Luxury Hoteliers Magazine 4th Quarter 2018 | Page 107

Today’s leading luxury brands are moving toward brand extensions that don’t look down, but sideways. Rather than reaching a more mass audience, brands are expanding beyond their core business into other luxury segments, not only to diversify, but also to solidify themselves as a fully realized lifestyle brand, strengthening brand loyalty among these new business ventures as well as the foundational brand. In short, brands want their consumers to “live a life.” LIVE THE SUITE LIFE And what is the fastest, most immersive way to create a completely branded lifestyle? The hospitality space. Major luxury brands across the consumer landscape have concluded that a branded hotel experience is an opportunity to bring their brand to life across countless touchpoints. Not surprisingly, brands like Baccarat, Equinox, Bulgari, LVMH, and Restoration Hardware have done just that. An early Baccarat Hotel & Residences press release plainly notes, “The opening of Baccarat New York will re- introduce the venerable company in the minds of consumers as an inspirational lifestyle brand.” From the twelve Baccarat chandeliers throughout the New York property to the fully RH- furnished Restoration Hardware Hotel, these brands are bringing their products out of the showroom and into daily life. As luxury goods are continuing to break into and establish themselves in the hospitality world, luxury hotel companies are doing the reverse. The goal of luxury hotel brands is the same as their hard-product siblings – create new and engaging ways to interact with the brand outside of the brand’s traditional wheelhouse. To do this, hotel companies have evolved to be more creative. From jets to yachts to homes, luxury hotel brands are creating ways to ensure their service, culture, and experience reach guests long after their stays and far beyond their hotel walls. LIVE LUXURIOUSLY FROM SKY TO SEA Four Seasons was the first to break outside of the traditional hotel mold beginning in 2015 when the brand launched their Four Seasons Private Jet. The media coverage and industry attention were immense. The Four Seasons Private Jet had a dual purpose, translating the company’s famous service experience to the skies and creating an opportunity for the brand to showcase its expertise and insider connections to curate a once-in-a- lifetime itinerary – even in destinations where there was not a Four Seasons. From the moment that guest steps foot on the plane, until they return home, they are completely encapsulated in a Four Seasons world, and people are willing to pay a premium for it. Ritz-Carlton followed suit, taking their brand extension to the seas with the Ritz-Carlton Yacht Collection, launching late next year. Ritz-Carlton is directly competing with the existing luxury cruise market, pricing their trips in-line with the industry standard. The key differentiator? The promise of floating on a Ritz-Carlton hotel. Lisa Holladay, Global Brand Leader for The Ritz-Carlton highlighted the extension in the release saying, “… we are thrilled to offer guests a new way to create memories with The Ritz-Carlton.” She continued, framing the ships as nautical Ritz properties noting, “every aspect of the voyage has been carefully created to embody the signature service and casual luxury of a Ritz-Carlton resort.” ELEVATED LIVING Perhaps the most straightforward approach to lifestyle branding is residential. It has virtually become an industry standard for major luxury hotel companies to now offer residences within many of their hotels and, at times, freestanding residential structures. The opportunity to have hotel services and amenities are certainly a draw, but the intangible offer to live a life enveloped by a brand’s culture and ethos should not be underestimated. These brand extensions will continue to grow in both directions across the luxury space as brands look to capitalize on the luxury consumer across categories. While the brands mentioned here have launched extensions globally, this strategy is scalable and can be activated at the property level, particularly for independent properties. A fifteen- room countryside Relais & Châteaux property may consider a freestanding boutique in the local downtown, offering property products as well as regional artisanal items. Regardless of the channel through which brands choose to extend, any off-property touchpoints curated through the lens of the brand’s expertise will strengthen the bond between the guest and the brand. About the author Matthew Levison is a Vice President with HL Group’s consumer lifestyle practice, specializing in global brand initiatives, content creation, and creative programming ideation for a roster of travel, hospitality, spirits, and consumer products clients. With more than 10 years of experience, he has lead global campaigns for brands including Four Seasons Hotel & Resorts, Puntacana Resort & Club, Lindblad Expeditions, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Grand Marnier, and Baccarat Hotels & Resorts. Prior to joining HL Group in 2015, Matt spent six years at Nancy J. Friedman Public Relations, where he led campaigns for global brands and destinations including Sheraton Hotels & Resorts and Jackson Hole, Wyoming, as well as independent hotel launches for numerous properties across the United States. He graduated cum laude from Boston University with a degree in public relations, with a specialization in English and hospitality administration. ILHA 107