Key facts
- Orient Express, a joint venture between LVMH and Accor, has launched its first luxury yacht.
- The venture aims to attract new billionaires, particularly those from the tech and AI sectors.
- Accor CEO Sebastien Bazin noted a trend of ultra-wealthy individuals prioritizing experiences over material goods.
- Spending on high-end experiences is projected to grow significantly faster than personal luxury goods.
- The yacht incorporates LVMH brands, such as Guerlain and Hennessy.
- The venture's assets are estimated to be worth approximately 1 billion euros.
Orient Express, a luxury travel brand revived through a joint venture between LVMH and Accor, has launched its first giant yacht aimed at attracting a new class of ultra-rich individuals, particularly those emerging from the tech and AI boom. Accor CEO Sebastien Bazin told Reuters that this demographic, increasingly seeking recognition and unique experiences, will drive the venture's growth.
The strategy aligns with a broader trend where spending on high-end experiences is expected to outpace growth in personal luxury goods. The yacht, designed to signal social status, features prominent LVMH brands like Guerlain and Hennessy, with suites starting at €25,000 for a four-day cruise. The venture's assets are estimated to be worth around 1 billion euros.
Accor and LVMH hold reciprocal options to buy each other out, with LVMH appearing the more likely acquirer given Accor's focus on improving returns and LVMH's substantial resources. The move positions Orient Express to capture the booming market for luxury experiences as the traditional luxury goods sector faces slower growth.