Luxury accommodation - significantly different or just more expensive ?

Luxury accommodation is a growing sector in the hospitality industry, but what really sets it apart from standard accommodation ? This paper considers what luxury accommodation is by first investigating how luxury accommodation is able to command a premium price, and then identifying the differences in customers' luxury experiences between luxury hotels and luxury lodges. The paper uses qualitative data drawn from a larger study that examined six luxury properties in New Zealand, interviewing 81 participants during their luxury accommodation experience-27 managers, 27 employees and 27 guests. The research findings indicate that properties can command a premium price if their facilities and amenities are of the highest quality, if their staff have high levels of interaction and engagement with guests, and if they present a 'wow factor' while still making their guests feel 'at home'. The luxury accommodation experience is found to be significantly different from standard accommodation experiences. Within the luxury sector, a distinct difference exists in the luxury accommodation experience at lodges versus hotels. Properties need to demonstrate to guests why they demand a premium price, by providing value for this money.