Industry Insights

Price is what you pay but value is what you get, and when it comes to Presidential Suites there's still a veil between the two. Many travel advisors would love to book these suites – the rates aren't the issue despite being astronomical – but how do you know what your clients are getting once you book it?

"Hotels are sometimes reluctant about making arrangements or are insensitive to timing – like it's not worth planning if they don't already have the booking for these suites. However, I'm not willing to book unless I know exactly what my clients are going to get and the pieces are in place. It's effectively become a chicken and egg problem," says Blane Kieng, Managing Director of the Beijing- and Shanghai-based luxury travel agency Ultré. Kieng and his team at Ultré are developing a unique program called Ultré Exclusives, which aims to unlock this part of the luxury travel market at key properties across the globe.

The truth is that hotels would rather let their Presidential Suites sit empty than accept a booking at a lower rate. Sure, exclusivity and prestige are important, but according to Kieng that traditional thinking has lured hotels into a trap.

"They've never been able to crack the code because they can't (or won't) budge on their published rates. All these resources have so much unrealized potential because of the mindset that's been built around these spaces," he says.

"The whole concept of our new program is to essentially take these Presidential Suites that are amazing but rarely booked, and turn them into a cornerstone of a new type of getaway product that is the ultimate getaway. Build amazing in-house experiences, add some exclusive complimentary local experiences that these hotels all have contacts for, and make a wonderful package that sells the suite – without lowering the rates. It’s dynamic rates and based upon availability, so hotels aren’t tied down to some static price," says Kieng.

Kieng believes the new program will also open up lucrative new opportunities at the same time. Even one additional two-to-three day booking per month would be a boon for many properties. But through the program and its unique approach, it'll also help them tap into the luxury travel market in China through Ultré's vast network. Already the largest packager of B2B luxury travel products in China, Ultré is looking to expand its offerings with this new program.

"The concept I share with hoteliers is that it’s not about the space, but the actual experiences in the hotel that guests will ultimately remember," he shares. "Why not utilize these resources and put together a great package of experiences, anchored by their best accommodations, and book the hotel's premiere space (still at premiere rates), which will also garner free publicity for the hotel when my clients gloat all over social media?"

But he's not talking any old social media. The likes of Instagram, Facebook, etc. seem more like an eye-roll for luxury clientele in China. "Once we’ve got the first batch done and ready, we’ll then launch on XiaoHongShu, also known as China's Little Red Book, which is the largest social media platform in the country. Sort of like China’s Instagram with over 400 million active users."

"No one in China really does websites anymore," Kieng says rather bluntly. "It’s all about individual channels on various platforms. But foreigners would have a hard time accessing the content as they would need to have the Chinese app downloaded and also be able to read Chinese. We offer them a better way to engage with the market in China."

It's doubtful Kieng will have trouble with that. Luxury clientele in China are maturing, and Kieng's approach is to position hotels in an advantageous way for the rapidly evolving Chinese market. "The luxury travel market in China is currently like fine dining: luxury clients buy things off the shelf (a hotel, a cruise, etc.), but there’s no real knowledge or experience how to put these ingredients together to create a Michelin-star level dish. That's where we come in," he says.