Luxury tourism is focusing its efforts on offering memorable experiences. Traditionally, the strong point of this type of vacation was traveling in first class or business class, accommodation in an enviable location, and a range of exclusive services during the trip. In contrast, today's guests prefer to prioritize experiences, even if this means compromising a little on transportation or accommodation.
Perception has changed
The concept of ostentation and wealth is changing around the world, within a much more humanistic society where other values and preferences are sought. In addition, the use of technology, changes in the way we communicate, and the ethics and sustainability of tourism are doing the rest. Luxury tourism as a status symbol is beginning to be frowned upon, and what has become fashionable is to have unique experiences that you can talk about and share with others, either through the traditional channel of friends and family, or through new channels such as Instagram, Facebook, or Snapchat.
Travelers seek and will continue to seek impeccable, refined service that pampers them and makes them feel good; however, today the key to success is personalization, embodied in small details that customers appreciate and remember. This is the added value that defines the sector today. When it comes to destinations, travelers continue to seek out the unusual, opting for remote and exotic locations where they can blend in and live like a local. The world is becoming increasingly accessible, making these remote destinations "easier" to reach, even if the purpose is a short break of just a few days. This is the current state of luxury tourism, a modality that is based on these five pillars that help us understand how experiences are taking precedence over status:
1. Specialized travel agents acting as "influencers"
Tastes and preferences in luxury tourism have changed, but so has the market, with a wider range of options and more complex information available. The wide variety of options and possibilities requires the unique advice of professionals in the sector. This has increased the value of travel agents, who, supported by technology and with their knowledge and expertise, can help their clients understand which experience will be right for them.
2. Personalized itineraries based on data analysis.
The creation of itineraries based on in-depth knowledge of customers is proving to be a fundamental pillar. Many operators offer tailor-made trips, adapted to all kinds of profiles and with detailed guides. Luxury tourists want to connect with the place they are visiting through experiences tailored to their needs. Studying customer data is critical to personalizing the offer and building loyalty among increasingly knowledgeable, connected, and demanding customers.
3. From a focus on the product to a focus on the experience.
Customer focus must be essential for all travel agencies, moving from the product concept to the experience concept, gathering feedback from travelers and passing it on to wholesalers so that they can adopt the "just in time" concept and stop manufacturing the product and then selling it to customers, who demand different, flexible trips tailored to their requirements. Also, due to growing global concerns (those related to geopolitics and climate change that are affecting many environments), tourists are changing their priorities to include experiences that must be had today, because in the near future they may not be viable. Therefore, luxury tourism must be aware of these demands and come up with an immediate response, as these are trips designed to be taken only once.
4. Impact on social media.
Social media carries significant weight, and luxury travelers want to obtain powerful images to share with their followers. They want to showcase their exclusive trips, demonstrating that they have had access to unusual places. As a result, high-end hotels and restaurants are creating their own hashtags to share and disseminate these images, while optimizing their social media marketing campaigns to improve visibility, prestige, and loyalty.
5. Sustainability and nature.
The luxury world has increased its interest in ecotourism, sustainability, and experiences related to places, without damaging them but rather supporting their development. Some customers request visits to animal shelters and activities aimed at observing animals in the wild, or to marginalized populations that they can help improve their quality of life. Others, in addition, prefer to interact directly with them.
According to Ángel García Butragueño, Co-Director of the BRAINTRUST Tourism Barometer, "Luxury tourism is increasingly based on intangible elements that are more experiential and emotional. For this reason, brands in the sector are promoting messages that revolve around community, diversity, and personal achievement. Customers want to move from buying trips to designing their own trips.
According to José Manuel Brell, Co-Director of the BRAINTRUST Tourism Barometer, "Today's luxury is adding the notion of personal development and transformation to its repertoire. Travel is an important conduit for achieving these goals, and this is where the paradigm shift lies. Society has become more humanistic and the focus is no longer on the concept of travel but on the experience."
At BRAINTRUST, we can help you gain a better understanding of this niche market. We have the best resources to advise you on developing value propositions that will optimize your brand's presence in the premium and/or lifestyle travel segment.
Would you like detailed information? Contact us and request our Tourism Barometer, the methodological tool that determines the market's willingness to travel, as well as the trends that allow all travel industry providers to identify business opportunities and tailor their offerings to consumer preferences.
