In an industry where the extraordinary is expected by guests, luxury travel and hospitality finds itself at a critical crossroads. As I prepare to present a keynote at the Forbes Travel Guide Summit in Las Vegas, an event where the who’s who in luxury travel and hospitality come together, a pressing issue looms large on the horizon.
This issue is the glaring absence of hospitality companies from the list of the top 100 most valuable brands by Interbrand, except for Airbnb, which is an aggregator, and Disney, which is only in part a hospitality company. This omission is not an oversight but an indication of a deeper issue afflicting the sector.
The dilemma lies in a simple yet profound truth: Merely selling a dream is no longer sufficient.
‘Fine’ is the F-word of luxury#
In a world where the essence of travel and hospitality seems increasingly homogenized, many brands have submerged themselves in a “sea of sameness,” as I have stated in previous columns. Luxury hospitality brands are regularly forgetting the most crucial element — the guest. This raises pivotal questions: Is what we call “luxury” truly luxurious, or is it merely a well-packaged version of the ordinary? Is the guest merely present in our spaces, or are they genuinely prioritized?
One might provocatively suggest that “fine” is the most damning F-word in luxury hospitality. Bill Walshe, the founder of Prideology and former CEO of Viceroy Hotels, has used this comparison in many of his presentations to alert hospitality executives of the danger of mediocracy. Too many experiences in the luxury sector are just that — fine. They are predictable and ordinary, but crucially, not extraordinary.
On a recent flight between the US and Asia in the business class of a major US airline, I experienced 17 hours of “fine.” While the service was friendly, it was nothing special, nothing memorable, and, for sure, nothing extraordinary.
Contrast this with a 37-minute flight between Singapore and Kuala Lumpur on Singapore Airlines, where every minute of the experience was nothing short of extraordinary. The service was so mind-blowing that I wished the flight would never end. The 17-hour flight to Singapore with the other airline would have long been forgotten if it did not contrast so sharply with what is possible in terms of an extraordinary experience.
Similarly, most hotels offer the same experience, often in an underwhelming fashion. The room may be nice, but the service regularly lacks the personal touch, the differentiation, and the “wow” that define true luxury. Luxury travel and hospitality are often just luxurious in name and price point. During my trip to Asia, I experienced four self-proclaimed leading luxury hospitality brands, and not one of these experiences was truly amazing.
The problem? Lack of brand story#
What is the root cause of this mediocrity? A dramatic lack of brand storytelling as the foundation for customer experiences. Today, most brands oscillate between selling “paradise” and “coming to the home of a friend.” Such narratives, while comforting, do little to differentiate one hotel from another.
The over-reliance on real estate, with investments often reaching into the double- or triple-digit millions, contrasts starkly with the underinvestment in the soft factors, including the creation of brand story-related client experiences that engage emotional aspects. And in the quest for operational excellence, the guest becomes collateral. Luxury is reduced to beautiful aesthetics and friendliness.
In the quest for operational excellence, the guest becomes collateral. Luxury is reduced to beautiful aesthetics and friendliness.
Transcending the sea of sameness#
The solution involves a multi-faceted approach. Firstly, brand storytelling must be elevated. A compelling narrative that resonates on an emotional level can transform an ordinary stay into a memorable journey.
Secondly, the creation of differentiated brand experiences is paramount. These experiences should not only reflect the brand’s unique story but also embody it in every guest interaction.
Thirdly, rigorous team training is essential. Staff should not just perform tasks but embody the brand’s values and story, ensuring that every guest interaction is personalized and memorable.
Lastly, the principle of “inspire, wow, surprise” must be ingrained in every aspect of the guest experience. This principle challenges us to constantly seek innovative ways to exceed guest expectations. In my book, Luxury Marketing & Management, I describe luxury as the art of perpetually delivering positive surprises. If it’s not “wow,” then it is not good enough.
Luxury is the art of perpetually delivering positive surprises. If it’s not “wow,” then it is not good enough.
At this juncture, the luxury hospitality industry faces a dramatic wake-up call. The path to reclaiming a position of prominence and value in the eyes of the consumer lies in rebellion against the conventional. Merely offering luxury by traditional definitions—spaces filled with opulence and services that tick boxes—is no longer sufficient. The future belongs to those who dare to differentiate, to those who place the guest at the very heart of their story, and to those who understand that true luxury is not just about where you are but how you feel.
In an era where every day sees the opening of at least one new luxury hotel somewhere in the world, each fundamentally promising the same, and where premium airlines constantly battle low customer satisfaction scores while being squeezed between budget carriers applying pressure on prices and semi-private offers, the transformation from conventional to exceptional is not merely the desired journey for guests; it is a mandate for the industry. There is no time for complacency.
This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders to Watch.” He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. He’s authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker.
Daniel frequently conducts masterclasses on various luxury topics across all continents. He’s a sought-after luxury expert, appearing on platforms like Bloomberg TV, Forbes, The Economist, and more. Holding an MBA and a Ph.D. in luxury management, Daniel has received education from Harvard Business School.
All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.
Follow him: LinkedIn: https://www.linkedin.com/in/drlanger, Instagram: @equitebrands /@drdaniellanger