ATM PREVIEW: A Lesson in Luxury

Few regions in the world demand more from luxury lodging than the GCC. It’s little surprise that Arabian Travel Market has focused on this sector with a ‘Spotlight on Luxury’ theme in the 2014 edition.

But what do our experts have to say on how to keep pace with the evolution of luxury travellers’ needs?

There are plenty of facts and figures that highlight why the luxury hotel industry in the Middle East is a lucrative business to be in. One of the core markets, GCC nationals, spend 260% more on airfares than any other nationality, 430% more on accommodation and 558% more on dining.

Unsurprising, when according to a 2012 Credit Suisse report, the number of millionaires in the UAE is set to grow by 12% by 2017, reaching 48,000 individuals.

The global picture is promising too: research released by the Boston Consulting Group (BCG) put luxury goods and services spending by the world’s super rich at US $1.8 trillion in 2013, with $1 trillion spent on services and $460 billion allocated to one-of-a-kind travel adventures.

But, those with more money typically expect more for their money and they are used to the finer things in life; to access and impress this lucrative market you have to be well versed in what luxury means and how to provide it.

The luxury debate — started by our columnist Guy Wilkinson on page 35 — is likely to be one of the key talking point’s at this year’s Arabian Travel Market, which features the theme ‘Spotlight on Luxury’, in which premium travel and hospitality will be the focus.

Luxury brand exhibitors, targeting luxury buyers and visitors, will be treated to special seminar sessions exploring the high value market segment for both inbound and outbound travellers.

Mark Walsh, portfolio director, Reed Travel Exhibitions, organiser of ATM, said there can be “few places on earth” that have such a concentration of luxury five-star hotels complemented by a lifestyle to match.

“The luxury theme clearly resonates with ATM participants and so we have a dedicated platform for discussion and brand showcasing this year,” he added.

The Oberoi, Dubai, is the official luxury hotel for luxury buyers at ATM 2014, but a host of other renowned luxury hospitality brands including Amenyara and Zaya Retreats, Anantara Resorts & Spas, Mandarin Oriental, Kerzner International, FRHI Hotels & Resorts, Taj Hotels Resorts & Palaces, Bulgari Hotels & Resorts and The Ritz-Carlton Hotel Company will be present.

High-flying destinations including Monaco, Mauritius, Maldives, and the Seychelles will also have a presence.

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Luxury Trends
A 2014 trends report released by 250-year-old luxury travel company Cox & Kings, said that the luxury travel landscape this year will see an increase in culinary adventures and gastronomic pilgrimages, as well as the adding-on of destinations to extend layovers as high net worth individual (HNWI) globetrotters increasingly break up long haul flights, adding exotic excursions as part of an adventure bucket list.

Raki Phillips, area sales manager, FRHI Hotels & Resorts, Middle East, Africa and India says that when you look at luxury tourism, “it all points towards a common theme – experiences”.
“The question becomes what can you offer that is different, compelling and overwhelmingly gratifying from an overall guest perspective?” he continues.

But Vincent Mercurio, GM The Address Dubai Mall, warns the basics must always be right, such as flawless comfortable rooms and quality amenities.

“Our guests also want a pampered feeling throughout their time with us, but only the savvy know best how to creatively deliver this on cue,” he asserts. “A hotel must complement their destination to offer a 360-degree experience, complete with easy access to world-class dining venues, shopping, and unmatched leisure options.”

Mercurio adds that “journey-like getaways” are also a growing trend in leisure travel, ideally in exotic locations that provide memorable excursions and breath-taking experiences.
Axel Jarosch, GM Six Senses Zighy Bay, concurs, adding that people are looking for a unique experience through distinctive excursions and adventures.

“They’re looking for alternative hideaway as luxury travellers are getting used to glamourous products so they would like to explore something extraordinary, out of their habits, including to live in the authentic local environment, having local food, exploring the local area etc,” he adds.

It’s an important factor that Anthony Tyler, the newly-appointed general manager at Four Seasons Hotel Riyadh, firmly believes makes a difference. “This segment of today’s luxury travellers are looking for a more intimate exploration of a destination’s culture and people,” he asserts.

“Regardless of the destination it has become increasingly apparent that it’s the experience that matters the most and that people are willing to pay for memories that will last a lifetime.”

And while the trends may be apparent, location choices do change from year to year, according to David Thomson, COO of JA Resorts & Hotels.

“The way people spend and their travel patterns have changed,” he argues, adding that the hotel group has worked hard to provide genuine experiences where guests are rewarded with “heartfelt hospitality and an array of unforgettable memories”.

These include sunset camel rides with bubbly, which combines authentic experiences with that touch of luxury.

When it comes to price, guests are expecting the quality of accommodation and privacy, but added value rather than reductions, says Haydee Cruz, director sales and marketing, Sun Siyam.

“We see the demand for health and spa treatments increasing and overtaking the gastronomic experience for example,” she says of the trend.

“With luxury travellers becoming more and more discerning, they show an increasing demand for exclusive, tailor-made experiences. Sun Siyam Resorts differentiates itself from other luxury resorts by not only offering the same amenities as other luxury resorts in the Maldives, but through doing something special, something beyond luxury. We want the world to know that the Maldives is more than just beautiful beaches and amazing diving.”

However, there are various conflicts with offering luxury in the modern world: does the presence of technology detract from the personalised one-to-one service traditionally associated with luxury?

Can hotels really continue to delight via extravagance when the need for the industry to be sustainable is ever pressing? And with a move towards lifestyle, is the market actually saturated with luxury hotels and seeking something more trendy?

In our exclusive vox pops over the page, find out where some of the region’s leaders of its most high-end hotels stand on the luxury debate.