The meaning of luxury is changing; Companies are selling memories, status: LVMH-Accor joint venture, Orient Express brought the concept of luxurious yacht for tech billionaires.

Orient, a joint venture between LVMH and hotel chain Accor, is launching two luxury yachts into the sea. The starting fare for a four-day trip to the coastal areas of France and Italy is 25,000 euros.

AI boom is creating new billionaires. The meaning of luxury has changed for them. They are bored with things like expensive watches and artwork. The industry of new experiences is taking its place. Many luxury companies have understood that now profit is not in selling goods, but in selling memories, experiences and ‘status’.

Sensing this trend, Orient, a joint venture between LVMH and hotel chain Accor, is launching two luxurious yachts in the sea. The starting fare for a four-day trip to the coastal areas of France and Italy is 25,000 euros.

Showing status through VIP badges and social ranking became status symbol.

Thought: Only desire for special identity but immense wealth

Even if the ultra-rich have seven houses, 12 cars and 17 watches, they still have a specific bucket list. According to Accor CEO Sébastien Bazin, at this stage the traditional meaning of money disappears. Then it is most important to create your own unique identity in the society.

Demonstration – show of influence at events such as the Monaco race

This luxury yacht will primarily cater to major global events such as the Cannes Film Festival and the Monaco Grand Prix. According to industry experts, the special VIP badges received by customers at these international events determine their social ranking and status in the society.

If there is money then it is like this, when museums like ‘Vatican and Louvre’ open at night for billionaires, they have private dinner in the palace with the king and queen.

The largest museums such as the Louvre or the Vatican are opened at night for billionaire clients. They see history with art experts.

Many historical palaces of Europe are open for these billionaires, where they buy a private dinner with the king or queen of a country.

Companies book entire islands such as Caribbean islands. The entire staff, chef, submariner, security system works for one family. The weekly expenditure is up to Rs 30 crore.

Travel by private superyacht charter to remote areas such as Antarctica or Alaska. Along with this there are helicopters, ice-breaker ships and a team of scientists who only guide the family.

Trillion dollar economy, from ticket to parking, increased earning from one customer

The global experience economy is currently worth about 1 trillion dollars (94 lakh crores). A single visitor generates multiple times the revenue through tickets, food, drinks, merchandise, photos and parking. Take Britain’s ‘LaplandUK’. Every year in December, 1.6 lakh tickets are sold out within a few hours. At the rate of Rs 1.3 lakh/person, the company earns Rs 188 crore from tickets every season.

Why are they successful? Because they do not organize events, but ‘theater production’. The actors there always stay in character, the sets look real even when seen up close, and the crowd is strictly controlled.

The competition in this game is not between big and small brands, but between those companies who think that they are only in the ‘business of promises’ and have to live up to the delivery.

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