1 00:00:00,120 --> 00:00:02,240 Speaker 1: Turning to travel, and really this is the reason why 2 00:00:02,520 --> 00:00:05,840 Speaker 1: we wanted to highlight travel this particular week. We're seeing 3 00:00:05,840 --> 00:00:09,080 Speaker 1: a real discrepancy between high end travelers and low end 4 00:00:09,119 --> 00:00:10,600 Speaker 1: travelers in terms of their. 5 00:00:11,240 --> 00:00:12,520 Speaker 2: Position to spend. 6 00:00:13,160 --> 00:00:15,800 Speaker 1: Is there a change in that four season? CEO Alejandra 7 00:00:15,920 --> 00:00:18,640 Speaker 1: right now saying his company has seen in strongest year ever, 8 00:00:18,920 --> 00:00:22,400 Speaker 1: writing this short term uncertainty given the current geopolitical and 9 00:00:22,480 --> 00:00:27,360 Speaker 1: macroeconomic pressures are impacting traveler sentiment, but the luxury segment 10 00:00:27,720 --> 00:00:31,320 Speaker 1: is more resilient, Alejandro joins us. Now, Alejandro, thank you 11 00:00:31,320 --> 00:00:33,360 Speaker 1: so much for being with us. Pleasure to have you 12 00:00:33,400 --> 00:00:36,279 Speaker 1: here in studio. I want to start there. Is it 13 00:00:36,320 --> 00:00:39,320 Speaker 1: true that you're not seeing any slowdown whatsoever in the 14 00:00:39,400 --> 00:00:40,519 Speaker 1: luxury element? 15 00:00:41,120 --> 00:00:43,400 Speaker 2: Good morning, Thanks for having me. It's a pleasure to 16 00:00:43,440 --> 00:00:45,560 Speaker 2: be here. And I love the fact that we're talking 17 00:00:45,560 --> 00:00:49,280 Speaker 2: about luxury hospitality. Yes, I mean, we had a really 18 00:00:49,320 --> 00:00:51,920 Speaker 2: strong first half of the year compared to last year, 19 00:00:52,280 --> 00:00:55,200 Speaker 2: much better. When I look into the booking trends for 20 00:00:55,240 --> 00:00:57,920 Speaker 2: the second half of the year, even going on into 21 00:00:57,920 --> 00:01:01,320 Speaker 2: twenty twenty five, they look very strong as well. You know, 22 00:01:01,360 --> 00:01:04,520 Speaker 2: I think there's two things that are happening there. First, 23 00:01:04,800 --> 00:01:07,400 Speaker 2: and for most is that the luxury guest or a 24 00:01:07,520 --> 00:01:12,240 Speaker 2: luxury consumer continues to be very resilient. They continue to spend, 25 00:01:12,280 --> 00:01:17,240 Speaker 2: you know, that desire for experiences to explore continues to 26 00:01:17,280 --> 00:01:19,520 Speaker 2: be there. But also I would say that from a 27 00:01:19,560 --> 00:01:21,959 Speaker 2: four seasons angle and from a four session's point of view, 28 00:01:22,120 --> 00:01:26,280 Speaker 2: we do offer a very clear value proposition to our guest. 29 00:01:26,360 --> 00:01:28,840 Speaker 2: I mean, we do have very proud to say that 30 00:01:28,880 --> 00:01:31,240 Speaker 2: we have the very best hotels in the best locations 31 00:01:31,600 --> 00:01:34,200 Speaker 2: and we provide the best service to our guests. And 32 00:01:34,280 --> 00:01:36,679 Speaker 2: when you have that as the brand proposition, and that's 33 00:01:36,720 --> 00:01:39,200 Speaker 2: what we do at four Seasons, there's a demand for that. 34 00:01:40,120 --> 00:01:42,920 Speaker 2: And by the way, this is not new of this year. 35 00:01:42,959 --> 00:01:45,760 Speaker 2: We've been operating down for sixty years and has been 36 00:01:45,800 --> 00:01:47,800 Speaker 2: the constant all throughout the period. 37 00:01:47,960 --> 00:01:50,080 Speaker 1: So what has changed? And I'm wondering not just from 38 00:01:50,120 --> 00:01:52,920 Speaker 1: the consumer who is able to spend, but also from 39 00:01:53,040 --> 00:01:55,840 Speaker 1: the employees and who you're able to recruit. For a 40 00:01:55,880 --> 00:01:58,600 Speaker 1: long time, there is this earth of people willing to 41 00:01:58,600 --> 00:02:02,880 Speaker 1: work in hospitality in the direct aftermath of the pandemic. 42 00:02:03,640 --> 00:02:05,720 Speaker 1: Do you see it as being much easier now to 43 00:02:05,760 --> 00:02:09,440 Speaker 1: hire people and sort of easier to also retain them 44 00:02:09,440 --> 00:02:12,360 Speaker 1: without massive price increases wage increases. 45 00:02:12,560 --> 00:02:15,480 Speaker 2: Yes, I mean, obviously, for us, a key component of 46 00:02:15,600 --> 00:02:17,919 Speaker 2: what we do is through our people. I mean, we 47 00:02:18,000 --> 00:02:21,720 Speaker 2: are a service company and the most important asset is 48 00:02:21,760 --> 00:02:24,959 Speaker 2: the people that we have with us. So we place 49 00:02:25,000 --> 00:02:26,880 Speaker 2: a lot of emphasis in making sure that we are 50 00:02:27,120 --> 00:02:30,320 Speaker 2: the employer of choice in every single market that we operate. 51 00:02:31,040 --> 00:02:34,520 Speaker 2: We do spend a lot of time training people, developing them. 52 00:02:35,840 --> 00:02:38,880 Speaker 2: For us, we do measure employee engagement twice per year. 53 00:02:39,520 --> 00:02:42,919 Speaker 2: We are at the two percent across all industries in 54 00:02:43,000 --> 00:02:45,960 Speaker 2: terms of employee engagement. So it's a topic that we 55 00:02:46,000 --> 00:02:48,080 Speaker 2: spend a lot of time because we do believe that 56 00:02:48,120 --> 00:02:50,960 Speaker 2: we need to have the best and most engage employees 57 00:02:51,000 --> 00:02:53,799 Speaker 2: with us. We haven't had. I mean, obviously, right after 58 00:02:53,840 --> 00:02:55,919 Speaker 2: the pandemic there was a little bit of pressure from 59 00:02:56,000 --> 00:02:58,320 Speaker 2: a labor point of view. We don't see that anymore, 60 00:02:58,360 --> 00:03:00,960 Speaker 2: but again it's because of the force that we place 61 00:03:01,080 --> 00:03:03,680 Speaker 2: in making sure that we are the employer of choice 62 00:03:03,720 --> 00:03:05,040 Speaker 2: in the marketing where we operate. 63 00:03:05,480 --> 00:03:07,760 Speaker 3: I want to know about more about your customer, but 64 00:03:07,840 --> 00:03:10,960 Speaker 3: specifically like the ultra luxury and there, I know you 65 00:03:11,000 --> 00:03:13,880 Speaker 3: have a private jet service something like one hundred and 66 00:03:13,960 --> 00:03:17,760 Speaker 3: fifteen thousand dollars for charter a day. How much demand 67 00:03:17,880 --> 00:03:18,360 Speaker 3: is there for that? 68 00:03:18,639 --> 00:03:20,760 Speaker 2: Yes, you know, it's interesting. And just to give you 69 00:03:20,840 --> 00:03:25,919 Speaker 2: the context of this is, obviously Four Seasons started as 70 00:03:25,960 --> 00:03:28,200 Speaker 2: a hotel and a resource company, and we are now 71 00:03:28,200 --> 00:03:33,120 Speaker 2: the leading luxury hospitality company and that's where our guests 72 00:03:33,160 --> 00:03:36,360 Speaker 2: experience the brand. What we found over time is that 73 00:03:37,800 --> 00:03:41,400 Speaker 2: because our second business is the residential brand, the residential 74 00:03:41,880 --> 00:03:45,600 Speaker 2: so guests they stay with us, they experience the brand, 75 00:03:45,720 --> 00:03:48,520 Speaker 2: and then they are willing to buy a residence with us. 76 00:03:49,080 --> 00:03:52,280 Speaker 2: So that's sort of the journey that they start experiencing 77 00:03:52,320 --> 00:03:55,240 Speaker 2: with Four Seasons. And then the third piece is what 78 00:03:55,280 --> 00:03:59,560 Speaker 2: you just said is the journey's experience based travel that 79 00:03:59,600 --> 00:04:02,600 Speaker 2: we prom as a third line of business. So if 80 00:04:02,600 --> 00:04:06,000 Speaker 2: you think about the whole analogy, guests they stay with us, 81 00:04:06,000 --> 00:04:08,640 Speaker 2: they live with us, and they travel with us. They 82 00:04:08,720 --> 00:04:11,920 Speaker 2: developed such a comfort with the brand and with the 83 00:04:11,960 --> 00:04:15,320 Speaker 2: brand promise and the brand proposition that they're willing to 84 00:04:15,360 --> 00:04:19,159 Speaker 2: spend that amount of money in traveling for twenty days 85 00:04:19,240 --> 00:04:23,640 Speaker 2: through ten four Seasons in Africa, in Europe and so forth. 86 00:04:23,720 --> 00:04:27,360 Speaker 2: So for us, it's been more around creating this luxure 87 00:04:27,440 --> 00:04:32,440 Speaker 2: ecosystem for four seasons that our guests are eager to travel. 88 00:04:32,839 --> 00:04:35,159 Speaker 2: By the way, we have all the intineraries for this 89 00:04:35,279 --> 00:04:37,960 Speaker 2: year sold out for the rest of the year, so 90 00:04:38,000 --> 00:04:40,920 Speaker 2: it's a very successful property and it taps into that 91 00:04:41,000 --> 00:04:44,200 Speaker 2: desire to experience, to explore that we find in our guests. 92 00:04:44,200 --> 00:04:46,159 Speaker 3: You're saying we're too late for it, then yeah. 93 00:04:46,000 --> 00:04:48,560 Speaker 2: Twenty twenty five, we're opening the. 94 00:04:48,560 --> 00:04:51,160 Speaker 3: Good To keep in mind, I mean, just talking about 95 00:04:51,320 --> 00:04:53,839 Speaker 3: the different mix of your businesses, You're not the only 96 00:04:53,839 --> 00:04:55,520 Speaker 3: one doing in this space, and it obviously is an 97 00:04:55,520 --> 00:04:58,159 Speaker 3: exclusive space of those who can offer this, but you 98 00:04:58,200 --> 00:05:01,960 Speaker 3: think of the online resource trying to give also experiences 99 00:05:02,000 --> 00:05:04,680 Speaker 3: to what does competition look like right now? 100 00:05:05,640 --> 00:05:08,679 Speaker 2: Well, competition because of the attractiveness of the luxuries space, 101 00:05:08,680 --> 00:05:10,919 Speaker 2: there's a lot of competitors coming in. I think we 102 00:05:11,080 --> 00:05:13,960 Speaker 2: have as a four seasons the advantage of the brand. 103 00:05:13,960 --> 00:05:17,720 Speaker 2: I mean, we are the most We continuously measure brand preference, 104 00:05:17,720 --> 00:05:20,760 Speaker 2: brand awareness in terms of our brand and we continue 105 00:05:20,800 --> 00:05:23,640 Speaker 2: to be the number one luxury hospitality brand, and I 106 00:05:23,720 --> 00:05:26,159 Speaker 2: think that carries a lot of weight, but it's because 107 00:05:26,200 --> 00:05:27,840 Speaker 2: at the end of the day, we're able to deliver 108 00:05:28,160 --> 00:05:31,520 Speaker 2: that value proposition to our guest. I mean when it's 109 00:05:31,520 --> 00:05:34,520 Speaker 2: interesting because I do interact with a lot of our 110 00:05:34,600 --> 00:05:37,560 Speaker 2: guests and when I ask them what do they like 111 00:05:37,560 --> 00:05:39,520 Speaker 2: about the four Seasons, the first thing they tell me 112 00:05:39,560 --> 00:05:41,400 Speaker 2: is that I know what to expect and I've been 113 00:05:41,440 --> 00:05:45,400 Speaker 2: able as a guest to explore remote destinations. So for example, 114 00:05:45,800 --> 00:05:47,839 Speaker 2: I've been able to go to Garabora. But because there's 115 00:05:47,839 --> 00:05:50,080 Speaker 2: the four Seasons, I feel comfortable because I know what 116 00:05:50,120 --> 00:05:54,440 Speaker 2: to expect, and to have that level of consistency and 117 00:05:54,520 --> 00:05:57,839 Speaker 2: that brand power is very, very unique. So I think 118 00:05:57,839 --> 00:05:59,880 Speaker 2: we're uniquely a very well positioned. 119 00:05:59,440 --> 00:06:02,000 Speaker 3: Where do you see demand right now in terms of 120 00:06:02,080 --> 00:06:04,760 Speaker 3: the hot spots top five people are traveling too. 121 00:06:04,880 --> 00:06:10,320 Speaker 2: Yeah, you know, it's interesting because and I'm gonna say 122 00:06:10,320 --> 00:06:12,200 Speaker 2: something which is a little bit of contrariant. When I 123 00:06:12,240 --> 00:06:17,279 Speaker 2: look into the history of four Seasons over the last years, 124 00:06:18,000 --> 00:06:21,279 Speaker 2: travel patterns haven't changed much. For example, fifty five percent 125 00:06:21,680 --> 00:06:24,080 Speaker 2: of our revenues come from the Americas, the majority of 126 00:06:24,120 --> 00:06:27,480 Speaker 2: in the US. More than fifty percent of our guests 127 00:06:27,720 --> 00:06:30,719 Speaker 2: they are from the US. And whether they travel to 128 00:06:30,839 --> 00:06:33,360 Speaker 2: the US right now during the summer time, they travel 129 00:06:33,400 --> 00:06:37,000 Speaker 2: to our South Florida collection, they go to Hawaii. Beyond 130 00:06:37,000 --> 00:06:40,320 Speaker 2: the US, they go to Mexico and then Europe. The 131 00:06:40,360 --> 00:06:42,919 Speaker 2: fact is that this has happened for many, many years. 132 00:06:43,279 --> 00:06:45,240 Speaker 2: Americans are going to go to Europe probably once a 133 00:06:45,320 --> 00:06:48,479 Speaker 2: year every summer. I mean, that's so we're seeing that 134 00:06:48,520 --> 00:06:50,880 Speaker 2: again this summer, but it happened last year, prior year, 135 00:06:50,920 --> 00:06:54,960 Speaker 2: prior year. But again, America's representing fifty five percent of 136 00:06:55,040 --> 00:06:58,320 Speaker 2: revenues for US in the Europe, and the Middle East 137 00:06:58,400 --> 00:07:01,440 Speaker 2: represents twenty five percent of the revenues, and there the 138 00:07:01,520 --> 00:07:05,240 Speaker 2: dynamics are similar. Europeans they mostly stay within Europe. They 139 00:07:05,320 --> 00:07:08,640 Speaker 2: ventured into the Middle East or Africa. And then we 140 00:07:08,720 --> 00:07:12,160 Speaker 2: have the APAC, which is twenty percent of our business. 141 00:07:13,000 --> 00:07:16,560 Speaker 2: Three percent is only China and that's mainly regional travel. 142 00:07:16,880 --> 00:07:19,720 Speaker 3: Do you still see the Chinese consumers spending as much 143 00:07:19,880 --> 00:07:22,320 Speaker 3: in luxury hotels the same way the US consumers. 144 00:07:22,480 --> 00:07:24,360 Speaker 2: No, they have not come back. I mean when I 145 00:07:24,400 --> 00:07:27,120 Speaker 2: look into what was the spend prior to the pandemic, 146 00:07:27,400 --> 00:07:30,720 Speaker 2: it's less. It's interesting because they are spending less in China, 147 00:07:30,840 --> 00:07:33,040 Speaker 2: so we still don't have the same race that we 148 00:07:33,160 --> 00:07:35,600 Speaker 2: used to have prior to the pandemic in China, but 149 00:07:35,640 --> 00:07:40,800 Speaker 2: they're starting to spend more internationally, but internationally within the region, 150 00:07:41,040 --> 00:07:44,640 Speaker 2: meaning Japan for the most part, because of visa issues 151 00:07:44,640 --> 00:07:46,560 Speaker 2: and many other things. They still have not come back 152 00:07:46,800 --> 00:07:49,400 Speaker 2: to Europe or the US, which is where we saw 153 00:07:49,440 --> 00:07:51,240 Speaker 2: them prior to the pandemic. There's a real. 154 00:07:51,160 --> 00:07:53,680 Speaker 1: Question here about how much and towards this lack of 155 00:07:53,720 --> 00:07:55,760 Speaker 1: Apollo called us out for us this morning. He said, 156 00:07:55,960 --> 00:07:58,680 Speaker 1: all you people in media, and I'm paraphrasing, just keep 157 00:07:58,760 --> 00:08:00,680 Speaker 1: using everyone as an anecdote to try to paint the 158 00:08:00,760 --> 00:08:04,000 Speaker 1: macro picture. Your company has been around for sixty years. 159 00:08:04,240 --> 00:08:06,320 Speaker 1: How independent of the macrocycle, is it? 160 00:08:06,400 --> 00:08:06,480 Speaker 2: Right? 161 00:08:06,520 --> 00:08:09,520 Speaker 1: I mean, we're talking about something that is a complete 162 00:08:09,720 --> 00:08:13,320 Speaker 1: microcosmon to itself of people who have disposable wealth and 163 00:08:13,360 --> 00:08:17,040 Speaker 1: are going to travel no matter what, versus a company 164 00:08:17,080 --> 00:08:20,520 Speaker 1: that does have some sort of sensitivity to what's going 165 00:08:20,560 --> 00:08:22,200 Speaker 1: on in the underlying consumer centivacy. 166 00:08:23,480 --> 00:08:25,240 Speaker 2: I mean, I would be lying if I would say 167 00:08:25,280 --> 00:08:30,680 Speaker 2: that we are immune to any microeconomic geopolitical impacts, because 168 00:08:30,720 --> 00:08:31,960 Speaker 2: we are. I mean, at the end of the day, 169 00:08:32,320 --> 00:08:35,600 Speaker 2: that uncertainty impacts travel or sentiment, and people don't travel 170 00:08:35,600 --> 00:08:39,240 Speaker 2: because of that. But obviously we've been operating for sixty years. 171 00:08:39,240 --> 00:08:41,720 Speaker 2: Have we've gone through these cycles and they go away, 172 00:08:41,840 --> 00:08:43,560 Speaker 2: and at the end of the day, what we see 173 00:08:43,559 --> 00:08:45,920 Speaker 2: in is year or a year that the market continues 174 00:08:45,960 --> 00:08:48,480 Speaker 2: to grow in travel and tourism has been growing for 175 00:08:48,520 --> 00:08:52,880 Speaker 2: many years now, that desire to experience, to explore continues 176 00:08:52,920 --> 00:08:55,199 Speaker 2: to be there. I think it's really interesting when you 177 00:08:55,240 --> 00:09:00,520 Speaker 2: look into the luxury consumer that our composition of about 178 00:09:00,520 --> 00:09:04,440 Speaker 2: twenty percent are boomers, forty five percent are Gen X, 179 00:09:04,920 --> 00:09:08,240 Speaker 2: thirty five percent already our millennials, so that transfer of 180 00:09:08,320 --> 00:09:11,679 Speaker 2: wealth is starting to happen, but we're not losing the 181 00:09:11,720 --> 00:09:14,280 Speaker 2: boomer so it means that the market is expanding. So 182 00:09:14,600 --> 00:09:17,360 Speaker 2: always year and year there's going to be more demand, 183 00:09:17,480 --> 00:09:20,400 Speaker 2: more growth. And at the end of the day as well, 184 00:09:20,600 --> 00:09:24,480 Speaker 2: we as as a hotel and resource company, need to 185 00:09:24,480 --> 00:09:27,840 Speaker 2: be at the forefront in terms of creating amazing experiences, 186 00:09:27,880 --> 00:09:29,840 Speaker 2: so we can't satisfy the demand. So I don't think 187 00:09:29,880 --> 00:09:31,160 Speaker 2: at the end of the day that the demand just 188 00:09:31,160 --> 00:09:33,559 Speaker 2: comes by itself. We need to have, like we do, 189 00:09:33,600 --> 00:09:36,880 Speaker 2: a very special product, a very special service proposition to 190 00:09:36,920 --> 00:09:38,400 Speaker 2: our work guests, so at the end of the day, 191 00:09:38,520 --> 00:09:41,600 Speaker 2: they are eager to come to a four seasons. 192 00:09:41,240 --> 00:09:42,839 Speaker 1: So you're doing great with the baby class. I hear 193 00:09:42,840 --> 00:09:46,160 Speaker 1: that you really crushing it, you know, particularly south of 194 00:09:46,160 --> 00:09:46,680 Speaker 1: the US. 195 00:09:46,920 --> 00:09:50,720 Speaker 2: Paid actor. No, it wasn't, you know, But that's one. 196 00:09:51,320 --> 00:09:53,719 Speaker 2: It's a tremendous learning experience because sometimes we spend so 197 00:09:53,800 --> 00:09:58,920 Speaker 2: much money on marketing that doesn't provide any outcomes. But 198 00:09:59,000 --> 00:10:03,640 Speaker 2: then these special authentic moments are the ones that the 199 00:10:03,840 --> 00:10:06,800 Speaker 2: consumers value the most. This was a complete viral moment, 200 00:10:06,840 --> 00:10:09,440 Speaker 2: but it was completely authentic. We had nothing to do 201 00:10:09,559 --> 00:10:11,640 Speaker 2: with it. In the end, we have more than three 202 00:10:11,720 --> 00:10:16,719 Speaker 2: hundred million views through various digital platforms on the four 203 00:10:16,760 --> 00:10:21,400 Speaker 2: Seasons Baby Obviusly we got a spike on on searches 204 00:10:21,440 --> 00:10:24,480 Speaker 2: on four Seasons Orlando, so it was very good. But 205 00:10:24,520 --> 00:10:28,200 Speaker 2: again it was very authentic, which ultimately is what people like. 206 00:10:28,600 --> 00:10:29,000 Speaker 2: I love it. 207 00:10:29,040 --> 00:10:30,920 Speaker 1: I wonder how many board meetings for about the four 208 00:10:30,920 --> 00:10:33,880 Speaker 1: seasons Baby all right now four seasons c H. Thank 209 00:10:33,920 --> 00:10:35,040 Speaker 1: you so much for being with us.