According to Karla Otto and Lefty’s latest report, the hospitality sector is booming: luxury travel is forecast to grow to over $700bn in the next three years. The report highlights that, “this comes at a pertinent time in the consumer landscape, where a sense of experience is now valued more highly over possession.” Read on to learn which partnerships have resonated the most of late, and why.
The Allure of Luxury Hospitality
A Shift from Ownership to Experience
Post Covid, the travel and hospitality sector has seen unprecedented growth. What was initially dubbed as ‘revenge travel’ resulted in sustained impact, especially luxury travel which, according to Technavio, is forecast to grow to $703.14bn from 2022-2027. This comes at a pertinent time in the consumer landscape, where a sense of experience is now valued more highly over possession, and lifestyle has become a buzzword for luxury brands. According to GWI, this is especially prevalent for high- net-worth travellers: over half (57%) would rather spend money on an experience over a product. And what better vehicle of experience than travel?
Digital Drives Consumer Desire
Incidentally, a well-travelled lifestyle has become the ultimate social media clout. According to Lefty data, key hospitality sectors such Hotels, Airlines, Boats and Trains have seen a significant uptick in share of voice across socials. The luxury hotel industry grew by 50% from 2022 to 2023, and shows no sign of slowing: for H1 2024 we observed that in 6 months, the industry has already reached 64% of the visibility created in 2023. For luxury travel by air, boats and trains there was an average in increase in visibility of 76% from 2022 to 2023, and for H1 2024 we observe a major increase in monthly EMV for the boat (53% more EMV per month) and airline industry (30% increase in monthly visibility).
A Partnership Boom
As a result of this shift in mindset from ownership to experience, and a boom in the digitisation of the sector, brands across verticals are vying for a piece of hospitality’s unwavering consumer allure and market buoyancy. In the past two years, we’ve witnessed a flurry of branded beach pop-ups, hotel takeovers, hospitality collaborations and influencer partnerships. But what worked best?
Lefty and Karla Otto’s Insights teams join forces with the expertise of Karla Otto’s Hospitality department to uncover how consumer behaviour and digital media have impacted the luxury sector, unveiling how brands across verticals can strategically tap into the ever-growing breadth of hospitality, with data-driven validation.
“The Hospitality sector has reached a significant position within the luxury industry as the HNW consumer prefers to invest in an experience over owning a product. Therefore, we see increasing interest in fashion, beauty, sports and cultural brands to launch creative partnerships with hotels or restaurant groups.” -Sara Henrichs, VP, Hospitality, Karla Otto
The Luxury Traveller: Mindset & Preferences
41.9% Of HNW travellers say they have interests in fashion.
36.5% Of HNW travellers say they enjoy cruises.
76.3% Of HNW travellers say they enjoy beach & resort type of vacation.
+48.4%HNW travellers are 48.4% more likely to seek once-in- a-lifetime experiences when travelling for a vacation. Utilising primary data from GWI’s Consumer Survey from 2024, we lift the lid on travel triggers for the HNW (High Net- Worth) traveller. The results showcase this demographic’s interest in experiences, art, culture and wellness.
Hospitality Partnerships: The State of Play
Design: Grand Hotel Bellevue London showcases Fabrizio Casiraghi-designed interiors that bring flair to a historic Victorian Townhouse.
Fashion: Fashion’s most recent hospitality hotspot includes Gran Meliá Hotels & Resorts x Alberta Ferretti’s The Bombon Pool Club at Hotel De Mar in Mallorca.
Jewellery: Combining the luxuries of caviar and diamonds, Caviar Kaspia and Begüm Khan recently teamed up for an exclusive high jewellery collection.
Art: Popping up at the Venice Biennale, Belmond collaborated with acclaimed artist JR, producing an exclusive carriage for guests of the Biennale could visit.
Beauty & Wellness: Dior has created a spa at the French Riviera’s Hotel Du Cap-Eden-Roc, and has recently unveiled a permanent experience on the Eastern Orient Express and Royal Scotsman via Belmond.
Sport: Sports partnerships are rife, especially across the Airline sector. Emirates leads the way with an extensive sponsorship and partnership spectrum across football, cricket, tennis and the NBA.
Food: In 2023 the Belmond Train Line Andean Explorer established a partnership with Veuve Clicquot to offer unique experiences pairing champagne and food menus catered by prestigious chefs.
Celebrity & VIP: Celebrity partnerships are growing across the category and generate significant visibility. The most visible partnership was Zendaya x Bulgari Hotels, garnering $7.2M EMV.
For more insights, access the full report here.
