Hotels localize luxury

When jetting off to distant destinations, affluent travelers often seek the comfort of familiar luxury hotel chains. While brand consistency is key to maintaining prestige and loyalty, consumers also crave a localized cultural experience. This blend of global appeal and local immersion is driving the expansion of leading hospitality names like Edition, W, NoMad and The Ritz-Carlton. Established by Studio 54 founder Ian Schrager in 2008, Marriott International’s Edition brand has plans to double its number of locations from 20 to 40 over the next decade. A subsidiary of Marriott International, The Ritz-Carlton currently operates over 100 hotels across 30 continents, including 16 in China. Meanwhile, W has more than 65 locations in over 30 countries. As global luxury spending is set to reach €1.5 trillion in 2024, according to Bain & Company’s Luxury Goods Worldwide Market Study, the hospitality industry is undergoing a significant shift. While macroeconomic uncertainty and elevated prices have tempered discretionary spending, the appetite for premium travel experiences remains robust, as evidenced by these sprawling properties. For the industry’s most revered hotel chains, the key to thriving lies in maintaining a consistent brand identity while incorporating localized strategies. The power of personalization According to data from Economist Intelligence, Chinese tourists are shifting their spending from shopping to cultural and experiential activities, with a growing demand for hyper-personalized offerings. Wellness tourism, in particular, has seen significant growth, with Bain & Co. reporting that younger travelers are increasingly seeking yoga retreats, spa treatments, and even smart sleep technology, while older generations prefer more traditional comforts. By leveraging technology and data analytics, hotel brands can anticipate and exceed guest expectations, personalizing services to cater to preferences in wellness and cultural immersion. The Edition Hotels exemplify this approach, embodying modern luxury through distinctive adaptations of their signature elements. While each hotel features globally consistent touches like Le Labo’s black tea scent and sumptuous throws, they also integrate local designs and collaborations to reflect the unique culture of their surroundings. George Fleck, Senior Vice President and Global Brand Leader at Edition, tells Jing Daily, “A hotel must capture the essence of its surroundings, embrace local culture, and offer guests a comforting sense of familiarity – that’s what Edition strives for.” He adds, “Beyond Asia, The London Edition, The New York Edition, and The Times Square Edition all attract substantial numbers of Chinese travelers, highlighting how our properties in major global hubs resonate with this sophisticated market segment of today’s luxury travelers.” Dale Parkington, General Manager at The Ritz-Carlton Shanghai, agrees that personalization is key to attracting today’s cultural luxury consumer. “While localization is important, you cannot do any more than personalize the experience. Perhaps a guest meets one of our employees once in the lobby and says something, then we remember it and create an experience catered to them. That can be really amazing. We have the space and freedom to do that in each of our locations. So that we can make sure that we are relevant to each local environment,” he says. Localizing without compromise At the same time, maintaining brand authenticity is critical in hospitality. As Parkington explains, “People choose a brand depending on the occasion. They come to The Ritz-Carlton for a reason, so we don't try to be anything else. That can be a pitfall in luxury. I think the most important thing for any business right now is to be true to yourself.” One of two locations in Shanghai, The Ritz-Carlton Pudong balances its global identity with local nuances to serve a diverse range of guests. “We have a wide spectrum of guests at Ritz-Carlton Shanghai, from Eastern European countries, from Africa or South America. There are a lot of first-timers who want to experience China. So we want to give them the best version of cuisine in this city,” says Parkington. “Then, we also have the hardened traveler who’s been on a business trip and wants to relax. Some Westerners fancy some of the best Italian food to unwind and have a coffee. It’s about feeling like home. Fifty percent of our business is foreign and the rest is mainland China,” he continues. At The Ritz-Carlton Shanghai, the Flair Rooftop Restaurant, perched on the 58th floor, offers unparalleled views of the city’s skyline and the Oriental Pearl Tower, an unmistakable nod to Shanghai’s contemporary cultural scene. Meanwhile, its Michelin-starred Jin Xuan Chinese Restaurant and music collaborations further immerse guests in the city’s rich cultural scene. These strategies cater to both international travelers seeking an authentic taste of Shanghai and domestic guests desiring luxurious yet familiar experiences. The Edition similarly stands out across locations through its culinary offerings. At the Barcelona Edition, for example, the restaurant Veraz incorporates ingredients sourced from local suppliers at the Santa Caterina market. The lunch and dinner menus showcase an innovative take on Spanish Mediterranean cuisine, paired with a curated selection of over 30 wines from local vineyards. According to the company website, all the Edition hotels are curated as “microcosms of the world’s top cities.” Collaboration as a local strategy Marketing plays a pivotal role in reinforcing a consistent brand identity, as seen in campaigns like Ritz-Carlton’s 2023 “Leave Better” initiative, which spanned key regions to emphasize a transformative travel experience. However, localization truly thrives through strategic collaborations. A prime example is The Ritz-Carlton Bali’s recent partnership with Missoni to launch a Resort Club collection. This collaboration blends luxury across industries while capitalizing on the hotel’s stunning beachside setting. “Some brands are very prescriptive across their global locations; they have the recipe set and cannot do anything without going through head office or the ‘ivory tower.’ We have not been set up like that,” explains Parkington. “We have the Ritz-Carlton culture as a guiding principle, but pretty much everything else is up to us.” Each hotel is therefore given freedom to orchestrate their own brand collaborations or partnerships. The Shanghai location focuses on those that amplify Chinese culture and support causes in the city. Meanwhile, the Edition Hotels emphasize distinctive design and programming through local partnerships. For instance, at The Tokyo Edition, Toranomon, a festive tree designed by Japanese artist Tomo Koizumi and illuminated by Gokou Neon Studio captured the essence of local artistry and creativity. According to Fleck, “We overcome the challenge of innovation through careful localization – whether it’s bringing the acclaimed Paradiso pop-up to our Singapore property or hosting intimate events like our collaboration with Hajime Sorayama in Tokyo. Our success lies in striking the perfect balance between global vision and local execution, always pushing boundaries while respecting cultural contexts.” That said, some partnerships are consistent across the board, such as the aforementioned Le Labo amenities. Fleck adds, “When selecting partners, we look for brands that not only maintain consistent quality globally but also understand the importance of personalization and attention to detail.” Luxury brands can take cues from high-end hotels, which excel at maintaining consistency while innovating within their regions. An authentic embrace of cultural appreciation, personalized service, and strategic collaborations is clearly the path forward.

Hotels localize luxury

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Published November 21, 2024

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Hotels localize luxury