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Luxury Travel: Leading Hotels Reports 2011 GainsFebruary 10, 2012 By: George Dooley Travel Agent
If you doubt luxury travel's importance take a look at the results reported by luxury hotel powerhouse, Leading Hotels of the World, Ltd. (LHW). LHW reports it achieved significant growth in revenue in 2011 with hotel sales of $614 million, an increase of 13 percent over the same period in 2010.
LHW also reported increased same store sales and average daily rate at its independent luxury hotels.
Out of the current portfolio of 430 LHW hotels, 391 of them were full-year members for both 2010 and 2011, LHW said. "Despite regional turmoil around the globe – such as the Arab spring, Greek debt crisis, earthquake in Japan, and debt risk in the USA – LHW’s 2011 hotel revenue for the 391 properties ($570 million) not only exceeded 2011 year-end budget, but also significantly out-performed the same member portfolio for 2010 ($479 million) by almost 19 percent."
Leading Hotels President and Chief Executive Officer, Ted Teng, commented: “This substantial increase demonstrates the success of our individualized focused approach on generating revenue for Leading Hotels.”
Demonstrating that customers are ready to spend for what they consider true quality and value, the average daily rate across the portfolio improved sharply from the previous year, registering at $498 -- an increase of $67, or 16 percent.
In addition, reservations made by members of the Leaders Club, the company’s signature loyalty program, yielded an ADR of $585, up by $72 compared to 2010, LHW reports.
Leaders Club customers represent an engaged and responsive audience who demonstrate loyalty metrics such as return and reactivation rates 10 times higher than non-members, LHW said. Teng added,
“Leaders Club has been increasingly appealing for frequent luxury travelers, with exciting added benefits and even further special recognition at our hotels. Demonstrating true appreciation to clients who are loyal to our brand was foremost on our minds when we added complimentary breakfast and Internet access, as well as the ability to earn free nights, ” Teng added.
The Leading Golf program contributed to a significant increase in sales at over 50 participating resorts, with an increase of 41 percent in 2011. "This tremendous success sparked the 2012 launch of The Golf Society, an elite association that combines all the privileges and perks of Leaders Club along with a host of additional benefits designed for members-only at participating Leading Golf resorts," LHW said.
An overall analysis of the top-producing countries indicates that, along with the United States, the United Kingdom, Germany, Brazil, and Russian Federation are among the top revenue generators. Furthermore, revenue doubled for LHW’s Spanish and Italian language websites in 2011, LHW says.
From a destination standpoint, travel to Europe, the Middle East and Africa increased on a revenue basis by over 11 percent since 2010. The highest-grossing destinations included the United States, Italy, France and Switzerland with growth as high as 23 percent, LHW says.
The Leading Hotels of the World, Ltd. lays claim to be the largest luxury hospitality organization in the world, representing over 430 of the fine hotels, resorts and spas in over 80 countries.