What do you imply there’s a recession on the horizon?
The world’s luxurious journey sector was parked en masse this week in Cannes, France, for the International Luxury Travel Market (or ILTM) convention.
From the packed flooring of the Palais des Festivals et des Cannes convention venue, you wouldn’t know the worldwide financial system is on shaky floor.
Representatives from manufacturers like Aman and Belmond, in addition to all of the ultra-luxury choices from Hilton, Marriott, Hyatt, Accor and IHG Hotels & Resorts, touted a promising future for the best finish of the resort stratosphere.
A number of themes had been evident from this week’s line-up of displays and conferences on the way forward for luxurious journey. Check out the newest from Cannes.
The sustainable second
The luxurious journey sphere isn’t sometimes recognized for being greatest associates with Mother Nature. After all, premium seats on an airplane do translate to greater emissions per particular person in that higher-end cabin.
However, each main luxurious resort operator to take the press stage at ILTM this week touted their numerous sustainable practices.
Six Senses, one in all IHG Hotels & Resorts’ ultra-luxury manufacturers, is understood for embracing sustainability. This is obvious in the whole lot from its use of native substances to its elimination of tiny bottles of shampoo and bathe gel (and it was one of many first manufacturers to take action).
Six Senses was forward of the sustainability push even earlier than IHG acquired it. Now, even world giants like Accor are shifting to remove single-use plastics at their luxurious resorts.
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The youthful look of luxurious
Speaking of IHG, its representatives offered an fascinating statistic on the fast demographic shift in who’s filling up ultra-luxe resorts.
By 2025, 61% of luxurious customers will comprise Millennials and Generation Zers, Tom Rowntree, IHG’s vp of world luxurious manufacturers, mentioned. That may additionally clarify why so many resort corporations are speeding to indicate simply how sustainable they’re, as polls present youthful generations sometimes care extra about local weather activism.
“What we’re seeing is a democratization in buying behavior within families in as much as parents are consulting with their children, and the children [are] having an influencing factor on that parent’s purchasing behavior,” Rowntree mentioned.
Optimism within the face of uncertainty
It looks like daily brings a brand new spherical of layoffs at main corporations worldwide, however it was arduous to seek out any nerves rattling within the conference corridor.
The attendees included manufacturers like Cheval Blanc (a room at its Paris resort Friday night time begins at $2,000). It doesn’t look like blind optimism, although.
An American Express and Altiant report launched on the convention exhibits practically 60% of rich vacationers plan to spend extra on journey in 2023. Only 10% mentioned they deliberate to tug again on journey spending.
Watch your again, Hilton and Marriott
Marriott International and Hilton, the world’s largest resort corporations, each touted upcoming progress to their luxurious manufacturers like Edition and Waldorf Astoria.
However, among the extra fascinating strikes got here from different world powerhouses like IHG and Accor. IHG targeted a lot of its luxurious progress story on manufacturers like Six Senses and Regent, which sit above the corporate’s historic luxurious model of InterContinental.
Accor’s progress technique hinges on manufacturers like Fairmont, Sofitel and Raffles, in addition to way of life ideas underneath the Ennismore banner — that includes manufacturers like Gleneagles and The Hoxton.
Is it sufficient to make folks ditch their Marriott Bonvoy or Hilton Honors accounts immediately? Probably not, however these are quickly rising, formidable gamers value contemplating subsequent time you guide a high-end getaway.
Smaller, impartial and liking it that approach
Points and miles devotees, like many people, will seemingly keep on with luxurious manufacturers throughout the community of a respective loyalty program. Still, it’s placing to see simply what number of smaller collections on the market are simply tremendous with remaining smaller gamers with sturdy grips within the luxurious sphere.
The Dorchester Collection — the proprietor of properties such because the Hôtel Plaza Athénée in Paris, The Dorchester in London and The Beverly Hills Hotel in Los Angeles — has 9 resorts open world wide, with upcoming openings deliberate in Dubai and Tokyo.
Cheval Blanc operates 5 resorts. Belmond, one of many larger manufacturers of the smaller gamers, has 35 resorts and a number of other luxurious trains just like the Venice Simplon Orient Express.
None of the leaders of those manufacturers appeared significantly bothered by the actual fact they aren’t linked to a bigger model community like a Marriott or Hyatt.
Aman’s continued rise
There’s a number of thriller to the ultra-luxurious and ultra-expensive Aman Resorts. However, so much is going on on the firm past its latest opening in New York City.
The firm plans to launch its extra reasonably priced Janu model subsequent yr in Tokyo. Also, there are non-hotel ideas within the works, similar to a efficiency skincare line. The concept behind it’s which you can have Aman vibes from the consolation of your personal residence (plus Aman already sells issues like candles and fragrances).
The firm is even exploring a loyalty incentive program, in accordance with Harriet Rowlinson, Aman’s world head of promoting. Don’t get too excited by the concept of accruing Aman factors, nevertheless. Rowlinson hinted regardless of the consequence is perhaps would lean extra within the route of experiential rewards.
The rise of Regent
There’s been a bit of debate within the resort orbit about IHG’s Regent roadmap lately because it acquired the model in 2018.
Some puzzled how world it may develop into past its sturdy model identification in Asia (although there are Regent resorts in Berlin and southwest Montenegro). IHG throttled the model ahead this week by asserting plans to reopen the Carlton Cannes subsequent yr, beforehand an InterContinental, as a Regent. IHG is doing an analogous InterContinental-to-Regent conversion in Hong Kong.
I took a tough hat tour of the Regent development website in Cannes earlier in the present day and whereas I wasn’t allowed to take pictures of what’s underway, I need to say: This goes to be a serious participant within the luxurious journey area.
Careful consideration to element in restoring the unique Belle Époque design to trendy glory — together with overhauling a car parking zone right into a lush again backyard with a year-round swimming pool — will make the Carlton Cannes, a Regent Hotel, a must-stay within the south of France.
However, it must also be an indication that the broader Regent model shall be an important asset for IHG in profitable over luxurious vacationers. What does it try this Six Senses doesn’t? Think of Regent as the posh model that’s going to come back with a lot bigger resorts.
“It’s luxury at scale,” Jane Mackie, senior vp of world advertising of luxurious manufacturers at IHG, mentioned of Regent. “Six Senses has that very much sustainability-focused design [and] a bit more minimalism. With Regent, we do have what we call unexpected harmony, some surprises in the design, and we always say that the hotel design should have 10% decadence.”
All aboard
The star of your complete convention was a prepare automobile from Belmond’s Venice Simplon Orient Express that was parked outdoors the venue.
Not solely was it nice for picture alternatives, however the prepare additionally comes at a time when Belmond is seeing sturdy progress in demand for the posh prepare.
The firm even plans to roll out new suites on the prepare subsequent yr to fulfill demand. It’s not the one one working within the area: Accor plans to roll out its personal line of Orient Express routes with restored trains in 2024.