January 16, 2014
NEW YORK - A senior marketing executive at The Peninsula Hotels said at Luxury FirstLook: Strategy 2014 that the brand's family-based heritage gives it a level of control over details that contractual hotels do not have.
Robert Cheng discussed that the hotel brand's deep connection to China has earned the trust of the country's consumers, a body of consumers who are much more varied than is typically perceived. Improving academy programs, rejuvenating an affinity for glamour and finding ways to merge traditional and contemporary interests were also elaborated upon.
“We’re never going to be a boutique minimalist hotel," said Robert Cheng, vice president of marketing at The Peninsula Hotels, New York. “It’s all about creating a balance between celebrating one’s history and progressing to the future.
"In the hotel world, we have a fairly unique model," he said. "We own the hotels, there are no management contracts, we can control every last detail. We're not doing things for short-term profitability, we're doing it for the long term."
Luxury FirstLook Strategy 2014 was organized by Luxury Daily.
What's next
Mr. Cheng said that the hotel's intergenerational ownership has allowed it to maintain a tight portfolio, with only a handful of properties clustered in Asia and North America.
Peninsula Hotel
However, Peninsula is setting the stage for global expansion.
The brand's first European property will open this year in Paris. The executive said that Peninsula has approached the Parisian unveiling in a manner consistent with its DNA. The 1908 building will maintain its shell while receiving a fresh interior renovation and will be equipped with the latest technology. Four basements floors were dug out to accommodate modern requirements such as wiring, pools and parking.
Peninsula Hotels will also be expanding its bespoke academy programs. Guests can contact a property and design an "academy" that explores an interest that they have. Some former academy classes include learning about wind chimes from Tokyo masters,visiting a New York firehouse, picking grapes in a Thailand vineyard on an elephant and surfing with Tom Cruise's surf instructor.
Technology is another area of concern for Peninsula, and the hotel brand has dispatched a team of engineers to help it stay abreast of innovations. Tablets consolidating all hotel information and room functions were recently added to the rooms in select properties.
Demystifying the Chinese consumer
Mr. Cheng emphasized that Chinese consumers are not a homogeneous block with monolithic interests. Rather, affluent Chinese consumers appreciate shopping, culture, travel and food with as much variety and gusto as consumers from other countries.
Discussing the Chinese consumer in singular terms has become tired rhetoric, according to Mr. Cheng.
The executive also noted that Peninsula has earned the trust of China's wealthy by understanding distinct cultural cues.
The Peninsula Hong Kong
Protecting face, or momentary social reputation, and taking recommendations from trusted sources are two aspects that the hotel brand keeps in mind when dealing with Chinese consumers.
Sixty-five percent of Chinese consumers rely on the Internet for recommendations and 51 percent rely on word of mouth, according to Mr. Cheng. To meet consumers on these terms, the brand keeps an active social presence and keeps dialogue open.
To protect face, Peninsula identifies the status of certain guests as they arrive and acts accordingly to prevent embarrassment.
Mr. Cheng also discussed the rapid acceleration of consumer sophistication in China. In the past five years, "time-starved and spoiled" travelers have emerged that require increasing bespoke treatment in all areas.
Recent happenings
Peninsula Hotel Hong Kong celebrated its 85th anniversary Dec. 11 with a gala evening that featured work from Hong Kong artist Lee Chi Ching.
The celebration was imbued with additional significance because the property completed a $58 million room enhancement project earlier in the year. Anniversary celebrations not only impart a sense of credibility, but also provide hotels with a jumping-off point for numerous campaigns (see story).
The Peninsula Hong Kong 85th anniversary celebration
Peninsula Hotels holiday spirit culminated on a SnowPage microsite that featured a festive mascot that is woven into digital and in-store efforts.
A number of seasonal offers were girded by charity initiatives that reminded consumers of the hotel chain’s engagement in the community at large. Centralizing its holiday efforts around the SnowPage symbol may grant Peninsula’s various offers a dose of unity, while acting as an anchor in the busy holiday season (see story).
Peninsula Hotel Snow Page
Final take
Joe McCarthy, editorial assistant on Luxury Daily, New York
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