Leading Hotels Survey Shows Strength of Luxury Travel Market

The Leading Hotels of the World, Ltd., in April engaged Market Metrix, a leader in feedback solutions for the hospitality industry, to conduct two surveys to gauge the views and behaviors of its hoteliers and consumers during the current economic downturn.

The resulting white paper, authored by Market Metrix co-founder and Vice President of Research Dr. Jonathan Barsky, provides interesting insights from around the world, and draws five significant conclusions that help us understand the marketplace, and the industry’s future.

While the recession has caused serious problems for many hotels across the board, the responses of more than 2,000 Leading Hotel guests from 95 countries, as well as 211 general managers, suggest that a strong rebound may not be farfetched.

According to the study, more than half of the respondents indicate that the global economic situation has had no impact on their intent to travel in 2009. Furthermore, 90 percent of guests say that “leisure travel is of the utmost importance to them and they may delay or cancel other leisure activities before canceling or delaying travel in 2009.”

With a mere 9 percent of general managers citing rate reductions as the strategy they are likely to implement to attract business, it is evident that a positive supply and demand situation is being recognized and forecasted from the hoteliers perspective as well.

The luxury guest is changing, according to the survey. Luxury travelers are demanding less pampering, and more entertainment. The current economic climate is shifting the mood and type of experience travelers are seeking.

Intercultural pursuits and opportunities for personal growth, such as shopping at village green markets, practicing foreign language skills and receiving a local gift at turn-down, now surpass the desire to be pampered. Hotels are protecting the guest experience and ADR.

With staff failures having the biggest negative impact on guest loyalty, hotels are being careful to not make hasty staff reductions. In unavoidable situations, managers will likely displace back-office employees or restaurant staff before cutting front-of-house, guest-facing staff.