Luxury Hotel Brand Strategy: How to Differentiate From the Hotel Next Door
Fun fact: the luxury hotel and resort sector has new properties popping up like weeds, especially in near-saturated markets like Mallorca, New York, and Japan but also in newer markets like Saudi Arabia and other parts of Asia.
This is great for visitors who now have more choice than ever about where to stay… but panic-inducing for hotel brand managers, in-house PR, marketers, and others charged with differentiating from competitors.
So how do you craft a brand strategy that differentiates your luxury hotel or resort from the shiny new neighbors down the block?
Do Your Homework
Now’s the time to do some snooping.
The luxury hotel product, traditionally characterized by high service standards, elegant decor, exclusivity etc. has become far more accessible lately, with a proliferation of high-end properties and travelers with the budget to reserve them.
But standard markers of luxury are now baseline requirements rather than differentiators. Guests expect exceptional service, opulent surroundings, and prime locations as the bare minimum.
Hotels and resorts are getting increasingly creative about how to lure in luxury travelers… but are you watching? Spying on your neighbors, either through social media, press, site visits, or just word of mouth will go a long way to inspiring your own marketing.
The exam question: what are your luxury hotel and resort peers doing that makes you jealous?
Et Voila! A Luxury Hotel Brand Story to the Rescue
Storytelling has become the most powerful tool for differentiation.
Luxury hotels and resorts must develop a compelling brand narrative that resonates with their target audience. This story should encapsulate the hotel’s ethos, the inspiration behind its design, its connection to local culture and history, and any other differentiating factors. It should all come together to make your audience feel like it was designed to appeal to them personally.
The Finca Serena Mallorca is a luxury hotel that has seamlessly woven the essence of Mallorca into its brand identity, building a story around its location in the heart of the island, away from overstuffed tourist areas.
The Amangiri, located in the heart of the Utah desert, is a luxury resort that has turned its remote, rugged location into its most powerful branding asset. Dramatic canyons, mesas, and other eye-popping resources offer a unique blend of luxury and nature, translating easily into the hotel’s brand story.
Push That Local Authenticity
Visitors want authentic experiences that immerse them in local culture.
New luxury hotels earn brand differentiation points by offering guests a deep dive into the local lifestyle. This could involve partnering with local artisans for in-room amenities, collaborating with local chefs on dining experiences, tours that go beyond the usual standard attractions, etc.
Hotel Emma embraces the cultural heritage of San Antonio, Texas, by serving as a cultural hub, showcasing local artists' works throughout its premises and hosting various cultural events such as book readings, art exhibits, and live music performances featuring local talent.
Taking It Personally
In the luxury sector, personalization is now a bare-minimum hotel brand strategy. Every detail of the experience can be fine-tuned to match individual guest preferences.
New hotels can leverage technology that gathers data about guest preferences to tailor services accordingly. Sky’s the limit: customized room settings like preferred pillow type, room temperature, or ambient music, to personalized welcome amenities and curated itineraries.
While every hotel can’t have dedicated butler service for each room like The Lanesborough in London, you can get close! Turn tedious tasks like unpacking luggage or making dinner reservations or even drawing personalized baths and preparing in-room dining into a normalized thing.
Or if you can’t do all of that, at least do one… and build a strong hotel brand narrative around it.
Slightly more action-packed but still luxury-exclusive: The Little Nell in Aspen offers a bespoke adventure concierge service, matching outdoor activities to each guest’s interests and skill levels. This could be arranging private ski lessons to organizing fly-fishing excursions and mountain biking adventures.
The Spa-and-Wellness Hero
Go figure, luxury travelers like to feel good. Ergo, hotel brand strategies can differentiate by offering unique wellness programs that go beyond the traditional spa, healthy foods, and fitness center.
Borgo Egnazia's Vair Spa in Puglia incorporates local traditions and natural ingredients into its treatments. Guests can have olive oil massages, saltwater therapies, and herbal steam baths that reflect the region's healing practices. Relaxation plus cultural immersion, everyone wins!
The wellness focus can manifest itself in many forms: yoga and meditation retreats, personalized fitness programs, holistic health consultations, healthy dining options that cater to various dietary needs, sleep therapy, etc.
Be the 23-Year-Old Doing Your Social Marketing
Digital marketing strategies often change far faster than hotel brand managers can easily absorb. At a minimum, you need an engaging social media presence across relevant platforms, collaborating with influencers, and encouraging user-generated content.
Video is where it’s at these days. While you wouldn’t normally associate luxury brands with TikTok, The Ritz Paris has effectively used the platform to showcase timeless luxury and elegance while engaging with a younger audience. The account blends content, including behind-the-scenes glimpses of the hotel's iconic spaces, collaborations with fashion influencers, and exclusive events such as fashion shows and high-profile gatherings.
The Beverly Hills Hotel’s Instagram features room tours of its famous bungalows, celebrity sightings, and snapshots of its Polo Lounge, all with a focus on capturing the hotel’s old Hollywood charm. The content often includes trending challenges, influencer collaborations, and user-generated clips from guests.
You-Can’t-Sit-Next-to-Me Experiences
Exclusivity has always been a hallmark of luxury, and creating members-only experiences enhances a hotel's allure. New luxury hotels can develop loyalty programs that offer access to exclusive events, private areas, or bespoke services. This builds brand loyalty and also creates a sense of community among high-end travelers. “Fancy seeing you here, fancy!”
The St. Regis New York offers the St. Regis Aficionado program, which provides guests with exclusive access to unique experiences related to their interests. Members can access private tours of prestigious art galleries, invitation-only fashion shows, and culinary experiences with top chefs. Additionally, the hotel offers members access to exclusive spaces like its King Cole Bar & Salon.
Create invitations to exclusive rooftop events, private film screenings and wine tastings, events on your hotel’s rooftop or garden, etc.
Everyone is a Brand Message
Your staff are your brand ambassadors. Training staff to recognize and anticipate guest needs enhances the personalized experience and makes for a memorable visit. A guest who is greeted by name upon arrival and receives thoughtful gestures throughout their stay is more likely to return… and recommend the hotel to others.
If you’ve been in luxury long enough, you’ll know that the Four Seasons is an excellent example of a brand that utilizes well-trained staff as brand ambassadors. Staff are not only drilled to deliver exceptional service but also embody the values and ethos of the Four Seasons brand.
Draw Out What Makes You Unique
Be distinctively memorable!
In a growing luxury hotel and resort market, differentiation is making yourself distinctively memorable. By developing a strong brand story, emphasizing local authenticity, personalizing the guest experience, leveraging digital marketing, creating exclusive experiences, and the like, new luxury hotels can stand out.
It's about offering not just a stay but a story, not just a service but a personal touch, and not just luxury but a meaningful, memorable experience.
What You Can Do Next
Some homework. No marketer lives in a void. Stay on top of tactics your competitors are hopping on, especially anything fast moving like a social media trend.
Get your brand story tightened up. Building the hotel brand narrative not only provides guests with a reason to choose the hotel over others but also creates an emotional connection, turning guests into loyal advocates.
Emphasize local authenticity. Provide guests with a unique experience that they can’t find at more standardized competitors.
Personalized guest experience. Make them feel like the only guest in the world.
Wellness and spa. You invested $$$ in developing those spa treatments. Weave them into your story.
Socials. Highlight your luxurious offerings BUT also make them fun, appealing, and relevant to the younger and/or social media-savvy.
Be exclusive. Foster a sense of exclusivity and community among your high-end clientele, making guests feel like they are part of an elite circle.
Luxuriate in your staff. Ensure that every interaction, from the reception desk to housekeeping, reinforces the brand’s commitment to luxury, elegance, and exceptional service.