clients get the brochure of the new collection (or see it online), call the shop, and have the item or items sent to their residences much as mere mortals would order take out food.

I asked the same guide why there weren’t more top Chinese fashion designers. She said why would anyone buy a local fashion brand and pay a lot for a name no one knows. Anyone in the luxury business should not miss a visit to the “knock off” multi-leveled emporiums – the Silk Market in Beijing and several in Shanghai. It’s fascinating to see what brands are being counterfeited besides the obvious – Hermes, LVMH, Prada, etc. Beats headphones and speakers seem to be “hot” items. No wonder Apple recently announced a possible purchase of Beats. It was also interesting to see how luxury brands have to quickly come out with new lines to stay ahead of the counterfeiters. Of course new models help fuel purchases but you can’t help thinking that in any case, this counterfeiting greatly debases the brand.

Speaking of luxury and hotels, I also had a chance to see the latest in hotel technology in action by the master, Peninsula. At the hotel in Shanghai, here are some of the picks for top features:

  • Built in “nail dryer” in the dressing room
  • VOIP for free international calls
  • Humidity control for the guest rooms
  • Preset internet radio channels
  • A Yamaha speaker built into a lacquered cabinet, totally unobtrusive
  • And then the bathtub that even they have taken up a notch: luxuriate in the tub watching tv, having a conference call by speaker phone, choosing your favorite spa music, and more

All this being said I kept asking if and when the bubble will burst. As someone said, throughout the country there are thousands and thousands of unoccupied apartments bought for speculation (said one friend, in China the crane is the national bird). Makes for an unstable situation, no?

No More Hotel Exterior Images Please

Why do so many hotels show a total view of the exterior as the signature shot? I can understand showing a façade in itself if it’s striking in design – a landmark design by a starchitect; a treehouse, tent camp or eco lodge; over the top villas, or something else unusual. Recently on an outdoor advertisement I saw the image of a new island resort with a tag line about the “American Riviera”. The image was of an undistinguished high rise. Wouldn’t it be better to show images that conjure up the glamour implied by the Riviera? How about very fashionably dressed couples lunching at the beach served by waiters wearing  crisp white starched jackets serving champagne as they do on the French and Italian Rivieras? The interior of a glamorous casino that could be out of a James Bond film with the men in tuxes? Or better yet, a collage of images that appeal to powerful visual sensibilities in this age of Pinterest. Tell the story visually. Showcase what’s unique. Focus on the details. That will capture attention.

New Twist on “Grab and Go” Hotel F & B

grab and go

Vending machine at Mondrian Hotel South Beach

“Grab and go” luxury products? You got it right. A pioneer in this was the Mondrian Hotel in South Beach which opened with a full wall of the lobby taken up by a Semi-Automatic, purple vending machine that helped put it on the hipsters’ map. Some go-to items: a feather vest ($400), a $28 T-shirt emblazoned with the word recession, and even 24-karat-gold handcuffs ($350). You could even buy a nearby condo, or rent a 1953 Cadillac DeVille convertible. Prices ranged from $10 to $1.2 million.

The vending machine phenomenon is accelerating, embracing even luxury food and beverage products. Here’s a rundown of some of the newest, latest and greatest brought to my attention by Chicago based Farmer’s Fridge which could have some interesting applications for the hotel industry with the burgeoning “Grab and Go” food and beverage concept:

Let’s Pizza .Let’s Pizza kneads the dough, forms a round, adds tomato sauce, layers toppings and then bakes it all in front of every customer in 3 minutes. Let’s Pizza is basically a mini-pizzeria that’s open 24 hours a day!

Moët & Chandon Champagne Vending Machine (UK): Located in the Selfridge’s department store in London, this Champagne vending machine holds 200 milliliter bottles for $29 each. Each bottle is decorated with Swarovski crystals and the machine uses robotic arms to deliver the Champagne safely to the customer.

Corner Chips (BE): Outside of Brussels, Belgium, this unique vending machine is a diet-breaker. For €2.50, hot fries are delivered in 95 seconds with your choice of condiment including ketchup and mayo. Built with high-tech technology such as remote-management that lets its operator know when it’s almost out of potatoes.

Beverly Hills Caviar (US): From $5 to $600, customers in Beverly Hills, CA now have access to the delicacy of caviar from a vending machine. The caviar is dispensed in a glass jar and has an expiration date of 365 days.

 

ABOUT FARMER’S FRIDGE

Farmer’s Fridge, a new healthy vending machine concept, delivers delicious gourmet salads and snacks to customers via automated kiosks around the Chicagoland area.  The idea to provide nutritious meals came from Founder Luke Saunders’ realization that health-conscious people were struggling to find nutritious meals and snacks that were easily accessible.  Building on that belief, Saunders drew on his background in manufacturing to create an automated kiosk that could dispense healthy food options.  Farmer’s Fridge offers people healthy, nutritious foods that are delicious and satisfying in a state-of-the art, innovative automated kiosk.  The salads and snacks are made from fresh ingredients available from local produce vendors.  Farmer’s Fridge salads and snacks are handcrafted each morning in a local Chicago kitchen and are stocked daily by 10 a.m.  The company also provides catering to businesses in downtown Chicago. For more information, please visit www.farmersfridge.com.

 

 

Tactics to Drive Direct Bookings Vs. OTAs

hotel direct booking

With OTAs (Online Travel Agents) driving over 20 percent of total room bookings, taking commission fees ranging from 10-25 percent, what can a hotel do to drive direct bookings to its website? A survey of 2500 consumers by Software Advice, a source for hospitality system reviews, revealed perks hotels can offer to get direct bookings. Here are the  results of their findings:

Main Takeaways to Drive Direct Bookings

1. A free Room Upgrade
It is the top incentive that will convince customers to book directly. This can be as simple as a better view, balcony or kitchenette.

2. Free Meals Top the List of In-Room Perks
When asked which in-room perk would convince respondents to book directly, 43 percent said they could be swayed with a free room-service meal. Tied for second was an in-room massage and free access to the minibar and snacks (19 percent), followed by free movies on demand (16 percent).

3. Free Food and Drinks Also Outrank Other Amenities
When asked which on-site amenity would convince guests to use direct booking through a hotel website, a vast majority (55 percent) chose free food and drinks.

For many hotels, offering a free meal isn’t new. Incentives like this already exist, and many hotels likely understand their effectiveness. The second most convincing amenity was a free spa package, at 23 percent. Trailing behind are a free fitness class (11 percent) and free golf or tennis reservations (7 percent).

4. A Restaurant Gift Card Is the Most Popular Offsite Perk

45 percent of respondents said they would be convinced to book directly if they received a gift card to a popular restaurant as an incentive over other types of gift cards. Far behind are free tickets to a popular event and free transportation services.

You can read the full report here: http://overnight-success.softwareadvice.com/skip-ota-with-incentives-0214/

Rent a Slum Dwelling, the Newest Hospitality Niche

 

 

The favela of Rocinho in Rio de Janeiro

The favela of Rocinho in Rio de Janeiro

We’ve written about tourism microniches from danger and grief to scandal and slum tourism. But all of that was about visiting sites – an in and out kind of thing. Now a new company is offering a chance to get up close and personal with Rio de Janeiro’s favelas, promising “cultural immersion, stunning views, and an alternative to expensive and boring hotels”. Fueled by the scarcity of rooms projected during the upcoming World Cup, a new start up called Favela Experience begun by an American is promising “affordable World Cup accommodations” in Rio’s slums. This can range from bunk beds to a private room or entire apartment. Many of the accommodations have WiFi and large screen TV as well as the promise of a favela tour by the owner, and rooftop terraces. Plus, they talk of an opportunity to do good as in helping to supplement the income of the favela dwellers. Part of the profits go to fund a DJ school for neighborhood youth. It’s very easy to believe that we could see the beginning of the gentrification of the favelas, already being snapped up  by investors who see the potential in the dramatic views commanded from the hilltop locations.

Using Art to Market Hotels

the betsy

Hotels have been using art to appeal to the affluent market for years. I remember when we launched Ritz Carlton Hotels years ago, art in the public areas was promoted as a major amenity, as it would become with many other hotel groups and individual properties. Artists in residence, experiences with art such as the Peninsula Academy’s class in Chinese brush painting, art tours, and even one with the word “museum” in its name (21C Museum Hotel), have all been part of the appeal. But now, especially at the recent Art Basel in Miami, it has been taken to the next level, both in uses in marketing and in reaching out to new audiences.

And that’s not just travel products, but lifestyle in general, brands ranging from American Apparel and Fiat to Maserati, Harper’s Bazaar and Samsung. Publishing, apparel, automotive, beverage, food, they’re all jumping on the bandwagon and in a major way. According to a recent New York Times article, “In Marketing, Art’s the Thing”, they’re using art to reach consumers in their 20’s and 30’s who are already making art part of their lives, as a differentiator in the luxury category, and as a point of reference for relating to the beautiful and artisanal.  Miami hotels chose to wave their flag during Art Basel with popups – from The Newstand at the Standard Spa Miami and all night dining at The Raleigh to cultural events at The Betsy. The Betsy’s tie-ins were especially notable, featuring exhibits in its dedicated visual arts space, programming inviting guests to interact with the artists, and a cause related marketing initiative. Percentage of all works sold is contributed to the Zara Center for AIDS Impacted Youth in Zimbabwe.

Restaurants and bars got into the act with special themed menus like Red Steakhouse’s “Red Basel” and cocktail bar The Broken Shaker serving up drinks with their companion art. Pamela Drucker Mann, publisher of Bon Appetit cited food and art coming together, giving examples of restaurants designed to look like art galleries and “tablescaping”, designing table arrangements or centerpieces. Indeed, art sells.

Blogpost by Karen Weiner Escalera, President & Chief Strategist

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Psychographics and Hotel Lifestyle Branding Part 2

Using psychographics rather than demographics (see Part 1) what are the options and new directions in hotel lifestyle branding for the hospitality and cruise industries?

The oldest lifestyle branding route is still through a celebrity recognized in a specific category, primarily food/chefs (Daniel Boulud), golf (Jack Nicklaus), and architecture/design (Philippe Starck).

Major hotel brands like Starwood Hotels and Resorts and IHG are segmenting by special interests. Starwood has been a leader in this over several decades, with its fashion brand (W), wellness (Westin) and the newest, eco-luxury (1Hotel) and entertainment (Aloft). At the same time, they continue to build their straight luxury portfolios, with high end appeal (The Luxury Collection and St. Regis).

Lifestyle brands especially from the fashion world – Versace, Armani, Bulgari, Missoni and others – are creating immersive hotel brand experiences at the high end. In a very interesting development, at the other budget end of the spectrum, Marriott is doing a partnership with IKEA. My prediction: always one to watch, LVMH will use its hotel acquisitions to showcase its full range of lifestyle product lines. Imagine this: you walk into their hotel and are greeted by runway models, offered a glass of Moet et Chandon. Want more? Visit the Moet et Chandon Ice Lounge (already in existence). Choose your fashion suite – Celine, Donna Karan, Fendi, Pucci maybe with Acqua di Parma bath amenities. It’s dinner time and you’re hungry? Head down to the restaurant through the lobby fragrant with the newest perfume from Dior, order a lobster and a glass of Chateau d’Yquem. And before heading home, stop off in the hotel shop and pick up a Bulgari or Chaumet watch as a memento of your stay.

And finally, the newest option is to brand by a niche, special interest category. Examples include the Food Hotel, Divorce Hotel, Women Only Hotel, and the Pet Hotel.  Interestingly enough, most of these have come out of Europe. Marketing associations with a niche such as Design Hotels are yet another choice, also a European invention.

Post by Karen Weiner Escalera, President and Chief Strategist

New Twists on Eating Local

 

Erik Andrus explains The Vermont Sail Freight Project in their Kickstarter video

Erik Andrus explains The Vermont Sail Freight Project in their Kickstarter video

The eating of eating locally grown food continues to gain steam with new variations on water, land and sea, and novel ones at that.  Road warriors weary of the all too prevalent chain restaurants in airports and on interstate highways, will be delighted to hear that airports across the country are turning to leading hometown chefs for new eateries on the casual side. As reported in the New York Times,  at LAX airport, Michael Voltaggio of Ink and Ink Sack is opening an upscale sandwich shop and Suzanne Goin of the highly regarded Lucques will open a high end deli next month. Chicago’s Rick Bayless (Frontera Grill), Houston’s Bryan Caswell (Reef) and Denver’s Justin Cucci (Root Down) also have new dining spots on tap with extensive menu items to go.  Approaching local from a sustainable transportation model, Vermont farmer Erik Andrus launched the Vermont Sail Freight Project , a low tech approach to both food and energy,that features a 39 foot sailing barge, Ceres, that plies the Hudson River with produce from 30 new England farms. Produce is destined for sale in port towns from Hudson to Yonkers – farmers markets, dinners and parties. In an earlier post on the new phenomenon of the “hobby farmer’ we wrote about urbanites having their own chicken coops for fresh eggs. In the latest twist, a company started a business called “rent a chicken”. For $350 customers can rent a pair of egg laying hens, a supply of food, coop and water dish for a several month period to try it out. All the rewards of backyard chickens for much less responsibility. Sounds like an intriguing idea, but what do you do when you travel? How about a new business idea, hen sitters!?

What Millennials Want: Live Branding Case Study

Amherst College

Amherst College

The always innovative Frits Van Paasschen, CEO of Starwood Hotels and Resorts, commissioned a study of marketing and branding trends with students at Amherst College. The target market was young adults. The “Live Branding Case Study” was a first for Amherst, his alma mater, and a first for Starwood who has only worked with hospitality schools in the past. Among the questions were “What are your generation’s biggest concerns?”” How will these influence your purchasing behavior”, and “What three initiatives would you commission if you were Starwood’s CEO”?

Survey results revealed that millennials put a premium on businesses that embrace technology and environmental sustainability along with social responsibility in general. This smartphone bred generation wants more from hotel mobile apps, like being able to order room service even while on the plane with a touch of a button, or being able to network with other travelers. The students encouraged hotels to look beyond the onsite facilities to events like in house art galleries, concerts, book clubs and meetings. And what is probably no surprise, the importance of design as an end in ltself, part of the experience.

The insights are valuable but I think what’s most interesting is the idea of going to a liberal arts college to do what they billed as a “Live Branding Case Study”. As described by the editor in an article in Amherst College’s magazine, Van Paasschen wanted to leverage the interdisciplinary nature of a liberal arts education and students’ interests ranging from fashion, real estate and finance to media and contemporary art. The Starwood CEO  said this will be the first of other similar studies, and I’m sure many other hotel companies will follow their lead. Interested in reading more about millennials and marketing? Check out our Luxury Travel and Lifestyle Trends newsletters. 

Next Step in Farm to Table

Round Hill Hotel & Villas, Jamaica photo: modernfarmer.com

Hotels That Farm: Round Hill Hotel & Villas, Jamaica
photo: modernfarmer.com

Fairmont Hotels has its rooftop beehives, more hotels and restaurants their herb and vegetable gardens and buy local, and spas their herb gardens to use in treatments. It’s all part of the rapidly growing farm-to-table movement you’ve read about. Consumers, too, are doing their thing with urban chicken farming, gardening and beekeeping  proliferating across the country. In fact, this has raised issues for municipalities who are relooking zoning. The consumer phenomenon is called the “hobby farmer”, you could say a logical next step in the farm-to-table movement that has fueled a growth in farmers’ markets, community sponsored agriculture and young people going back to the land. To reach out to the market segment of “foodies”, the passionate about farm to table, and would be young farmers, there’s an intriguing new website and magazine  — Modern Farmer. Out since April, it already has a global following in Europe and Australia. I can see why. There are highly original, fascinating articles not covered by any other publication. Former President Bill Clinton contributed an article about the work his foundation is doing with farmers globally, and his memories of helping on his uncle’s farm in Alabama. Categories include food, travel, plants and animals and culture among others. Other articles have included everything from Hotels that Farm and  Farmers’ Market Etiquette to the Boston Design Center getting a 55K square foot rooftop garden, and probably more than you’d ever want to know about goats (a “hot” menu item now….the new lamb?).

Reprinted from www.miamicurated.com