Are Luxury Hotels recession proof?

many 5 star hotels & resorts have reduced their tariffs & are promoting value schemes to increase occupancy levels

Corporate high spenders are under pressure to cut costs like anyone else in the organisation. Downgrading from 5 Star to 4 star is expected of any Exec who are asking their staff to cut costs at the same time. If this replication doesn't happen at a senior level you can be sure that the Accounts / Finance team processing the expenses will ensure that the message gets out! This has happened in an organisation I worked in and it ultimately cost the MD his job!

Luxury hotels are not recession proof as the Luxury hotels are preffered by the large corporate clients of large companies, and yes the the recession give affect to the the most of the big companies, so they majorly cutbacks in thier luxuries and high end expenditures and in the time of recession people save thier money to manage themselves in the market.

Due to present economic condition not only big hotel but small hotels are also getting afeceted. Now the customers are using low class hotel if they are really feeling to enjoy their holiday where they used to book big hotels. Customers are now very much aware about their savings rather than wasting their money on brands. On the way to compete with this crucial condition many hotels are cutting their rate upto 50% and on the same way other companies are also reducing their leaisure programmes and trips to out of station.

Mr.Jude i completely agree with you.Even after reducing the prices of rooms in hotels there will be no improvement in the business because people have identified living in expensive hotels as an unnecessary expense which they want to reduce.So recession has definitely has an impact on the hospitality industry too and they have to think of innovative ways to cope up with this.

In current scenario, all the biggest companies are in trouble so thats the answer. if client is affected so the service provider. 

In current scenario, all the biggest companies are in trouble so thats the answer. if client is affected so the service provider. 

I wholly agree with Mr. Lobo's argument, who looks like has done his reaearch & has got his facts right. In fact the only institutions doing good business would be bars, where many an entrepreneur may have gone to drown his sorrows after bad days during the recession

one would think the rich remain richer, but even they have to cut costs, and housing is the most expensive and more at risk. Nothing is recession proof, I feel. Even people with money have less of it to burn hotels have been suffering as well as high end retail and food.

According to me luxury hotels are not recession proof cause...most of these luxury hotels are used by either the upper middle class or the high end class of people not by the middle classes.and now in recession even the upper middle class does not want to spend..so the recession factor will affect the luxury hotels.

Timeshare not only offers luxury hotels but also resorts which. You can also get additional memberships fo clubs and hotels with RCI and club Lacosta.

This will give you the freedom to make your reservations a week or a two days in advance. A lot of organisations are buying these cards to make it more economical for themselves. You just pay an AMC and enjoy luxury.

This is just oneof the other options.

Also, I am wondering what is the percentage of customers we are targeting when we market luxury hotels with attached frills - which apparently make it easier to sell. Also, what percentage of loyalty footins are there!

Would be keen to know.

How about  considering an investment in a Timeshare. They eventually work out quite economical and one can enjoy international vacations through an RCI exchange.

No abstloutley NOT..due to global recession there is cost cutting in all segments ...be it anything, So nobody will like to have luxury hotels at high rates.The luxury hotels will not sell unless they have got very good competitive economical price

I don't think any segment of hotel is recession proof, so luxury hotels are not recession proof either. People are price sensitive and due to this economic downturn everyone is affected and I think people will be affected by this high room rates. And luxury hotels may experience a drop in the guests...