For most people, spending on experiences like travelling to exotic places has become more important than spending on luxury items such as shoes and handbags. Spending on travel and life experiences has increased by four times than spending on goods, according to reports. It has soared so much that the parent company of Louis Vuitton and Christian Dior – LVMH announced that it will be purchasing the Belmond hotel group for $3.2 billion.
The group owns the Hotel Cipriani in Venice, Copacabana Palace in Rio de Janeiro and 44 other luxury hotels around the world, along with the rail service – The Orient Express, the Royal Scotsman and multiple other high-end river cruises.
This comes as a welcome change as luxury good companies don’t usually prioritise on services. But millennials today are known to outspend all the generations and brands have realised that they want to remain relevant in the future, they need to start investing in the service industry as well.
LVMH already owns numerous hotels is a favourite in the fashion industry as the plans of the company’s drive to expand into luxury experiences, perfectly compliments the luxury goods being sold by the brands it owns like Celine, Givenchy, Marc Jacobs and more. In a statement, the Chief Executive and Chairman said that this acquisition will increase LVMH’s presence in the ultimate hospitality world. The statement also mentioned that they will deliver timeless, one-of-a-kind luxury experiences that will help reach new levels.
