20_ttg_lux_eds report 11/6/09 15:12 Page 20
EDITOR’S
REPORT
Who better to gauge the
pulse of luxury than the
president of Ritz-Carlton?
Simon Cooper talks
exclusively to ttgluxury
By April Hutchinson
I
f ever there was a time to be in touch with your clients in any
and all ways possible, it is now. Which is why it’s great to
hear that Simon Cooper, president and chief operating
officer of Ritz-Carlton, has joined the world of Twitter. “I am
doing my own twittering,” he is keen to point out. “When you see 58%
those 140 characters from me, they’re really mine; this is one area
of Ritz-Carlton travellers
where I am not going to be managed by my ‘people’! We now have said “vacation” was their
to be present in all online and social media where appropriate.”
number one big-ticket
pricing includes meets their expectations, they will buy it.”
expenditure this year
Cooper says Ritz-Carlton was thrilled to be polled as number daily breakfast, Ritz-Carlton still has projects in the
one hotel chain by users of TripAdvisor. He says peer-to-peer internet, local calls, pipeline, with six openings this year and
online recommendations will soon usurp traditional ratings
72
parking and up to six next. Are there still offers on the table?
systems in importance. “With TripAdvisor and the like, you get an
%
three free nights.” “Yes projects are still coming to us, but
editorial from a real traveller who felt compelled enough to write Cooper believes the financing has to be 100% secure. There
about it; a hotel inspector’s visit is 90% functional.” people will stick are other kinds of opportunities and we are
Like all in the travel industry, Cooper is feeling the late-booking
said their view of luxury
with brands they going to see a lot more conversions – we did
trend. “People no longer need to book as much in advance as there
hotels had not changed at all
trust and ones they it in Fort Lauderdale last year on a St Regis
is plenty of space and people aren’t getting things dramatically know aren’t going to the brand wanted out of. We were in
cheaper if they book way in advance. The sense of ‘book now for make compromises that affect the product. within 45 days. You will see more of this
next year’ just does not exist. “Knowing how to flex the operation is key and hotels changing hands for low values.”
“There are significantly lower yields, of course, to operators. But – you may have five restaurants but you Ritz-Carlton still has notable global
for consumers, there has never been a better time to vacation. In rotate so only three open at any one time. gaps and, longer term, these could be
all of my life, I have never seen such opportunities: if you do still This climate is going to be around for a closed. “We have signed a deal in the
have the money to travel, just do it.” while and we have to make sustainable, Maldives and we are working on Mauritius
not quick fixes. We also watch our guest and the Seychelles. And you look across to
Barracking Barack comments like crazy to make sure they are Russia, eastern Europe, India and China –
With such a strong presence in the US, Ritz-Carlton and its not aware that anything is different.” all accumulating wealth, looking for places
Marriott parents were among those angered by calls from Barack All hotels are feeling the pain, he says, to go. We can expect to see a lot more
Obama to suggest it was inappropriate to travel for meetings. “We especially those in destinations heavily resorts develop around the Mediterranean,
had to reverse the message and many in the sector got behind the reliant on the banking and finance sector, Turkey and north Africa, and the Gulf
‘Meetings Mean Business’ campaign to protect the millions of such as New York and Singapore. will continue to grow in wealth and so,
American jobs that depend on business travel and events. “Hong Kong is doing better as it has consequently, will luxury hotels.”
Fundamentally, people still need to meet for business.” more magnets to go there. Our new Cooper has been instrumental in
Cooper says the downturn has hit the most vulnerable workers property in Sanya in China is well over changing the perception of Ritz-Carlton
worst. “You still need the general manager, but if you don’t have as budget and expectations, because 90% of and the process goes on.
many bookings, you don’t have as many rooms to clean and you its guests are domestic,” says Cooper. “The gold taps have been melted down,
don’t need as many waiters. A lot of the unskilled jobs just went.” there’s not so much marble and the
So how is Ritz-Carlton steering through the storm? “The key Yielding prices chandeliers are smaller. We are casually
thing is to fill rooms at prices that are sustainable, as you want to “The Caribbean’s been tough and we have elegant,” he says. “The perception of our
keep busy and keep people employed,” he says. less group business across the board. But brand among consumers has moved so
Ritz-Carlton is running a promotional from a transient leisure point of view, we much but it’s a non-stop message. We have
campaign called One Vacation to inspire had more leisure guests in April and June a programme called 2010 which we started
bookings of value. “We are putting out than we did last year. The caveat is that in 2004, thinking it would take that long
some very practical plus points – above all, yield is lower, as we have to get to a price at to change perceptions, but it is a constant
guests want to know how much things are which people are prepared to buy. If you evolution to try and meet what luxury
20
going to cost them, so our Peace of Mind can present a customer with a package that consumers look for today at all levels.”
editor’s report
summer 09 ttgluxury.com
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