This sponsored content was created in collaboration with Boutique Group.
Forget private islands and caviar breakfasts: real connections and cultural immersion are the new hallmarks of ultra-luxury travel in 2024. Wealthy travelers are increasingly abandoning traditional luxury for experiences that allow them to better understand the places they visit. Skift Research confirmed this in its 2023 report luxury traveler reportwhich showed a growing correlation between income and the desire for authentic experiences.
This shift towards cultural heritage tourism reflects a broader trend where travel is as much about discovery as it is about pleasure. Travelers are looking for experiences that not only entertain, but also broaden their perspectives and challenge their preconceptions. This represents a significant opportunity for the Saudi Boutique Group, a hospitality company that transforms historic Saudi palaces into exclusive boutique hotels.
SkiftX spoke with Mark De Cocinis, CEO of Boutique Group, to understand the company's strategic approach to using historic palaces as luxury accommodations and explore how this approach reflects the changing landscape of luxury travel.
SkiftX: How have the expectations of ultra-luxury travelers changed significantly in recent years?
Marc De Cocinis: We've noticed a growing desire for unique experiences and destinations among ultra-luxury travelers. The demand for educational experiences has also increased. Seasoned travelers who have explored the world are now looking for opportunities to experience the culture and heritage of the places they visit. People no longer travel just to check off a destination: they are looking for authentic stories. It's great to visit a destination, but what really matters to these travelers is the opportunity to gain valuable information and knowledge about the area.
SkiftX: What does “authenticity” mean in the context of ultra-luxury travel, and how does Boutique Group embody it in its properties?
From Cocinis: Authenticity in the luxury sector is about providing optimal services, rooted in a sense of belonging. Whether it's fine dining, a sensational spa experience, or an exciting itinerary exploring the surrounding region, it all needs to be woven into the region's cultural tapestry.
Boutique Group embodies this by infusing the essence of the region into every detail of our palates. Each palace has its own architecture and design based on its unique location. These palaces were once residences for royal families, and we are now transforming them into ultra-luxurious boutique hotels, imbued with the spirit of Saudi Arabia's famous sense of hospitality. This means they must offer all the amenities guests expect, such as fine Saudi cuisine, Michelin-starred restaurants and wellness facilities.
But while a palace's location, design and amenities are important, the stories are the real differentiators. Palaces tell unique stories about the kings and royal families who resided there and the guests they hosted. This historic aspect offers guests an authentic experience they can't get anywhere else.
SkiftX: The ultra-luxury travel market is stronger than ever. What new trends do you expect to see in this segment in 2024 and beyond?
From Cocinis: The shift we're seeing leans toward guests who prefer smaller hotels and boutiques, something a little adventurous and off the beaten path. The desire for adventure and curiosity about different areas are behind this trend. Brands are increasingly striving to create smaller, unique experiences.
We are also seeing an influx of younger travelers into the ultra-luxury segment due to increasing wealth among young people. Luxury, in essence, is about the time you have and how you choose to spend it. For example, spending time with family is extremely important in today's busy world. Wellbeing is another key trend, both in terms of fitness and training programs and the diet that supports them. Destinations and hospitality companies that offer these facilities will dominate the luxury travel sector in 2024 and beyond.
SkiftX: Can you share some examples of palaces that Boutique Group is transforming into luxury boutique hotels and the unique experiences they will offer their guests?
From Cocinis: We currently have three palaces under development. The Red Palace in the historic old city of Riyadh is our first project. It was the residence of King Saud and the first concrete building in Riyadh in the 1940s. It features a unique art deco design with European columns mixed with Arabic styles and has 70 suites, a wellness center and B&B and restaurants. Our main focus is Saudi cuisine, although we will also offer international and Michelin star restaurants.
Tuwaiq Palace is located in the diplomatic district of Riyadh. It is notable for its architectural significance and won the Aga Khan Award for Architecture for its dune-shaped design that mimics the waves and curves of the desert. We have added two and three bedroom villas around the original palace, which overlooks Wadi Hanifah. It is an urban retreat that offers a peaceful escape in the heart of Riyadh, where guests can relax and get away from the noise and activity of the city.
Al Hamra was the royal residence of King Faisal and is located on the Corniche of Jeddah. It is known for hosting dignitaries including Princess Diana and King Charles. We have restored the palace with suites and villas, and the surrounding two- and three-bedroom villas reflect the original architecture. The palace has six wellness villas, each equipped with its own swimming pool, hammam and massage room. These wellness villas are like spas in themselves, with designs and materials reflecting Saudi culture and heritage.
In addition to these three palaces, we have other projects in the works, with three more palaces expected to be announced soon.
SkiftX: How does Boutique Group ensure that the cultural essence and historical integrity of the palaces are preserved when converting them into luxury travel accommodations?
From Cocinis: We have a Culture and Heritage Division headed by a former expert from the Ministry of Culture. Our team meticulously studies each palace, even interviewing royal families, including the kings' grandchildren, to gather fascinating stories about their lives and how they used these spaces.
This level of detail is unprecedented in luxury hotels. We honor the history and past activities of each palace, paying particular attention to repurposing spaces to retain their original spirit. We don't just preserve the buildings: we bring the stories of the palaces to life.
We also work closely with the Royal Institute of Traditional Arts and the Fashion Commission, involving international and Saudi designers. We use materials and craftsmanship from the region so that each element reflects the specific character of the palace. Our goal is to set a new benchmark in hospitality and showcase Saudi hospitality as the best in the world.
SkiftX: How do Boutique Group's efforts align with Saudi Arabia's Vision 2030, and what role do you see the company playing in the Kingdom's future tourism landscape?
From Cocinis: We are proud to be part of Vision 2030. His Royal Highness announced Boutique Group in January 2022, recognizing our efforts to restore these palaces as a celebration of Saudi culture and history, which reflects the essence of Vision 2030. Although we may be smaller than other projects, our impact is significant. We're contributing to the growing focus on the Kingdom that matches our name, “Boutique”: we focus on personalized experiences rather than going overboard. We also own and manage our assets, giving us complete control over the experience, from design and development to construction and service management. Our distinct approach positions us as a small but essential part of Saudi Arabia's broader tourism vision.
SkiftX: How do you see cultural heritage tourism in Saudi Arabia evolving in the future?
From Cocinis: Saudi Arabia is unique and somewhat mysterious to many, which will attract more international visitors. The Kingdom offers a vast and varied landscape that caters to all types of travelers. While many countries support tourism, Saudi Arabia's commitment, particularly in terms of financing, training and hospitality development, is unprecedented. By partnering with local hospitality schools and providing international training to students who then return to work with us at Boutique Group, we are bringing comprehensive, globally informed expertise to the industry.
Geographically, the Middle East, and particularly Saudi Arabia, is becoming a popular destination for both leisure and business travel. This trend is growing and Saudi Arabia will fuel tourism throughout the Middle East region in the years to come. As Asia also makes a comeback, Saudi Arabia and the Middle East are emerging as leading destinations for cultural heritage tourism.
For more information about Boutique Group, visit boutiquegroup.com
This content was created in collaboration by Boutique Group and branded content studio Skift, SkiftX.
