A Taste of Luxury

The luxury business is booming — while the hotel industry as a whole averaged 62 percent occupancy during the first five months of 2006, the nation’s 270 luxury hotels averaged 71.6 percent, according Smith Travel Research. A recent San Diego Union-Tribune article reports that the success of this market can be seen across the board. “Cruise lines report their most expensive cabins are selling out first. High-end tour operators say business is breaking records, [and] occupancy at the nation’s most luxurious hotels is higher and faster rising than hotel occupancy in general,” pens travel writer Alison DaRosa.

But it wasn’t that long ago that things weren’t quite so rosy for the high-end group. Despite the fact that they charged more than the average hotel, luxury hotels were not bringing in the bucks. Perhaps a big part of the momentous shift has to do with the fact that these hotels are finally reaching beyond the ultra-rich crew to target the average traveler as well as meeting and event planners. As a result, the luxury market has taken off — and there’s no reason why you should be left behind.

They Want YOU

“Luxury hotels are definitely reaching out more to event planners,” says Susan Timmons, president and CEO of state leadership organization Lead Virginia. “I feel they are more interested in and appreciate our business.” Timmons has planned several events at The Jefferson, a luxury hotel in Richmond, Va., and only has positive things to say about the experience.

“They are the cream of the crop,” she says. “They are attentive to every detail and assist the planner in anticipating and solving problems — things a run-of-the-mill hotel might not notice. For example, when our RSVPs came in for the banquet, our conference manager realized that the group had grown so large that a few individuals would be seated in places with poor views of the podium. He immediately offered to move the event to the grand ballroom, and handled all the logistics.”

Both the larger luxury chains like Four Seasons, as well as smaller boutique hotels such as Topnotch Resort and Spa in Stowe, Vt., are growing more appealing to planners. The resounding reason behind their popularity? “Service, service, service,” says James Beaulieu, senior sales manager at Topnotch. “Upscale properties bring more tools to the table and have systems in place to lighten a planner’s workload on-property. A higher ratio of staff to guests, more amenities, more activities and more services all combine to help attendees stay in touch and on track with personal and professional workloads while traveling.”

Smaller boutique hotels appeal to planners who are looking for a special atmosphere and aren’t bringing in large groups. The one-of-a-kind atmosphere of a boutique location makes it a memorable event.

“It’s a completely different experience,” says Cathy Hawk, founding director of Clarity International, who always hosts her seminars at boutique hotels such as the Glorietta Bay Inn in Coronado, Calif. “If event planners are looking for a place to go back repeatedly, a boutique hotel is ideal because you build a rapport, and people will go out of their way to accommodate you.”

Planners also note that boutique hotels are easy to work with. “There is often a greater flexibility in the concessions a boutique hotel can offer, as well as the highly personal service you get at a small property,” says Jeff Kalpak, partner at New York-based Barkley Kalpak Associates Inc. Kalpak has hosted events at various boutique locations because “corporations are always looking for new and interesting ways to spice up their meetings and events.”

More Affordable than you Think

But what about the price? For many, the perception that luxury hotels are way out of the average price range keeps them from exploring the options, but in truth, luxury hotels have become more affordable to planners.

“We are finding that rates have been favorable and even a bit competitive now that the boutique and luxury hotels are realizing that the meetings and event industry is a great source of revenue,” says Kalpak.

Thinking ahead can also aid the negotiation process. “Event planners can get reasonable prices at luxury hotels,” says Timmons. “They are more affordable than people suspect. It is especially helpful if you plan ahead and negotiate multiple-year contracts.” Timmons already has additional events scheduled with The Jefferson.

In addition, having dealt with many planners, Beaulieu offers this advice for negotiating rates: “Be upfront with your sales contact. Share your room block history; share your budget needs. If a hotel has a complete picture of what your meeting spend represents to the property, they are more likely to find ways to make it work for everyone. Sales contacts should be viewed as an advocate of your business.

A good sales professional will want to know what your goals and needs are for a particular meeting. The more you share, the more they become a part of your team working toward a successful outcome.”

Don’t Forget — Unique Means Unique

While all the event planners with whom Event Solutions spoke raved about their experiences at luxury hotels, some did offer words of caution.

The advice heard over and over again was to put some extra effort into researching the location, especially if you’re heading to a smaller boutique hotel. While you pretty much always know what to expect with a standard chain, unique locations will be just that — unique. While this is the main reason behind their charm and appeal, you also don’t want to end up with something you didn’t expect.

Andrew Litz, sales and marketing coordinator with Barkley Kalpak Associates, offers this warning: “While it’s great to have the boutique hotel atmosphere, sometimes these hotels, in order to keep in line with their look and feeling, will discourage the use of some of the items that meeting and event planners find crucial such as signage and nametags.” It is essential to find this information out ahead of time.

“Get online and really investigate the hotel and its rooms that are available for the meetings,” says Hawk, who always flies to a potential location to check it out before scheduling a seminar. “I got burned once and ended up in a meeting room that was horrible. So now I’m cautious — I don’t just want pictures, I want the website’s virtual tour of the facilities.”

Luxury hotels take note — we’re heading your way.