How Five-Star Hotels Earn Their Profits – Not From Guests

Beyond the Room: How Five-Star Hotels Generate Revenue

Five-star hotels are known for their luxurious accommodations and exceptional service, but these establishments also generate significant revenue through a variety of unique and high-end offerings. From exclusive experiences to expensive merchandise, these hotels have found creative ways to cater to the wealthiest travelers.

Superyacht Experiences for the Elite

One of the most extravagant ways that luxury hotels generate income is by offering superyacht trips. These vessels provide an exclusive way for wealthy guests to enjoy the sea while still having access to the comforts of a five-star hotel. The Ritz-Carlton and Four Seasons are among the top names in this space, with the Ritz-Carlton's Luminara being one of the most impressive examples.

The Luminara, the largest superyacht owned by a hospitality company, made its maiden voyage earlier this year. This massive vessel can accommodate 452 passengers across 10 decks and features a Ritz-Carlton spa, a fitness studio, and a boutique selling high-end sportswear and designer apparel. For those willing to pay, the yacht offers week-long trips from Monte Carlo to Rome, with the most lavish suites costing up to $78,377 (£58,032) for the first trip.

Private Jet Travel and Exclusive Trips

Another way that luxury hotels generate income is through private jet travel. Aman Resorts, for example, offers private-jet expeditions that take guests to some of the world's most intriguing destinations. One such trip, called The Grandest Tour, takes guests on a journey through seven different countries over a two-week period, including Japan, Vietnam, China, Bhutan, India, Uzbekistan, and Greece.

This exclusive experience is limited to only 18 guests at a time, and interested travelers must inquire directly for pricing details. Such trips allow guests to stay at Aman properties throughout their journey, providing a seamless blend of luxury and adventure.

High-End Merchandise for Loyal Guests

Some guests are so loyal to a hotel brand that they are willing to spend money on merchandise. The Grand Hotel Tremezzo in Italy, for example, offers a range of souvenirs, including a large tote bag called the "Grand Hotel Tremezzo special edition," which costs €590 (£515). However, other companies offer even more expensive items.

Eden Roc, for instance, sells a custom-made speedboat called the Aquariva, complete with a "legendary Hotel du Cap-Eden-Roc buoy." This item is priced at an eye-watering €500,000 (£436,875), making it one of the most expensive hotel-related purchases available.

Interior Design Services for the Discerning

For guests who love the feel and décor of their hotel, some hospitality companies also specialize in interior design services. Soho House, for example, offers a range of "Houses" around the world, with the priciest room coming to £3,820 a night at the Soho Beach House Miami for non-members.

However, the company's interior design services have attracted even more attention. In 2019, it was reported that Meghan Markle hired Vicky Charles, the top designer of the Soho House clubs, to decorate Frogmore Cottage. This collaboration highlights the high level of expertise and exclusivity that these design services offer.

Guests who are impressed with the furnishings during their stay can also purchase their own pieces. One of the most expensive items available is the Mini Miami Cocktail Cabinet by Rupert Bevan, which costs £17,495 for non-members and £14,871 for members.

Conclusion

From superyachts and private jets to high-end merchandise and exclusive interior design services, five-star hotels continue to find innovative ways to generate revenue. These offerings not only enhance the guest experience but also provide additional streams of income for the hospitality industry. Whether it's a week-long yacht trip or a custom-designed cocktail cabinet, the world of luxury hotels is as diverse and extravagant as ever.