A visionary in the hospitality realm, Kristie steers commercial strategy at KSL Resorts with keen insight. Her forward-thinking approach and deep understanding of luxury trends make her perspectives on the evolving landscape particularly valuable. In this candid conversation, she shares her thoughts on emerging shifts in high-end travel, the changing luxury consumer, and untapped revenue opportunities for discerning properties.
What do you see as the most significant emerging trends in the luxury hotel industry today, and how do you believe these trends will shape the future of luxury hospitality?
At a macro level luxury consumers and HNWIs have an insatiable appetite to harness and collect the craft of everything (CoE) while relentlessly pursuing longevity (and joy) and so-called “elastic luxury.” As such there is a continued stretching of established highbrow luxury brands into all aspects of modern culture and lifestyle.
These trends indicate the changing hopes, dreams and desires of luxury consumers, presenting opportunities for immersive hospitality centered on the “whole being of our human being.” Hospitality brands will evolve their “duty of care” to “duty of enlightenment, enrichment and betterment.” This journey will challenge how we recruit, the characteristics and capabilities of our “care takers” and where our brands will ultimately meet our guests. For example, might we see a “Conrad Clinic” or a “LVMH Longevity Center” replacing The Ritz-Carlton Spa?
Fairmont Grand Del Mar Resort in San Diego
How has the profile of the luxury hotel consumer shifted in recent years, and what are the key characteristics of today’s luxury traveler?
The luxury customer is neither a singular demographic nor homogenic. On one hand generational cohorts may display distinct traits, while on the other we are witnessing an extreme blurring of the lines between generations, instead, joined by a common purpose.
In terms of key characteristics that serve to guide the evolution of hospitality, we can expect:
- Increasingly understated luxury
- Immersive moments with uncharted cerebral connections – the endless pursuit to cultivate synapses
- Take-home value of joy, happiness and humor
- Meaningful and deeply personal engagement with a brand, not just “a stay”
In what ways can luxury hotels drive revenue by gaining a deeper understanding of their guests’ behaviors and preferences?
By taking an outside-in approach and “listening between the lines,” hotels can identify consumer problems, critical points of friction in their business, new product opportunities and the natural talents required to unlock value (in the broadest sense of the word). Buying solutions isn’t a new concept, but recognizing problems in a timely fashion has not always been hospitality’s strongest suit.
Can you share your thoughts on how luxury hotels can create and capitalize on ‘profitable moments’ to enhance both guest experience and revenue?
Jan Carlzon, the former CEO of Scandinavian Airlines System (SAS) coined the term “moments of truth” in the late 80s to describe the critical points of engagement between a brand and its consumers – possibly the earliest example of structured CRM in travel. I contend the time has come to challenge this concept across all categories of travel and hospitality with luxury standing to benefit most.
While it is important to journey map these so-called moments across every aspect of a hotel campus, a progressive luxury brand will recognize its evolving role as facilitator in the critical “moments of truth” between guests and their travel companions. It’s no longer about our product and them. It’s about meaningful connections between humans that lead to discovery, fulfillment and personal success. And of course, each guest is unique in this regard.
Once we truly understand our guests’ emotional drivers and goals, we can design and align our high margin services. Experience design, a newer capability for our industry, is an opportunity for agency partners in the “placemaking, life-staging and ultimate programming” business.
Silverado Resort in Napa Valley
What changes in the luxury psyche do you believe will challenge our current interpretation and delivery of luxury hospitality, and how can these changes present uncharted opportunities for driving revenue and profitability?
The luxury customer increasingly defines existence through the collection of cerebral stimulation and pursuits of purpose. They seek the “art of the possible.” They aspire to become athletes of life. Every minute matters because our time is finite. Wealth management services now include wellness and nutrition counsellors. Prenuvo body scans, and Galleri cancer blood tests join the ranks of Cartier, Aston Martin and San Vincente Bungalows in the line-up of places to go, things to do and services to consume. The luxury psyche is increasingly complex. Witness the new raft of funeral brands emerging to add luxury and vibe to our exit because to some, how we leave is just as important as how we arrive.
At what point might the minibar become an apothecary or the check-in, a check-up? Do we imagine FTEs as “Life Coach in Residence” or “Director of Joy?” This is next level life optimization – a great gym and medi spa simply won’t cut it. What will be the new price of happiness?
