Preview 2012: Luxury - Travel Weekly
The luxury market might not be booming at 2008 levels, but barring a complete eurozone meltdown and an attendant global economic crisis, reports of its demise have been greatly exaggerated, according to the buzz at the International Luxury Travel Market conference in Cannes, France, in early December.
But while hoteliers at the event remained at least cautiously bullish, the issue for travel agents is less about trying to predict the vagaries of the economy than staying on top of trending luxury destinations and a changing client base.
"Around the world we've been seeing the average age of our guests trend downward," said Cory Hagopian, executive director of travel industry sales at Fairmont Hotels & Resorts. "Globally, younger people are booking more luxury travel than ever and are expecting personalized, unique experiences for their money. This younger demographic is also demanding different kinds of amenities, such as upgraded fitness centers and cutting-edge restaurants."
The new generation of luxury travelers is also culturally diverse, Hagopian said, which creates a greater challenge for today's hoteliers.
"Hotels need to have greater flexibility in accommodating different segments and need to be not only thinking about the demographics of customers but the psychographics, as well, being able to customize experiences the exact way guests want them today," Hagopian said.
Laura Fairweather, manager of corporate public relations for Four Seasons Hotels and Resorts, agreed, adding: "If you consider the demographic powerhouse of Generation Y, which is growing in size and influence around the world, there is truly a seismic shift ahead in terms of where the hotel consumer will come from and how we will address their specific needs."
One way to address those needs is to shift from the concept of the merely pampered guest to one whose impetus for travel is an interest in in-depth experiences.
Thomas Stanley, who heads up Cox & Kings, the Americas, said the inspiration for the firm's 2012 lineup "is the thrill of a life-changing experience." The company offers ancestral travel, for example, which Stanley said is especially popular with families, some inspired by the hit NBC TV series "Who Do You Think You Are?" in which celebrities search for their ancestral roots abroad.
Another Cox & Kings product, Second-Chance Cities, offers travelers a peek behind the curtain in some familiar destinations, such as Madrid and Stockholm, to experience the cities the way the locals do.
Unique travel products can range from green resorts to yoga retreats, but international and even far-flung destinations are likely to become increasingly popular in these wish-fulfillment scenarios.
In other words, while the staycation may not be dead, many experts predict it is on life support, at least for high-end travelers.
The next hot destinations
According to the Future of Luxury Travel report released by the ILTM in conjunction with Horwath HTL, bookings to Asia and Latin America are currently outpacing Africa, the Middle East and the Caribbean. China and Brazil are especially popular, and an earlier ILTM report published last summer predicted that China, India and Russia would attract an increasingly larger share of international luxury travelers.
The ILTM also foresees destinations such as Australia and New Zealand becoming more popular with younger luxury travelers looking for outdoor pursuits, while countries like Israel and Peru would entice that same market with their vibrant cultures.
Virtuoso predicted that Jordan would top the list of popular Middle Eastern countries in 2012, according to a report to be published in Virtuoso Life magazine in January, thanks to its compelling history and stable government.
Thailand and Laos also made Virtuoso's list, despite the recent flooding in Bangkok, which left northern Thailand untouched but which could result in attractive discounts.
For adventure travel and European destinations, Virtuoso singled out Tasmania and Ireland, respectively.
"Looking to 2012, there are several hot and emerging destinations for the hospitality industry," Fairweather said, noting that Four Seasons has more than 50 projects in some stage of planning or development. "Places like Baku [Azerbaijan], St. Petersburg and new destinations such as Huangzhou and Guangzhou in China are all attracting experiential travelers in much greater numbers."
Adding a dash of culture
Some companies are so keyed into the growing demand for cultural experiences that they are increasingly looking for ways to easily bundle cultural interaction into the guest experience. InterContinental Hotels, for example, has created a series of so-called Insider Experiences that range from prepackaged, off-the-beaten-track tours with local guides to customized outings and self-guided tours with the input of the concierge staff.
Going one step further, the Westin Xian in China recently opened the on-property Xian Qu Jiang Art Museum, showcasing more than 2,000 Chinese antiquities, before the hotel even opened this month. Billy Xu, the property's director of sales and marketing, said, however, that while visitors are drawn to the history of the region, known as the site of the Terracotta Warriors of the Qin Dynasty, tourism has also benefited from the Qujiang New District, with its retail outlets, Xian Qujiang Ocean World Park and Tang Paradise, a cultural theme park.
Tourism to Japan is in recovery despite its twin earthquake and tsunami catastrophes in March, according to Gota Otaka, director of the commerce and information policy bureau for Japan's Ministry of Economy, Trade and Industry. Gota told attendees at the ILTM conference that the country is looking to boost its yearly tourism arrivals from 5 million to 30 million by 2018, in part by focusing on luxury travel. Targeted marketing and upgrades to Tokyo's Narita Airport focusing on the luxury market, such as a new private jet facility, also are in the works, Otaka said.
If this kind of confidence spills over from supplier to consumer, the experts agree, luxury travel might well turn out to be a market that retailers can take to the bank.
But while hoteliers at the event remained at least cautiously bullish, the issue for travel agents is less about trying to predict the vagaries of the economy than staying on top of trending luxury destinations and a changing client base.
"Around the world we've been seeing the average age of our guests trend downward," said Cory Hagopian, executive director of travel industry sales at Fairmont Hotels & Resorts. "Globally, younger people are booking more luxury travel than ever and are expecting personalized, unique experiences for their money. This younger demographic is also demanding different kinds of amenities, such as upgraded fitness centers and cutting-edge restaurants."
The new generation of luxury travelers is also culturally diverse, Hagopian said, which creates a greater challenge for today's hoteliers.
"Hotels need to have greater flexibility in accommodating different segments and need to be not only thinking about the demographics of customers but the psychographics, as well, being able to customize experiences the exact way guests want them today," Hagopian said.
Laura Fairweather, manager of corporate public relations for Four Seasons Hotels and Resorts, agreed, adding: "If you consider the demographic powerhouse of Generation Y, which is growing in size and influence around the world, there is truly a seismic shift ahead in terms of where the hotel consumer will come from and how we will address their specific needs."
One way to address those needs is to shift from the concept of the merely pampered guest to one whose impetus for travel is an interest in in-depth experiences.
Thomas Stanley, who heads up Cox & Kings, the Americas, said the inspiration for the firm's 2012 lineup "is the thrill of a life-changing experience." The company offers ancestral travel, for example, which Stanley said is especially popular with families, some inspired by the hit NBC TV series "Who Do You Think You Are?" in which celebrities search for their ancestral roots abroad.
Another Cox & Kings product, Second-Chance Cities, offers travelers a peek behind the curtain in some familiar destinations, such as Madrid and Stockholm, to experience the cities the way the locals do.
Unique travel products can range from green resorts to yoga retreats, but international and even far-flung destinations are likely to become increasingly popular in these wish-fulfillment scenarios.
In other words, while the staycation may not be dead, many experts predict it is on life support, at least for high-end travelers.
The next hot destinations
According to the Future of Luxury Travel report released by the ILTM in conjunction with Horwath HTL, bookings to Asia and Latin America are currently outpacing Africa, the Middle East and the Caribbean. China and Brazil are especially popular, and an earlier ILTM report published last summer predicted that China, India and Russia would attract an increasingly larger share of international luxury travelers.
The ILTM also foresees destinations such as Australia and New Zealand becoming more popular with younger luxury travelers looking for outdoor pursuits, while countries like Israel and Peru would entice that same market with their vibrant cultures.
Virtuoso predicted that Jordan would top the list of popular Middle Eastern countries in 2012, according to a report to be published in Virtuoso Life magazine in January, thanks to its compelling history and stable government.
Thailand and Laos also made Virtuoso's list, despite the recent flooding in Bangkok, which left northern Thailand untouched but which could result in attractive discounts.
For adventure travel and European destinations, Virtuoso singled out Tasmania and Ireland, respectively.
"Looking to 2012, there are several hot and emerging destinations for the hospitality industry," Fairweather said, noting that Four Seasons has more than 50 projects in some stage of planning or development. "Places like Baku [Azerbaijan], St. Petersburg and new destinations such as Huangzhou and Guangzhou in China are all attracting experiential travelers in much greater numbers."
Adding a dash of culture
Some companies are so keyed into the growing demand for cultural experiences that they are increasingly looking for ways to easily bundle cultural interaction into the guest experience. InterContinental Hotels, for example, has created a series of so-called Insider Experiences that range from prepackaged, off-the-beaten-track tours with local guides to customized outings and self-guided tours with the input of the concierge staff.
Going one step further, the Westin Xian in China recently opened the on-property Xian Qu Jiang Art Museum, showcasing more than 2,000 Chinese antiquities, before the hotel even opened this month. Billy Xu, the property's director of sales and marketing, said, however, that while visitors are drawn to the history of the region, known as the site of the Terracotta Warriors of the Qin Dynasty, tourism has also benefited from the Qujiang New District, with its retail outlets, Xian Qujiang Ocean World Park and Tang Paradise, a cultural theme park.
Tourism to Japan is in recovery despite its twin earthquake and tsunami catastrophes in March, according to Gota Otaka, director of the commerce and information policy bureau for Japan's Ministry of Economy, Trade and Industry. Gota told attendees at the ILTM conference that the country is looking to boost its yearly tourism arrivals from 5 million to 30 million by 2018, in part by focusing on luxury travel. Targeted marketing and upgrades to Tokyo's Narita Airport focusing on the luxury market, such as a new private jet facility, also are in the works, Otaka said.
If this kind of confidence spills over from supplier to consumer, the experts agree, luxury travel might well turn out to be a market that retailers can take to the bank.
