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Social aspect of Luxury Hotels Research Paper


Introduction

Luxury hotel consumers are conscientious spenders. They put a lot of thought into the hotel-selection process, so it is crucial to understand recent social patterns affecting their decisions. Tourists’ need to access value, speed and status influence most of their choices in this industry.

Social factors driving the luxury hotel industry

Today, travelers desire to connect with their acquaintances, friends or family in the fastest way possible. Through the use of the internet, luxury hotels are tapping into this social factor in a big way. For instance, several companies have listed their hotels in global booking platforms such as hotels.com or zuji.com.

The strategy allows individuals to secure accommodation easily and conveniently without having to depend on third parties. The need to connect with others has also enhanced the luxury hotel business through social media. It is now possible to engage with one’s customers directly and create a transparent relationship with them. Additionally, companies can learn about their weaknesses through social networking platforms.

Twitter and facebook are the websites of choice for the internet-savvy luxury market. The growing need to use ICT has proliferated into the management of hotels as most companies use them for product package selection, order tracking, payment and other aspects of supply chain management.

Most of the biggest source markets for luxury hotels are aging. This implies that companies must alter their facilities in order to meet the needs of a senior population (ILO 35). For instance, they require more first aid facilities or may require platforms for socializing with their peers. Companies are also training their staff members on how to meet the needs of the aging population.

Even marketing approaches are changing so as to include this demographic group. On the flipside, family travelers are increasing in number, in luxury hotels. Consequently hotel owners must modify their practices to accommodate the needs of these divergent guests.

One way of achieving this objective is offering a larger variety of food items for breakfast, instead of the standardized packages for two. Additionally, some luxury hotels are changing the design of their rooms (Education Bureau 20). Many of them now offer facilities that they have standardized. For instance, they may possess lower beds or may have brighter lighting and even walk-in showers to suit the needs of almost all demographic groups.

New countries are becoming promising source markets for luxury hotels; Japan, China and India have experienced a rise in the number of outbound travelers. These trends stem from the relaxation of policies governing foreign travel as well higher incomes. Between 2009 and 2010 the number of tourists from China grew by 15% (ILO 38).

Many of these visitors target other developing countries like Malaysia. Therefore, luxury hotel owners in the Asian continent are increasing their market reach to neighboring countries in order to foster repeat business and tap into new consumer segments. Regional growth is a force to reckon with in the hotel business.

Sustainability concerns are becoming quite common among users of luxury hotels. Stakeholders expect these facilities to engage in environmentally sustainable business practices. Consequently, a number of them are willing to pay a premium for incorporation of green practices in a luxury hotel’s operations or will specifically select an organization that engages in those practices if prices are similar.

Therefore, ecologically responsible practices have become a new source of competitive advantage. Luxury hotels are reducing their carbon footprint by changing their water-cooling and heating systems, as well as their space heating policies. Even new luxury hotel buildings are furthering these themes by incorporating them into the development of the system. Aside from the direct benefit of having a larger client base, most hotels now enjoy costs savings due to these measures (ILO 45).

Luxury hotel customers from western markets are now want unconventional places to visit. Many of them have already tried facilities in their own countries. Consequently, they want new experiences from distant countries like Iceland or even Scandinavia. If a luxury hotel is in an unfamiliar location, such as Bhutan, then chances are that it will have a greater number of visitors.

The latter location is under the Himalayas territory. Several luxury hotels like Aman have built facilities there in order to tap into this new demand. In 2012 alone, 50 hotels are working on establishing their presence there (Fitzsimmons 4).

Additionally, places like Russia, Colombia and Cambodia are also unconventional, so they are witnessing an increase in luxury hotel proliferation. The need for unconventionality implies that some travelers will be willing to forego loyalty concerns about a certain luxury brand in order to access exceptional services. Therefore, concerned entrepreneurs need not bank on customer loyalty as their marketing strong point.

Travelers in their twenties and thirties are especially fond of this practice. Furthermore, many of them will consider the packages and perks they can enjoy in a hotel before they look at its brand. Therefore, newer organizations have an equal platform in which to compete with their older counterparts.

In line with the need to visit unconventional places, many customers now expect to enjoy unconventional services from luxury hoteliers. For instance, those looking for adventure may want easy access to certain activities that they enjoy. They want to do river cruising so it would make sense for hoteliers to locate their premises near such activities or collaborate with providers of such services (Fitzsimmons 2).

Cultural diversity is becoming a principal factor that tourists look for when visiting a certain location. This is especially in light of concerns about homogenization. Some travelers believe that homogenization leads to knowledge expansion as well as multidimensionality.

In addition, if visitors perceive destinations to be too similar to their home countries, then chances are that they will lose interest in visiting the location. As a result, many luxury hotels are flourishing in areas that are culturally rich. Some of them can be found near rural communities, such that guests may have an opportunity to interact with locals or at least see the local culture.

Emigration by individuals back to their home countries is providing a new market for luxury hotel owners. Some residents may come back to their home countries to visit their family, and a large number of them use luxury hotels. Therefore, hotel owners need to keep their needs in mind when making room or overall design arrangements (Education Bureau 27).

Conclusion

The main social trends affecting luxury hotels include the use of fast communication methods like the internet. This affects marketing and booking activities. Aging populations, emigrant homecomings, environmental concerns, cultural diversity preference and emerging markets are also shaping the luxury hotel industry. These facilities must alter their services in order to meet the needs of their customers and to gain a competitive edge.

Works Cited

Education Bureau. Trends and issues in the tourism and hospitality industry. 2012. Web.

Fitzsimmons, Annie. . 21 Aug. 2012. Web.

ILO. . 2010. Web.

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IvyPanda. (2019, November 21). Social aspect of Luxury Hotels. Retrieved from https://ivypanda.com/essays/social-aspect-of-luxury-hotels/

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"Social aspect of Luxury Hotels." IvyPanda, 21 Nov. 2019, ivypanda.com/essays/social-aspect-of-luxury-hotels/.

1. IvyPanda. "Social aspect of Luxury Hotels." November 21, 2019. https://ivypanda.com/essays/social-aspect-of-luxury-hotels/.


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IvyPanda. "Social aspect of Luxury Hotels." November 21, 2019. https://ivypanda.com/essays/social-aspect-of-luxury-hotels/.

References

IvyPanda. 2019. "Social aspect of Luxury Hotels." November 21, 2019. https://ivypanda.com/essays/social-aspect-of-luxury-hotels/.

References

IvyPanda. (2019) 'Social aspect of Luxury Hotels'. 21 November.

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