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Luxury accommodation – significantly different or just more expensive?

Author

Listed:
  • Tracy Harkison

    (Auckland University of Technology)

  • Nigel Hemmington

    (Auckland University of Technology)

  • Kenneth F. Hyde

    (Auckland University of Technology)

Abstract

Luxury accommodation is a growing sector in the hospitality industry, but what really sets it apart from standard accommodation? This paper considers what luxury accommodation is by first investigating how luxury accommodation is able to command a premium price, and then identifying the differences in customers’ luxury experiences between luxury hotels and luxury lodges. The paper uses qualitative data drawn from a larger study that examined six luxury properties in New Zealand, interviewing 81 participants during their luxury accommodation experience – 27 managers, 27 employees and 27 guests. The research findings indicate that properties can command a premium price if their facilities and amenities are of the highest quality, if their staff have high levels of interaction and engagement with guests, and if they present a ‘wow factor’ while still making their guests feel ‘at home’. The luxury accommodation experience is found to be significantly different from standard accommodation experiences. Within the luxury sector, a distinct difference exists in the luxury accommodation experience at lodges versus hotels. Properties need to demonstrate to guests why they demand a premium price, by providing value for this money.

Suggested Citation

  • Tracy Harkison & Nigel Hemmington & Kenneth F. Hyde, 2018. "Luxury accommodation – significantly different or just more expensive?," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(4), pages 231-243, August.
    • Handle: RePEc:pal:jorapm:v:17:y:2018:i:4:d:10.1057_s41272-017-0085-1
    DOI: 10.1057/s41272-017-0085-1
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    References listed on IDEAS

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    1. Nueno, Jose Luis & Quelch, John A., 1998. "The mass marketing of luxury," Business Horizons, Elsevier, vol. 41(6), pages 61-68.
    2. Grewal, Dhruv & Levy, Michael & Kumar, V., 2009. "Customer Experience Management in Retailing: An Organizing Framework," Journal of Retailing, Elsevier, vol. 85(1), pages 1-14.
    3. Puccinelli, Nancy M. & Goodstein, Ronald C. & Grewal, Dhruv & Price, Robert & Raghubir, Priya & Stewart, David, 2009. "Customer Experience Management in Retailing: Understanding the Buying Process," Journal of Retailing, Elsevier, vol. 85(1), pages 15-30.
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    Cited by:

    1. Yangpeng Lin & Yeongbae Choe, 2022. "Impact of Luxury Hotel Customer Experience on Brand Love and Customer Citizenship Behavior," Sustainability, MDPI, vol. 14(21), pages 1-14, October.

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    Keywords

    luxury; hotel; lodge; New Zealand;
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