The Leading Hotels Of The World Hosts 2008 Annual Convention (United States)
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The Leading Hotels Of The World Hosts 2008 Annual Convention (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- Trends / Expert's advice
This is a press release selected by our editorial committee and published online for free on 2008-12-03
The Leading Hotels of the World recently held its 2008 Annual Convention in Boston, Massachusetts. Taking place from November 13 to 15, the conference attracted a record number of proprie-tors and general managers from member hotels from across the globe, despite ongoing economic uncertainties.
The theme for this year’s event was Leadership in Luxury: The Authen-ticity of Leading Hospitality, and opened with Leading Hotels chair-man Jean-Jacques Gauer recounting Leading Hotels’ many positive milestone initiatives for 2008. In light of the current international economic landscape, the program focused on the mood of today’s affluent traveler and prospects for the luxury hospitality industry for the coming year. Mr. Gauer ad-dressed the situation by advising the audience to remain confident about medium to long-term prospects, affirming that Leading Hotels’ traditional customers will continue to spend money, albeit in a more price-conscious manner. Additionally, guests will expect uncompromising quality and faultless service more than ever. Mr. Gauer remarked that the greatest strength of Leading Hotels is its brand, which for 80 years has symbolized a promise of the high-est quality standards, personalized service and customer satisfaction. This differentiator further underscores another key driver for consumers, and priority for Leading Hotels – authenticity. He concluded by stating that this is a time for Leading and its members to collectively redouble their efforts and flex their marketing muscle, as well as their investment in sales and reservations to capture the traveler of the future.
Ted Teng, the organization’s new president and chief executive officer, reiterated a dedication to remaining true to the essence of the Leading brand, doing for the member hotels what they cannot do for themselves. He said he would continue to make it feasible for the hotels in the Leading system to run independently so that they can provide their guests with unique experiences without trying to imitate what the chain hotels are doing. Regarding his strategies for growing the company, Mr. Teng cited better customer penetration in key markets, refining the member portfolio, and delivering a better shopping and buying experience to the guest. He also stated that expanding the number of properties is not the most important factor, and his 2009 priorities are company development and the core business, which can be divided into managing membership and driving revenue to member hotels.
Company executive vice presi-dent and chief operating officer, Welf Ebeling, noted that interest in membership continues to be very strong, yet highly selective; among the 1,173 hotels that sought admis-sion this year, 67 were inspected and 41 accepted. He reaffirmed Leading’s customer-centric approach to member-ship development which focuses on the changing needs of today’s affluent travelers for time- and effort-saving amenities and services. It is also driven by client demands for new and emerging destinations, including Myanmar, Qatar, Lebanon and Slovakia.
Among the guest speakers was Robert Frank. A senior writer at The Wall Street Journal and author of Richistan: A Journey through the American Wealth Boom and the Lives of the New Rich, he noted that we have just witnessed the largest wealth destruction in recent history. The number one issue among the wealthy is liquidity, as so much of individuals’ assets are tied up in what cannot be sold, such as real estate, art and collecti-bles. He noted that buying behavior has shifted in recent years, from conspicuous consumption to conscientious consumption, from acquiring material goods to accumulat-ing memories and moments, from indulgence to health and wellness, from Hummers to hybrids. He went on to point out that the tremendously wealthy are very concerned about the environment and self-improvement. They long for family travel, education, electronics, culture and the community. Service, he asserted, now matters more than ever.
Jonathan Dahl, editor-in-chief of SmartMoney, looked at previous periods of severe market decline and the subse-quent recovery trajectories. He pointed out that after September 11, 2001, it took a mere three weeks for the US market to recover. After the 1987 crash, it took fifteen months. When the tech bubble burst, the market experi-enced a 38% loss in 10 months, which took four years to regain. The market is now down drastically, but Mr. Dahl said that there are signs of recovery. Examples he cited included: crude oil down 53%, commodities down 47% and the dollar up 24%. He believes that these are signs that the markets are beginning to work through some of the morass in which they currently find themselves. People are nervously buying and selling shares, jumping in and out of stocks, with 38 mil-lion baby boomer retirees looking for a secure place to put their money. In conclusion, Mr. Dahl is hopeful, indicat-ing that there is light at the end of the tunnel.
In a conversation with Richard David Story, editor in chief of Departures, celebrity keynote speaker Oscar de la Renta concurred, noting that “There is a lot of money out there but people are holding onto it. Once we build a sense of confidence, we will be over this phase. [The recovery] will happen very quickly.”
The 2008 Convention brought the activities of the 80th anniversary of The Leading Hotels of the World to a close, concluding at the John F. Kennedy Presidential Library and Museum with a spectacular black-tie gala which served as the official celebration for outgoing president and chief executive officer Paul McManus.
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