Luxury Companies Create Gateway Products for Tighter Budgets
Photo Credit: U by Uniworld is developing a river cruise concept appealing to younger cruisers. Pictured is Regensburg, Germany, a stop for river sailings. U by Uniworld
Skift Take
Should luxury companies introduce lower-priced offerings, or do they risk diluting their brand and/or cannibalizing business from the main brand? We look at how several high-end travel companies are approaching the challenge.
It's quite commonplace for major hotel chains to diversify their product offerings to include a "millennial" brand or two. Hilton, Marriott and IHG have all successfully managed to develop lower-priced hotels without cannibalizing their luxury brands.
But hotels have the advantage of brand segmentation experience dating back three decades. On the other hand, there's little precedent for luxury tour operators and cruise lines looking to "downscale" their offerings without the potential for hurting the higher-end business.
For upscale brands, there's a fine line between luxury and luxury for less. The debate is at what point you diminish the reputation of the brand in the quest to attract new audiences with smaller pocketbooks.
According to Rebecca Robins, global director for international brand consultancy Interbrand, "The strongest brands stay t
