As low-cost, long-haul travel widens travelers’ horizons, so too does their thirst for experiential tourism. Not only does alternative accommodation immerse guests in extraordinary settings where conventional construction may not be viable, inventive poshtels such Le Pirate’s stationary, 10-cabin “boatel” in Flores, Indonesia, which was created from a fishing vessel for about US$220,000, can also bring investors a healthy ROI.
The global phenomenon of “glamping,” glamorous camping, connects travelers with nature and locals as an antidote to their digital lives.
Contributed by Alicia Sheber
In Japan, tourism is soaring, along with desires for authentic, unique experiences outside Tokyo and Kyoto. Akira Segawa, president and CEO of leading hotelier Fujita Kanko, confirms international guests at its properties rose 22.5% in 2017. “Many seek non-touristic, remote areas,” he says. “Glamping is a progressive trend, but the market is relatively untapped in Japan.” Its glamping brand Fujino debuted in April near Mount Fuji. Nordisk Village Goto Islands, a glamping collaboration with Danish outdoor equipment manufacturer Nordisk, opens in August.
With Peter Mack as founder and CEO, and Simon Turner, former president of global development at Starwood Hotels & Resorts, as a lead adviser and investor, Collective Retreats is one to watch with global ambitions for introducing guests to undiscovered places through unusual accommodation. “Collective Retreats was founded with an asset-light business model to ensure the majority of hotel consumer revenue was spent on improving the guest experience and making it unique, instead of property expenses and upkeep,” Mack explains. Seasonal operations keep costs in check at glamping destinations in Vail, Colorado; Big Sky, Montana; and Hudson, New York. The brand expands to Texas this year and in May it set up camp in the open parks of New York City’s Governors Island with designer guest room containers.
Luxury Frontiers is a turnkey design, development and operations consultancy helping brands like Belmond and One&Only complement their repertoires with “adjacent spaces” achieving strong ROI. Its sustainable, out-of-the-box concepts bridge the gap between traditional hospitality and adventure travel. “Not only do alternative structures like tents, treehouses and floating rooms provide guests with adventurous and memorable experiences, they provide investors high returns on their investments,” says Luca Franco, CEO and founder. “Compared to traditional lodging, alternative concepts typically generate 20% to 40% rate premiums, typically cost less to construct, have shorter development timelines, have smoother permitting processes and higher occupancy levels. For owners this is exciting because they have a shorter payback period, high yield, good ROI and PR spin with these experiential projects.”