The Luxury Hotels’ Struggle Amidst Digital Transformation

February 26, 2017

DI-FI Staff

DI-FI Lab researchers

Being present in the digital age is an everyday struggle for luxury hotels. Along the rest of luxury industries, the shift to digital needs to preserve value and image. In the past, having the best hotel in the country was enough to achieve a good sales’ year. It was enough to have a great location, a perfect view, luxurious rooms, good service, friendly staff that meet the customer’s satisfaction, to score a high ranking and a great occupancy rate.

When planning their trips and vacations, jet setters at the lookout of luxurious stays; often search online for the top offerings and compare hotels one to one; depending on their online presence. Word of mouth in this context is translated into superior search engine placement, great reviews and influencer talks.

Amidst the fierce competition, reputable hotels have hard time proving to their online prospects that they can meet even exceed their requirements, which they most probably do.

Luxury hotels, often find it hard to translate their real value into a digital marketing strategy, carrying the correct message to their targeted audience. What is even harder, is the attempt to combine traditional marketing approaches (which are still important to luxuries) and the new digital landscape.

Marketing has taken a huge step in terms of technology, reffering here to virtual reality, augmented reality, interactive features, mobile apps, social media, websites and so on. But most importantly; this technology can also be redirected towards a specific audience, through several means of segmenting and targetting.

For a luxury hotel to survive in the market it must definitly have an online presence going along its offline PR strategy. And by online presence, we are not talking about a static website and social media channels, but rather a sharply targeted presence conveying its message in a way that the right consumer (lead) will positively interact with.

In order to implement such presence, luxury hotels must:

  • Do their research.
  • Find out who is their best customer and where is he/she online.
  • Find out how to reach this consumer online.
  • Have a strong competitive presence on google.
  • Have interesting and interactive sharply targeted social media channels.
  • Be distinctive, and be able to show the consumer their unique selling proposition without letting him/her work hard to find it.

This work must be done constantly as the trend in today’s luxury landscape shifts on short notice, and in drastic proportions.

Luxury in the hospitality sector is not an easy message to convey. This is why, luxurious venues have to be innovative in going after the consumer, even where he is thought impossible to reach; in other words, unpredictable.

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