Luxury brands extend further into hospitality.

Luxury brands extend further into hospitality.

Luxury brand Dior has just begun accepting bookings for its two dedicated wellness carriages on the famous Royal Scotsman train that travels through the picturesque Scottish Highlands, which highlights the ongoing move by high-end brands to deliver immersive experiences.


Dior is part of LVMH that bought the train’s operator Belmond in 2018 as it recognised the increased blurring of the lines between luxury products and experiences. This trend is being reflected in many parts of the luxury brands market.


Earlier this month luxury footwear maker Christian Louboutin opened the doors to the 13-room Vermelho hotel on the coastline of Alentejo in Portugal. The idea is that guests can immerse themselves in the visceral elements that provide the inspiration behind the brand’s products. 


Louboutin’s move follows hot on the heels of watchmaker Audemars Piguet that in late-2022 opened the 50-room Hôtel de Horologers in Switzerland that is connected to the brand’s museum, which contains 300 timepieces. While staying at the hotel guests can participate in watch workshops that provide them with a much richer understanding of the brand.


These moves are not surprising when you consider the insatiable appetite to spend by the more affluent consumers regardless of the global economic backdrop. As many as 65% of the top 5% of earners aged 18-60 intend to increase their spending on luxury products and services in 2023, according to Kantar, with the highest proportion of this money being directed at hotels and restaurants.


LVMH has been accelerating its spending in this area as highlighted by the opening of the Cheval Blanc Paris hotel – that has just celebrated its one year anniversary – that links the renowned wine brand with a top-end hotel experience. The high-end property reinforces the company’s position within the luxury landscape and showcases various health & beauty brands from within the LVMH stable. 


These moves are also being echoed by a growing number of major luxury brands including Versace, Bulgari, Armani, and Christian Lacroix as they increasingly recognise the value in projecting a whole lifestyle around their brands. We can expect to see many more such brand extensions as well as a variety of pop-up executions that will all look to tap into the undimmed spending power of the more affluent shoppers around the globe.