Demand for luxury goods has grown in recent years, from watches, jewellery and designer clothing to cars and superyachts. But what does customer service experience mean to the luxury customer or high net-worth individuals (HNWIs), as they are sometimes referred to, and how does the service provider meet their expectations? Academics debate the definition of luxury but agree HNWIs are driven by hedonic motivations that are ultimately satisfied in luxury settings. For marketing and brand managers, exclusivity, customer motivations, product/service quality and price are key areas to understand and get right to meet the needs of these customers. 

The hospitality and tourism industry offers many opportunities for service providers to devise highly targeted experiences for HNWIs, but this is an industry where competition is intense and opportunities to create a differentiated offer hard to deliver. All-inclusive luxury resorts (including food, accommodation and entertainment) abound, from ecosensitive private islands in Tahiti to wellness retreats in Arizona, and each vies to provide HNWIs with the most exclusive, luxury tailored holiday experience.....

Questions:

1. Customer retention is at the centre of relationship management. Suggest why SRI has been successful in encouraging more than half of its customers to return. 

2. Imagine you are the customer service manager at Sandals’ Emerald Bay resort in the Bahamas and are responsible for managing the serious incident reported in this case. Suggest how you are going to manage this situation and how you will reassure customers staying at the resort at the time of the critical event. 

3. Discuss the drivers and motivations of HNWIs and how these relate to SRI