BELMOND HOTELS

BRAND PORTFOLIO

Petya Kalendzhieva | Luxury Brand Management | 17/01/2022

5133 words
Executive summary
The following brand portfolio describes the British tourism and travel company
Belmond Ltd in the perspective of the luxury market. The focus is to present the
brand’s image as a luxury one as shown in the first part of the report, together with
a brief introduction of the brand’s history and development. Next, there is a full
overview of the brand sector, Belmond’s brand communication, different
managerial practices used and a brief SWOT analysis. Lastly, the report gives a
conclusion based on the findings and gives several recommendations for the overall
improvement of the brand’s management.

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Table of Contents
Executive summary ................................................................................................................... 1
Belmond hotels in the luxury environment ............................................................................. 3
1. Definition of Luxury ...................................................................................................... 3
2. Belmond Hotels History & Development .....................................................................4
3. Belmond Hotels as a Luxury Brand .............................................................................. 5
Brand analysis & evaluation......................................................................................................8
4. Strenghts, Weaknesses, Opportunities and Threats (SWOT) Analysis .....................15
4.1 Strengths................................................................................................................ 15
4.2 Weaknesses ........................................................................................................... 15
4.3 Opportunities ....................................................................................................... 16
4.4 Threats.................................................................................................................. 16
5. Brand Sector ..................................................................................................................8
6. Brand Communication ..................................................................................................8
6.1 Customer demographics.........................................................................................8
6.2 Website ...................................................................................................................9
6.3 Social Media .......................................................................................................... 11
7. Strategic Managerial Approaches ................................................................................ 13
7.1 Sustainability ......................................................................................................... 13
7.2 Crisis Management............................................................................................... 14
Findings & Recommendations ................................................................................................17
References ............................................................................................................................... 18

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Belmond hotels in the luxury environment
This report focuses on Belmond hotels as part of the Luxury Hotel environment and as such,
an introduction to the luxury market will be given, followed by a brief description of
Belmond hotels’ history and current development and, lastly, how those help position the
brand in the luxury market.

1. DEFINITION OF LUXURY
The late Coco Chanel used to define luxury merely as ‘the opposite of vulgarity’, possibly in
an attempt to avoid the question (Chevalier, 2021), and similarly to her, many have tried to
define luxury throughout the years, some more successfully than others.

In 2008, Chevalier and Mazzalovo (cited in Tungate, 2009) defined a luxury brand as one
that is ‘selective and exclusive; almost the only brand in its category, giving it the desirable
attributes of being scarce, sophisticated and in good taste’. Those types of luxury brands
were almost unattainable for the average customers, an aspect of luxury which in recent
years has been less apparent, as the industry evolved and can now be divided into three
domains: inaccessible, intermediate and accessible (Barnier, Falcy and Valette-Florence
cited in Chandon et al., 2016). However, these are bound by two factors – a creative and
emotional value for the consumer, used to fulfil their social goals and a promise of high
quality (Tungate, 2009; Becker et al., 2018). Consequently, the emphasis on psychological
benefits compared to the functional benefits of the product/ service is one of the main
features that distinguishes luxury from non-luxury brands (Vigneron & Johnshon cited in
Tungate, 2009).

Looking at more recent definitions of luxury by Chevalier (2021), four essential dimensions
of luxury are recognised by the consumers: elitism or distinction – the sense of belonging
to a chosen group; product/ service quality and high prices; emotional and affective
elements such as hedonism – relating to pleasure and emotions; and lastly the power of the
brand in consideration of its reputation and uniqueness.

Lastly, Chevalier and Mazzalovo (2021) state that luxury works in opposition to a standard
shared by the greatest number – the ‘vulgar’ as previously defined by Coco Chanel. It makes
us dream and comforts us by communicating hedonistic satisfactions. Conclusively, all
definitions are summarised best by defining luxury brands as ones that boast premium
products, provide pleasure as a main benefit and connect with the consumers on an
emotional level (Hagtved and Patrick cited in Chandon et al., 2016).

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 2. BELMOND HOTELS HISTORY & DEVELOPMENT
Belmond Ltd., formerly named Orient-Express Hotels Ltd. is a hospitality and leisure
company that operates luxury hotels, river cruises and train services in some of the world’s
most exciting and inspiring destinations (Belmond Ltd, 2015; LVMH, 2022). The company
was established in 1976 by the American entrepreneur James Sherwood with the acquisition
of Hotel Cipriani in Venice.

Being a true icon of the Belmond brand, Hotel Cipriani was built in 1956 by Giuseppe
Cipriani, whose dream was to create a retreat close to St Mark’s Square, but away from the
busy city streets. Since then, many famous guests have visited the hotel with its exquisite
interior and Michelin-starred gastronomy, thus setting the iconic property apart (LVMH,
2022). In 1982, Sherwood acquired some of what was left of the legendary Orient Express
(hence the previous company name) to have it restored and offer luxury rides to affluent
guests from London and Paris to Hotel Cipriani (Fallon, 2018; Belmond Ltd, 2015). In 2014,
Orient-Express Hotels Ltd was renamed to Belmond and the holding company became
Belmond Ltd (Oates, 2014; Belmond Ltd, 2015). This executive decision came with a lot of
controversy around whether the rebranding is a good strategic move. However, the CMO
Ralph Aruzza claimed that a new name is like ‘an empty vessel to create a story within’ and
believed that the name Belmond would resonate with the culture and legacy of the company,
combined with the unique collection of products offered (Oates, 2014).

In 2018, the company was acquired by the world famous Louis Vuitton Moet Hennessy
group (LVMH) for $3.2billion and became 100% privately owned (Neate, 2018). The
announcement of the sale led to a 40% increase of Belmond’s share in a single
day (Hoium, 2018). Bernard Arnault, who is LVMH’s chairman and CEO
claimed that the ‘heritage, excellence in execution and entrepreneurship
of Belmond is in line with the values of the LVMH group’ and that the
brand is complementary to the existing hotel brands in their portfolio –
Cheval Blanc and the Bulgari hotels (Neate, 2018).

Today, Belmond operates 44 properties (among which 34 hotels, 6 trains,

2 river cruises and 3 safari experiences) in 22 countries only in areas of
exceptional cultural, historical or recreational significance, in order to
provide the ultimate luxury experiences for their distinguished travellers
(Belmond Ltd, 2015). Each property is outstanding, with its own story to
tell and yet, the traits of the Belmond brand run through all of them:
craftsmanship, heritage and an authentic, unscripted service create
inspiring and exceptional experiences (LVMH, 2022).

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 3. BELMOND HOTELS AS A LUXURY BRAND
For a brand to be categorised as a luxury one, it needs to meet certain criteria. According to
Klaus Heine (2012) who outlines these features in his study of the ‘Concept of Luxury Brands’,
there are six major characteristics including price, quality, aesthetics, rarity,
extraordinariness and symbolism that define a brand’s product as a luxury one. In the case
of Belmond however, it is important to focus mainly on luxury service characteristics, as the
brand does not offer physical goods but provides services and there are many differences
between goods and services. According to Wirtz et al. (2020) services are defined as
‘activities performed by one party for another through access of labour, skills, expertise,
goods, facilities, networks and systems; they are time-based and no transfer of ownership
takes place when paying for a service’. Additionally, many definitions of luxury are not so
relevant in a service content, as they focus on a high-quality physical product (Ibid).
Therefore, this chapter will highlight a few critical service characteristics in the luxury
environment, how the Belmond brand fits in those categories and
whether it can be considered a luxury brand.

Wirtz et al. (2020) gives a definition of luxury services as

‘extraordinary hedonic experiences that are exclusive.
Exclusivity can be monetary, social, and hedonic in nature.
Luxuriousness is jointly determined by objective service
features and subjective customer perceptions. Together,
these characteristics place a service on a continuum, ranging
from everyday luxury (i.e., with low levels of exclusivity and
extraordinariness) to elite luxury (i.e., with high levels of
exclusivity and extraordinariness)’.

The main characteristic of luxury services is therefore exclusivity.

According to Ko et al. (cited in Wirtz et al., 2020), the terms of exclusivity
and price are closely related, as they point out that luxury is about goods sold at a high price
which gives the customers a sense of exclusivity and prestige. However, Kapferer and
Bastien (cited in Wirtz et al., 2020) argue that price is not a sole determinant of luxury and
that exclusivity in the form of social delamination is an essential condition for luxury and
therefore a more important dimension to define luxury. Further, as luxury services are
intangible and can often be perceived in different ways by the customers, some of the
important aspects of service might not always be easily understood without prior expertise
(knowledge or experience). Therefore, services have three ways of creating exclusivity –
through a high price (monetary exclusivity), through high levels of access control (social
exclusivity) and through having the need of a certain level of customer knowledge or skills
to fully appreciate the finer intricacies of the luxury experience (hedonic exclusivity) (Wirtz
et al., 2020). Belmond recently introduced their collection of unique private locations across
their portfolio of hotels, cruises, and trains, such as private grand suites on their luxury
sleeper trains, villas on the best beaches in the Caribbean or distinctive cottages in
California gardens (social exclusivity). That collection is specifically designed for families or
small groups that seek a highly exclusive experience within the world of Belmond

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(Belmond.com, 2020). Additionally, these experiences are at a premium price (monetary
exclusivity) – a private villa just outside their iconic Cipriani hotel, with access to a private
boat docking and 24-hour private concierge service rates at about EUR16,000 per night
(Ibid). Lastly, private boat charters in France create the ultimate exclusive experience
through personalised itineraries including wine, champagne or gastro tours. Some of the
private cruises incorporate Michelin-star restaurant visits or access to world-famous
champagne maisons for the erudite travellers (hedonic exclusivity)(Belmond.com, 2020).
Therefore, Belmond meets all three aspects of exclusivity as a criterion for luxury services.

On another hand, services can have multiple angles of exclusivity and splendour which can
also be viewed in different ways by the customers. The table below, developed by (Wirtz et
al., 2020), shows how different levels of luxury service can be distinguished. They outline a
continuum ranging from everyday luxury (more expensive than commonplace services, but
easily accessible with low price-points), through standard luxury services (moderately
exclusive, still more accessible than elite luxury service but possibly with high pricing) to
finally elite luxury service (high exclusivity with high price). Seeing the different levels of
luxury on a continuum rather than as categories allows for more subjective perceptions of
luxury to be addressed – in other words, what is luxury for one may seem mundane to others
(Silverstein and Fiske (2003) cited in Wirtz et al., 2020).

Table 1: Typology of luxury services

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Table 2: Examples of luxury services

Seeing as the criteria of exclusivity has already been examined, the two dimensions left to
discuss from Table 1 are Prestige and Extraordinary experience. Considering that Belmond
is part of LVMH (being one of the most prestigious luxury conglomerates worldwide) since
2018 and one of its assets is the famously renowned ‘Orient Express’ (Belmond, 2022), it can
be concluded without a doubt that Belmond rates very highly on prestige in the industry.
Lastly, Belmond’s portfolio includes some highly extraordinary experiences, such as
helicopter safaris, private butler services, Michelin-starred dining and private cruise boat
rental in some of the most unique and iconic locations worldwide (Belmond.com, 2020).
Conclusively, all the above-mentioned characteristics combined demonstrate that Belmond
has its rightfully owned place amongst some of the most luxurious hotel brands worldwide
and can therefore be considered as an elite luxury brand.

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Brand analysis & evaluation
The following section includes, an overview of the brand sector, main ways of brand
communication, some of their managerial strategies, and a SWOT analysis of Belmond.

4. BRAND SECTOR
Belmond Ltd operates mainly in the Travel & Tourism industry as they own and/ or operate
luxury hotel properties, train services and cruise boats. The industry is set to reach
USD617,425 million in 2022, which is an almost double increase from 2021. By 2023, this
amount will return to pre-pandemic with over USD730 million of worth (Statista, 2021b).
This shows a good outlook for the industry despite the COVID-19 crisis and gives Belmond
a good opportunity for development.

5. BRAND COMMUNICATION
The following chapter seeks to evaluate the brand communication of Belmond Ltd by
looking into their currently targeted demographic and the digital means of customer
communication.

5.1 Customer demographics

In 2014, following the re-branding of the former Orient-Express Hotels Ltd to Belmond
Ltd, the brand wanted to shift their focus away from the old-fashioned perceptions of
opulence and instead become more relevant with the newer generation of travellers
(Luxury Branding, 2022). Their new campaign named ‘The Art of Belmond’ was the
company’s first major outreach into digital and social media and it was aimed at
‘introducing the Belmond brand to new markets and to younger audiences in established
markets’ according to senior marketing and branding vice president Arnaud Champenois
(Hospitality Net, 2017). The target audience in mind had therefore been
identified as people aged 28 to 39 with a household annual
income of over USD300,000 (Ibid).

Therefore, the main current target market of Belmond are

the Millennials. In comparison with other groups, Millennials accounted
for 32 percent of the luxury goods market in 2018, however they are set to rise to 50
percent by 2025 (Statista, 2021a) which is a good outlook for Belmond. Being one of the
most influential generations currently, the Millennials have specific behavioural
characteristics and travel preferences that Belmond must take into consideration. Firstly,
Millennials place high value on experiences rather than material goods, and they are
willing to pay more for them (Woo, 2018; Ketter, 2020), so experiential marketing is the
main way to connect with them (Ibid). Further, evaluating the environmental impact of
hotels and restaurants has taken priority for many millennial travellers. This has led to

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optimisation of many hospitality properties’ systems and operation in an effort to find
ways to reduce waste and minimise environmental impact (Kent State EHHS, n.d.). In
addition, 73 percent of Millennial are willing to spend more on sustainable or socially
conscious brands, and 81 percent expect those brands to be transparent in their
presentation and actively talk about their environmental impact (Woodworth, 2022). It is
therefore crucial for Belmond to be authentic and genuine in their marketing activities
around sustainability and implement environmentally friendly practices into their
operational models (Ibid).

Additionally, the Millennials are tech-savvy and constantly online (KPMG, 2017 cited in
Ketter, 2020), so they make their entire travel journey digital and carry out all travel stages
on their smartphones. Lastly, Millennials find inspiration through travel blogs and social
media – they plan their trip based on online content, customer reviews and travel
websites. They seek out relevance, as they appreciate digital content curated to them and
their preferences (Woo, 2018). Therefore, Belmond must direct their resources into
researching how to best relate and connect with their audience digitally (Ibid).

Similarly, Arnaud Champenois (2018) reveals in an interview for Hot Topics that the
modern travellers currently seek for genuine and authentic experiences while staying
connected digitally. It is therefore important that Belmond optimises their digital efforts
and creates an experience that is relevant with the current market.

5.2 Website
One of the ways Belmond is currently connecting digitally with
their customers is through their main website – belmond.com
(shown in the picture below). In most touristic destinations,
one of the biggest sources of guest expenditure is
accommodation (Law and Hsu, 2006). Despite the existence of
numerous online travel agents (OTAs) hoteliers see the high
importance of the hotels’ own websites as a main source of
bookings. This is due to the costly commissions hoteliers must
otherwise pay to OTAs, which make the extra visibility offered
less attractive. Hence, hotels should focus on regaining control
of their distribution systems by optimising their website
features and user-friendliness and offering competitive rates
and loyalty programs on their own channel (Ibid).

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Official website of Belmond (Belmond, 2022)

Belmond’s website reveals an enchanting experience video at its home page, together with
their motto ‘Let’s Belmond Together’, as part of their new marketing campaign ‘The Art of
Belmond’. The outlook of the website is simple, inducing a feeling of elegance and luxury,
with an easy access to the booking platform at the bottom of the main page. As one scrolls
down the page, various suggestions of hotels and luxury experiences are presented to the
consumers, together with intriguing articles about their destinations and high-quality
pictures that are sure to captivate the reader into finding out more about the offerings.
The very bottom of the website pages gives more detailed information about Belmond’s
social media channels, corporate social responsibility, travel policies and career
opportunities.

Experience page of Belmond.com (Belmond, 2022)

The top tabs of the website provide various options to explore the different exceptional
experiences offered by the brand and the options to filter out the search by type of
experience, location, or type of occasion. Throughout the website, there are various
appealing suggestions and engaging articles, complemented by pensive photographs and
videos about the numerous experiences offered, which take the user on a daydreaming

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journey through Belmond’s world and create a realistic preview of the beautiful world of
Belmond. Lastly, by creating an account, the guests can become a part of ‘My Belmond’ –
sub-platform that lets the customers connect with the brand and choose the personally
curated content they want to see. They can also select personal preferences for their stays
at the Belmond properties – ranging from bed size or pillow type to food allergies and
wine preferences. This helps create a stronger connection with the guests on a more
personal level and helps anticipate their needs as to provide the elite luxury service
Belmond strives for.

5.3 Social Media

Social media platforms are an essential marketing tool for building brand awareness and
excitement and is a significant source for influencing consumers’ buying behaviours
(Mason et al., 2021). Thus, by having access to the Internet at the tip of their fingers, the
consumers now have an active role in choosing what type of information they receive and
when. Therefore, Digital Marketing should be all about personalisation and transparency
(Krishnaprabha and Tarunika, 2020). Lastly, social identity
theories suggest that individuals define themselves by
their perceived membership within a certain social
group (So et al., 2017). Thus, Digital and Social
media marketing can help companies increase
brand equity through networking,
personalisation and community building
(Krishnaprabha and Tarunika, 2020; Mason et
al., 2021).

Belmond currently manages three social media

platforms – Twitter, Facebook, and Instagram. The
Twitter page is used mainly for small promotion of
experiences and important updates on the properties
and includes many high-quality pictures of splendid
locations in an effort to engage the users with the posts.
However, the number of followers (21,3k currently) does not match the post engagement –
an average of 20 likes per post and little to no comments or shares, which also have no
reaction by the brand. Additionally, the posting is inconsistent as there are on some
occasions weeks without a single post, thus decreasing the engagement further.

The Facebook page of Belmond has a higher attractiveness with 176,3k likes, however the
likes per post are still low (an average of 90) and there is little to no engagement among
guests and from Belmond. The post frequency is improved, with posts every other day and
the theme of high-quality pictures with experience ideas has been kept throughout the
page. Moreover, the page highlights a direct link to the booking platform of the brand’s
own website, thus increasing its visibility.

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Facebook Page (faceboook.com/belmondtravel, 2022)

Lastly, the Instagram page of

Belmond is curated in a highly
aesthetic manner and has the biggest
popularity with over 442k followers.
There is additional content apart
from the pictures, following the latest
trends of reels and guides. However,
the brand still does little effort to
engage with users, as they rarely
respond to comments and do not
repost any content created by
followers. Even though posts gain
more likes and comments, Belmond
is missing on some big opportunities
of creating an engaging online
community on its social media
platforms and thus gathering
additional data on its guests, that
would allow for better personalisation
of marketing campaigns and services.

Instagram Page (Instagram, 2021)

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 6. STRATEGIC MANAGERIAL APPROACHES

6.1 Sustainability
As previously mentioned in chapter 6.1 Customer demographics, Belmond’s target market,
the Millennials are highly focused on the environmental impact of their hospitality
experiences and the level of sustainability offered at properties they stay at.

The sustainability policy of Belmond Ltd is easily available on their main website. Their
main goal is to make positive contributions to the destinations where they operate, with
responsibility towards natural resources and the environment at locations close to World
Heritage Sites (Belmond, 2022). Furthermore, all the hotels, trains and river cruises are
part of their ‘Think Global, Act Local’ approach which focuses on supplying food from the
most local and sustainable sources, support educational programmes and follow
sustainable practices to reduce the negative footprint of their operations (Ibid).

Those statements were put to the test in 2015, when Belmond Ltd became the first global
company of such a size to be rated by the Sustainable Restaurant Association (SRA)
(Eversham, 2015). After the assessment, the company received on average a Two Star
rating, with nine of its restaurants being awarded the highest rating of Three Stars, based
on the three main pillars of sustainability – society, sourcing, and environment (Ibid).
Among the most sustainable properties were the Belmond El Encanto in California which
offers a high percentage of organic and biodynamic products, and Belmond Royal
Scotsman train which sources over 90% of their produce and meat locally. Additionally,
LVMH which Belmond is part of, has created a programme called ‘LIFE’ that helped
reduce caron emissions and energy consumption and ensures full supply chain
transparency of all its brands (Deloitte, 2020).

Lastly, in order to strengthen their sustainable practices,

Belmond has recently partnered up with EarthCheck,
the leading environmental certification group in the
travel and tourism industry, to certify all the
Belmond properties (including their cruise boats
and trains) as sustainable by evaluating and
optimising their processes (Swindells, 2021). The
company CEO Stewart Moore claims that he is excited
about the new partnership as the brand’s assets do not only
include hotels but also boats, restaurants and trains which brings out more opportunities
for sustainable development and sets an example for the entire industry as Belmond are
open and transparent about their sustainability processes (Ibid). As such, it can be clearly
concluded that the brand’s sustainability efforts are appropriate, at a high level, and show
clear objectives for future improvement and optimisation, which gives them a strong
advantage over some major competitors.

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 6.2 Crisis Management
The tourism and travel industry is one of the most vulnerable
ones to global and local crises as it is readily affected by its
external environment. Such crises include as natural
disasters, epidemics, economic crises, and terrorist attacks, to
name a few. These kinds of crises can unfortunately hardly be
limited or predicted as they are not confined to any one
geographical, political, or cultural boundary (Santana, 2004;
Zhong et al., 2021).

The global outbreak of the Novel Coronavirus (COVID-19) has

utterly impacted the entire world because of the constantly
fluctuating number of cases and appearance of new variants
worldwide (Zhong et al., 2021). Unpredictable global travel
restrictions and quarantine orders, despite vaccination
availability, are causing constant disruptions on the global economy and more specifically
on the tourism industry, due to restricted mobility and social distancing rules (Gössling et
al., 2020).

Considering the slow return to travel as we know it, Belmond have set up their ‘Trusted for
Travel’ guarantee on matters of hygiene, health and booking flexibility (Belmond.com, 2021).
Their strategy includes various guest solutions the brand has implemented to ensure a
smooth and worry-free travel for its customers. They have ensured robust and thorough
guest communication through series of emails prior to the guest arrival, including
information about the specific health and safety measures in each property. In addition to
the email communication, the company offers experience-specific information through
their Belmond app, which is a convenient way for their tech-savvy guests to obtain the latest
information about services and facilities available (Ibid).

Moreover, Belmond have enhanced their health and safety protocols and provide regular
trainings to their employees to ensure those procedures are strictly followed; additionally,
they have partnered with SGS (a leading inspection and certification company) to ensure
the high standards of their protocols (Belmond.com, 2021). Lastly, Belmond have
established partnerships with local COVID-19 testing facilities to offer convenient services
to their travellers and have created an exhaustive list of questions and answers on their
website to help ease the minds of the concerned guests before they embark on their travels
(Ibid). The implementation of these policies show the high responsibility Belmond has for
their guests and instils trust into the travellers so they can enjoy a safe and worry-free
experience.

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 7. STRENGHTS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)
ANALYSIS
A SWOT Analysis is an analytical method used to evaluate the strengths, weaknesses,
opportunities and threats of an organisation, project, person, or a business activity (Gürel,
2017). The following chapter focuses on examining those characteristics of Belmond, based
on previous company information and current industry trends.

7.1 Strengths
The first strength for Belmond is their geographic
presence in many different regions, as it broadens
the company’s reach to a wider target market and
improves their competitive positioning
(Belmond.com, 2022). Having a wide portfolio of
properties allows the brand to also compensate
losses from one product category with gains from
another.

Additionally, Belmond’s positive brand image through the

perception they have built as an elite luxury brand through high
personalisation, exclusivity, and heritage, helps differentiate them
from large competitors in the same market and increase brand
loyalty.

The next strength is Belmond’s commitment to sustainable and socially responsible

practices and reducing their environmental impact. This helps them attract the target
market of the Millennials, as it resonates with their values of being eco-conscious.

Lastly, the brand’s stable recovery from COVID-19 and their efficient health and safety
protocols, including partnerships with local medical services, aid in building customer
trust through transparency and security.

7.2 Weaknesses
The first weakness of Belmond is their low social media performance as mentioned in
chapter 5.3 as Belmond is missing the opportunity of creating an engaging online
community on its social media platforms and gathering additional personalised data on its
guests.

Moreover, Belmond currently has a narrow brand extension as they only operate in one
industry and are limited to providing services only. Some other luxury hotel brands, such
as the Oetker Collection and Aman have recently moved into retail, offering brand
extensions for their customers’ homes (Jelski, 2018), which could result in more interest in
those competitors and missing out on business for Belmond.

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Additionally, Belmond’s portfolio currently does not include hotels in the Middle East,
which is one of the fastest growing markets of the hotel industry (Rokou, 2021). As many
of Belmond’s competitors have been operating there for years, the company is missing out
on potential opportunities and revenue.

7.3 Opportunities
As sustainability continues to be a core value for many brands and their customers,
programs that target carbon movement across the full supply chains are the new goal for
luxury companies worldwide, and are now a crucial factor for consumers to consider a
brand (Deloitte, 2020). By being a part of LVMH and their additional green
initiatives, Belmond has the opportunity to further strengthen their
sustainability practices in line with eco-friendly goals in the industry.

Additionally, many travellers have turned to inbound travel and discovering

their local destinations due to the pandemic-related international travel
restrictions and with that the train travel has increased. Further, Luxury
Gold – a luxury tour operator, reported a 17 percent increase in demand for
tours that include five-star rail journeys, similar to the ones offered by
Belmond (Wicks, 2021). Therefore, the brand could tap into the opportunity
of the rising demand and increase their rail experiences revenue.

Lastly, travel inclinations have been shifting towards wellness experiences,

as many customers prefer nature-centric experiences, ranging from spa
treatments to quiet evenings by the fire. The prioritisation of wellness in 2022 comes
together with an increased interest of self-development and focus on a purposeful and
meaningful travel. Thus, Belmond’s offerings of unique destinations and experiences that
connect the travellers with the locations on a personal level can help them exploit the
opportunity of the rising wellness trend.

7.4 Threats
The COVID-19 pandemic might already be coming to an end, however the repercussions
of the economic crisis it leaves behind are posing a threat for hoteliers worldwide. Some
hotel practitioners argue that the hotel industry will be on the rise, and revenues will go
back to pre-pandemic level, however the consumers will have higher requirements for
privacy, safety, and hygiene. Additionally, the outbound travel would be reduced and a
transformation towards virtual tourism may appear (Zhong et al., 2021). Therefore, these
trends could prove as threats to Belmond if they do not act on adjusting their services
accordingly.

Moreover, some of the main competitors of Belmond like have established online presence
and have created strong customer communities online and personally. As the modern
consumers seek the sense of community belonging, Belmond faces the threat of losing
customers to competition due to lack of engagement, despite the brand’s higher levels of
service and better experiences.

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Conclusion & Recommendations
Conclusively, Belmond hotels fulfils the characteristics of a luxury service brand. The
heritage and sophistication of the brand are communicated throughout each Belmond
property and create a sense of elitism, exclusivity, and timeless luxury. The high pricing of
Belmond’s experiences creates a high monetary exclusivity. The inclusion of private
locations across their portfolio helps contribute to the social exclusivity of the brand and
the many activities that require additional customer knowledge help create the hedonic
exclusivity of the brand.

Current trends such as the rise of train travel and preference for wellness activities could
be perfectly combined with Belmond’s vast portfolio of properties including trains, boats,
safaris, and wellness resorts. Furthermore, the brand is part of LVMH, which adds a sense
of prestige to their name which is highly appreciated by the elite travellers.

Moreover, as there is a threat of an uncertain market recovery due to the COVID-19

pandemic and shifting consumer preferences into more inbound travel and virtual travel
experiences, Belmond could be facing a major threat by lack of brand extensions in
different industries such as retail. This could help them minimise shortfalls of revenue in
their main industry, should they be affected by the current measures and help increase
their brand awareness. Next, as the inbound travel increases, Belmond’s should explore
expanding into the markets they are currently missing out on, such as the Middle East, as
this increases their accessibility and could bring them a new source of revenue.

The recent rebranding of the company has helped them reach the Millennial generation,
who have different, specific behavioural characteristics and travel preferences than the
older generations targeted before. As they place a high value on experiences, Belmond
should put a greater emphasis on their experiential marketing to connect with their
audience. Currently, their digital and social media marketing efforts are lacking, as there is
very low engagement and no sense of community present. This could potentially be
threatening for the company’s image as the younger generations seek digitalised
experiences evermore. On the other hand, the Millennials have a great appreciation for
sustainable and socially responsible initiatives and place a high value on their health and
safety. Thus, Belmond’s current sustainable practices and efficient health and safety
protocols help them relate to their guests’ values and build customer trust and loyalty.
Lastly, the brand should continue optimising their operations and following trends, to
protect the well-built brand image of Belmond and minimise threats from
their competitors.

PAGE 17
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