Key facts
- Orient Express, a joint venture between Accor and LVMH, has launched its first luxury yacht.
- The venture aims to attract new billionaires, particularly those benefiting from the AI boom.
- Accor CEO Sebastien Bazin highlighted recognition as a key motivator for the ultra-rich.
- Spending on luxury experiences is growing faster than on luxury goods.
- The yacht features LVMH brands and targets clients attending events like the Monaco Formula One race.
- Suites on the yacht start at €25,000 for a four-day cruise.
Orient Express, a joint venture between French hotelier Accor and luxury conglomerate LVMH, has launched its first luxury yacht as part of a strategy to capture the growing market for high-end experiences.
The venture aims to attract a new generation of billionaires, particularly those emerging from the artificial intelligence boom, according to Accor CEO Sebastien Bazin. He noted that for the ultra-rich, recognition and unique experiences become more important than material possessions once wealth is established.
This strategic move aligns with a broader market trend where spending on high-end experiences is projected to outpace growth in personal luxury goods. The yacht, the first of two planned, will serve as a platform for clients to signal social status, often leveraging mega-events like the Cannes Film Festival and the Monaco Formula One Grand Prix.
Suites on the yacht start at €25,000 for a four-day cruise, and the vessel prominently features LVMH brands, including a Guerlain beauty salon and Hennessy cognac. The venture's assets are estimated to be worth approximately 1 billion euros.
Accor and LVMH hold reciprocal options to buy each other out, with LVMH potentially being the more likely acquirer given its larger scale and financial capacity. Accor faces shareholder pressure to improve returns, while LVMH seeks to adapt to shifting consumer trends in the luxury market.