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Breakfast at Tiffany’s is more real than most of us realise.
Tiffany Blue Box Cafe, Sushi Park Paris by Saint Laurent and Dubai’s much anticipated Bulgari Lighthouse reveal a new era in luxury guest experiences. Hotels and fashion industries are welcoming back the phenomenon of physical experiences for brand building. This connection built through hospitality is reshaping service, brand awareness and, most importantly, how both fashion and hotel brands speak to their customers.
Brand building beyond the runway
Strategic partnerships: Collaboration with established hospitality groups
- Marriott International for Bulgari
- Emaar Properties for Armani Hotels
Branded residences: Where individuals can purchase residential spaces serviced by the luxury brand.
- Bulgari Lighthouse
- FENDI Private Residences
Outlets within hotel spaces: Without extending their presence to accommodation, fashion brands instead open wellness or F&B outlets, independently or inside famous hotels.
- Dior Spa at the Plaza Athénée
- Tiffany Blue Box Cafe at the brand’s flagship store in NYC
Fashion for experience hospitality
It has become obvious, online and offline, luxury brands are no longer just selling clothes; just like hospitality businesses, they are selling an entire lifestyle. Fashion’s entry into hospitality aims to deepen customer connection and create a truly tangible brand “world,” that sells the ideal lifestyle for luxury clients.
1. Experience marketing
Within the ultra-online world, physical hospitality experiences have come across as a new ‘sight for the sore eyes’. Physical spaces, limited by space, time, and access, create a sense of exclusivity to be invited—the exact type of experience that luxury customers desire. These spaces provide “in-real-life” (IRL) activations, allowing fashion brands to engage consumers through taste, smell, touch, and sight. This move boosts a brand’s cultural capital, creating a deeper emotional connection with the audience that will translate into loyalty. Naturally, this partnership will also elevate the status of a hospitality outlet, associating it with exclusivity, sophistication, and a high-end lifestyle.
2. Expanded brand reach
Luxury brands are extending their reach by venturing into hospitality, transforming spaces into strategic outposts. Think of the Louis Vuitton Cafe at Doha’s Hamad International Airport. It is more than a mere F&B outlet, but a strategy that allows brands to establish relevance among high-net-worth individuals in luxury travel hubs. This tangible experience goes far beyond traditional advertising, giving guests a ‘taste’ of the luxury brand. The benefits go the other way as well. Guests coming exclusively to visit these outlets bring in a whole new clientele, adding value to the destinations.
3. Appealing to the changing consumers
The shift in consumer preferences, where affluent individuals increasingly prioritise experiences, is a key driver for luxury brands entering hospitality. In the last few years, the experiential luxury market has outpaced the growth of demand for personal luxury goods, says Bain and Company. This is an immense growth opportunity for both industries. Collaborations push brands to innovate in design, service delivery, and technology adoption, be it design aesthetics in architecture or mobile-first technologies for ultra luxury services. The hospitality industry’s global growth opportunities allow brands to capture demand in regions where luxury is highly sought after.
4. Diversifying revenue
By expanding into sectors like food, wellness, and travel, fashion brands effectively diversify their portfolios beyond their traditional reliance on clothing, jewelry, and accessories. This strategic move into hospitality provides new avenues for significant revenue generation for fashion brands and hotels alike, thereby protecting their overall earnings against potential economic fluctuations. Crucially, advanced technology catalysts this diversification, enabling the seamless centralisation of these revenue points. This integrated tech allows for the retrieval of comprehensive customer data, empowering brands to personalise offerings with unprecedented precision. The result? A more resilient business model that taps into multiple high-value consumer touchpoints.
A makeover for the hospitality industry
The luxury fashion market has always been about impressions. Joined with these brands, the hospitality industry is about to enter a more diversified market with integrated, immersive, and aspirational lifestyle experiences that leave the right impression on guests. The collision of the two industries resonates with the modern traveller’s desire for beauty, authenticity, and connection, converting the hospitality industry into a convergence of experiences.
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Author
Vice President – Marketing
An internationalist with a diverse background in marketing and supply chain management, Tanya currently serves as Vice President, Marketing at IDS Next. Tanya is responsible for all marketing and branding activities within IDS Next, including development and execution of marketing strategies and plans to help take the company to it’s next level.
