The CEO of Starwood Hotels & Resorts said at the American Express Publishing Luxury Summit 2013 that the world is experiencing an age of change, which is altering the definition of luxury.
During the "Shaking it Up: Inside Starwood's Out-of-the-Box Thinking" session, the chief executive discussed how Starwood's St. Regis, The Luxury Collection and W Hotels are responding to challenges in targeting the new luxury consumer. Savvy marketers will examine how the industry is changing as a result of this new fast-moving, technology-driven age and respond quickly.
"The wealthy today are more diverse," said Frits van Paasschen, president/CEO of Starwood Hotels & Resorts. "There are more wealthy women and Asia is home to more millionaires and billionaires even though in the United States there are more millionaires and billionaires than ever before."
Whole new world
Starwood's executives call today's global setting the days of great change.
Around the world there is greater connectivity. These forces are accelerating and changing everything from business to society to everyday life.
This global connectivity is driving the age of luxury travel in emerging markets. Starwood now operates more hotels in Dubai than New York.
Thanks to technology, marketers in all categories have access to more consumers, and consumers have access to more information about the world.
Soon there will be more cell phones than people on the planet and many marketers cannot begin to predict the kind of change that this will bring to the industry, per Mr. van Paasschen.
If brands such as Amazon and Apple can recommend books and television shows for each consumer, hotels are expected to provide the same personalization such as a guest's favorite food, preferred room temperature and desirable destinations.
Technology makes it possible to not just talk to a brand's most elite guests, but anyone anywhere in the world. Consumers expect to have their unique preferences met everywhere they go.
"Great design and great service by itself can't set you apart anymore," Mr. van Paasschen said. "The old notion of luxury of serving ladies and gentleman is a credo for the ages, but I'm not sure it's a credo for this age of change.
There's more… continue reading "Starwood CEO: Yesterday's Luxury Is Tomorrow's Necessity" on the Luxury Daily website.
