Summary
In this episode, Sam Erik Ruttmann interviews Piers Schmidt, the founder of luxury branding consultancy firm Luxury Branding. They discuss the challenges faced by luxury hotel brands in gaining global recognition and value compared to luxury goods brands. They explore the pricing premium discrepancy between luxury hotels and luxury goods, as well as the visibility and marketing challenges faced by hotel brands. They also discuss the distinction between ultra luxury and luxury hotel brands and the limitations on the growth of ultra luxury brands. Finally, they delve into the mindset of revenue generation and the rise of experiential luxury in the hospitality industry. The conversation covers topics such as loyalty programs and ultra luxury brands, building true affinity with guests, the Red Sea Global development in Saudi Arabia, and the future of niche brands.
Takeaways
- Luxury hotel brands face challenges in gaining global recognition and value compared to luxury goods brands.
- There is a pricing premium discrepancy between luxury hotels and luxury goods, with hotels commanding a lower premium.
- Visibility and marketing are key challenges for luxury hotel brands, with a need for more innovative and impactful strategies.
- Ultra luxury hotel brands are limited in their growth due to the high costs of development and the scarcity of suitable real estate.
- Revenue generation in the hospitality industry should focus on creating unique and exceptional experiences for guests.
- The rise of experiential luxury has led to increased demand for one-of-a-kind, immersive experiences in the hospitality sector. Loyalty programs are often used as addiction programs rather than creating true loyalty.
- Ultra luxury brands should focus on building true affinity with guests rather than relying on loyalty programs.
- The Red Sea Global development in Saudi Arabia is a unique and sustainable project that aims to attract talent and change the tourism map.
- Niche brands that focus on a specific theme or passion have the potential to succeed by connecting with their target audience.
Chapters
00:00 Introduction to Luxury Branding and Hospitality
02:04 The Lack of Recognition for Luxury Hotel Brands
04:31 Pricing Premium Discrepancy
07:47 Visibility and Marketing Challenges
14:47 Differentiating Ultra Luxury and Luxury Hotel Brands
24:11 Revenue Generation and Differentiation
27:06 The Rise of Experiential Luxury
31:55 Loyalty Programs and Ultra Luxury Brands
36:04 Building True Affinity with Guests
40:27 Red Sea Global Development in Saudi Arabia
51:24 The Future of Niche Brands
Selection of brands mentioned in the Podcast
Zannier https://www.zannierhotels.com
Habitas https://www.ourhabitas.com
My Guest
Piers Schmidt, Founder
Luxury Branding
Email contact: piers.s@luxury-branding.com
Luxury Branding: https://www.luxury-branding.com/
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