Luxury travel looks set to be on the uptick with consumers hungry for bucket list-worthy travel experiences and creating unique memories after more than two years of staying home during the pandemic. The resurgence of travel has come at an opportune time for the global hospitality company, Hilton which is prioritising the Asia-Pacific region as a key growth market for luxury travel.
Hilton expects its luxury estate to grow by more than 50 per cent in the next few years. In July, the hotel operator said that it expects net income of US$1.15 billion to US$1.22 billion in 2022, compared to its previous guidance of US$1 billion to US$1.07 billion.
In August, the Hilton Group announced that it has signed six new luxury hotels in Asia-Pacific and a slew of hotel and resort openings in the next three years. Some of the highlights include the rebranding of Regent Singapore to Conrad Singapore Orchard on January 1, 2023.
Also happening next year is LXR Resorts’ launch in Bali, which is slated to take place in the first half of the year. The Waldorf Astoria will more than double its presence over the next five years as it will make its debut in Kuala Lumpur and Jakarta in 2024, and Hanoi in 2025.
On the Hilton Group’s robust expansion in APAC, Schroeder says: “We look carefully at the destination – is it where our discerning guests are looking to travel, and secondly, who are we partnered with. With the resurgence of travel and changing travel needs – we need to consider many factors in ‘real time’ as we expand, and whether the hotels will address the needs of the traveller.”
We chatted with Nils-Arne Schroeder, Hilton’s Vice President of Luxury Brands in Asia Pacific and got him to gaze into the crystal ball on what trends and issues will set the luxury travel industry abuzz.
With international travel back in full force, what are three luxury travel trends that will continue to be much talked about?
Firstly, there is strong demand for more meaningful, wellness-centric moments with guests looking for grounding and balance in their travel schedules. Over the pandemic, they nurtured new and existing passions – they became sourdough baking experts, they dabbled in horticulture, became marathon cyclists, and so on. And so now they have more refined tastes and preferences, driving demand and new trends in fitness, culinary and experiential travel.
Secondly, consumers are defining luxury as the ability to take care of their health, and to have time to relax. We also see a rise in experiential versus material forms of luxury, and we want to continue building best-in-class experiences that marry these together.
Thirdly, we are also seeing that our guests care more about sustainability and the community, and are seeking brands that align with their values. This was the case pre-Covid, but even more so now, and with Generation X and Millennials gaining increasing purchasing power. Consumers want to use their wealth in a more socially and environmentally conscious way.
For example, Conrad Koh Samui launched an on-site farm in the midst of the pandemic. The Iris Farm has become a huge draw for visitors of all ages who love meeting the animals, learning about composting, collecting eggs and harvesting vegetables. The farm generates up to 1,300 kg of produce in a month for team and guest dining, and composts 2,400 kg of food waste per month, recycling organic resources while conserving landfill space.
How have the needs of luxury travellers evolved in a post-pandemic world?
Luxury travelers have always sought destinations where they can enjoy remote and private experiences. Post-pandemic, the desire for expanses of space has intensified, and our resorts in the Maldives are offering social distancing by nature. At Waldorf Astoria Maldives Ithaafushi, while our overwater and beach villas are already extremely private, but we are seeing significant interest in the Stella Maris duplex villas, which are completely surrounded by the sea.
Guests can also take over Ithaafushi – The Private Island, the largest private island in the Maldives which spans over 32,000 square meters. We also see guests no longer hesitating to book in those ‘bucket list’ experiences, such as staying in an underwater residence with a dedicated viewing tunnel of the ocean.
What is your favourite hotel?
That is very hard to answer, there are so many! I recently had the chance to visit ROKU KYOTO and it has become one I think fondly of because the serene environment really allowed me to slow down and ‘smell the flowers’. Or in my case, it was actually raining and I found myself just taking the time to enjoy a cup of Japanese tea and look out over the grounds. It was a good reminder that sometimes we could all benefit from taking time to just be.
You have two teenage kids, what is your favourite destination to visit with them?
You cannot beat a city like New York — it is a breath of fresh air and always fun. We love to visit museums, catch shows on Broadway, check out new restaurants and just generally soak up the energy of the city. It will be such a joy to see this New York landmark come to life again, for the next chapter!
You’ve worked throughout Asia, which is your favourite city in the region?
Hong Kong is my favourite city — it’s so vast and diverse and there’s always something new to discover. It has the best dim sum in the world, fabulous shopping and the great outdoors. When you think of Hong Kong, many people think of the dense urban jungles of Central and Causeway Bay, but you shouldn’t miss the hiking trails and excursions to the outer lying islands and beaches.
What is your top travel tip for first-time visitors to Hong Kong?
Ask a few locals where they eat, and go there, not what’s in the guidebooks. Our teams absolutely love connecting with guests and offering personal insights into their favourite locations, whether it’s the best food spots or secret vantage points, galleries or special experiences that only a local would know.
If you can hop off to any destination on the next flight out, what would it be?
I’d love to go to Shanghai as it’s such a dynamic city and I miss the mix of old and new, East meets West. It’s so full of contrasts between the skyscrapers and lane houses, the architecture is something special. Strolling along The Bund fall is one of life’s little pleasures.