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Luxury accommodation – significantly different or just more expensive?

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Journal of Revenue and Pricing Management Aims and scope

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.

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Author information

Authors and Affiliations

  1. School of Hospitality and Tourism, Auckland University of Technology, Auckland, New Zealand

    Tracy Harkison & Nigel Hemmington

  2. Business School, Auckland University of Technology, Auckland, New Zealand

    Kenneth F. Hyde

Authors
  1. Tracy Harkison
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  2. Nigel Hemmington
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  3. Kenneth F. Hyde
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Corresponding author

Correspondence to Tracy Harkison.

Appendix A: Interview Guide

Appendix A: Interview Guide

  1. 1.

    What do you understand by the term “luxury hotel, luxury lodge”?

  2. 2.

    What do you understand by the term “experience”?

  3. 3.

    What do you understand by the term “co-creation”?

  4. 4.

    Who or what do you think is involved in the “luxury hotel, luxury lodge experience”?

  5. 5.

    What is the attraction of a luxury hotel, luxury lodge?

  6. 6.

    What do you understand by the phrase “luxury hotel, luxury lodge experience”?

Probes for each question:

Can you give me an example?

What do you mean by that?

Could you explain that a little more?

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Harkison, T., Hemmington, N. & Hyde, K.F. Luxury accommodation – significantly different or just more expensive?. J Revenue Pricing Manag 17, 231–243 (2018). https://doi.org/10.1057/s41272-017-0085-1

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  • DOI: https://doi.org/10.1057/s41272-017-0085-1

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