LuxuryBeat by Strategic Vision

SURVEY SAYS…THE AFFLUENT ARE SPENDING

2015-01-16T11:05:00.000-08:00

It’s excellent news for our industry! The fact that affluent consumers are spending money was one of the key trends that emerged from the American Affluence Research Center’s Fall 2014 Affluent Market Tracking Study, a survey of the wealthiest 10 percent of U.S. households based on net worth.

And, the segments in which they want to spend that money is extremely encouraging for us. Forty-two percent of the respondents indicated that they prefer to divide their discretionary income among durable goods, and local experiences or travel. This is an important sign of positive consumer confidence among high-net-worth individuals, and it also extends to holiday purchases. A reported 80 percent of the affluent said they will spend more or the same on holiday gifts this year compared to 2013.

Here is a snapshot of other survey insights:

· Respondents (41.8 percent) specified that the role of a trusted travel advisor in helping plan their next vacation was either very or somewhat important. The affluent recognize a travel advisor’s esteemed value and the breadth of expertise, contacts, and knowledge that they bring to the process of crafting a vacation experience.

· The research also shows that there are opportunities for travel advisors to continue to elevate their profile and enhance their business because 31.3 percent of survey respondents cited that the role of a travel advisor was not very important.

· The family that travels together stays together! Half of the respondents (51.9 percent) answered “yes” to the question “Will your next vacation trip revolve around multi-generational or family travel activities and destinations?”

· According to survey respondents, nearly half (49.3 percent) last traveled to the Caribbean over two years ago, and 36.7 percent indicated they have never visited the region. In the last six months, 4.1 percent vacationed in the Caribbean. These figures exclude cruise visits.

· Of those who indicated they have traveled to the Caribbean for vacation, the top five most popular destinations in the region were the Bahamas (31 percent), U.S. Virgin Islands (24.9 percent), Puerto Rico (20 percent), British Virgin Islands (12.7 percent) and Cayman Islands (10.9 percent).

· Safety perceptions and security issues likely played a huge role in these results – more than half of those surveyed (67 percent) have never visited the Middle East for vacation and do not expect to travel there.

· High-net-worth consumers are still exploring this part of the world, though. A total of 23 percent reported having previously visited the region on holiday. Another 9.2 percent said they haven’t visited but expect to in to future. Israel topped the category (at 59.6 percent) as the destination respondents have either visited or plan to visit. Rounding out the top five countries were Turkey (52 percent), Egypt (38.9 percent), Jordan (17.5 percent) and the United Arab Emirates (9.8 percent).

The survey was based on questionnaires mailed to a randomly selected national sample of 4,500 men and women. Following a weighting of the respondents, the participants in this survey have an average net worth of $3.1 million and an average primary residence value of $1.2 million.

Let’s keep the conversation going!

Luxury Travel Summer Report: Nihiwatu, Sumba, Indonesia

2014-07-23T09:20:00.000-07:00

On The Edge of Wildness

I rarely write about a specific property or experience, trying to focus my thoughts on the business aspects of hospitality and tourism. From time to time, however, I come across an experience that I believe is worth bringing to your attention. Recently I have visited the Island of Sumba – which lies about 400 KM southeast of Bali.

For the past 26 years and perhaps longer, surfing aficionados from all over the world have been making the journey to the Indonesian Island of Sumba to experience the left hand wave at Nihiwatu, a magnificent surfing paradise. It was in 1988 that Claude and Petra Graves first arrived and painstakingly set about building a small resort with eleven keys. They continued to attract surfers limiting the number to ten per day giving the resort almost cult status and building a successful business that has garnered more than its fair share of awards from leading publications around the world.

Unspoiled Exotic Location

The secluded resort is nestled upon 567 acres of land, only 65 acres of which are developed -- and it is capped at that. Formerly a Dutch colony, Sumba is home to 650,000 residents and is categorized as a deciduous forest eco region due to its special flora and fauna. Nihiwatu features a spectacular 2.5 KM of pristine beachfront.

Authentic Culinary Excellence and Bespoke Luxury Service

Each suite at Nihiwatu has a dedicated butler – always at the ready with a smile to cater to guests’ every need in a charmingly unobtrusive way. They are part of the 300 terrific Sumbanese staff led by a handpicked group of expats who truly appreciate the culture and the island.

Nihiwatu’s main restaurant, the Wavefront, has unparalleled views and a renowned executive chef Bernard who has a lot of experience in Asia. Guests can also eat at the Nio Beach BBQ or gather at the iconic Boathouse Bar where the beach fire pit invites inspired nightly discussions of the day’s activities. Resort rates include breakfast, lunch and dinner and nonalcoholic beverages.

Active Leisure on Land and Sea

Nihiwatu features every form of water sport imaginable from surfing and snorkeling to scuba diving, deep sea fishing and stand up paddle boarding. Active pursuits on land range from trekking through the natural and unspoiled beauty of the landscape, to horse-riding on Sumbanese horses (smaller than western horses but sturdy and ready for a cantor on the beach), to yoga beside an enticing waterfall, or mountain biking on terrain that ranges from rugged to scenic trails. Cooking classes are offered in the beach kitchen, perfectly positioned between the forest and the sea. Your butler will take you to a local village and introduce you to the villagers and to the antique shops in the town which will ship home for you. If you buy from the hotel, they will also ship for you.

Sumptuous Spa

The Spa at Nihiwatu features treatment huts at the water’s edge, combining seclusion, inspiring views and the calming sounds of the waves. The skilled local therapists offer a full range of massage and body treatments, including scented foot baths, body scrubs and facials. There will be a purpose built spa in the next phase.

Giving Back to the Community

Perhaps the most significant aspect of this luxurious getaway is that in 2001 the Graves founded the Sumba Foundation with Sean Downs, a successful businessman who stayed at the resort to surf. The foundation is committed to helping “alleviate the burden of poverty” on the people of this extraordinary island of Sumba by improving health and education, creating economic opportunities, fighting malaria, and providing tanks of drinking water throughout the island. As the business became more successful, more money was directed to the Foundation so that, to date, 15 primary schools and 48 water wells have been built, five clinics opened and 172 villages are supplied with clean water. All this has resulted in reducing malaria in neighboring villages by 85%.

Plans to Grow Responsibly

The next phase of the journey is in process. Looking to take the resort to the next level in 2013, U.S. entrepreneur Chris Burch purchased the resort and, together with his Managing Partner James McBride -- best known for his time at the Ritz Carlton Hotel Company, Rosewood Hotels & Resorts, and most recently as President of Malaysian hotel conglomerate YTL Hotels -- set about transforming the property. Adding suites including a five bedroom master suite, four tree house apartments and additional rooms, the resort will grow to grow to 32 spacious villas and a tree-house Jungle Spa by Spring 2015.

The deep-rooted commitment to give back will be maintained and all profits repatriated into the Sumba Foundation. The result: a unique collaboration between Nihiwatu and the local community that today co-exists with compelling interdependence: the resort has become the biggest employer on the island.

In keeping with a philosophy for environmental responsibility and the desire to reduce carbon emissions, the resort produces its own fuel through harvested coconut meat; hotel waste water is treated and recycled to the gardens; and the daily menu is influenced by the organic garden and local produce from fresh fish caught daily to Nihiwatu’s very own chicken farm.

Traveling to Sumba

Sumba is an hour and 20 minutes by air from Bali. Guests fly into the new international terminal in Denpasar, Bali and then take one of several daily turbo prop flights to Sumba. People combine a visit to Sumba with a few days in Bali as well. Nihiwatu also organizes charter flights for guests that can be booked via their Bali office. Please contact info@nihiwatu.com for information.

Looking ahead

A steady stream of international journalists from the most respected lifestyle, design and travel publications are coming to see what partners Chris and James have in mind as they complete this development and start on another project just up the coast.

While you no longer have to be a surfer to enjoy this resort, it certainly enhances the experience. More important is an appreciation of the Sumba Foundation that exists because of the generosity of hotel guests past and present who continue to support the vision -- proving that the hospitality industry as a responsible citizen can have a lasting effect when it puts its mind to it.

For more information and to make reservations please let me introduce you to Peter Neto, the General Manager at gm@nihiwatu.com.

Innovation in Australia

2014-03-10T07:49:00.002-07:00

While moderating the Tourism Australia Summit recently, I noted key themes emerging included digital technology and an extraordinary bounty of culinary adventures driving tourism to Australia. Tourism Australia has a reputation for innovation and thinking outside the box with an approach to marketing its destination that others in the tourism industry may want to watch and emulate.

Technology is the preferred method of providing content to the travel industry and potential long-haul travelers, feeding them an abundance of information on experiences unique to Australia. Bloggers, digital writers and new technology leaders addressed the online/mobile approach to attracting customers.

An innovative use of new media demonstrated how integral technology is in motivating tourists to dream — and book. Newly developed billboard capabilities recognize when a certain international flight passes overhead. The digital signage generates video of a child jumping up and seemingly pointing at the plane while the billboard displays the destination of that plane. That brand of frontline thinking highlights a new direction and elevated methods converging in travel marketing.

And the gastronomic news from Australia is undeniable — a result of the incredibly diverse settings and expansive resources that create every experience from sophisticated dining to “bush tucker,” or Australian native bush food. Foodies seeking adventure benefit from rich seafood supplies, a natural bounty of produce by region and climate, a lush wine country and a broad spectrum of choices to suit myriad appetites. Tourism Australia responds to the nation’s obsession with food and wine with Restaurant Australia, a campaign that recognizes food tourism’s global appeal.

One unexpected way Australia will surely attract American travelers in 2014 is the historic arrival of Major League Baseball at the legendary Sydney Cricket Ground for the first regular season games ever played in Australia, this month between the Los Angeles Dodgers and the Arizona Diamondbacks.

Attendees at the Tourism Summit were in agreement: the long haul is worth it for the rich uniqueness of Australia, and purveyors of other destinations can and should benefit as tourism is taken to new heights.

Innovative marketing and successful creative campaigns are encouraging signs that long-haul travel to a destination like Australia is not out of reach in this recovering economy. What do you think?

Asian Hospitality Industry Energized

2014-02-12T12:30:00.000-08:00

Traveling in Asia last month just prior to the arrival of Chinese New Year, I was again reminded just how dynamic the hospitality industry is in Asia. From the number of hotel brands opening new properties in Kuala Lumpur to the transformation of Singapore as a result of integrated resorts to Hong Kong, new restaurant concepts seem to open daily, and hospitality executives are continually reinventing and reenergizing to stay ahead of the curve. Much of this energy, of course, is driven by major property companies that all seem to have hotel subsidiaries.

Flexibility is the key to the success. Market forces change, but the industry in Asia is adaptable. For example, China is experiencing a rapid slowdown in government entertaining, which has been drastically curtailed by the new government. Concurrently, visitor numbers are down, and hoteliers are realizing that while China remains a massive market, a business mix is essential.

Looking ahead, the South China Morning Post reported in January that Hong Kong could receive 70 million tourists annually within three years and 100 million within a decade, mostly from the mainland. Tourism experts in the region said more hotels should be encouraged, especially in rural areas.

I am not seeing much in jaw-dropping new sales and marketing concepts. The focus seems to be on tried and tested methods. Advertising is a combination of digital and print (yes, they still believe in the power of print in Asia) and, in some cases, regional and European television. Manpower is perhaps the biggest issue — finding qualified staff, training, retention and consistencies of delivery are of utmost necessity.

However, I am energized by the region and its movement toward development or expansion, renovation and restoration, and the motivation to experiment and try new concepts. The professionalism and willingness to serve are apparent, whether it is the doorman at a major hotel in Manila or a check-in agent at the airport. Tourism and hospitality has its act together in this region, and anticipating guests’ needs seems to be second nature. We should all study best practices from Asia. Welcome to the year of the Horse.

Is the Mega Trade Show Dead?

2014-01-17T13:47:00.002-08:00

Last fall at the World Travel Market I spent several days conducting meetings, making new connections and absorbing all the interactions around me. After taking stock of my own experience and mulling over my observations, a huge question came to mind — are governments spending too much money on a formula that might no longer work?

Let me be clear — I believe in the power and impact of trade shows. For as tech-focused as we are now in a Twitter world where mobile devices are never far from our fingertips, face-to-face meetings are a crucial part of conducting business. Building relationships is at the core of an effective marketing strategy, and they yield a great return on investment (even though sometimes the return takes a while to receive). It was this emphasis on face-to-face relationship building that prompted me to consider the question about government spending and the trade-show formula.

I saw massive stands by countries (Spain, Turkey and several Middle East countries were particular standouts to me) with a compelling visual presence, but it seemed that few hotel companies had their own stands. The hotels joined their country stands, which created larger destination branding. The stands were a showcase for the destination experience. What was clear to me (and equally troubling) was that people manned their stands and waited for delegates to visit them — without an appointment. Or, there were stands left unattended, which basically conveys to delegates, “My destination is worth passing by.”

To me, this strategy didn’t make sense. Decades ago when I started in this business, hoteliers and tourism officials waited at their stands for people to visit, but today, our world and the travel industry are completely different. Today, you must make advance appointments in order to really maximize your investment. A program of structured, timed meetings (whether you set them yourself or attend a show that is shaped by an appointment process) is more substantive and yields stronger business, and thereby offers the greatest benefits. The best trade-show experience isn’t about people picking up brochures and business cards as they robotically go between the aisles. It should be about conversations and experiences (preferably personalized ones). Furthermore, trade shows should be manned by people who intimately know the product at hand and are serious about doing business — not people more interested in exploring the dynamic city in which the trade show is located.

People could pass your stand all show long, and they might think, “I need to stop there,” but never do because they are on their way to pre-scheduled meetings. So, I think it’s not so much a question of whether or not the trade show is dead — it truly can be a great showcase of travel experiences and travel selling. What should be gone, though, are strategies that simply don’t work.

What do you think?

Read my Hotelsmag.com blog here.

Predicting Luxury Travel Trends for 2014

2014-01-15T06:15:00.000-08:00

Visionary Marketing for Luxury Brands


	Predicting Luxury Travel Trends for 2014 Affluent Survey: A survey by the American Affluence Research Center
	Once again, Strategic Vision has sponsored the American Affluence Research Center’s (AARC) Affluent Market Tracking Study, a survey of the wealthiest 10% of households determined by the Federal Reserve Board based on net worth. I continue to advocate the importance of this kind of research and data collection for industry leaders to gain insights and implement effective marketing strategy in the luxury travel arena. The survey is based on a self-administered questionnaire mailed to a randomly selected national sample of 4,500 households expected to meet the minimum net worth requirement of $800,000. Following a weighting of respondents, the participants have an average residence value of $1.3 million, an average household income of $295,000, and an average net worth of $3.1 million. Read on for their valuable insights…

Booking Leisure Travel -- Online Travel Agencies (OTAs) or Traditional Travel Advisors?

Survey results I found noteworthy:

In this flourishing digital culture, we all know that leisure travelers increasingly use their computers and mobile devices to book travel. While the growth of OTAs is undeniable, the number of those surveyed who continue to work with travel advisors or make a direct call to a branded entity (airline or hotel) still outweighs use of OTAs when combined.


	Travelers Explore OTAs
	Of those responding to the question, “Have you ever used an OTA to book leisure travel?” -- 69% said yes. Still, a significant 31% of all respondents said they had never used an OTA. Forty percent of affluent consumers who said they booked leisure travel through an OTA had logged on in the prior three months, and 37% had booked digitally within the last year. Expedia was the OTA most respondents used (40%), with Orbitz coming in second and Travelocity a close third, each with about 23%. Fifty-six percent of those using OTAs were under age 50, and 78% who said they navigated online specified they shopped through a single OTA.

Opportunity for Travel Advisor Growth

The research found that a remarkable 66% of those surveyed rely on an advisor or reach out to a major brand when booking leisure travel, the ability for affluent travelers to make a direct connection is still an appealing influencer.

When asked if they had employed a traditional travel agency to book leisure travel in the past year, 23% of respondents said they had. And 20% of those surveyed said a traditional travel agency was the choice they used most often for booking travel.

Forty-three percent answered that they book directly by calling airlines or hotels or using their websites. Of those who book in this way, 30% were under age 50. As a young travel advisor recently told me, “There is so much information out there through OTAs and online resources, the agent becomes the editor/navigator for the client.”


	Are Hotel Loyalty Programs Important to You?
	Marketing and branding strategies necessarily adjust with the changing times and consumer habits. In this mobile-driven and online booking climate, a significant number of affluent travelers trend toward brand loyalty in the hotel category. In the American Affluence survey, 63% of those responding said that hotel loyalty programs are either very or somewhat important. Of total respondents, 52% said they were members of Marriott Rewards, 45% joined Hilton Honors, and 32% belonged to Starwood’s program. Overall, the responses of high net worth consumers to survey questions regarding leisure travel booking offer encouraging numbers and promising opportunities for travel advisors to expand their client base as affluent travelers seek a connection and strong brand direction.

In Closing

Cautious Optimism Looking Forward

As 2014 begins and consumers look ahead, a few interesting findings of the AARC survey are worth considering:

• The affluent seem to have a slightly better outlook for the economy and their personal wealth than the general public. Almost a third expect their net worth to be higher in March 2014.

• The new research reveals a significant 7 point improvement among those surveyed who said they planned to defer or reduce expenditures in the coming 12 months. Only 37% said they would cut back this year as opposed to 44% of affluent respondents in Spring 2013 -- a forecasting of positive spending trends as we enter 2014.

• Of 17 product categories tracked in the AARC survey -- such as fine jewelry, major home appliances and designer clothing-- only one, domestic vacation travel, is in positive territory; eight are in the neutral range and eight are in negative territory suggesting a decline in spending.

• An encouraging mood and spending plans of the affluent may be carrying through the new year with the stock market hitting record highs on Christmas Eve -- 2014 is a year to watch.

As always, I welcome your feedback. Let's keep the conversation going.

Reimagine, Resonate and Reboot

2013-09-26T07:43:00.001-07:00

As we approach the last quarter of the year, three words come to my mind with respect to luxury travel marketing today – “reimagine,” “resonate” and “reboot.” Why?

Savvy marketers should be brave enough to know when it’s time to reimagine their brands in order to sustain the life of that brand.
To be effective marketers, our efforts must resonate with our target audience. They can’t just resonate with us – they have to be meaningful and impactful to our customers
If we embrace the ideas of reimagining and resonating – along with new technology – we will likely enjoy a successful reboot, which is often a necessity in the lifecycle of a brand. Think of it as “revival of the fittest.”

Reimagine & Reinvent

As luxury travel executives, we intimately know our brands – their essence, their defining aspects – but that doesn’t mean our brands are as distinct in the marketplace for affluent consumers and valued travel advisors. That’s why clarity of brands is crucial – showcasing an identity that is distinctive and rich in personality is the difference between being remembered and getting lost in the clutter.

For clarity, you need to understand your brand – and not be fearful of reassessing how consumers and travel partners perceive your brand. Keep your messaging fresh and on-point. In the luxury space, we shouldn’t try to be all things to all people – it is about being the right thing to the right people. This principle of “reimagine and reinvent,” as I like to call it, is driving luxury travel brands to create stronger corporate identities and strengthen their messaging.

Today’s emphasis is on exhibiting a razor sharp focus to target the right people. Luxury travel companies are spending more money on new print advertising campaigns as well as putting money into digital and video/film because of their impact. Who is doing this? Look at Rosewood Hotels & Resorts (they just launched a new “Sense of Place” brand campaign), Shangri-La Hotels & Resorts (they are conceiving new television ads), Peninsula Hotels (the company is working on new creative and a focus on video) and Taj Hotels (they will shortly unveil a new campaign). Full disclosure – Rosewood and Shangri-La are clients.

Print Continues To Reign

The complexity of the multiple ways in which to reach today’s consumers certainly keeps marketers on the heels of innovation and development. Planning an effective marketing campaign means examining more avenues than ever before, but evidence shows that some “tried and true” solutions – print in particular – continue to resonate among target audiences.

As noted in an article in Luxury Daily, the Shullman Research Center’s report on Generational Differences in Luxury Consumers’ Use of and Engagement with Media Platforms revealed that “magazines rank as the No.1 platform for advertisers to engage with affluent consumers of all ages.” Further supporting this, the American Affluence Research Center’s Spring 2013 Affluent Market Tracking Study (which Strategic Vision sponsored) showed that an astounding 76% of respondents read the print editions of luxury travel/lifestyle magazines versus 7% who read them on iPads – a huge testament to the positive power of print’s stunning photography and rich content.

Mobile Marketing

Print remains relevant – and as modern-day marketers we have to balance our strategy among multiple platforms because that is the reality of today (which likens us to “marketing magicians” at times). With that, I turn to mobile. Are you still questioning mobile’s influence even though smartphone have become our extra limbs? For marketing strategists, it is essential to reassess (and remain open to) research so check out this infographic on Tnooz about the rapid rise of mobile. A snapshot of facts include:

90% of smartphone users use the Internet on their mobile devices daily
45% of mobile searches are goal-oriented and are conducted to help make decisions
Speed matters – 60% expect a mobile site to load in less than three seconds

I believe that for a successful reboot, it is imperative to incorporate mobile into your strategy – today’s lifestyle demands it. Ignoring it, or considering it a step-child to the Internet and social media is a huge marketing mis-step.

In Closing

I have dedicated my career to the luxury travel marketing industry – and it continues to be a labor of love. And, I do love it. The brilliance of certain marketing campaigns, flush with energy and originality. The never-ending examination of the affluent consumer mindset (to keep us on our toes). The thrill of creativity to drive change. The lightning-fast pace of technology enhancements. Some news, even if it doesn’t directly impact what I’m working on, is simply so fresh, innovative and inspiring that I can’t wait to share it. Here is a case in point involving Google Glass and destination marketing. Very cool stuff, indeed.

As always, I welcome your feedback. Let’s keep the conversation going.

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What's Happening With Today's Traveler? - Fees & Social Media

2013-07-24T12:24:00.000-07:00

Last time I wrote, I shared insights about popular/less popular destinations and travel trends of today’s affluent consumer based on a survey Strategic Vision conducted with approximately 50 travel advisors at the owner or manager level. We learned that Italy was one of the most popular destinations for bookings in the last six months, Southeast Asia and the U.S. are trending up destinations, Hawaii and villa rentals in Italy and France continue to grow in popularity for family travel (a burgeoning trend in itself), and much more. We also heard from numerous agencies that are experiencing different trends than those surveyed, so I’d like to thank those who shared their feedback.

Keeping the dialogue going, here I review survey results on the subjects of ancillary fees and social media.

EXPLAINING FEES

We’ve been concerned about fees and wanted to follow the conversation. Respondents overwhelmingly believed in clearly outlining all fees to their clients – whether ancillary fees from hotels and airlines or service charges from travel agencies – so there are no surprises. One respondent said their agency has a spreadsheet with all ancillary expenses clearly defined, and that travel counselors “are trained to explain each fee along the way.” Respondents noted that fees are a “sign of the times” and “part of today’s landscape,” and one commented that “it is a way of life but there are ways around it.”

While the fees are not necessarily a “major issue questioned by luxury clients” because most are “used to them” and not “price-sensitive,” clients do demand more transparency so as to understand exactly what they are paying. This desire for transparency goes beyond fees – clients are continuing to require a cost breakdown for all the elements of their trip.

In terms of agency fees, they cover “time, research and expertise” for “customized services beyond the travel components,” and clients tend to be “amiable” if they understand what the charges are for.

SOCIAL MEDIA – AFFLUENT USAGE

How do the affluent use social media? According to our survey, they primarily use it for research, reviews and recommendations, to verify information agencies provide, to share information, and “to tell their vacation story” – but they aren’t using it for booking travel.

TripAdvisor, other online sites, and Facebook, Twitter, etc. are an “informational resource” but one agency did report seeing “bookings from people contacting them on Yelp.”

According to some agencies, age plays a role when it comes to social media usage. One agency said that “younger travelers consult social media” while “older travelers use more conventional personal methods.” Another said they “don’t think luxury clients are putting their trips on Facebook” (for safety reasons and so they aren’t perceived as bragging) “but their children are.”

SOCIAL MEDIA - AGENCY ADAPTATION

How are agencies adapting in this social media landscape? While a few agencies still admit they haven’t acclimated much in the social media realm, the majority are:

Using Facebook, Twitter, YouTube and Pinterest
Bolstering their websites with accurate content
Blogging to speak to “the recency of travel advisors’ experiences” for added credibility and authenticity

Agencies are also exploring how to do more with social media, and at least one noted they have a dedicated staff person to handle and engage social media platforms. For one agency, text messages “to communicate are more popular” but they only do this to select customers; it is a not a policy across their entire customer database.

IN CLOSING

A big thank you to the travel advisors who continue to work closely with us to identify trends. Their keen insight continues to prove to be of immeasurable value so that luxury marketers can make smart, on-point decisions about their strategic efforts.

This travel advisor research complements Strategic Vision’s two other market research platforms – surveys to affluent consumers, and a panel of more than 20 meeting planners and incentive specialists. . Contact me for more information.

As always, I welcome your feedback. Let’s keep the conversation going.

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What's Happening With Today's Traveler? A Six-Month Review...

2013-06-27T08:19:00.000-07:00

It is half way through the year, which I find is a good time to reflect on the state of luxury travel and to recalibrate our strategic efforts based on the reality of bookings and trends of the past six months. As luxury travel marketers and advisors, it is vital for us to remain on the pulse of the latest news and trends so I surveyed approximately 50 advisors at the owner or manager level who graciously shared some enlightening feedback about today’s affluent consumer.

Read on for their valuable insights…

MOST POPULAR DESTINATIONS
What destinations have been the most popular for affluent clients the past six months?

Accordingly to our survey, 70 percent of respondents named Italy as one of the most popular destinations for bookings in the past six months. Whether it’s the amazing cuisine, gorgeous art, or rich culture and history, Italy has broad appeal – and as one respondent stated, consumers have a “constant love affair with Italy.”

There is a wonderful cultural diversity in Europe – where “clients never seem to tire” of the continent. Respondents repeatedly mentioned France and Spain as well as London, where last summer’s Olympics and the upcoming Royal Baby seemed to have raised the city’s profile. Croatia was also listed for its undiscovered appeal. One agency said that a key with Europe is crafting “wow” moments in classic European capitals, which speaks to the continued desire for the treasured experiential and enriching aspects of travel. One respondent did warn, though, that Europe’s popularity could decrease “if air stays at such high levels even for coach.”

South America – particularly Peru, Colombia and Brazil – ranked high for its “perceived value,” “variety,” and because it is “interesting and luxurious.”

DIMINISHED POPULARITY
As I expected, Egypt, the Middle East and Mexico were the destinations mentioned as those that have seen a decrease in interest and bookings due to safety and security concerns. It is unfortunate because they are so culturally intriguing, but as one agency executive aptly put it – “consumers want no risk.”

Respondents also indicated that parts of Africa are soft as is Asia for reasons that include “clients have been there, done that with the Far East,” and “shifts in trends and political reasons.” I find it noteworthy that while we as marketers have used (and in some cases overused) the “bucket list” concept, one respondent stated that India, Africa, Morocco, Australia and New Zealand were slower for their agency because “they are cyclical bucket list places and expensive” (relating to the cost of air travel to these destinations).

DESTINATIONS ON THE RISE
While some respondents indicated that parts of Africa and Asia were slow, there were those who cited Southeast Asia (Laos, Cambodia and Vietnam) and Eastern and Southern Africa as trending up destinations because the affluent seek “cultural and new mild adventure experiences,” plus the “exotic.” One respondent reflected that Africa and India are “the next interest for the well-traveled and adventuresome.”

A greater push towards crafting educational travel experiences and a desire to explore roots at home is driving greater interest in traveling around the U.S. National landmarks and parks; last-minute summer/fall vacations to California, Colorado, Montana and the Northeast (for long weekends); rail travel in the U.S. and Canada; and cities such as Miami, New York and Orlando/Disney are all popular.

ALL IN THE FAMILY
Current market trends certainly can influence the destinations or experiences the affluent select for their leisure travel pursuits. Take the incredible growth of multi-generational travel, which was consistently mentioned throughout survey responses with grandparents dreaming “about educating and expanding their grandkid’s horizons.” So, how does this burgeoning trend translate into destination choices?

Hawaii was recognized by 47% of respondents as one of their most popular destinations in the past six months for reasons that include it is “great for multi-generational travel” as well as “easy and safe.” Villa rentals in Italy and France are also on the rise because families “continuing to realize to value of time away together,” and villas offer “private, more customized experiences.” Leasing luxury homes for family vacations creates a “more intimate experience” that bodes well for making life-long memories.

Respondents confirmed that milestone celebrations give a wonderful reason for families/friends to travel together and create life-long memories.

SAILING DOWN THE RIVER
To say that river cruises are the buzz of the year is an understatement, and it is immensely supported by our survey feedback (Please note: This survey was conducted prior to the devastating floods that have recently impacted river cruises in Central Europe – http://tinyurl.com/lr4kbwd).

Aside from river cruises being “easy and safe with all included,” the sailing experience provides “a different perspective in seeing cities” in an intimate setting and a showcase for “unique villages and towns” that might otherwise be missed. Beyond the cruise itself, river cruises in Europe might be bolstering the entire continent’s appeal, whether it’s for classic places or other cities such as Prague, Vienna and Budapest.

One respondent did indicate that river cruises “will be strong in the mass market rather than the luxury market” because the experience will not “sustain the luxury client.”

LESS POPULAR TRENDS
It seems that group travel/tours (not family and friends traveling together, though) has diminished; one respondent said they “haven’t sold one in three years.” Why the downward trend? Respondents stated that high-end clients crave “the luxury and independence of spontaneity” and that travelers want to “take command of their travel experiences” and the “freedom to manage the pace of their travel.”

Cruises (not river cruises, though) appear to be “struggling to grow among new travelers,” whether it is due to “bad press” or the fact that consumers are seeking different types of travel experiences; one respondent gave the example that deluxe Caribbean cruising has “been done to death.”

IN CLOSING
In reviewing the results of the survey, there were a few other key points I wanted to share:

• We’ve heard this before and it’s not going away – the affluent greatly dislike “being nickel and dimed” such as when luxury hotels charge for the Internet while medium-range hotels give it for free. They’d prefer for rates to be adjusted in order to eliminate the “nickel and dime” approach.

• A nod to the vital importance of staff training, one survey participant stated that the affluent will “avoid airlines, hotels and destinations that don’t offer outstanding customer service.”

I will address further results of the survey – on the subjects of ancillary fees and social media – in my next blog post so please stay tuned.

As always, I welcome your feedback. Let’s keep the conversation going.

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Survey Says...

2013-05-08T06:33:00.000-07:00

I have always advocated the importance of research in order to effectively set a marketing strategy – when you’re equipped with knowledge, you’ve secured a degree of power that makes you a savvy strategist. In the effort to build on our wealth of information, Strategic Vision sponsored American Affluence Research Center’s Spring 2013 Affluent Market Tracking Study, a survey of the wealthiest 10% of U.S. households based on net worth.

The survey is based on self-administered questionnaires mailed to a randomly selected national sample of 4,500 men and women in households with specific income and assets ownership and a minimum net worth requirement of $800,000. Following a weighting of the respondents, the participants in this survey have an average net worth of $3.1 million and an average primary residence value of $1.2 million.

Some results were rather surprising...

What Magazines Do Affluents Read?
Marketing requires a constant examination of the luxury consumers’ interests, opinions and product preferences – including what publications comprise the affluent library. When asked what leisure magazines they read most on a regular basis (from a choice of 11 high-end titles), survey respondents indicated Travel + Leisure as their top choice (22%), followed by WSJ Magazine (19%), T: The New York Times Style Magazine (15%) and Departures (13%), which is distributed to American Express Centurion and Platinum Card holders.

Print Takes The Lead
While mobile is all the rage, the survey showed there is still power in print! An astounding 76% read the print editions of these magazines versus 7% who read them on iPads. Seventeen percent opt to read both print and digital versions. Considering that we are a hyper-connected society, I found it interesting (and somewhat refreshing) that luxury consumers still do enjoy perusing the physical pages of a magazine for the stunning photography, rich content and actual experience of reading a quality-crafted product (and that this experience isn’t dependent on Wi-Fi).

Determining Influence
As marketers, we spend an inordinate amount of time examining the idea of ‘influence’ – particularly the greatest/least impactful sources that sway the decision-making process of today’s luxury buyer. According to the survey in which 14 choices were provided, respondents indicated that a print travel article most influenced their decision on their last vacation (at 20%). Rounding out the top five were an online travel article (18%), TripAdvisor (16%), a travel advisor (15%) and a friend/relative (14%).

Social media, such as Facebook and Twitter were surprisingly low at 1.4% and 0.2% respectively. Among my travel industry friends, there are many conversations about understanding the full depth of social media’s reach and its relevance for the luxury consumer. It is a fundamental topic for luxury travel marketers to consider with no clear-cut recipe for success; high usage of social media doesn’t mean social media wields a high degree of influence over luxury travel purchase decision-making.

Moving Up The ‘Influence’ Ladder
We all know that the Internet and social media have drastically altered the sales landscape in less than a decade. According to the survey, the reviews from TripAdvisor slightly edged out travel advisors in the realm of influence. I believe, though, these results show that travel advisors are keenly in the mix – but there is more they can do to move up the ‘influence’ ladder. Since the top leisure magazine the affluent read from 11 choices was a travel magazine, travel advisors can help make travel dreams come to life in the most vivid, memorable ways, and even leverage some of the credibility that comes from great editorial in print. It is crucial that travel advisors showcase their breadth of travel knowledge, impressive industry contacts, and ability to craft the perfect next adventure for their clients, whether it’s domestic or internationally.

In a recent article on the Huffington Post about why young people should use travel advisors (which is a great sentiment!), I came across what I believe is now one of my favorite quotes relating to our industry: “Travel is the only thing you buy that makes you richer.” In its perfectly poignant prose, this quote taps into one of the most amazing things about travel (whether you do it solo, as a couple, with friends or the entire family) – the rewards of global travel, as they nourish the soul and enliven the spirit – are immeasurable.

Pricetag Perspective
According to the survey, nearly a third of the respondents said they expect to spend between $5,000 and $10,000 on vacation travel in 2013 (32%). Another 23% anticipate spending upwards of $10,000 on vacation travel this year. Sixty percent of the total respondents said this is the same amount they spent last year; 23% of the total respondents expect to spend more. These are encouraging numbers and provide a great opportunity for travel advisors to upsell.

In Closing
Other survey highlights I found particularly noteworthy include:

• There is a risk that the mood and spending of the affluent could decline later in the year, as it did in 2011 and 2012, depending on changes in key indicators such as employment and GDP, the stock market, the credit crisis in Europe, among other factors.
• Approximately 80% of the affluent report owning one or more smart phones and/or tablets with the iPhone and iPad leading the way.
• About 28% of the affluent who have regular access to a computer or other means of accessing the Internet, say they do not participate in social media. Among the 72% that do participate in social media, Facebook is named slightly more often than LinkedIn. Those most likely to participate in social media are under age 50 and those with a net worth under $6M+.

This consumer research complements Strategic Vision’s two other market research platforms – a panel of 75 top travel agency owners and senior executives, and a panel of more than 20 meeting planners and incentive specialists. Contact me for more information.

As always, I welcome your feedback. Let’s keep the conversation going (Facebook, Twitter).

AROUND THE WORLD – THE ‘BEST LIST’ OF GLOBAL GEMS I DISCOVERED – PART 2

2013-02-11T13:33:00.000-08:00

Last week, I shared with you some of the distinctive destinations and magnificent hotels that I discovered last year. In Part 2, I am offering more from my “best“ list as well as some of the places I’ll be exploring in 2013. As I mentioned last week, none of the places or companies listed below are current clients – I visited them for business or leisure.

Best Hotel Concierge: Giovanni at Mandarin Oriental in Hong Kong
I have stayed at the Mandarin Oriental in Hong Kong more times than I care to count, and it wouldn’t be the same without Giovanni – one of the property’s best assets! He has been the concierge there for more than 30 years. He knows every customer, and is exceedingly helpful and knowledgeable. He knows this city inside and out and is skilled at recommending the right restaurants or experiences for guests. Plus, he can finagle anything in Hong Kong!

Best Unexpected Experience: Holiday Fireworks in Sydney and the London Olympics

You can spend a lot of time curating what you hope will be an unforgettable vacation, but sometimes it’s those unanticipated moments that rival for the best holiday memories. I had two such moments in 2012 – viewing the awesome New Year’s Eve fireworks display over the Sydney Opera House, and experiencing the gracious hospitality of the volunteers during the London Olympics (they were so visible and helpful – a reflection of fine British spirit).

Best Hard-Hat Tour: Shangri-La Hotel at The Shard, London

I was fortunate to participate in a hard-hat tour of the soon-to-be-unveiled Shangri-La Hotel at The Shard in London. Shangri-La will literally take its level of hospitality to new heights when the company opens a property (in June 2013) occupying floors 34 – 52 of the iconic tower, one of Europe’s tallest buildings (and boasting a remarkable design). From the stunning sample guest room, I was awed by the incredible London vistas of the Thames River and the city beyond. A destination bar on level 52 will likely become one of the city’s “must visit” places.

Best Renovation: The Peninsula, Hong Kong

The make-over of The Peninsula in Hong Kong (which is celebrating its 85th anniversary in 2013) marked a revitalization of the luxury brand. All rooms feature a chic new design (in a color scheme of ivory, walnut and chocolate) and revolutionary technology that really does work (such as customized tablets pre-set in one of five languages) – all while maintaining the hotel’s classic elegance.

Best Discovery of The Year: River Cruising in Europe

People have been talking about river cruising but I didn’t fully understand or appreciate the appeal until I took my first river cruise last year with Viking River Cruises. The quality of the ship was excellent, and the itinerary was terrific. River cruising is a wonderful way to see Europe – it is casual and relaxed, and allows you to truly absorb the culture and brilliant setting.

On The 2013 Calendar

Looking ahead in 2013, where do I hope to visit?

Destinations
• Iceland, Scandinavia and Russia – This summer, my family and I will be flying to Iceland and Copenhagen and then cruising with stops at Stockholm and St. Petersburg.
• Marrakech – I have never been here, and I can’t wait to discover the charm, style and intrigue that make this destination such a hot topic of conversation.
• Istanbul – I last visited here in 1995 on the QE2. There has been so much development since then, and I am excited to re-immerse myself in the exotic city.
• Dubai – It has been more than a decade since my last trip there. As we all know, the development has been ferocious, and I am keen on seeing it first-hand.
• Abu Dhabi – 2013 will mark my first visit here, where the juxtaposition of a city by the sea and a desert landscape entices global visitors.

Hotels

• Café Royal in London – This was always a popular meetings venue but it re-opened in December 2012 as a luxury hotel and member of The Leading Hotels of The World.
• The Langham Chicago – I did a hard-hat tour and it truly looks terrific. Located in the old IBM building, this hotel will re-open in the summer.

Dining
• The new restaurant Jean-Georges Vongerichten will open this summer at the Inn at Pound Ridge in Westchester, New York. Word is he’s converting the 150-seat space into an upscale dining establishment. I can’t wait to make my reservation!

Let's keep the conversation going on Facebook and Twitter.

AROUND THE WORLD – THE 'BEST LIST' OF GLOBAL GEMS I DISCOVERED – PART 1

2013-02-04T12:01:00.000-08:00

One of the most rewarding aspects of my career in luxury marketing is the global travels and the privilege of discovering different parts of the world – and gems in those locations. And, my love of global pursuits has translated into memorable journeys with my family. Last year, I explored distinctive destinations and magnificent hotels, and I’d love to share them with you and continue the travel narrative that inspires us all. I’d also like to point out that none of the places or companies listed below are current clients – I visited them for business or leisure.

Most Interesting Place: Cartagena
I had never considered Colombia as a luxury destination but my visit to Cartagena showed me otherwise. There is an excellent (and growing) hotel product, new air service (thank you, JetBlue), and spectacular service levels. A rich culture of music, arts and gastronomy embrace the city, generating an uber-cool vibe. As much as I travel, I often don’t head to South America, which made Cartagena a particularly thrilling treat for me – and ignited an interest in discovering more around the continent.

Best Large Hotel in U.S.: Hotel Bel-Air, Los Angeles
A member of the Dorchester Collection, the Hotel Bel-Air was completely renovated and re-opened in October 2011. The amazing revamp re-charged the iconic property for the 21st century while retaining features of its original character. Think the glamour of old Hollywood blended with a style that is young, fresh, vibrant and fun. The Wolfgang Puck at Hotel Bel-Air restaurant is divine, and the hotel bar remains famous for its savory cocktail collection.

Best Small Hotel in U.S.: Lake Placid Lodge, New York
Situated in the picturesque Adirondacks of New York State is the Lake Placid Lodge. Spending a few days in a cozy log cabin edging a five-mile-long lake and hiking in Adirondack Park (an impressive six million acres) was the perfect recipe for relaxation and family bonding.

Best Hotel in Europe: Corinthia Hotel, London
To me, the Corinthia Hotel (located in Whitehall) is the epitome of a contemporary version of the “grande dame” property. Embodying state-of-the-art facilities (including electrical outlets where you need them!) in an historic building dating back to 1885, Corinthia possesses a supreme blend of modern features and old-world elegance. My favorite features are the vast ceilings and open spaces. I also favored the delightful courtyard with fireplaces.

Best Hotel in India: Oberoi Vanyavilas, Ranthambore National Park
I took my family to India for the first time last year, and the experience was a pulsating kaleidoscope of colors, flavors and sites. In contrast to much of what they saw, their time during a tiger safari evoked a distinct calm as we carefully explored the animals’ habitat. Our home during the safari was the Oberoi Vanyavilas on the edge of Ranthambore National Park. This jungle resort features luxury air-conditioned tents, outstanding garden dinners, and an exquisite staff, creating a sensational complement to our magical surroundings.

Best Hotel in Asia: The Palace Hotel, Tokyo
Uniting contemporary Western design with rich Japanese tradition, The Palace Hotel re-emerged on the scene in 2012 – a reincarnation of its former self, celebrating the finest in home-grown hospitality and paired with matchless amenities for leisure and business travelers. The location is divine and unique, overlooking the magnificent Imperial Palace. My favorite feature is the amazing balconies – your vantage point seems almost endless.

Best Airport: Dehradun Airport
I travel through countless airports annually, and for me, Dehradun, situated in the foothills of the Himalayas, was the best airport I experienced last year. It is a modern facility – a testament to a new generation of hubs in the country. Considering the relaxed and spiritual tone of the Himalayas, the modernity and efficiency of Dehradun was a pleasant and welcome surprise.

Best Airline: Cathay Pacific and Qantas
Considering all the airlines I flew in 2012, Cathay Pacific and Qantas tied for the “best” accolade. I flew Cathay Pacific to Hong Kong – for a day! – in the new business class. The service was first-rate, and despite the long flight and time difference, I felt energized to effectively conduct my business. I took Qantas to Sydney for a family vacation over the Christmas holiday, and the entire experience was stellar from the moment we boarded until the moment we de-planed. We flew premium economy on the new A-380 – the plane was very quiet so we could all sleep, and service was always delivered with a smile.

I welcome your thoughts on what resonated with you during your global adventures last year. Stay tuned next week for Part 2 of my “best” list and what’s on my 2013 calendar for global discovery.

Let’s keep the conversation going on Facebook and Twitter.

Navigating Modern-Day Content & Consumer Engagement

2012-12-12T12:23:00.000-08:00

The expression “the more things change, the more they stay the same” is one we might forget in our rapid-speed, tech-driven way of conducting business but I feel compelled to remind luxury marketers about the importance of circling back to a principle that should guide us – at the core, marketers must engage consumers. Regardless of the tools we use to achieve that goal, we need to move the needle forward to create brand loyalty and generate sales.

To help move that needle in today’s 24-hour, tech-savvy world, we need to treat SoMoLo (social, mobile and local) channels differently. They dominate the daily mindset and increasingly draw a larger share of the marketing budget, but it is a huge marketing misstep to lump these platforms into one category and treat its users the same. To secure the coveted customer, we must understand/engage/inspire them – but we should also give that same attention to the individual social networks. While remaining rich, inspiring and interesting, content should be amended to fit the audience and the channel they are using.

Keep in mind that social is akin to “digital word of mouth.” With social media, luxury marketers have the opportunity to tap into these crucial conversations, help change opinions, and embrace the power of brand advocates across large networks.

Twitter – The Power of 140 Characters
Twitter epitomizes the “less is more” approach. Has brevity ever been more powerful? Tweets are effectively today’s sound-bytes – must-have deals that spur clicks and sales, an endorsement, a statement on news, sharing of opinions, etc. Chuck Todd, NBC’s chief White House correspondent, even likens Twitter to a newswire for the digital age (Adweek article – October 29, 2012).

Today, we rely on the consumer to further our messaging more than ever before (consider the analogy of Twitter being like a coffee house where people come together to share ideas and drive conversation). Consumers become our brand advocates, and they emerge as valuable influencers among known, and in some cases unknown, social networks. When a luxury brand’s tweet is re-tweeted, we know we’ve done something right – the message was worthy, relevant and spot-on, and it inspired our followers to share it with their network of followers.

Facebook – Maintaining a Voice
Facebook is a great tool for maintaining a voice among social networks. It allows companies to create content reflecting their personality and character (similar to a company’s website). Encourage a conversation and invite consumers into a place that conveys your brand’s story. Ask questions and welcome their feedback so the narrative continues. Don’t keep your page static – if you end the conversation, someone else (i.e. the competition) will keep talking. A challenge, though, is in avoiding the hard-sell approach – being perceived as too self-promoting can be a turn-off in the digital space. Always keep the idea of a two-way conversation front and center.

Through Facebook, brands should create a “friend” for their customers. Establish a distinctive persona for your brand – harness an ideal and lifestyle that evokes your brand identity so that consumers will welcome your updates and desire for dialogue. Give them a reason to “buy in” and engage in conversation with you.

Pinterest – Harnessing Visual Impact
Pinterest is akin to the “a picture is worth 1,000 words” philosophy. Powerful and expressive imagery captivates consumers and evokes strong emotion, making it a worthwhile platform for the luxury travel sector. Brands can be creative in how they organize their Pinterest boards from diverse themes (such as for niche markets like spa, gastronomy and adventure travel, or seasonality with Christmas getaways immediately coming to mind) to innovative board titles to capture attention.

Pinterest thrives on its simplicity of collecting and organizing exquisite images from across the Internet – and people can follow all of a user’s boards or a single board. Similar to Facebook, it is imperative to create a specific brand identity on Pinterest that encourages consumers to follow your visual journey.

Instagram – Share Photos, Share Dreams
Fun and free, the mobile-only app Instagram harnesses the impact of wonderful pictures and encourages consumer creativity. As its site says, Instagram is “photo-sharing reinvented.” We know about the cool filters and the convenience of sharing images via Facebook, Twitter and Tumblr, but, what does Instagram mean for luxury brands? It goes back to dream creation and story-telling – sweeping consumers up into the narrative of “I must be there” and “I deserve this.” Images should reflect a luxury brand’s authenticity – the style and feel of a hotel, or the vibe of a destination – so that a distinct “sense of place” is conveyed to consumers.

I’ve mentioned numerous social networks above but there are still many others that can engage luxury travelers, including Foursquare and Tumblr (which now has more than 168 million monthly worldwide users). So, it’s safe to say that crafting marketing strategy today would be incomplete if it discounted the importance and impact of these channels!

Mobile – Screen Size & Speed Matter
Mobile and tablet marketing should be treated as an extension of a brand’s website but with particular attention paid to the differences of the devices and how consumers use them. Shaping the experience to the medium is essential.

Smartphones are our extra limb. They are ‘on the go’ with us so location-based offers and news resonate highly with those using them. Having been a marketer for four decades when print, TV and radio were the marketing mediums, I am awed by mobile’s ability now, due to location search technology, to point a consumer to where your brand can be purchased! Where to place content on the smaller screen of a smartphone is vital for marketers to consider as is ease of usage – smartphone usage requires speed so it is important to ensure that a consumer’s purchase decisions can be made inherently and effortlessly.

Tablets – A Gateway to Brand Discovery
The depth and richness of the tablet experience, thanks to the incredible interactive capabilities, allows luxury marketers to truly optimize their brand presence. When accessed for leisure, tablets are typically used at night when consumers are relaxing – and possibly more apt to make purchases. Through amazing interactivity, consumers are engaged and swept into a dream. For travel, it can be about hearing the sounds of a destination or becoming mesmerized by the movement (of palm trees, thrilling adventures or local people, to name a few).

The trend of “responsive design” is really big now – where brands build a digital presence for an optimal viewing experience across a variety of devices. If you create for mobile first and then expand the design to tablet and desktop, you help ensure the design looks best on all devices (easy reading and navigation, and nothing too cumbersome) for the finest viewer experience.

In Closing
Luxury brands spanning hospitality and tourism, fashion, automotive, jewelry and other areas are keenly embracing the new marketing world we live in. Consider what Neiman Marcus is doing with its Christmas catalog, Fairmont Hotels & Resorts with its mobile redesign or that Barney’s is heavily invested in using social to drive sales. And, keep in mind that Burberry has the largest following of a luxury brand across social networks including over 14 million Facebook fans, 1.3 million @Burberry followers on Twitter, and a strong brand presence on YouTube, Google+, Instagram, and more.

The new marketing world is about enhanced brand discovery, and what luxury companies are doing here is only the beginning. I’m staying tuned…

Since communication and engagement is at the core of this e-mail, be sure to connect with your travel advisor partners on their views regarding social media and how they communicate with their clients – you might find some of their answers surprising!

As always, I welcome your feedback.

Consolidation Breeds Confidence & Renewed Focus on Partnerships

2012-11-12T06:05:00.000-08:00

As marketers, we spend a great deal of time exploring consumer-related trends – what they seek from travel experiences, what influences their purchasing decisions, and more – but it is important to take stock of our own industry trends and how these impact stakeholders in our business.

These days, it’s all about mergers and acquisitions! Recent news of the merger between Protravel and Tzell as well as Travel and Transport’s purchase of Ultramar reflects the changing business landscape of our industry. These are two examples in the U.S., but consolidation is happening in other parts of the world as well. These recent deals are a sign of confidence in the travel business, and this eventually trickles down to the benefit of the consumer.

Consolidation Yields Buying Power
After several years of tumult in the travel industry, the past 12 – 15 months have seen steady increases in business, and the money spent on recent agency acquisitions is a reflection of “the strength of travel.” Consolidation means larger agencies have greater buying power when dealing with travel suppliers – and that likely translates into better prices and enhanced value and experiences that can be delivered to consumers.

In the luxury travel sector, agency consolidation signifies a merging of “talent pools.” Travel advisors possess a breadth of knowledge and valued contacts that make them tremendous assets to their agency owners as well as their clients. This talent is the foundation of a strong and thriving agency group and is what breeds future prosperity for these mergers.

Consolidation is not just about large groups joining forces. There is potential for small and mid-size agency groups to come together to strengthen their negotiating position and bolster their market presence.

Relationships Reign Supreme
Strong relationships between buyers and suppliers are more important than ever before as consolidation continues (and it will). These relationships are distinct pathways to long-term prosperity and they are as vital to suppliers’ success as delivering on their brand promise to consumers.

Suppliers’ consumer marketing efforts already represent a multi-faceted approach through print, broadcast, digital and mobile platforms so their programs with travel partners should follow suit. This is the right time to challenge ourselves to become creative and think “out of the box” with our travel industry partnerships to encourage loyalty and boost profit margins.

In Closing
We should remember that customers continue to come first. Whether on the buyer, supplier or marketing side, we all play the role of “curators of travel dreams.” To be a strong travel marketer or travel advisor you have to genuinely believe in the thrilling desire to discover the world – its people, culture and history. And, we must all do our part to sustain the travel business by cultivating travel advisors, motivating and training hospitality and tourism staff, and always striving to exceed expectations and guest satisfaction levels.

As always, I welcome your feedback.

The Highs, Middles & Lows of Today

2012-06-26T07:51:00.000-07:00

Now that we’re at the half-year point, I’d like to take the time to pause and reflect on the past six months of 2012. One thing we know for sure is that U.S. consumers are indeed traveling again but there is still some skepticism among them. The psyche of today’s high-end consumer requires constant examination to ensure that our messaging is spot-on. Plus, economics around the world (think of the state of the Euro) and U.S. politics (the Presidential election and Wall Street in particular) continue to impact consumer mindsets and tourism in various ways.

Therefore, as we recall the past and look toward the future, I’ve outlined some highs, lows and of course, some points that fall into the middle for us luxury travel marketers to consider.

High #1 – Understanding Today’s Affluents
The most recent “Survey of Affluence and Wealth in America,” produced by American Express Publishing and Harrison Group, delivered some great news for our industry! “Travel is the number one discretionary spending category for affluent and wealthy families” – and this is because travel is a means towards achieving the goal of spending quality time with the people who matter most.

Additionally, enjoying positive and enriching experiences that encourage ‘quality in life’ are paramount to this audience. “Affluent and wealthy consumers across generations wants experiences that support their goals, values and passions in very personal ways, within an environment that shields them from the noise of the debate over wealth and success.” As luxury travel marketers for the finest experiences and products, we are poised to continue excelling as long as our delivery, attention to detail and customer service are flawless.

High #2 – U.S. Continues To Eye Europe
Uncertainty about Europe’s financial state of affairs is fortunately not affecting U.S. travel – consumers are still flocking across the Atlantic to enjoy the tremendous leisure experiences of Italy, France, Spain, and the new hot spot of Croatia, among others. Furthermore, the incentive market is starting to come back and they are heading to Europe. Effects of the incentive business rebound, though, are not expected to be felt before 2014.

In The Middle – Olympic & Royal Wedding Impact?
The UK – primarily London – has received exceptional coverage lately due to the Diamond Jubilee and the upcoming Olympics. Add this to the exposure that started last year with the Royal Wedding of William and Kate, and London has been center stage for quite a while. What remains to be seen, though, is if there is a long-term positive tourism effect and if marketing campaigns will drive consumers to experience the treasures beyond London – to the countryside, Scotland and Wales. Time will tell…

The Murky Middle – Economic & Political Matters
As referenced in the American Express Publishing and Harrison Group survey, the upcoming U.S. Presidential election and concern about America’s financial future have significantly affected the manner in which Americans view wealth. “The antagonism between the haves and the have-nots is the context in which affluent and wealthy consumers are making lifestyle and marketplace decisions.” And, while the U.S. economy is improving, the wealthy are experiencing a ‘lack of spending enthusiasm’ due to an apprehension about future economic and political stability. These are distinct and real concerns that can adversely impact the consumer psyche and spending habits.

The Lows – Major Concerns of Airlines & Visas
• The cost of flying – Between the increasing price of fuel and never-ending passenger fees, it seems that the cost of flying will continue to rise, which doesn’t bode well for consumers who are already weary over airline charges.

• Reduced airlift – Diminished air service remains a considerable problem. In many cases, airlift can make or break a destination, especially in smaller destinations served by one major carrier (consider various islands in the Caribbean).

• Visa restrictions – Problems securing visas (for U.S. travelers going outbound and international travelers heading here) is a significant challenge. For some, it can be seen as a deterrent to even visit the destination. Sophisticated, luxury travelers seek ease and convenience from start to finish of a trip, which includes preparation of visas and all paperwork prior to departure.

In Closing
I’d like to end on an encouraging note – as there is much to celebrate when we consider where we were two years ago! What does the state of affairs today mean for us? The essence of the experience you deliver to consumers is key. The affluent want to make sure the travel experience is ‘worth’ it – and not just from a financial perspective. It must be enriching, enlightening and memorable – to an exponential degree. We might not be able to control global economics or politics but what we can control – the flawless travel experience – is what we should shine at day in and out.

Let’s continue the conversation on Facebook and Twitter.

As I 'C' It

2012-05-23T13:14:00.000-07:00

Times have changed dramatically from when the “four p’s” of product, price, place and promotion dominated marketing strategy. Now, this is “How I ‘C’ It” – Content, Community, Channels, Commerce and Collaboration are the pillars on which to create an effective course of action to target today’s affluent consumers.

The ‘Consumer Age’
Our social and business climates have changed in immeasurable ways during the last decade, and the pace of transformation is best reflected in this quote from author Thomas Friedman:

“When I wrote The World Is Flat: A Brief History Of The 21st Century, Facebook didn’t exist. Or for most people it didn’t exist. Twitter was a sound. The ‘Cloud’ was in the sky. 4G was a parking place. LinkedIn was a prison. Applications were something you sent to college. And, for most people, Skype was a typo.

That all happened in the last seven years. And, what it has done is taken the world from connected to hyper-connected – and that has been a huge opportunity and a huge challenge.”

In the ‘consumer age,’ today’s luxury travelers are intelligent and well-researched, possess distinct expectation, and face diverse influencers. This consumer psyche has resulted in dramatic shifts in marketing strategy amid the constant evolution of the digital and social landscapes. Among the changes, one core point emerges as stronger than ever before – engagement is the cornerstone. It drives relationships, and that ultimately drives sales and profits.

Content Is King
Vivid language and inspiring images create brilliant dreams across multiple touch points that affluents feel compelled to experience in reality. There is the vacation narrative that a skilled travel advisor can convey to clients, and the one they might encounter on their own through an agency website, social media platforms or customized communications to a consumer.

For success in developing content, I suggest it always be personalized, relevant and fresh; include enticing visuals through colorful photography and appealing videos; feature local destination insight; and have interactive elements to encourage worthwhile engagement. Rich content tempts consumers to venture on thrilling global journeys, and travel advisors who embrace this will likely be some of the most successful in building their business.

Community Counts
The proliferation of social communities is growing by leaps and bounds. They can be somewhat unknown (and scary) influencers but the fact remains they are ever-present and luxury consumers actively use them. Through online social communities, consumers share their passions, forge instant and strong bonds, and reflect on experiences – largely in real time. Consumers often create their own narratives to share with friends, family and their ‘social channel’ followers.

There is no question that social media is impacting the funnel of information and purchasing decisions. Consider this quote from an article by Andy Kessler in The Wall Street Journal article “When Will Social Media Elect A President?” (February 29, 2012): “Social networks, like real life, are driven by influencers – not necessarily those with the most friends or followers, but those whose thoughts, ideas and opinions have the biggest influence.”

Channels & Commerce
According to the PhoCusWright, Inc. 2011 Travel Agency Landscape Survey, “Travel agents sold $90 billion in 2010 and are projected to sell $100 billion in 2013.” To me, that suggests the power and viability of the travel agent channel! The vital role of travel agents has also been featured in the media recently including The New York Times, The Today Show and CNN.

And, at the recent Virtuoso International Symposium (where I was privileged to moderate the business session), suppliers echoed the sentiment that advisors yield the highest Average Daily Rate (ADR) – and they do so significantly. According to Susan Helstab, Executive Vice President of Marketing for Four Seasons Hotels and Resorts, clients who book through Virtuoso advisors average a 75 percent higher ADR than the total of all other channels and are Four Seasons’ most valuable customers. An impressive statement on the travel agency channel yielding exceptional commerce, indeed!

There is no turning back – consumers are tapping into their wealth of resources and seeking out information via diverse channels (known and unknown). Agents play a vital role in helping consumers sift through the purchase options and add value as necessary to a customized and curated vacation experience.

Collaboration Through Conversation
I urge travel agents to take advantage of the opportunity ahead of them to become true advisors to their clients. Effective collaboration requires insightful and relevant conversation. Yes, today’s consumers feel more empowered about their travel options because of the amount of information easily available to them but travel agents are curators of incredible memories, experts with in-depth access, and as I once referred to them, ‘editors of travel.’

In Closing
Our world today is one of multiple distribution channels and never-ending social media, creating huge challenges for marketers, suppliers and travel agents as we all try to grow our businesses. I still believe the ‘human element’ of relationships is vital despite technology – it’s us working positively within the new landscape, and embracing social media (not fighting it), that can make a difference.

As marketers, we are used to directly relating a communications vehicle to ROI to determine if the strategy was worthwhile. These days, it is a disservice not to broaden our perspective. Social media expert Porter Gale, who spoke recently at the American Express Publishing Luxury Summit, urged attendees to look at more than direct sales attributed to social media because the ‘social’ side of things can be a powerful secondary influencer that isn’t tracked – and to some degree, investing in social media is investing in future targets (similar to what Susan Helstab said above). Those looking for a more direct spend-ROI correlation should look to targeted e-mail communication. Additionally, Porter made a great point about how doing cool digital media stunts can yield significant traditional media placements. It goes back to the idea behind viral marketing – if the concept itself is good, then the word will spread.

As always, I welcome your feedback. Let’s keep the conversation going on Facebook and Twitter.

Greaves Featured in Departures Magazine!

2012-03-13T08:46:00.000-07:00

Flip to page 70 of the March/April 2012 issue of Departures magazine to read "India Done Right" - a fantastic interview with Mehra Dalton of Greaves! You can also click the link below to read the two-page feature:

http://www.greavesindia.com/wp-content/uploads/2012/03/Mehra-Dalton-Departures_March-April-2012.pdf

Understanding The 'Human Element'

2012-03-05T06:13:00.000-08:00

Many of us travel marketers subscribe to the idea that today’s consumers are driving the sales process. With this acceptance comes a constant redefinition (and in some cases a reinvigoration) of our role as influencers and as profit generators. Times have indeed changed – we don’t have the control we once did but we must still steer an effective strategy. A provocative and insightful article I read in Advertising Age titled “The Dawn of the Relationship Era” gave me a lot to consider on the subject (and I’ve quoted the article throughout this e-mail) because it is indeed the ‘human element’ wherein the power lies.

As marketers, we are often also researchers, analysts, strategists, and in some cases prognosticators navigating the channels of our science while staying attuned to the needs and desires of our target demographic. The Ad Age piece tapped right into what travel marketers, travel advisors and anyone in the hospitality and tourism industry needs to recognize more than ever before in order to keep pace with the modern-day consumer mindset – brand integrity, relationships and trust are vital when “you are being evaluated 24/7 in countless conversations that have zero to do with your ad slogan.”

Trust Trumps Nearly Everything
Genuine trust is huge – its value shouldn’t be underrated or taken for granted. As stated in the article, “Trust is an asset, not a commodity. It cannot be purchased. It must be earned. And it can dissolve before your eyes.” Trust is the cornerstone – and if it is not, it should be – of the relationships consumers have with advisors (who guide the travel narrative through their insight, contacts and expertise) and suppliers (who must deliver a flawless and exceptional travel experience). At once fragile and powerful, trust builds fierce product allegiance on the part of the consumer because of a strong emotional connection that is developed, whether with an advisor or a brand – and when respected, it can positively propel sales forward.

Consumers crave transparency – of pricing, of the travel experience itself, and of brand values – and this transparency can breed life-long, invaluable trust. “All you have to be is beloved, or at least respected, for how your conduct yourself as well as what you sell.”

Cultivating Ambassadors With ‘Genuine Purpose’
Effective marketing is no longer about controlling our consumer prospects. Said David Rogers, executive director of Columbia Business School’s Center on Global Brand Leadership: “‘Awareness, opinion, consideration, preference and purchase’ have been supplemented by ‘loyalty’ and ‘advocacy.’” Get consumers on your side. Let them willingly be your ambassadors among their network of listeners.

So what should advisors and suppliers do? Define your genuine purpose (going beyond your formulated USP’s). “If you can identify why your company exists and what values it embraces, and if you live by those values across all aspects of your enterprise – from hiring to choosing suppliers to acting on civic responsibility – then you have the foundation for values-based relationships that command loyalty and trust.”

Social, Social, Social
As marketers, it would be remiss for us not to hone proper social media strategies, with the optimum word being ‘proper.’ Why? “Social media has taken the stolid, dependable old tortoise – word-of-mouth – and transformed it into countless hares, multiplying like, well, hares.”

What is one of the biggest missteps that many traveler marketers are guilty of? “They squander the unprecedented potential of the online feedback loop by conducting themselves as aloofly in social media as they always have in paid media.” There’s no richness to the content or the character of the hotel or tourism product.

Key to success requires drilling deeper in our travel marketing efforts. As referenced in the article, it’s about getting to the consumers who take the time to write a positive review on a site, such as TripAdvisor, or happily share their praise and affection through other channels be they Facebook, Twitter, etc.

In terms of innovation, Four Seasons Hotels and Resorts has emerged as a confident digital strategy pioneer. Part of the company’s recent website revamp includes the inclusion of “Reviews at a Glance” with postings from TripAdvisor, Facebook and Twitter. I applaud their bold move because they are embracing the future and thinking with a 21st century mindset to drive their marketing efforts.

In Closing
The shape of things today means travel advisors, hospitality and tourism professionals must work harder not just to capture their market share but cultivate it for the long-term with honesty and integrity. Be genuine. Let consumers praise your ideals. It’s not all about the hard-sell approach for the luxury market – it’s about relating on the human level.

As always, I welcome your feedback. Let’s keep the conversation going on Facebook and Twitter.

Moving Forward in 2012 - Listen to Clients, Engage Them For Life

2012-02-08T06:26:00.000-08:00

As travel professionals, we are constantly on the quest to understand what our luxury clients want from their travel experiences, the latest ‘in’ destinations, and how economics, political unrest and other global events impact the consumer mindset and the future course of worldwide exploration. We have to keep pace like never before! This makes the development and implementation of an effective – and modern – strategy extremely crucial. For me, devising a smart strategy starts with research. To that end, I surveyed approximately 50 advisors at the owner or manager level who graciously shared some enlightening feedback so I’m pleased to recount with you some of their thoughts on “what’s hot” and trends in the luxury marketplace as we move ahead in 2012.

Don’t Just Speak – Listen
“When to book?” is a question constantly on the minds of both travel advisors and their clients. Leads times of 12 – 18 months are not typical anymore, whether consumers are seeking a deal or determining the ‘right’ time to travel. Said the advisors I contacted: “Consumers buy when the price, economic environment, workplace atmosphere, etc. are all aligned” and “Planning ahead doesn’t ‘pay off’ anymore due to unpredictable volatility on all fronts” – currency fluctuations, political instability, natural disasters, and pricing.

Therefore, it is vital for advisors to ensure they don’t just ‘speak’ to their clients but ‘listen’ to them. Genuine engagement can result in loyal clients – and profitability – for life. When travel advisors are indeed speaking with their clients, they should tap into their power to paint an intriguing vacation picture and inspire travelers with a global narrative of adventure, reward and enrichment. The portraits of memories created during a vacation will last a lifetime.

The Questionable Impact On Bookings
Has the economic/political situation (at home and globally) affected the steady post-recession increase in luxury leisure bookings that the market has experienced since early last year? The majority of the group I surveyed said yes, there has been an impact, citing “a hesitation to commit,” “a slowing in leisure sales,” “delayed decisions” and “a prolonged booking process” as reasons.

But, there were a handful of advisors who stated the opposite – while the upscale market might be more cautious with spending, they are indeed still traveling. The importance of these investments in personal time – whether with families or for an unrivaled, unique experience – is unwaveringly. Some clients are tired of the ‘bad news’ that you simply can’t escape due to the Internet and mobile devices – “They are not putting their travel plans and spending time with friends and family on hold.”

One advisor even stated “The economic impact is affecting our second-tier luxury clientele more than our top-tier.”

‘Quality Over Quantity’ Remains Vital
Has the challenging economic and political landscape we are coming to terms with made luxury travelers ‘trade down’? Not necessarily, according to the group.

Luxury consumer might be embarking on “one or two trips a year instead of three or more” but they aren’t trading down when they do travel. And, “High-net-worth older clients seem to be traveling instead of worrying about the stock market,” a nod to an ease in leisure spending for enriching and rewarding travel journeys.

Quality over quantity continues to emerge as paramount for today’s sophisticated, high-net-worth individuals. While “upscale clients do not want to be nickel and dimed” (a sentiment shared by the majority of the advisors), overall cost is not as important to the very high-end luxury traveler. These days, value for money and the level of amenities are what is resonating so powerfully with this audience. Said one trusted advisor, “Value, value, value – it’s the ‘new normal.’”

Winners in 2011
According to my survey of top travel advisors, they sold bespoke travel journeys around the world in 2011 with the most popular destinations being the Caribbean, East and Southern Africa (particularly for safaris), France, Italy, South Africa and South America. Cruising vacations (such as river cruises) and family holidays (particularly multi-generational) also sold quite well.

Not surprisingly in 2011 (due to unfortunate circumstances), Egypt, Greece, Japan, Mexico, the Middle East and Thailand dropped off in popularity.

On The Horizon in 2012
While every corner of the globe is a possibility, the following are the destinations our advisors are citing as where clients are booking, thus far, in 2012: Argentina, Bali, Bhutan, Botswana, Cambodia, Chile, Costa Rica, Croatia, the Galapagos, India (off the Golden Triangle Path), the Maldives, Peru, Sri Lanka and Vietnam.

In Closing
Of particular appeal, now and for the future, is travel that generates a social, culture and/or personal connection. One advisor summed it up brilliantly: “The beauty about ‘experience-driven travel’ is that you can find it anywhere…close to home or far away.”

Travel advisors remain exceedingly influential with their clients but they must continue to demonstrate their relevance and value by showcasing their “insider access” and an authentic commitment to delivering on the dream of having clients engage in the world’s most amazing experiences. This is something worthwhile to keep in mind as advisors curate customized travel adventures for their clients.

My Top Hotels in 2011...And My 2012 'Wish List'

2012-01-16T13:14:00.000-08:00

During the first month of the year, I like to pause and consider all the hotels I’ve been privileged to visit – and will encounter the coming year – during my global travels. In the spirit of ‘recaps’ and ‘lists’ that celebrate the launch of a New Year, I wanted to share with you my thoughts on the top five hotels I experienced in 2011 as well as the top five properties I can’t wait to discover in 2012.

Top 5 in 2011

Shangri-La’s Villingili Resort and Spa, Maldives – Nestled 75 miles south of the equator on Villingili Island on the Addu Atoll in the Maldives, Shangri-La’s Villingili Resort and Spa is exceedingly exceptional in every regard. Fabulous accommodations (132 villas in all), a superb roster of outdoor activity (such as biking, tennis and fishing), watersports (including diving, a huge passion in the Maldives), the CHI spa, superior dining, and flawless service make this luxurious tropical resort that is truly family friendly a gem in the glorious Maldives. Created on a deserted island from scratch, Shangri-La’s Villingili Resort and Spa is a dreamy vacation getaway that is one of the few places I can confidently say allows the ‘globe-trotting road warrior’ in myself to actually relax. I visited last summer and I can’t wait to return.

Corinthia Hotel, London – Several new hotels emerged on the scene in London, and the Corinthia may be the best new property there. I’m in the city at least twice a year so new hotels are always on my radar. The Corinthia’s design is striking and impressive; bold and cutting-edge spaces (that are open and welcome tons of natural light) and spectacular workmanship enhance the stunning city views. Innovative culinary dishes and the revolutionary ESPA Life spa concept also make the Corinthia a distinct stand-out in London. It sets a new standard for luxury and style in one of the most cosmopolitan and culturally-rich cities in the world.

Taj Falaknuma Palace, Hyderabad – I travel to India several times a year, and for me in 2011, the Taj Falaknuma Palace in Hyderabad was the most remarkable I visited in the country because of the painstaking restoration. This 60-room beauty genuinely captures the essence of the grand palace era in a triumphant manner. The personality of the Nizams can be experienced throughout, from rare furnishings and unique artwork to spectacular savory cuisine. Of huge appeal is the massive 101-seater Dining Hall – a great draw for groups. Hyderabad itself is growing in popularity, and I believe the city will garner more attention in the future as both a business and leisure destination for India-bound travelers.

The Peninsula Shanghai – One of my favorite things about this new five-star hotel is the brilliant, sweeping views of the Bund, day or night – they complement Shanghai’s distinct skyline in such dramatic fashion. This hotel was built to the highest specifications of grandeur and luxury with state-of-the-art facilities against a backdrop that blends historic architecture and Art Deco-inspired design. I particularly favor the complimentary international phone calls – a huge benefit for me so I can ring my family back home in the U.S.!

Montage Deer Valley, Park City, Utah – I was extremely impressed with this stunning mountain retreat, which I visited both personally and for business (for an event that took over the entire hotel). What has been developed here is a brand new ski resort – think ‘mountain chic’ – tucked into a picturesque, snow-capped (or flower-filled, depending on the season) landscape with amazing facilities at every turn. You can challenge yourself on the slopes, indulge in soothing therapists at the spa, play billiards, or head to charming Park City for exploration of great shops, galleries and restaurants. The hotel is ideal for families, couples and groups.

On My 2012 Radar

My travel schedule sometimes requires the handiwork of a magician to make it flow seamlessly! My global travels continue in 2012, and this year I greatly anticipate experiencing the following properties:

• 45 Park Lane, London – This hotel, a member of the Dorchester Collection, opened last September and the buzz is intriguing – a discrete location in Mayfair that draws a hip crowd, plus it is the home of Wolfgang Puck’s first venture in Europe (CUT at 45 Park Lane). I expect to be in London several times this year, including the Summer Olympics, and plan to make sure 45 Park Lane is on my itinerary.

• Le Maison Blanche, Shelter Island – An eight-room intimate property near pristine Crescent Beach, Le Maison Blanche embodies the ‘beachy Hamptons lifestyle’ in a divinely tranquil setting. When I have a weekend to recharge my soul and spirit this year, I intend to head to these sun-kissed shores of Shelter Island and relax among Le Maison Blanche’s luxury appointments.

• SLS at South Beach – I can’t wait to drop in to this hotel once it opens (expected in April 2012). Word is that this follow-up to the SLS flagship in Los Angeles will be ‘dressed to impress’ with rooms designed by Philippe Starck, magnificent culinary options, and an energizing nightlife.

• Mandarin Oriental in Paris – Situated among exclusive fashion houses and nearby the Louvre and Musée d’Orsay is the Mandarin Oriental in Paris. Beautifully decorated accommodations, an exquisite spa, extensive leisure activities, and gourmet dining entice me to call the Mandarin Oriental ‘home’ on my Paris journey in 2012.

• The Imperial, Delhi – This hotel is one of my usual haunts when I travel to Delhi on business (where the accommodations, facilities and level of service are impeccable) but 2012 marks the first occasion when I will be there with my family, making my next visit a true treat!

I’m quite confident that in the course of my 2012 travels, my list of hotels that I enthusiastically wait to experience will grow, which already has me thinking of what will be on my ‘top 2012 hotels’ list to be compiled a year from now! I’d also like to note that none of the hotels listed above are clients; I’ve stayed at them either on business or personal vacation.

I welcome your thoughts on what ranks on your ‘top’ lists for the past and coming year. Here’s wishing you a wonderful 2012!

Are We in Social Media and Technology Overload?

2011-11-21T07:32:00.000-08:00

iPad, Kindle Fire, Samsung Galaxy – these names, among others, dominate our daily lives, whether we’re reading about these devices or utilizing them ourselves. And, today’s marketers are tasked with determining how best to take advantage of consumers’ obsessions with these latest and greatest technology ‘toys’ as well as how to effectively incorporate social media (Twitter, Facebook and more) into their strategies. It seems that every recent conversation I have had with marketing executives includes these topics to some extent as the hospitality and tourism industries try to figure out the best way to embrace new technology and communications channels.

In our effort to be innovative and strategic, it is crucial not to get carried away. For example, on a recent trip to London I dined at a well-known restaurant that recently opened following an extensive renovation. As always the food was excellent, but I was disturbed when the professional and efficient sommelier presented the wine list on an iPad. Was this really necessary? Leafing through the pages of a wine list is part of the enjoyment of selecting a good wine. I grew more concerned when that same sommelier had to spend several minutes at a nearby table explaining to the guest how to use the iPad. What was the restaurant trying to prove? Surely, a wine list on an iPad is no more than a gimmick. Is there any added value in the experience or was something authentic stripped from my lunch?

As an industry, it is imperative we balance our desire to use technology sensitively with the desire to satisfy our clients’ needs. Effectively using social media and technology to move the ‘profit needle’ requires asking key questions:

• Is Facebook the right communications vehicle for a high-end company in the hospitality and tourism industry? Or, it is a better communications tool for staying in touch with friends and family?

• Using Twitter to publicize certain news or to drive specific promotions (50% off and the like) seems to make sense, but does tweeting the hourly activities of a celebrity chef really move the needle in terms of generating customer loyalty or generating new business?

• Not too long ago, magazines didn’t exist in iPad format. In an effort to remain competitive, publishing companies have spent exorbitant amounts of time and money developing iPad applications. Has this proven to be a worthwhile venture? In our hyper-action world, how long do publishing companies and marketers wait to see a profit before determining the effectiveness of this communications vehicle? This most certainly needs to be examined in the future.

I don’t proclaim to have the answers but I know that questions need to be asked. I am a marketing strategist first and foremost so posing the right questions to discover the right solutions is in my nature! Of course, hoteliers and travel professionals will look at sites such as TripAdvisor to peak into the window of conversation consumers are having in the web space about a hospitality or travel product, and respond accordingly.

At a time when marketing departments are watching every dollar, how many hours are being spent on developing social media strategies, creating tweets, and posting pictures and news to Facebook? I suggest we take some time to ‘stop’ and use our valuable human resource assets and ring a genuine sales prospect or a past customer to seek out business. The power of face-to-face conversation and crafting a hand-written note to a valued client or industry partner shouldn’t be forgotten.

As you know, today’s luxury travelers not only crave bespoke experiences; they positively respond and greatly appreciate one-to-one, personalized contact. Never lose sight of the impact and value of customizing the dialogue to your client. Building relationships is the right path to cultivating – and sustaining – business. To this point, I reference a quote from Thomas Friedman, author of The World is Flat: A Brief History of the Twenty-First Century: “When I wrote ‘The World is Flat,’ Facebook didn’t exist. Or, for most people it didn’t exist. Twitter was a sound. The ‘Cloud’ was in the sky. 4G was a parking place. LinkedIn was a prison. Applications were something you sent to college. And, for most people, Skype was a typo. That all happened in the last seven years. And, what it has done is taken the world from concentrated to hyper-concentrated. And, that’s been a huge opportunity and a huge challenge.”

I am not trying to dismiss the importance of social media, the latest iPad app or any technology platform. I completely embrace technology – I have an iPhone and an iPad and think they are fantastic! I hope my thoughts will add some perspective for today’s savvy luxury travel marketers regarding the most impactful ways to reach customers and boost sales as well as where the precious assets of time and money should be allocated to make a positive difference on the bottom line.

Sales and marketing in the luxury hospitality and tourism industry doesn’t need to be complicated. At its fundamental base, it is about offering a product consumers want to buy and making it easy for them to purchase the experience. Managing time is critical. While traditional communications channels may be becoming somewhat less effective and increasingly expensive, we need to monitor how much time we are now investing in social media and the creation of online and pay-per-click advertising, and whether or not this process is creating an acceptable return on investment.

The State of Tourism in Asia

2011-10-25T06:59:00.000-07:00

I have been privileged to visit Asia many times during the course of my career, and the destination continues to surprise and delight me. Having just completed a three-week tour of the region from Tokyo to Shanghai with many cities in between, I remain impressed by the vitality and ingenuity of the tourism and hospitality industry there.

While oversupply in some markets and staff retention seem to be key issues, it is quite apparent that tourism and hospitality are healthy and resilient in nearly every case.

Japan continues to face challenges from the earthquake and tsunami earlier this year, however the WTTC recently announced that business is beginning to return. Here is a link to the informative WTTC report: http://www.wttc.org/bin/pdf/original_pdf_file/japan_report_update_2_october_.pdf

During my stay in Tokyo, I learned that business travel is back and leisure travel enquiries are beginning to show some momentum. It appears the last few months have seen an improvement in occupancy at the top end of the market.

Unfortunately, Thailand continues to face severe problems and my heart goes out to the Thai population as they battle the floods. Having secured a stable new government, the country has now been hit by the worst flooding in memory leading to enormous cancellations and low hotel occupancies.

Last week in China, I was fortunate enough to accompany a distinguished group of 65 travel agency owners and managers during the Virtuoso Chairman’s Event, and these individuals were amazed by the quality of China’s tourism and hospitality product – stunning hotels, extraordinary events that showcased the country’s very best, memorable experiences, and a level of service that few anticipated. The Chairman’s Event brings together the top-producing agency owners from within the Virtuoso network across the U.S., Canada, South America and Australia, so the fact that the attendees were so significantly impressed is a tremendous accomplishment for the country.

Asia is of great – and increasing – interest to today’s luxury consumers, and travel there continues to gain momentum. According to the Travel + Leisure Travel Trends Study (Spring 2011), U.S. travelers took two international leisure trips (over 17 days) in the past 12 months; ¼ plan to take a long-haul trip in the coming year, with Hong Kong representing the number one Asian destination. A testament to the fact that Americans are indeed traveling to Asia, American Express Publishing Cardmembers spent $1,227,844,757 on their American Express Cards alone while in Asia in 2010, which represents an increase of 18 percent compared to 2009.

This was an equally special and enlightening trip, and I look forward to what I’ll discover during my next adventure in the region.

Evolve + Adapt = Staying Relevant

2011-09-23T14:34:00.000-07:00

I wanted to share with you a recent experience from a weekend getaway that reminded me of the importance of two key elements to operating a successful luxury hotel – the importance of keenly knowing your customers and recognizing how to stay relevant to them. For me, in-room Internet was the subject at hand. I stayed at an exquisite Martha’s Vineyard inn, which was outstanding from the accommodations to the food to the service – but the lack of in-room Internet as an option should I want to stay connected was somewhat troubling to me.

This drove home the point to me that giving travelers what they want is essential – there’s no option – but you need to know what is pertinent to your customers and then execute flawless service delivery. Finding the right balance of staying true to what defines a luxury product as authentic, genuine and unique while still providing the services consumers not only seek but have come to expect remains a challenge for those of us in the hospitality and tourism industry.

Luxury consumers can’t be pigeon-holed into one category of needs and desires. As hoteliers and tourism companies, we endeavor to retain our existing customers while also cultivating a new audience as we work toward a goal of unparalleled customer satisfaction and prosperity. Creating the right recipe for success indeed seems to require a master craftsman!

So, what’s the proper strategy? Through my consultancy I implore hoteliers and tourism companies to evolve and adapt to stay relevant.

Today’s luxury customers are an ever-evolving breed; we’ve experienced this with the post-recession emergence of a new sophisticated and affluent customer who craves exciting and meaningful experiences. As a result of this progression to remain relevant and connected to modern-day appeal, many luxury hotels are reinventing themselves so they can create treasured moments that leave indelible memories in the minds of their guests for them to share with family and friends. And, this memory-making starts before your guests have even decided where to go.

Case in point – where luxury travel advertising is moving. To inspire today’s wealthy set whether they’re in their 20’s or 60’s (to target both existing and potential customers), hotel companies have revamped their advertising messages with campaigns specifically speaking to a consumer’s desire to collect relevant experiences and for travel that is extremely personalized and handcrafted just for them. The Ritz-Carlton Hotel Company and Orient-Express Hotels have just rolled out new emotionally-charged campaigns with Ritz Carlton saying “Let us stay with you” and Orient-Express encouraging consumers to “Embark on a journey like no other.”

The Ritz-Carlton ads state “Let us invent a drink in your honor,” “Let us take you snorkeling by moonlight” and other like-minded sentiments showcasing the value of customization and a service-oriented, memory-making mindset. Orient-Express’ campaign is centered around video clips of the fictional Astorbilt family and their travels around the world. You’re transported on their thrilling journeys – and hopefully you’ll want to engage in the experiences yourself. If you’d like to learn more about these new advertising campaigns, I recommend you read the recently published article “Luxury Hotels Market the Memories They Can Make” by advertising writer Stuart Elliott in The New York Times http://tinyurl.com/3n6skpz.

In our competitive luxury market, if you don’t evolve and adapt to stay relevant to consumers, you risk completely falling off their radar. Going forward, I recommend hoteliers and tourism executives to consider the following:

The road to high customer satisfaction levels requires impeccable bespoke service at every level from arrival to departure. Successful delivery of this vacation dream rewards your brand in exponential ways.
Never lose your passion for providing your guests with enriching experiences – it drives the desire to remain relevant. Particularly with international travel – regardless of your role on the sales or property level, consider yourself cultural purveyors on the quest to enhance the lives of your guests. Experiences that are rewarding are relevant.
‘Knowledge is power’ for a reason. Arm yourself with comprehensive information on your customers by talking to them. Gain crucial insight into what they want and what they expect so you can incorporate this vital degree of personalization into your own evolution strategy.

As an international travel marketer, I am always on the road. When I’m on holiday with my family, I focus on generating those magnificent memories and they live with my during my international travels. Wherever I am in the world, and for whatever purpose, though, I still prefer to remain somewhat connected to reality at home, meaning Internet service for me is as essential as having a bed to sleep in at night. I wish my Martha’s Vineyard inn knew that!

The Crucial Keys to Success - Cultivating Remarkable Experiences & Getting Delivery 'Right'

2011-07-28T09:35:00.000-07:00

From numerous research reports on the hospitality and leisure sectors and discussion at tourism conferences, it is clear that leisure travel is back in a big way and consumers are on the move – a tremendous vote of confidence for the luxury travel market.

Embracing Regional Sales Power

With this travel resurgence, major city center hotels and the world’s resorts have a much more balanced mix of high-net-worth guests. Gone are the days when top suites were filled with wealthy Americans or Middle Eastern guests paying top dollar. Today’s mix is much broader with affluent guests from around the globe – Latin America, China, Russia and India, for example – vying for the best suite accommodations. Therefore, hoteliers must broaden their sales and marketing initiatives to include sales trips beyond the East and West coasts of the U.S. to cities such as Beijing, Shanghai, Mumbai, Rio and Moscow. The regional sales office will play an increasingly greater role in driving profitability whether as a member of a chain or representation company.

The Importance of Maximizing Rate

With occupancy back on the rise, hoteliers, cruise lines and airlines should emphasize a focus on maximizing rate. While consumers still are looking for value – not to be confused with discounts – the industry must now employ the very best revenue managers to improve the ADR (average daily rate), which unfortunately, in many cases, still lags behind where room rates were four years ago. Now that consumers are traveling again, they will have to book with a longer lead time in order to secure their preferred accommodations, itineraries and flights – and this will propel travel counselors to work more effectively with their clients to coordinate trips further in advance of departure. Clients unable to plan far in advance will require greater flexibility and more options. How will the travel industry rise to the occasion and meet these consumer needs? Consider ‘delivery’ – in terms of service, experience and value for money – as crucial to your strategic planning going forward.

Asia Gets ‘Delivery’ Right

I was fortunate to have spent the past three weeks in Asia on a mix of business and family vacation. While many of the designers and project managers may be based in the U.S. and Europe, Asian hotel owners and managers are prepared to experiment and invest in new creative concepts – they always keep the interest of the luxury consumer piqued. And, while product is vital, service delivery continues to be the key to the region’s success.

As we know, today’s luxury consumer is still seeking “value for money” but what is even more important is the richly rewarding experience to be realized. Precious time together sharing happy moments, bragging rights at the next cocktail party back home, and meaningful memories that make the vacation special – this truly helps define the customized handcrafted experience that epitomizes personal luxury. It is not just about pillow menus or a guest’s preferred brand of soap – today’s consumers want to experience unforgettable moments.

Crafting Exceptional Experiences

Take as an example Taj Hotels Resorts and Palaces. Three months ago, I had the pleasure of visiting Hyderabad in India where Taj recently opened the Falaknuma Palace after a painstaking mutil-year renovation. We were met at the gleaming new airport in Hyderabad and transferred to the palace in a lovely bright shiny German sedan, as well as offered water and towels to refresh ourselves. When we reached the outskirts of the palace, the car stopped, and we were escorted to a horse and carriage so that we could arrive at the palace in similar fashion as the Nizam would have originally arrived.

More recently, after a two-hour snorkeling adventure in the clear blue waters off the Taj Exotica in the Maldives, rather than head back to the resort we were taken on a 15-minute high-speed ride to a sand bar in the middle of the Indian Ocean, where our boys were able to raise a flag on a deserted island while our butler from the Taj Exotica opened a bottle of champagne for us to enjoy. This was an outstanding once-in-a-lifetime magical moment.

Enriching Experiences = Repeat Business

Today's cruise line executive, tour operator, hotelier and resort manager, together with skilled travel counselors, need to develop more of the engaging, gratifying experiences that leave guests fulfilled but still wanting more - resulting in repeat business. These enriching experiences have the power to generate improved rates and build loyalty for the travel advisor and the supplier.

We are only part of the way there - we may be recovering in terms of volume but now comes the hard bit - improving rate and at the saem time ensuring our customers believe they have had an outstanding once-in-a-lifetime experience that afforded value for money. Travel advisors and suppliers alike are being challenged with being more creative to achieve these goals to turn consumers into repeat clients so more revenue can be earned by all. This is a game-changing moment - are we ready for it?

Paradise Found at Shangri-La's Villingili Resort and Spa - Maldives

2011-07-11T09:41:00.000-07:00

I do not often write about individual hotels except when I discover something exceedingly exceptional. Recent examples I’ve been privileged to herald include The Upper House in Hong Kong, Fullerton Bay in Singapore, The Crosby Street Hotel in New York City, and Grace Bay in the Turks & Caicos. Now I add another one to the list – Shangri-La’s Villingili Resort and Spa (pictured above), perched on the southernmost tip of the Maldives.

Stunning & Spectacular Location
Nestled 75 miles south of the equator on Villingili Island on the Addu Atoll, this 132 all-villa resort will celebrate its second anniversary on July 26. With the choice of many major luxury hotel brands in the Maldives, how do you decide which resort to select? After all, glorious sandy beaches, shimmering turquoise water, impeccable service and superb watersports are in abundance! Often, the Maldives is associated with romantic getaways; however, if you are seeking a luxurious tropical resort that is truly family friendly, Shangri-La has perfected that with the Villingili Resort and Spa.

All Villas, All Luxury
Fabulous accommodations include Water Villas, Tree Villas, the Pearl Suite (a fabulous secluded water villa), Presidential Suite and 10 wonderful two-bed room villas ideal for families, each with a private beach and swimming pool. All accommodations are fully air conditioned and feature a comfortable layout, spacious bathrooms with separate shower and toilet stalls, outdoor showers, and large relaxing tubs. Particularly eco-friendly, all villas are fitted with solar panels to generate hot water. Service is unobtrusive, and your personal villa host (called by a pre-programmed mobile phone) looks after all your needs from restaurant reservations to activities. Like all Shangri- La properties, the resort offers complimentary high speed Internet access for those of us who wish to remain connected to the outside world!

Active Pursuits – On Land & In Water
The location lends itself to lovers of outdoor activity – from all the traditional motorized and non-motorized watersports to a fully-equipped health club and tennis courts, run by staff who willingly workout with you or hit some balls for fun! The coral reef is world-renowned so snorkeling is big even for non-swimmers (unlike many coral reefs, where non-swimmers are turned away). There’s biking around the resort, lunching on a yacht on the equator, traditional Maldivian night fishing expeditions, and spectacular jungle and wildlife tours, run by the resort’s in-house eco-center. Diving is a huge passion in the Maldives. The resort has its own dive centre, and boasts the only decompression centre on the Atoll, which serves the entire community. On my recent visit, my three boys (ages 15, 12 and 10) were captivated by the diving opportunities; they took a five-day intense diving course with 18 hours of diving instruction and are now Open Water certified (10 is the minimum age for this course)! And, there is more coming with a nine-hole golf course to be completed in December.

Soothing Spa Indulgence
Overlooking the ocean, the CHI spa features 11 treatment rooms (including several ideal for couples), yoga and an extensive menu of treatments and wellness programs. To keep spa standards at optimum levels, all the therapists are required to participate in Shangri-La’s own spa training school in the Philippines ensuring the highest levels of professionalism and service delivery.

Gastronomic Excellence
There are three different onsite food and beverage locations plus “Dine by Design” (personalized in-villa dining), beach barbecues and a themed jungle dinner experience. Local produce is central to the menu offerings; the chef has even cultivated his own walled ‘Chef’s Garden.’

A Gracious & Dedicated Team
Operationally, this resort works like clockwork. Led by General Manager Jens Moesker, who arrived at the resort two years before it opened, the resort has 600 associates, 58% of whom are locals from the surrounding islands. The resort has successfully created one of the friendliest cultures you can imagine so employee retention is very high. Many of the staff have been with the resort since before it opened, and they are all well-trained, detail-oriented, and extremely gracious.

Committed To The Community
Shangri-La has done much more for the local economy than develop and train a local workforce. As part of its commitment to the local community, Shangri-La created a cooperative with the farmers of Addu Atoll, whereby the farmers supply the resort with 38 varieties of fruit and vegetables. In 2010, the farmers delivered 73,000 kilograms of produce! In addition to supporting local economic development, this program has two main goals – offering guests fresh quality produce and minimizing the release of carbon resulting from flying in fruits and vegetables from around the world. As my oldest son aptly put it – “Mr. Moesker is not just running a resort, he’s running a small nation!”

Getting There Is Worth It
Getting to Villingili from the United States is definitely “long-haul” but the experience is made easier with direct Singapore Airlines all-business class daily service from Newark to Singapore (17 hours). The renowned Singapore Airlines service, coupled with just 100 passengers on the flight, makes this by far the most comfortable way to travel.

Spending a few days in Singapore is a great way to recover. This is definitely a city to visit – it has completely reinvented itself in the past few years. After a few days respite in Singapore, you can fly Singapore Airlines to Male in the Maldives (just over four hours). Upon arrival, you will be met by uniformed Shangri-La staff who assist you in clearing customs and immigration before transferring you to Maldivian Airlines for the one-hour flight to Gan. Onboard, you will even be presented with a certificate as you cross the equator! Once in Gan, you’ll again be greeted by uniformed Shangri-La staff, taken on a short bus ride to the jetty, and then a 20-minute speedboat ride to the resort.

Alternatively, combine a trip to the Maldives with a visit to the south of India and fly from Trivandrum in Kerala direct to Male and onward. From many U.S. gateways, the third alternative is British Airways via London and then direct to the Maldives on recently introduced service.

If you’re interested in planning a trip to the Maldives, I suggest you contact our client Greaves Tours – http://www.greavesindia.com/maldives-resort-collection.

In Closing
It is hard to imagine a more professionally run resort. Like many Shangri – La properties, this one is 70% owned by the company, which fully embraces local customs and the community. Often, one might regard Shangri-La for large city centre hotels or boutique properties like the stunning Shangri-La Tokyo, but the Maldives property is proof of what the hotel company is doing with luxury resort development. Shangri-La presently operates 10 resorts in the group – two in the Philippines, four in Malaysia, one in Singapore, one in Muscat, one in Fiji, and of course, one in the Maldives.

Created on a deserted island from scratch, Shangri-La’s Villingili Resort and Spa is a dreamy vacation getaway that is one of the few places I can confidently say allows the ‘globe-trotting road warrior’ in myself to actually relax.