The Reinvention of Scotland

When you think of Scotland, world-class golf, tartan kilts and Sir Sean Connery might immediately come to mind – and they rightfully should! The fabric of Scottish culture is rich and dynamic, and the country has certainly made a name for itself on the world stage. What you might not realize, though, is that Scotland is actually a very ‘young country’ – its Parliament is only 10 years old following devolution in 1999 (when the Government of Scotland was given power to handle most of the country’s day-to-day issues including health, education, justice, rural affairs and transport).

With its newfound youth comes the opportunity for re-invention. This doesn’t mean that what has come to represent Scotland on so many levels gets dismissed. Instead, the new country that is emerging gets to embrace its distinguishing characteristics and showcase new aspects that celebrate not only the present, but the future of Scotland.

The strength of Scotland’s youth has generated a more powerful cooperative spirit, particularly among its tourism partners. This is particularly evidenced by the very successful Virtuoso Chairman’s Recognition Event, which was held in October 2009 at The Gleneagles Hotel in Scotland. Government officials, hotel and tourism executives, and various other partners worked for two years to put this event together. Their collaborative efforts demonstrated how triumphant the results can be when partners work together toward a singular goal of driving tourism to Scotland. Tourism yields tremendous benefits, including the generation of jobs and revenue as well as allows those who call Scotland ‘home’ to share a wealth of culture and sightseeing with travelers from around the world.

Luxury Summit for Insight & Inspiration

The luxury travel segment is not the only luxe segment that has suffered. One thing we’ve surely learned during this difficult time is the importance of sharing ideas among colleagues and formulating strategies that will lead us to success. Sometimes that inspiration and insight can be found by looking at what companies are doing in other industries such as retail and leisure goods. Staying ‘in the know’ will remain paramount in 2010, which is why I draw tremendous value from the annual American Express Publishing Luxury Summit, to take place at the Mandarin Oriental, Las Vegas on April 25-27, 2010 (www.luxurysummit.com).

During the Summit, experts and authorities on culture and economics will illuminate the trends, tastes and attitudes that are forming on the horizon and will shape luxury marketplaces and appetites. Speakers include:

· Steve Sadove, Chairman & CEO, Saks, Inc.
· Daniel Lalonde, President & CEO, Louis Vuitton NA
· Tony Hsieh, CEO, Zappos
· Michael J. Kowalski, Chairman and CEO, Tiffany & Co
· Baba Shiv, Professor, Stanford University
· Mary Baglivo, CEO NY and Chairman & CEO Americas, Saatchi & Saatchi
· Henrik Fisker, CEO, Fisker Automotive Inc.
· William Taubman, COO, Taubman Centers Inc.
· Marian Salzman, President North America, EuroRSCG Worldwide PR
· Vineet Nayar, CEO, HCL Technologies
· Ted Teng, President & CEO, The Leading Hotels of the World
· Geoff Vuleta, CEO, Fahrenheit 212
· Fred Dust, Partner, Ideo
· Christopher Cowdray, CEO, Dorchester Collection
· Irwin Gottlieb, CEO, GroupM

There will also be two terrific overviews by four senior executives from the global offices of McKinsey & Co. from Shanghai, London and Paris, New York and Washington, as well as the annual Survey of Affluence & Wealth in America presented by Dr. Jim Taylor, Vice Chairman, The Harrison Group.

This “must attend” event will be jam packed with data and information to help you better understand today’s luxury consumer and the trends within the marketplace. For more information or to register, visit www.luxurysummit.com.

Snow Bliss at Snowmass & Aspen

It appears that Aspen and Snowmass (http://www.aspensnowmass.com) are weathering the economic downturn fairly well. After ending last year about 7% down, the Aspen Ski Company reported it is 5.5% ahead of last year at the end of January with all indications that if March is a good month, they will have had a good season. While these statistics are encouraging, the economic downturn is certainly having an effect in Aspen. Some retailers and restaurants are going out of business, and there is vacant retail space in prime locations. Even, the best book shop in Aspen (at Little Nell), has disappeared after more than 20 years of providing a fine selection of books, DVD’s and newspapers.

Snowmass continues to develop although the much talked about Little Nell development is shuttered. The foundations have been laid but work has stopped while the developers try to renegotiate loans.

The good news for all Snowmass devotees is that the new Viceroy Hotel is open (http://www.viceroyhotelsandresorts.com/snowmass/), and it is a wonderful addition to the selection of accommodations in the area.

Putting on the Ritz

The investment being poured into new hotel development throughout Asia continues to amaze me. As I’ve mentioned before, cities like Beijing and Shanghai are in grave danger of becoming overbuilt with too much capacity – but nonetheless, brand after brand make their way – or expand their presence – in the market.

There are a handful of luxury hotel operators, though, that have mapped out very strategic plans making them key players in the region – and the one that immediately comes to mind is Ritz Carlton. For the past 20 years, Ritz Carlton (www.ritzcarlton.com) has developed an impressive network of grand and luxurious properties, starting in Hong Kong and expanding throughout Asia – in Kuala Lumpur, Bali, Jakarta, Singapore, Beijing, Shanghai, Seoul, Osaka, Tokyo, Sanya, Shenzhen and Guangzhou.

The brand is continuing its growth in Asia with a second property opening in Shanghai in May and one in Hong Kong in November of this year.

An Eye on Hotels in Beijing & Shanghai

I just spent a week in China visiting new luxury hotels, and I am astounded as to how rapidly the country is growing. My last visit was only a year ago, and in that time the landscape has dramatically changed. New properties have opened or are about to open, and the country is raising its accommodation standards for luxury, style and service.

Since Asia is indeed fresh in my mind, I wanted to share with you my thoughts on some of my favorite hotels in Beijing and Shanghai, cities that never fail to intrigue me.

'Five Key Principles' for ROI

While traveling in Asia this week, I visited the Hong Kong office of Zenith Optimedia (http://www.zenithoptimedia.com/) and learned of the very effective way they are interpreting ‘return on investment’ for their clients. I believe that fellow luxury marketers will be as impressed as I was with Zenith’s clearly voiced ‘Five Key Principles’ to direct their communications activities for the success of their clients – Invest, Outcomes, Connect, Productivity and Evaluate.

1. Invest – We invest, not spend, clients’ budgets.
2. Outcomes – We are interested in outcomes, not simply outputs.
3. Connect – We believe in creating powerful connections with consumers to make investment work harder.
4. Productivity – We aim to increase the productivity of the marketing budget.
5. Evaluate – We strive to measure and improve returns on all activity.

Return on investment has always been important for luxury marketers regardless of their specific business segment (travel, retail, etc.), and it is probably even more paramount in the present climate. What Zenith Optimedia has done in articulating these principles is create something simple, understandable and focused that adds tremendous value to their relationship with their clients. We should never lose sight of the fact that, first and foremost, marketing agencies and clients must engage in constant dialogue to ensure an understanding of a client’s objectives with any communications plan that is executed. I encourage other companies to follow Zenith Optimedia’s example.

My Top Two Hotels of 2009

Realistically, I probably spend half the year in hotel rooms around the world. Last year, I must’ve stayed in more than 60 different hotels – many of which were spectacular – but two in particular stood out for me. As my choice for the top hotels in 2009, I would select The Upper House in Hong Kong and the Crosby Street Hotel in New York City.

Both properties are owned by companies that have heavily invested in service. Yes, the hotels are contemporary, graciously appointed and uber-stylish but what impressed me most is the obvious investment in staff training to ensure that the customer comes first. If there aren’t satisfied customers, then a hotel doesn’t survive because empty beds don’t translate into profits. The importance of customer service – whether someone is traveling for business or pleasure – should never be underestimated, especially in today’s economy where travelers will scrutinize the value of their luxury travel experience like never before.