Millennials to comprise 80% of luxury market by 2030, says Dorchester Collection

Millennials are expected to comprise 80% of the luxury market by 2030, according to Dorchester Collection’s vice-president of commercial. 

Speaking to Aspire, Philip Morris cited the Great Wealth Transfer – the phenomenon whereby trillions of dollars of wealth are being passed from older generations to millennials through inheritance.

Morris said brands needn’t revolutionise their approach to appeal to a younger audience but should publicly demonstrate key values that younger guests might align with, such as corporate social responsibility and environmental and social governance.

He said: “With that next generation of guests, it’s very much about them saying, ‘I want everybody to understand my values’. Having that reputable story through which we can show our value systems link with theirs is really important to them.”

He said Dorchester Collection now speaks more publicly about certain initiatives, such as reusing The Dorchester’s cut flower displays in hospitals and nursing homes.

Morris also said he had seen younger guests prioritise “social vibrancy” and access to a “matrix of connections” during their stays at Dorchester Collection hotels.

He said: “We find our guests are using the food and beverage offerings or shared spaces within the hotels as environments where they can meet like-minded people, and they want a social culture where that’s protected.”

The Dorchester’s recent renovation reflects this demand, with a key focus on dining spaces and bars on the ground floor where guests can “achieve multiple objectives” by meeting people for both social and business purposes.

Dorchester Collection recently opened its first property in Dubai, The Lana, with sales performing “ahead of expectations”.

In 2028, the brand will boost its footprint in the emirate further with the opening of The Alba Residences on the Palm Jumeirah, as well as open its first hotel in Asia, at the top of Tokyo’s tallest building.

To support its growth, Dorchester Collection recently appointed a new chief executive, Phillipe Leboeuf, who has previously held senior positions at luxury hotel brands such as Raffles, Mandarin Oriental, Rosewood and Claridge’s.

Morris said: “We’re growing faster than we ever have in our history, so the obvious choice for a new chief executive would have been someone outside the box who could revolutionise the company, but we actually just want to evolve while keeping our core element of heritage luxury constant.”