Luxury hotels still discounting in 2010

by Tom Johansmeyer on

If you didn’t book a luxury trip last year, don’t worry; you didn’t miss your big opportunity. Without a doubt, 2009 was hell on the luxury travel market. It was rough on just about every luxury business, frankly. And while the economy looks like its taking a step in the right direction this year, it’s not doing so fast enough for luxury travel providers. Look for another year of discounts, according to industry tracking firm Rubicon. Properties like the Four Seasons, St. Regis, Ritz-Carlton and Mandarin Oriental are going to have to bite the bullet again in 2010.

According to Rubicon, luxury hotels are booking more business at this point in the year than they did in the same period in 2009 – but only 4.6 percent more. Meanwhile, the average rate they’re fetching is off 13.2 percent. Clearly, the upscale properties are buying guests with discounts. Of course, luxury on sale still isn’t cheap. You’re looking at $325 a night instead of $389 a night a year ago, Rubicon reports, based on bookings made as of February 1.

“Hotel companies are not rushing to lift the rates and slow that tide of recovery,” Rubicon CEO Steve Swope told USA Today. “So the other good news is: there are some real bargains out there for consumers. Now’s a good time to get out and travel. In another 18 to 24 months, the rates seen today are not going to be there anymore.”

Ritz-Carlton President Simon Cooper talks economy, industry and luxury

by Melanie Nayer on

The term ‘luxury’ is synonymous with glamour, grandeur and extravagance, and often accompanied by a hefty price tag. But what if you were told you could travel luxuriously without breaking the bank? That’s the concept of Ritz-Carlton’s brand strategy, and more travelers are finding that ‘casual elegance’ means living it up without breaking the bank.

The Ritz-Carlton Hotel Company has been around for nearly 100 years and has set the gold standard in luxury hospitality worldwide. Its first hotel, The Ritz-Carlton, Boston opened on May 19, 1927 with a room rate of just $15 – mere pennies in today’s pockets, but a stretch for those recovering during the Great Depression. Throughout its century-long life, the Ritz-Carlton weathered the economic storms and continued to provide a level of quality synonymous with luxury.

I recently spoke with Simon Cooper, president and chief operating officer of The Ritz-Carlton Hotel Company, to get his thoughts on how luxury, by definition, has changed over the years, and I also got a sneak peak at what’s to come in the next 100 years for the Ritz-Carlton.

How has the luxury customer changed–do they want the bells and whistles or does price matter?

Simon Cooper: Obviously, consumers have less disposable income today than they had 18 months ago. Demand has been constrained and we have more vacant rooms than we used to have. In 2009, by comparison, we filled more rooms than in 2008, but the average rate was lower. The point being that people are still traveling and looking for luxury experiences.

The luxury customer has changed. First, there is less disposable income so people are more focused on what they spend. Authentic, real products are going to succeed. Second, there is a certain degree that people don’t want to flash their money around – a lot of people are suffering so others are asking themselves, “Should I really be doing this?” People are being a little more careful with their spending. From our point of view, we can live with that. We aren’t a see-and-be-seen place; our guests come to relax and enjoy time with their families.

The number one household expense annually is the vacation – we knew that 2009 was going to be really challenging and we looked ahead. Consumers are making a choice to stay with us and it’s not because the hotel down the street didn’t have space – right now, everyone has space. Our philosophy: if you’re going to take only one vacation, take it with us.

Has the Ritz-Carlton brand changed to keep in tune with the new generation of customers?

SC: We are more ‘casually elegant.’ It’s been a long journey, but we didn’t like what we were hearing, which was often ‘the most traditional brand in your space.’ We needed to be in a global space and as the traditional Ritz-Carlton guests were changing, we needed to shift off of their positioning.

It seems the Ritz is doing a lot of international development, specifically in the Middle East and Asia. Does that mean the development of luxury hotels in the U.S. is done for awhile?

SC: There is a trend – there aren’t a lot of places in the U.S. where you can say, “This needs to be a Ritz.” There aren’t a lot of gaps in the U.S. so we’ve been working internationally and we’re working to open two hotels in Shanghai in the next few months, and Cairo and Israel are coming.

Mr. Cooper shared with me details of the upcoming Kowloon [Hong Kong] Ritz-Carlton, which will rival Dubai’s Burj as the world’s tallest building. More on that later…

Meanwhile, the hotel business overall continues to weather the tough economic times. Earlier today, we announced the Ritz-Carlton Aruba resort, set to open in 2012, and the newest member of the family, the Ritz-Carlton Los Angeles at LA LIVE opens next month.

When it comes to luxury, The Ritz-Carlton has been the front-runner. While new hotels continue to pop up around the nation and globally, Ritz relies on its brand to be a success, and this brand is committed to doing it right.

Daily Pampering: Luxury Avenue in Cancun changes travel shopping completely

by Tom Johansmeyer on

What do you do when your wallet starts to itch? If you’re sunning yourself in Cancun, Mexico, have a car take you from your resort to the new Luxury Avenue. This new travel retail destination has brought together in one place such stores as Mont Blanc, Cartier, Louis Vuitton, Ferragamo and Zegna — creating a shopping experience reminiscent of South Beach or Cannes. Luxury Avenue is within striking distance of the area’s top hotels, including Gran Caribe Real, Ritz-Carlton and Le Meridien Cancun.

When you need a break from toting your bags around — or if you want to fuel up for a run through Luxury Avenue — stop by the Luxury Bar and Café on the mezzanine level; it’s open from noon to 9 PM. There’s always Veuve Clicquot on ice, but you can sip a great red instead, if that’s how you prefer to unwind. Sit back in a bright pink loveseat — courtesy of Veuve — and chill like the flute in your fingers. If you’re intent on working in the midst of this decadence, at least you’ll be able to hit the free high-speed internet access.

Get your daily dose of pampering right here.

Tailor your stay to you at the new Phulay Bay Ritz

by Tom Johansmeyer on

Imagine passing into the new year in the newest Ritz-Carlton in the world. On December 22, 2009, the company will open a new property, Phulay Bay, in Krabi, Southern Thailand. This is the world’s first Ritz-Carlton Reserve, an upscale brand targeting affluent travelers. It will consist of 54 villas and a pavilion boutique hotel.

“Ritz-Carlton Reserve will feature signature, one-of-a-kind boutique resorts positioned in unique settings, each with a distinctive personality and sense of place reflecting its history and culture,” said Simon F. Cooper, president. “A refuge from the expected, Reserve is for travelers seeking to discover a singular location and peerless resort that will offer guests’ exotic, hand-selected ‘hideaway’ destinations in a relaxed, casually elegant atmosphere. Phulay Bay in Thailand is a natural choice for the first Reserve,” he continued.

The experience at Phulay Bay will be focused on personalization, with guests able to “design” their own visits. If you’re looking for a meditation class with local monks, trekking by elephant or a sea plane tour of the region, the staff will put it together for you. Discretion is valued, with high aubergine walls and dense trees providing something of a barrier against the pressures of the outside world.

The hard truth of green luxury travel

by Tom Johansmeyer on

“Green” has become yet another upscale offer for hotels and resorts around the world. The concept allows a premium to be charged – and justifiably so, given the increased expenses that come with minimizing environmental impact. Guests get to feel good when they indulge, and the hotel makes a few extra bucks. Everyone wins, right?

Well, it isn’t that simple. Any environmentally friendly measures publicized by a resort may be inherently “green.” A bag made from recycled material, for example, may result in a lower carbon footprint. However, this probably won’t compensate for wasteful behavior elsewhere on the property. Luxury is wasteful by design, and travelers seeking green resorts need to think past the trappings of conscience publicized by the resort.

Think about any hotel room – from mid-range through the absurdly upscale. The toilet paper is replaced when only a third of the roll has been used. Soap used once or twice is swapped for a fresh bar. You can opt to use the same towel two days in a row – likewise sheets – but it isn’t the norm. It’s a choice you get to make. So, who gives a shit if the lettuce is grown locally?

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Well, that’s a tad unfair. Every measure does count. So, a hotel that only buys produce from local growers or fish from sustainable sources is making a difference. Unfortunately, it’s difficult to reconcile these behaviors with what you see when you walk into your guestroom for the first time.

The lights are on.

The air conditioner is running.

The television is turned to the hotel’s proprietary station.

The radio next to the bed is playing slow, carefully selected music.

And so on.

When it comes to the confluence of luxury and green, the priority will always be given to the former. Any measure that detracts from the guest experience will not be adopted – which becomes increasingly true as the standards of the hotel or resort increase. And, this is probably what you want. After all, when you choose a destination based on service, comfort and style, you’re looking for service, comfort and style. You elected not to sleep in a tent in the middle of the desert for a reason!

Since a luxury property won’t cut back on some of the basics, there are a few things you can do to trim your carbon footprint when you check into an upscale establishment. First, use only the lights that you need, open the curtains and turn off the devices that don’t matter to you (e.g., the television tuned to the hotel’s ads). Turn the lights off when you leave the room. Do the basics … the stuff you would do back home.

Since you can’t erase your impact completely, buy your way out of it. You can purchase carbon offsets (from Terapass, for example). These are financial devices that basically compensate for the carbon emissions for which you’re responsible. Let’s say you drive your car 10 miles. You’ve created some emissions, and there’s nothing you can do about that. But, you can buy energy that’s created through sustainable sources (via the offset). That means that green power has been created and sent to the grid … and eventually is consumed. You used fossil fuels but balanced it out by supplying someone else with energy from an eco-friendly source.

Consider making a positive impact. “Voluntourism” is gaining momentum. You don’t have to take a vacation strictly to volunteer somewhere. Instead, set aside part of your trip to make a difference. The Ritz-Carlton’s “Giveback Getaway” program, for example, allows you to set aside as little as a few hours to help an organization near the resort (for me, it was helping on a panther refuge at the Ritz-Carlton Golf Resort in Naples, Florida).

The eco-friendly lingo may deceive you at some resorts, but you can overcome the marketing hype and take control of your carbon footprint. From the small to the profound, there are steps you can take while traveling to make a difference. If you don’t care – hey, that’s your choice. Just be realistic about the green offering and the impact it has.