The positives luxury hotels can take away from the Covid-19 pandemic

All luxury groups /chains should be prepared to create an emergency fund that would be accessed during such crisis, to support at least partially, the effects on their human resources but also to support the re-start of operations once the pandemic allows a return to normalcy – which includes marketing and sales. Each property, managed, owned or even just franchised, should have an yearly contribution to such an emergency fund.

Instead of being ‘flooded’ on social media with cooking recipes or sports classes which hotels confuse for a way not to be forgotten, during a crisis of this magnitude, which is generated by a global pandemic, customers and travellers would appreciate to learn how each individual luxury property or luxury hotel group (chain) is taking care of its human resources, including how their salaries could be maintained at least partially, and also how staff are being laid-off.

During a major crisis, while guests may not be able to travel, such as it is the case for Covid-19, luxury consumers will greatly appreciate to learn about charitable initiatives hotels may initiate, no matter how small or big they are – whether it is providing a free meal on a daily basis or hosting those affected from the local community, or even at a larger scale depending on the size of the chain. Engaging long-time repeat (loyal) guests in these initiatives is also an opportunity.

Going ‘behind the scenes’ and portraying staff is another relevant communications message on social media. A day in the life of Chef X. could showcase their family, their pets as well as other passions such as gardening. Return guests at major luxury hotels and resorts often know many staff by name.

Unlike other luxury sectors, customer service for luxury hotels is crucial and consistency is a must! In order to achieve and maintain a consistently high customer service, luxury hotels rely on the best staff – highly trained and motivated.  Post-crisis, consumers’ expectations may even increase, especially how they perceive value when it comes to luxury hospitality – exceeding expectations will be even more challenging, while staying relevant.

Staying relevant is very similar to other luxury sectors, and the guilt factor which surfaces post such a crisis, is a must to take into account when planning a post-crisis strategy. Even if guests may still afford a certain expenditure, they may opt for the highest room category instead of splashing out in a suite.

Conducting even a soft redesign or refurbishment of accommodations will play a crucial role in how value is redefined – product will not be perceived of a better standard but it would also meet needs such as those related to cleanliness – a brand new carpet or even brand curtains will be much appreciated and perceived as cleanliness. Mentioning that the hotel has, for instance, disinfected its AC system will be yet another positive.

For instance, including airport transfers in room rates (not only suites) could bring a different perception of value. After this particular pandemic, guests will appreciate this personalised approach, riding in an impeccably cleaned limousine with a perfectly groomed chauffeur. Proximity car(s) would also be an additional important value – a chauffeur driven luxury car, complimentary for hotel guests within a radius of 10 to 15 km – this could be shopping or sightseeing.

For 90% of luxury hotels, all car services are outsourced (hotels do not own cars). Hotels need to be much more fervent in negotiating significantly lower rates, while there is also the possibility to negotiate marketing deals (including barter) with luxury car makers.

Additional sources of revenue generated by the Covid-19 pandemic:

• in-room sale of a sanitary kit to include a wide range of disinfectant solutions, masks, sprays (including sanitary kits for children) –
• ‘immune system boost’ drinks or dishes served in one of the F&B outlets or in-room dining (dishes based on organic produce, healthy protein etc)
• specific spa treatments to focus on balance, stress-relief, sleep
• on call doctor available for a check-up

These are just a few of the many positives that luxury hotels can take away from a crisis such as the ongoing pandemic of Covid-19.

CPP-LUXURY.COM has been reaching out to major individual luxury hotels and luxury hotel groups to gather their insights, for a possible larger analysis / report.

We welcome any of your insights / comments or feedback – office@cpp-luxury.com.

Oliver Petcu

 

 

 

 

 

 

 

 

 

 

 

 

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