Study - The major dynamics of palaces in the world
Our Sia Partners scrapping tools and data analysis methodology have enabled us to observe interesting trends within the luxury hotel sector.
1/ Palace Bot: Presentation & Methodology
Part 2/ Interesting knowledge gained from the analysis of the data collected
Luxury in Parisian palaces is pushed one step further, explaining the differences in prices between Paris and London.
Entry-level rooms in Parisian palaces are on average 51% more expensive than the ones in London palaces. Below are some reasons why :
Conclusion: new challenges of the worlwide luxury hotel industry
1. Newcomers from the luxury industry : The main luxury retail, LVMH, has just or is about to open 3 new luxury houses.
The borders between the world of hotels and the world of luxury are increasingly porous. This attraction to the hotel industry marks a new way of consuming that places more emphasis on use than on ownership: experiential luxury. The major luxury groups are buying or creating experience products whose objective is now to market unique souvenirs.
2. The new palace strategy: diversifying. Or how to improve the customer experience while increasing hospitality business
- Catering: Some major hotels have found in Michelin starred-restaurants a new avenue for development. There are now four restaurants at Four Seasons George V in Paris, compared to only one in 2010.
- Art: In Paris, Le Plaza and Le Meurice join forces with the Gosserez and Maison Parisienne galleries. In Hong Kong, the Peninsula commissions living artists to work in its other establishments.
3. Focus on Paris:
The increase in the number of palaces and rooms may lead to a situation of oversupply in the ultra luxury Parisian market. Between the reopening of the Ritz in 2016, the Crillon in 2017, the Lutetia in 2018, the Bulgari Hotels in 2020 and 20 new Fauchon hotels in the next 10 years, it is legitimate to envisage a situation where supply will exceed demand in a near future. In addition to the offer of these Parisian palaces, there are also the competition of prestigious apartment rentals, such as those offered by Airbnb or Onefinestay (owned by AccorHotels).