Later this year, skilled craftspeople in rail yards near Florence and Milan will embark on the task of restoring 17 original carriages from the iconic Orient Express train. These carriages, which have come to symbolize the epitome of luxury travel, were first put into service about a century ago and were made famous by Agatha Christie’s 1934 murder mystery novel. The train itself will retrace its historic route between Paris and Istanbul, a journey that hasn’t been offered for over three decades, starting from November. With prices ranging from €3,000 to €6,000 per night, affluent travelers will have the opportunity to book suites on board the train for this exclusive experience.
The revival of the Orient Express, spearheaded by its parent company Accor, marks a significant shift for hotel conglomerates as they venture into more exclusive forms of travel such as rail trips and cruises. These companies are betting on the strong demand for luxury travel experiences, as well as the appeal of their loyalty programs for high-net-worth customers. According to market research cited by consultancy Deloitte, the global luxury travel market is expected to grow by 45% over the next five years, reaching a value of $2tn.
Interestingly, luxury travel has rebounded even more quickly from the pandemic than mid-market travel, as the economic slowdown has hindered middle-class spending. A survey conducted by travel technology firm Amadeus revealed that 58% of high earners, ranging from the ultra-rich to those with salaries over £120,000, plan to spend more on international travel in the next 12 months compared to 2019. In contrast, only 36% of travelers across all salary brackets share this sentiment.
In line with this trend, luxury hotel resort operators like Aman and Four Seasons have also announced plans to launch their own luxury cruise liners. Marriott brand Ritz-Carlton set sail on its maiden voyage with a luxury ship last year, and two more vessels are expected to launch by 2025. Scott Rosenberger, a partner specializing in travel and hospitality at Deloitte, asserts that the luxury travel market “continues to look very favorable.” This sentiment is echoed by Accor’s CEO, Sébastien Bazin, who sees a large opportunity in the “ultra-rich” segment among Accor’s 300 million customers. Accor aims to curate, own, and operate various luxury travel activities beyond the confines of their hotels, recognizing the value of diversifying experiences to keep their affluent customers engaged and loyal.
However, entering the cruise industry does come with its fair share of risks. The Ritz-Carlton’s first ship experienced significant delays due to the pandemic, highlighting the unpredictability and potential pitfalls of this industry. Vlad Doronin, CEO of Aman Resorts, acknowledges the substantial capital expenditure required for luxury cruise liners, emphasizing that it exceeds the costs of their land-based hotel and resort destinations.
Despite the risks and costs involved, luxury hotel groups are looking towards the success of companies like Belmond, which has been a pioneer in offering luxury train rides and river cruises for over four decades. Belmond continues to innovate by launching new routes and reducing passenger capacity to enhance the guest experience and foster intimacy. Manfredi Lefebvre d’Ovidio, overseeing the relaunch of Crystal Cruises, believes that the incursion of hotel brands into the luxury cruise sector will not pose a major threat to traditional operators, as these hotel brands are targeting the ultra-luxury segment.
Ultimately, the success of hoteliers’ ventures into luxury train and yacht travel will depend on whether there is sufficient demand to justify the high prices. Accor’s CEO, Sébastien Bazin, believes that there is historical evidence of the allure of this type of travel, evidenced by the rediscovery and restoration of the original Orient Express carriages found abandoned on the Polish-Belarusian border in 2015. Accor aims to bring back the golden age of luxury travel with this audacious endeavor.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
