Over the past three years, global travel has been challenged by a succession of exceptional circumstances, and the luxury travel industry has had to show tenacity and resourcefulness to ride out this uncertain period. And while many of these issues are likely to be with us for some time, there is now cause for real optimism as we move into a new era of luxury travel.

To help understand what trend’s are growing, what’s staying and what’s slowing, ILTM and American Express Travel commissioned their own proprietary research from the affluent research specialist, Altiant, to get to the reality of the luxury travel consumer’s mindset today.

This global edition of ‘Buzz vs Reality’ is a unique and comprehensive representation of what luxury global travel looks like today; packed full of insights and trends that reflect luxury travel behaviours across the globe – helping you understand your customers’ needs now, and in the year ahead.

Download your copy of A Global View: Decoding the luxury travel consumer’s mindset.

Tired of sifting through predictions, buzz and counter claims, ILTM commissioned its own proprietary research from the affluent research specialist, Altiant to get to the reality of the luxury travel consumer’s mindset in September 2022.

It’s been a long two and a half years, and whilst we expect the consequences of the pandemic to be felt for some time yet, there is room for genuine optimism for luxury travel brands around the world with APAC wealthy travellers.

Our findings show that many affluent individuals are looking to make up for lost time and resume travelling in style with a staggering half planning to spend more on holidays than pre-Covid trips.

And these welcome findings extend to agents with 92% saying they will be using them to book luxury trips in 2023, the extra layer of bureaucracy and relieving the stress make agents more important than ever.

Launching the dedicated research about the region at ILTM Asia Pacific on September 5^th, entitled “Decoding the luxury travel consumer mindset”, Alison Gilmore portfolio director ILTM said, “The pandemic has had a fundamental impact on traveller behaviour with some trends accelerating, some slowing down and others stabilising.  The research surveyed almost 500 validated wealthy APAC travellers from 6 countries, a reliable barometer of luxury sentiment and habits in 2022”.

Here’s a flavour of the key findings from the report which you can download here:

What behaviour is staying

Flying less often, but staying for longer

Travelling with family and multi-generational trips

Slow, recuperative travel

Experiences over goods

Health & safety concerns

Wellness as a key driver in travel planning

What behaviour is growing

Revenge travel, making up for lost time

Rising confidence and ready to mix again, pointing to a return to a more social way of travelling.

Interest in sustainable, eco friendly trips with building back better after COVID is now resonating with many wealthy travellers

Planning well in advance rather than last minute

Travel agents becoming more important in holiday planning

What behaviour is slowing

Privacy & seclusion as the only travel choices

Superficial jumping from one place to another

Local or regional trips only

More active and high intensity breaks

Familiar locations, where travelled before

We see how the pandemic has accelerated trends well under way into mainstream expectations:  health & wellness and sustainability being the key ones.

For hotels, minimising water usage and eliminating single-use plastics are now the very least many travellers expect. Instead, strategies such as using renewable energy, growing food on-site and partnering with local conservation organisations will be enthusiastically received.

Most encouraging findings come from China, the future engine of the world’s luxury travel market.

Chinese travellers’ demand for mental wellness trips (+16 percentage points), Singaporeans’ desire for cultural trips (+18 points) and the Japanese desire for more activity and beach holidays (+15 points).

Chinese travellers expect to spend more in the year ahead, and they are also notably more likely than average to be planning celebratory trips such as milestone birthdays (70% vs 45% overall), more extravagant trips (59% vs 37%) and more travel in general to make up for lost time (56% vs 44%).

And the demand for mental wellness trips is also up a strong 16 percentage points for Chinese travellers.

They are also strongly guided by sustainability and environmental protection. 81% are planning to take more sustainable/ eco-friendly holidays in the future.

Good news for agents

There is a growing preference for planning holidays well in advance something which ideally suits the expertise of the travel agents. And the fact that two-thirds (65%) say that an agent will be influential when booking holidays over the next 12 months, 86% plan to use them the same or more since the start of the pandemic underlines their enduring importance.

What’s next?

As we move towards the biggest ILTM Cannes ever in December 2022, we will be unveiling the 2^nd edition of the global report on the luxury traveller’s mindset. Comparing and contrasting behaviour across APAC to key markets in Europe to Americas, this is hotly anticipated as the industry grapples for certainty and consistency going forward.

Back in May, ILTM caught up with the ever-enlightening Dr Parag Khanna, Managing Partner of FutureMap, seasoned ILTM speaker and authority on globalization, before his debut at an ILTM virtual offering. That article was a segue into Parag’s exclusive talk at ILTM Asia Pacific, a digital edition for 2021 in response to the world’s travel restrictions. 

So, without further ado, released publically for the first time, please join Parag as he explores how the Asia Pacific region will be the first to reopen borders and deploy new technologies in a post-pandemic world.

For more data-driven Asia Pacific content, check out our latest report A New World for Luxury Travel and Travel Advisors available to download now!

Download your copy now:

This time last year, ILTM caught up with the ever-enlightening Dr Parag Khanna, Managing Partner of FutureMap, seasoned ILTM speaker and authority on globalization, about the impact of COVID-19 on APAC destinations. One year on, as we sat down again, the lucrative countries from the region are showing signs of emerging from hibernation. Here’s what Parag is witnessing in 2021 and beyond…

Asia represents the largest share of domestic and international travellers. The region will also be the first to reopen borders and deploy new technologies. 

The coming years will witness trends in travel reinforce those in trade: Regionalization will outpace globalization. Before the pandemic, the number of outbound Asian travellers had doubled over the previous decade—but it had tripled within Asia itself. Post-pandemic, we can expect more and more Asian travellers to remain domestic or within the region. This has already been a strong contributing factor to China’s domestic consumption rebound, and as wealthy Chinese travellers venture abroad again, Asian nations are working hardest to woo them.

Many Asia-based travellers will play it safe and head to well-governed “islands of immunity” whether Japan or Australia, Taiwan or Singapore, where they know they can enjoy the cultural, culinary, or natural offerings. These countries have moved past lockdowns, and even elevated restrictions don’t dampen freedom of mobility. They also have the upscale facilities from resorts to service apartments to enable comfortable long-stays for those who have devised new schedules around dividing time across multiple locations. In essence, such travellers are looking for “home-tels” from which to conduct remote work while building new relationships.

Asian nations will also step up cooperation around harmonizing and digitizing new standards for cross-border mobility, such as immunity passports and blockchain based health certifications. Prior to the pandemic, visa restrictions had eased dramatically and Asian passports such as Japan, South Korea, and Singapore had become three of the five “most powerful” passports in the world. Asians’ embrace of technology will allow them to quickly rebuild cross-border trust into their immigration policies.

Such policies are also underway in Europe, emanating from both the UK as well as the Schengen area. This could be a positive sign for restoring travel between Europe and Asia, especially as Europeans seek tropical holidays and Asians look to beat the heat. Currently, however, this thicket of regional and industry efforts has yet to be reconciled.

Asia will also reinforce the global trend towards longer stays and multi-generational family travel, creating novel opportunities for hospitality brands. This includes the hybridization of business and leisure travel that emphasizes maintaining professional connectivity and elevating consciousness around wellness and sustainability. Youth, in particular, have driven the trend away from material consumption towards authentic experiences, with an emphasis on environmental and cultural conservation. As Asian nations step up vaccinations, the winter season of 2021/22 presents many opportunities for families to criss-cross Asia to immerse in mega-events such as the Dubai World Expo.

It’s never been so clear that capturing the APAC market is an essential element of our industry’s global road to recovery. If you would like to join ILTM Asia Pacific Virtual to do just that, please enquire here.

In this latest report, created with Barton and powered by Wealth-X data, it has been revealed that Asia Pacific remains a key area of interest for the travel industry and will be an essential element of the global road to recovery which is now thankfully in sight.

APAC’s HNW population, known already to be prolific travellers, contribute a huge $363bn to the luxury travel universe and despite the challenges caused by the pandemic, their wealth-growth trend has only paused, rather than ceased altogether. With the financial resource, desire and inherent ability to pivot during incredible disruption, APAC travellers should be seen as pioneers of the new luxury travel landscape, providing the much needed economic injection the industry has been waiting for.

Download the full report here:

Recently, ILTM’s Portfolio Director, Alison Gilmore was invited to a panel talk hosted by Hyatt to discuss the impact of COVID-19 on the luxury travel landscape. Making up the panel was Matthew Upchurch, Chairman, and CEO of Virtuoso, Jack Horne, the Global Head of Sales and Revenue for Hyatt Hotels and Resorts, and the host, Tristan Dowell, the Global Vice President of Hyatt Hotels Corporation.

Together, these key names in luxury discussed the impact of COVID-19 on luxury, the trends that have surfaced in its wake, the importance of wellbeing in these tumultuous times, and the likely shape of recovery. For all that and more, watch the conversation right here:

What is your purpose in life? If you don’t quite know how to answer that question, you are not alone. But you are statistically less likely to live a happy life. Alarmed? Don’t be. The global luxury travel industry is here for you. Come closer…

As the headline speaker at the ILTM Global Forum, Dan Buettner, pointed out in Cannes, “finding your purpose” is the single most effective short cut to health and wellbeing. It therefore comes as no surprise that the quest for self-actualisation – or in other words, wellness – might just be THE mega-trend to end all mega-trends in the global luxury travel economy.

Time for a history lesson – remember a few years ago when you first heard the words “experiential travel”? Yes! We cried. That’s the word we’ve been searching for, experiential is the way! So you updated all your marketing materials and some hipsters came by the office and delivered a super cool workshop. Then, a couple of years later, you were getting a coffee at ILTM and someone started talking to you about “transformational travel”. Of course! It’s bigger than experiential, it’s transformational. Cool.

Well, guess what? As with every new idea – the iPod for example – it gradually gets streamlined until what you’re left with seems so unbelievably obvious, you simply can’t imagine how you didn’t come up with it in the first place. Welcome to wellness – the luxury travel version of the iPod.

Let me explain. For decades, we, the luxury travel industry, have been talking about the unique healing nature of travel and its other-worldly influence on the psyche, giving perspective where it had gradually worn away, and giving the ultimate luxuries of ‘time’ and ‘space’ in which to relax, reflect and refocus. Travel, we said, is the antidote to the frenetic, fast moving roller coaster of the digitised 20^th century. Travel makes us sit down and engage. It forces us to take something to a deeper level.

Fast forward and today’s travel brands exist at the very epicentre of an exciting new eco system. No other industry is better placed to capture this explosion of need. The wellness industry today is worth an estimated $4.2tn dollars, of which “wellness tourism” currently equates to $639bn. What’s more, wellness tourism is growing twice as quickly as tourism expenditure in general, that’s an annual growth of 14%!

ILTM 2018 marked the launch of ILTM’s Year of Health and Wellness, the year when yesterday’s shifts towards experiential experiences and transformative travel settle softly into a wider, more permanent focus on enhanced quality of life and optimum wellbeing. Kicking off in Cannes, ILTM launched research and gathered a community of wellness experts that all draw the same conclusion; in the future, all travel is wellness travel, every trip is expected to enhance the physical, mental and social wellbeing of the traveller, transformation is the very promise of travel, and today’s travel brands are the solution to one of the biggest problems of our age. The future travel economy is based on a lifelong, personal and emotional quest for longevity, where travel is the short cut to the end goal of wellness.

This year, through learning and experiences, we aim to provide practical advice for travel brands about how to bridge the gap between promise and delivery. To provide opportunities for travel brands to fully immerse themselves in the world our luxury consumers now inhabit, to reimagine traditional ‘spa and wellness’ offerings breaking out of venues and disjointed piecemeal treatments, and learning how to fully integrate a message of wellness into our brands. It’s time to take the first step into the future, where hotel brands not only provide a break from the pressures of modern life, but design experiences where the journey undertaken is a journey into oneself, and where travel and travel brands partner with the traveller to prevent disease, improve health, enhance quality of life and bring a person to increasingly optimum levels of wellbeing.

Join us on our journey and find your purpose in business, and more importantly, life.

It is estimated that in the UK alone, at least 4.4 billion straws are thrown away annually¹ and it has been predicted that the weight of plastic in the ocean will outweigh fish by 2050,²  if nothing is done to tackle this issue. This is just one of the reasons why many luxury hotels have committed to eliminating single-use plastics from their properties in the near future. 

EDITION Hotels have been pioneering the plastic-free movement in the hospitality industry as they’ve made it their mission to eliminate single-use plastics from all of their properties by the end of 2018.³  Leading the campaign is Vice President of Brand Experiences, Ben Pundole, who has made it his mission to find high-quality alternatives to common plastic hotel amenities. Pundole says that the plastic-free movement is no longer considered inconvenient, as it is increasingly aligned with the new definition of luxury that EDITION guests expect.⁴ 

In the second instalment of our plastic-free mini-series, we spoke to Kellee Griffith, Operations Project Specialist from EDITION Hotels, about their commitment towards the initiative.

For those unaware, what is EDITION doing to reduce the use of single-use plastics?

EDITION has banned plastic straws in all food and beverage outlets across the brand, switched from plastic water bottles to cans and glass bottles, implanted staff water fountains in the back of house and provided each employee with their own stainless steel bottle. We are looking to move to keyless entry by the end of 2018 and we are looking for a solution to bathroom amenity bottles.

[perfectpullquote align=”right” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]”The hotel and travel industry are big plastic polluters. We at EDITION are trying to do our part by removing all single-use plastics from our hotels with the aim to become an industry leader and hopefully inspire and influence other brands to do the same.”[/perfectpullquote]

Have your customers supported your commitment to reducing single-use plastics?

We are starting to see that consumers are making choices based on impact, whether it be fashion or hotels, consumers want to know that they are not creating a negative impact. The response from our guests has been incredible.

How have you ensured that quality is not compromised when sourcing single-use plastic alternatives?

The quality of our product isn’t compromised because we choose to be plastic-free. We just find creative alternatives that are just as good, if not better, and we work with the best vendors who share our passion and are committed to the campaign.

Why is reducing the amount of single-use plastics important to your brand?

The hotel and travel industry are big plastic polluters. We at EDITION are trying to do our part by removing all single-use plastics from our hotels with the aim to become an industry leader and hopefully inspire and influence other brands to do the same.

Don’t forget to look out for the rest of our plastic-free mini-series. We’ll be catching up with EDITION Hotels at ILTM Cannes this year. To meet them, join us in Cannes, 3-6 December, 2018.

Sources

1. The Death of the Plastic Straw
2. By 2050, the oceans could have more plastic than fish
3. Edition Hotels Gets Serious About Going Plastic-Free
4. A Luxury Hotel Chain is Making it Hip to Ditch Single Use Plastic

It is estimated that in the UK alone, at least 4.4 billion straws are thrown away annually¹ and it has been predicted that the weight of plastic in the ocean will outweigh fish by 2050,²  if nothing is done to tackle this issue. This is just one of the reasons why luxury hotels have committed to eliminating single-use plastics from their properties in the near future. 

In the first instalment of our plastic-free mini-series, we spoke to Megan O’Beirne, Sustainability Manager for Six Senses Laamu, about their commitment towards the initiative.

For those unaware, what are you doing to reduce your use of single-use plastics?

Six Senses Hotels Resorts Spas as a global company is leading the tourism industry by taking a stance against plastic: Plastic Free 2022. All properties are taking inventory of the plastics being used, sourcing alternatives, and eliminating the plastic items so that we are tackling the issue at the source, and not resting on the inadequate recycling systems currently in place worldwide. We have eliminated single-use plastic water bottles by filtering and bottling our own drinking water in reusable glass bottles.

We have banned single-use plastic bags, and switch guests’ duty free bags at the airport with paper ones. Straws are only given on request and are made from biodegradable paper. All shower amenities are provided in refillable ceramic pumps, and toothbrushes are made from bamboo instead of plastic. Cling film in the kitchens has been reduced by using stainless steel containers with lids instead. Purchase orders are made in bulk wherever possible to reduce packaging, and suppliers are requested to reduce packaging or use biodegradable paper instead of plastic.

[perfectpullquote align=”left” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]”The foundations of the Six Senses brand are in sustainability and wellness. Plastic pollution is a global environmental issue, but especially in the Maldives where there are very limited recycling facilities, the amount of waste that is created by single-use plastic is unsustainable.”[/perfectpullquote]

Have your customers supported your commitment to reducing single-use plastics?

Yes, I would say 50% of guests I speak to are already aware of the Six Senses brand concept, and they booked Six Senses Laamu because they agree with our sustainability philosophy. The other 50% may have booked their stay without knowing about our ethos, but when they come to learn about why we bottle our own water, or why we ask them to take their shampoo bottles home with them, they are eager to participate and learn more about what they can do to reduce their environmental impact. A big part of the Six Senses experience is learning about how you can better your lifestyle after your stay, whether that is eating a healthier diet, getting a better night’s sleep, or adopting more environmentally-friendly habits. If a guest can see that at the resort we are trying to reduce our use of single-use plastics and understand why it is important, hopefully they will go home and analyse their own consumption and they too will eliminate single-use plastics from their own daily life.

Why is reducing the amount of single-use plastics important to your brand?

The foundations of the Six Senses brand are in sustainability and wellness. Plastic pollution is a global environmental issue, but especially in the Maldives where there are limited recycling facilities, the amount of waste that is created by single-use plastic is unsustainable and difficult to responsibly dispose of. If plastic ends up in the ocean, it never biodegrades, so just breaks down into tiny microplastics that enter the food chain and kill marine life. This relates to wellness because we don’t want to expose our guests to the toxic chemicals that build up in our seafood, or the plastic packaging with which our food comes into contact. It is important for Six Senses Laamu to reduce the use of single-use plastics as not creating the waste is a lot easier than trying to transport and recycle it from such a remote location.

How have you ensured that quality is not compromised when sourcing single-use plastic alternatives?

There are plenty of high quality and reasonable alternatives to single-use plastics, and in many ways, it is about getting back to the traditional ways of doing things. Before plastic was invented, one drank milk from glass bottles and returned them to be refilled. The concept of single-use plastic entered society with the notion of convenience and on-the-go lifestyles. The solutions to our problems of waste are often simply found in how things were done in the good ol’ days! At Six Senses Laamu, we try to source items that are either reusable and long-lasting, or if they must be short-term use, they are biodegradable. Glass water bottles with a metal clamp are both longer lasting and more elegant than plastic water bottles, so actually better achieve the luxury standard Six Senses is aiming for. Toothbrushes, however, must be disposable, so the ones provided in the villa are made of bamboo and are wrapped in corn starch packaging, which is 100% biodegradable.

Don’t forget to look out for the rest of our plastic-free mini-series. We’ll be catching up with Six Senses at ILTM Cannes this year. To meet them, join us in Cannes, 3-6 December, 2018.

Sources

1. The Death of the Plastic Straw
2. By 2050, the oceans could have more plastic than fish

Cruise travel is booming with luxury travellers increasingly choosing to spend their holiday on-board ultra-luxury cruise liners. The cruise industry has been growing y-o-y since 2007, and according to Royal Caribbean Cruises CEO Richard Fain, the ultra-luxury and expedition segments are growing at twice the rate of any other segment in the industry.¹

Growth in the cruise industry is expected to continue, with CLIA (Cruise Lines International Association, Inc.) predicting 27.2 million cruise passengers in 2018, a 5% increase from 2017.² The major drivers in the market are both seasoned cruise passengers and affluent travellers who are yet to experience an ultra-luxury cruise, however, still expect to receive the very best service. This recent increase in bookings has led to a surge in the number of ultra-luxury cruise ships being created.

Virtuoso’s 2018 Luxe Report found that seeking authentic experiences is the third highest travel motivation for luxury travellers.³ Supporting this trend, Chris Austin, SVP of Global Marketing & Sales for ultra-luxury cruise line, Seabourn, told ILTM that “today’s affluent consumer is placing an even greater emphasis on seeking truly authentic, memorable experiences whereas in years past they would spend more on luxury goods. They are seeking new, bolder places to discover that are perceived for only a few to access. They are travellers – not tourists.” Seabourn have responded to this growing demand by announcing that they will be introducing two new ultra-luxury expedition ships to their offering in 2021 and 2022; giving passengers the chance to experience a “unique combination of thrilling, immersive adventures with generous, ultra-luxury amenities.”

Seabourn’s latest additions will sail amongst some of the most remote locations, including Antarctica and Patagonia, giving travellers the chance to experience ultra-luxury in some of the farthest places on earth. Passengers will be able to experience these unique destinations by submarine, kayak and Zodiac; “just imagine cruising in a Zodiac past flocks of porpoising penguins, watching a breaching humpback whale, or paddling alongside immense blue-white icebergs,” says Chris Austin. Passengers will also have the chance to immerse themselves in unparalleled on and off-shore experiences, without compromising on any of the luxury amenities that they would expect to receive at a five star plus hotel. Including everything from Michelin-starred cuisine by Chef Thomas Keller to a hot-stone massage in Seabourn’s world-class spa; there really is something for everyone.

But what differentiates an expedition ship from a regular cruise ship? Chris tells us the first difference is its size, “since expedition ships will usually be smaller to gain greater access so guests can get up close to highly desirable scenery and wildlife in locations that just can’t be accessed by larger ships.” However, this is not to say that these ships aren’t spacious, in fact the opposite is true. As Chris notes the second most important difference is “luxury”, with Seabourn fostering “a private, club-like atmosphere that discerning luxury travellers seek, along with highly intuitive personalized service.” Personalized service is an increasingly important factor for affluent travellers, particularly within the ultra-luxury cruise market, whether this be personalized itineraries and tailor-made experiences or bespoke dining packages and personalized excursions. Seabourn offers the complete package for discerning travellers who seek ultra-luxury, unique and customised experiences.

We’ll be catching up with Seabourn and other luxury cruise lines at ILTM Cannes this year. To meet them too, join us in Cannes, 3-6 December, 2018.

Sources

1. Skift – Seabourn is building expedition ships as demand for luxury adventure grows
2. Cruise Lines International Association, Inc. – 2018 Cruise Industry Outlook
3. Virtuoso’s 2018 Luxe Report

These days, clear sustainability credentials are a must for any brand. With the definition of luxury ever-evolving and always fine-tuning, a five-star property and service is no longer enough to satisfy discerning luxury travellers. More than ever, consumers are buying from brands based on their social and environmental impact. The emergence of this consciousness has had an unprecedented impact on the luxury industry, influencing the way brands market themselves to gain consumer approval.

To understand how important this social trend is for travel brands, we reached out to a handpicked selection of emerging travel advisors. We asked them: Is there a generational difference when it comes to a traveller’s social awareness and consciousness?

For more expert views on the state of the luxury travel market, from geo-politics to generational divides, download Travel’s Bright Future: A Report from the Travel + Leisure & ILTM Rising Stars Roundtable.

The global LGBTQ+ travel market is thriving. It’s worth an estimated US$211 billion and growing each year according to PROUD Experiences. The UNWTO reported that there were over 35 million international LGBTQ+ tourist arrivals in 2016. This market offers numerous opportunities for travel brands and reaching these consumers benefits more than just the bottom line. But the industry wants more knowledge. In a PennState College study for IGLTA, the most frequently mentioned challenge for IGLTA buyers in catering to LGBTQ+ travellers is a lack of expertise and understanding.

The Value of the LGBTQ+ Traveller

LGBTQ+ travellers are valuable travellers, with research showing they out-spend and out-travel non-LGBTQ+ tourists. The UNWTO state that this segment travels with greater frequency and demonstrates higher-than-average spending patterns. Equivalently, PROUD Experiences found that:

• While only 6% of the world’s population identifies as LGBTQ+, they account for 10% of travel spending
• They take 4 – 6 trips per year, in comparison to 1 – 2 for the non-LGBTQ+ traveller
• The LGBTQ+ community spends 33% more on travel each year

The high value of this segment is attractive which explains why the travel industry is starting to focus its attention on the “pink dollar”. But the benefits aren’t just revenue focused. As YouGov report, “brands that consistently show support for the gay community have a strong public image across all consumers.” Therefore, improved brand perception, and even just practicing good ethics through more inclusive corporate behaviour, are other positive externalities.

Advice for Unlocking the Potential

The key to reaching the LGBTQ+ traveller is to not treat them differently. ACTLGBT explain that their common needs are tolerance, safety and the chance to interact with the local community, but this is the same for any traveller. Similarly, a 2015 survey by Community Marketing found that the main decision making criteria for LGBTQ+ tourists were quality, price and location, which can also be said for heterosexual travellers. In terms of higher spending habits, “the gay traveller is looking for culturally rich, exclusive and top-of-the-line experiences, just like any other luxury traveller would,” TravelPulse reported. While the needs and decision criteria of the LGBTQ+ traveller seem no different to their heterosexual counterparts, more sources of information are emerging to help with marketing to this segment.

The UNWTO offers guidelines for travel brands and destinations making their first approach to the LGBTQ+ travel market:

Encourage LGBT inclusion and diversity among all stakeholders. Internally, this includes adopting diversity and inclusion policies, and defending them when such issues are politicised. At a community level, consider working with the many groups and initiatives that support LGBT people as well as visitors. This should become part of the agenda in corporate social responsibility policies. LGBT inclusion and diversity is good for business, good for local economies and good for tourism destinations.

Carry out research and share it with your destination partners. Understand LGBT outbound markets and your destination’s attractiveness for the LGBT market. Because of the diversity in this segment, it’s important to deeply understand differences in travel motivations and behaviours between age groups, backgrounds, nationalities and more.

Recognise that authenticity is essential. Authenticity also means genuine integration and consistency. Do not just engage with the LGBT community for marketing purposes; it should be a two-way relationship, in which both can benefit. Authenticity in marketing means going beyond stereotypes and instead showing support for the diversity of real LGBT people.

LGBT consumers should not be considered in isolation. As visibility increases and people discover that colleagues, friends and family members are LGBT, the way that they are treated becomes more important to those who care, i.e. allies. These allies are also sensitive to the messages, both positive and negative, influencing their travel decisions.

Work in partnership with local businesses, associations and the LGBT community. NGOs that support LGBT people, LGBT Chambers of Commerce and other industry groups that promote knowledge exchange and partnerships in LGBT tourism have been proven to result in tangible benefits for all. The International Gay & Lesbian Travel Association provide free travel resources and information, and advocate for the industry.

Further opportunities include: Direct marketing through trade show attendance, improving knowledge through conventions and seminars, dedicating proper human and financial resources, gaining exposure at major LGBT events, lending logistical/travel support, and training and certification.

As stated in the UNWTO report, participating in trade shows allows businesses to get their message across to a diverse audience in a short amount of time. The perfect platform for this is PROUD Experiences; a new LGBTQ+ travel show and the first of its kind. The international three-day event brings together travel suppliers and buyers targeting the LGBTQ+ community. The programme includes face-to-face pre-scheduled appointments, strategic educational seminars and networking, all centred around LGBTQ+ travel and experiences. PROUD Experiences will be held in London on 6 June this year. Register your enquiry to exhibit at this LGBTQ+ targeted event.

By now, you’ve probably heard of Millennials. Also known as Generation Y, born between 1980 – 2000, overly familiar with media and digital technologies – yes, that’s them. However, most research so far has been geared towards American and Asian Millennials, completely ignoring the buoyant market in the Middle East.

As one of the world’s most youthful regions, with a median age of 22 years compared to a global average of 28, Millennials account for a quarter of the region’s population.¹ According to Visa, when concerning travel-related spend, Millennials in the Middle East are the highest spenders globally, typically spending twice as much as their European counterparts.² As the Middle East’s largest consumer base, brands need to be asking themselves: ‘How do we attract and engage this market?’

Here are three key behaviours you can capitalise on:

1) Highest number of Millennial entrepreneurs

63% of business owners in the Middle East were aged 35 or under, according to a recent report by HSBC Private Bank, suggesting the region is home to the highest proportion of millennial entrepreneurs in the world. 46% of these entrepreneurs started their business whilst they were still at school or university, again the highest proportion in the world.

However, this success does not come easy as emphasised by the average workday. Working 12.5 hours a day, those in the region are working more than 2.5 hours above the global average for millennials.³ Plus, globalisation means working hours can be unpredictable and not the 9-5 working life. Their hunger for success means working significantly longer and in turn means less time for personal activities.

Hence, brands looking to attract and engage these consumers need to ensure they match the lifestyle. Advice needs to be immediate, transactions need to be seamless and services need to be 24/7.

2) Highest video consumption

According to Google, watch time on YouTube is growing 60% year-on-year in the MENA region, ranking second after the United States. Millennials are on their smartphones hungrily digesting video content, making mobile watch time rise by 90% year-on-year in the region, one of the fastest growing figures in the world.⁴

So how is this relevant? Research from Cisco revealed that 69% of consumer Internet traffic in 2017 was dedicated to video, while video-on-demand traffic will double by 2021.⁵ With Millennials all over the Middle East turning to YouTube to consume content on a daily basis, this is one of the best opportunities to capture your target audience. In fact, Tubular Insights found that 64% of consumers will make their purchase decision after watching branded social videos.⁶

Thus, brands targeting millennials in the region need to ensure that online video is their marketing weapon of choice. The rise of video consumption and content creation on the likes of YouTube highlight the need for visual marketing when promoting any brand.

3) Highest brand loyalty

We’ve all heard the growing concerns with brand loyalty and how Millennials are a fickle consumer. However, according to the Google Consumer Barometer, Millennials in the Middle East are going against the norm. Millennials in Saudi Arabia and the UAE demonstrate significantly more brand loyalty than their peers in Australia, the UK, Japan or the USA. 43% of Millennials in the UAE only consider one brand when purchasing flights in comparison to a mere 9% in Australia.

So how can you capture this brand loyalty? Psychologically speaking, customisation and personalisation are key. Finding out your customers’ interests and preferences will allow you to customise their user journey. Likewise, understanding your customers’ needs will allow you to meet them with personalised content. Both aspects will in turn increase your customers’ engagement and overall brand adoption.

Key takeaways to attract Millennials in the Middle East:

• Match your customer touchpoints with their fast-paced, busy lifestyles
• Focus on visual marketing when promoting your brand
• Use customisation and personalisation to increase brand engagement

Coming face-to-face with HNW Millennials in the Middle East can be tricky. Luckily travel brands looking to reach this consumer market have an alternative target; their travel agents and advisors. You can meet the agencies representing these HNW travellers at ILTM Arabia in Dubai.

Sources

Working in conjunction with YouGov, View from ILTM have been looking into the heart of the modern day luxury traveller. What is clear from the research is that luxury travellers are searching for brands that reflect the very best in humanity. More importantly, travellers are looking for brands that share the values they would most like to see in themselves. The State of the Affluent Mindset report identifies the four key values recognised among the affluent around the world as the most attractive personality traits to admire. They are:

1) Integrity
2) Honesty
3) Kindness
4) Intelligence

These four points become the traits brands and staff will most want to convey to their guests. The report also identifies some of the top factors influencing brand preferences, the two highest scoring influencers were brands that ‘Have a high level of integrity’ (88%), and brands that ‘Make me feel good when I am using them’ (87%).

Source: YouGov Report in partnership with ILTM, The State of the Affluent Mindset

Modern luxury travellers are significantly more inclined to buy on deeper-level factors. They are looking beyond “worth” (quality, craftsmanship and service) and are seeking details on design, passion and caring for people in a human way. They also expect a higher level offering from their travel providers in three main areas:

• Product
• Environment
• Personnel

If travel brands want to succeed in 2018, all three factors should reinforce the story of their brand promise and value proposition.

To understand the affluent traveller in more detail, download The State of the Affluent Mindset, brought to you by YouGov and ILTM.

Influencers are winning the hearts and minds of consumers all over the world, so it’s no surprise that large international brands are using influencer marketing to promote themselves. The main question from brands is no longer whether it works. The business focus has shifted to working out what the most effective ways of leveraging the channel are.

HelloSociety has found that micro-influencers (accounts with 30,000 or fewer followers) are more beneficial for marketers to work with. According to the agency, micro-influencers drive 22.2 times more weekly engagements than the average consumer does and those campaigns are 6.7 times more efficient per engagement than influencers with larger followings are.*

This got us thinking about how destinations are using influencers, so we spoke to our trusted partners at the Catalan Tourist Board (Asia Pacific office) to find out whether they have adopted influencer marketing as a strategy.

What is your strategy for working with influencers and does it work?

The Catalonia Tourism Board has been working with influencers since 2014. Each campaign differs according to the target markets. One of our earliest campaigns, commissioned by the headquarters in Barcelona, worked with 5 different bloggers filming various regions of Catalonia in a varied number of ways. You have to check it out here.

Our strategy in Asia Pacific is slightly different. Aside from regular press trips for targeted magazines and media members, our Asia Pacific office is focused on bringing a certain number of bloggers on trips so they can leverage on each other’s talents and creativity to create even more compelling content. Last year we also experimented with celebrity influencers, and brought the famous Korean TV celebrity, Mina Sohn, with KBS World to do a TV series in Catalonia. This worked really well to promote Catalonia in South Korea.

How do you measure the success of an influencer campaign?

Admittedly, it is difficult to determine the actual earning per investment for these projects because the increase in following from the use of these influencers does not materialise in immediate travel to Catalonia. We take into account an increase in tourists from our Asia Pacific regions to Barcelona/Catalonia as a mark of success for these campaigns. We like to cultivate a following through influencers from various Asian cities to act as ambassadors for our region.

How do you choose the right influencers for your brand?

We work closely with our representative offices across the world to identify popular influencers. Being in contact with various travel and blogger associations helps us to keep updated with recent activities and information about this sphere of media. Lastly, we do our own research to ensure influencers’ profiles match the requirements, personality and aesthetic of our brand.

Are there any top tips you have learnt that you can share with us?

Take a multi-pronged approach to working with any influencer. Yes, influencers play a role in cultivating brand awareness among their followers and this is especially useful for destinations which might be relatively unknown. However, there needs to be a tangible “point of sale” that is incorporated into these campaign to persuade the target audience to make a trip to Catalonia, for example.

Thinking about joining the micro-influencer revolution? Read our 5 top tips guide to choosing the right influencer for your brand.

*Source: HelloSociety Report