Ritz-Carlton President Simon Cooper talks economy, industry and luxury20:32 17/02/2010, Melanie Nayer, luxurytravel, ritz carlton, ritz-carlton, ritzcarlton, simon cooper, simoncooper, Gadling
Filed under: Hotels and Accommodations


The term 'luxury' is synonymous with glamour, grandeur and extravagance, and often accompanied by a hefty price tag. But what if you were told you could travel luxuriously without breaking the bank? That's the concept of Ritz-Carlton's brand strategy, and more travelers are finding that 'casual elegance' means living it up without breaking the bank.

The Ritz-Carlton Hotel Company has been around for nearly 100 years and has set the gold standard in luxury hospitality worldwide. Its first hotel, The Ritz-Carlton, Boston opened on May 19, 1927 with a room rate of just $15 - mere pennies in today's pockets, but a stretch for those recovering during the Great Depression. Throughout its century-long life, the Ritz-Carlton weathered the economic storms and continued to provide a level of quality synonymous with luxury.

I recently spoke with Simon Cooper, president and chief operating officer of The Ritz-Carlton Hotel Company, to get his thoughts on how luxury, by definition, has changed over the years, and I also got a sneak peak at what's to come in the next 100 years for the Ritz-Carlton.

How has the luxury customer changed--do they want the bells and whistles or does price matter?

Simon Cooper: Obviously, consumers have less disposable income today than they had 18 months ago. Demand has been constrained and we have more vacant rooms than we used to have. In 2009, by comparison, we filled more rooms than in 2008, but the average rate was lower. The point being that people are still traveling and looking for luxury experiences.

The luxury customer has changed. First, there is less disposable income so people are more focused on what they spend. Authentic, real products are going to succeed. Second, there is a certain degree that people don't want to flash their money around - a lot of people are suffering so others are asking themselves, "Should I really be doing this?" People are being a little more careful with their spending. From our point of view, we can live with that. We aren't a see-and-be-seen place; our guests come to relax and enjoy time with their families.

The number one household expense annually is the vacation - we knew that 2009 was going to be really challenging and we looked ahead. Consumers are making a choice to stay with us and it's not because the hotel down the street didn't have space - right now, everyone has space. Our philosophy: if you're going to take only one vacation, take it with us.
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