Travelling into luxury
SURVEY ON EMERGING TRENDS by AIGO & PANGAEA NETWORK
AIGO, marketing and integrated communication agency based in Milan and Prague, co-established Pangaea Network in 2007 with bgb in London and GCE in Frankfurt. Pangaea Network is an association of independent agencies with over 30 years of experience in the tourism business, covering 20 international markets.
In 2010, The Pangaea Network launched The Pangaea Observatory project. This project has involved the set up of an international panel of travel specialists who will be asked throughout the year to express their opinions on current tourism issues influencing future market developments.
The Pangaea Network is proud to publish the results of a dual phase survey on luxury travels in Europe.
The first phase of the research, focusing on the Travel Industry, was pulled together through findings from Pangaea Network‟s panel of 150 European decision makers in the travel and tourism field such as tour operators, travel agents and transports. Its aim is to provide travel professionals with a detailed analysis on the evolution of the luxury traveller’s purchase behaviour in times of economic slowdown, enabling them to identify and apply the winning strategies into the selection and supply of the tourism product process.
The second phase includes an in-depth analysis of luxury tourism trends in the Mediterranean area. 272 Travel Agents working in the Italian (119), Spanish (100), German (30) and UK (32) markets were surveyed.
“Luxury travel”, be it business or leisure, is an increasingly established social trend that has represented one of the strongest international market revenues in the global economic downturn. The Luxury sector has been able to withstand the downturn beyond expectation, despite a slight slowdown.
An encouraging trend emerges from the research. Interviewees were asked about the impact the crisis has had on their own business. Among them 62,7% assert a general maintenance and sometimes even an increasing number of bookings, even though customers pay more and more attention to budget, while 48% tend to expect a 10-15% reduction on the pre-crisis rates.
55,9% of Travel Agents believe that client demand for bookings has remained the same, without registering any relevant change, while 44% claim just a slight decrease. Everybody, however, looks at 2011 as the year for the economic recovery.
Questioning Travel Agents on sales, it can be noticed that 82% of luxury travellers take holidays on average twice a year for 14 day stays, mostly in a couple and in exclusive hotels. Of the markets interviewed, Italian travellers appear more inclined to travel more frequently: 42% reward themselves with leisure stays up to four times a year.
“Brand” and –”destination” are undoubtedly the top two criteria which influence the choice of luxury travel, whilst the internet, social networks and communities are the main sources to collect information before the booking process. Travel Agencies and Tour Operators still represent a reference-point for those booking luxury travel as they assure tailor-made solutions. The booking timeline has become shorter: 56% of Italian travellers book their stays between one and three months prior to departure, while 48% of British travellers book within a month prior to departure (versus only 25% booking within a month amongst the domestic market).
Among the most popular luxury destinations The Greek Islands, Spain and Sardinia consolidate their leadership in Europe, whilst Polynesia, Caribbean Islands, Seychelles, Maldives and Mauritius are at the top in the long haul market.
When looking at Italian market trends the profile of a luxury traveller emerges as someone between the ages of 30 – 35 years old, who likes to travel in unknown and pristine places, which are still easily accessible and provide outstanding services. The Italian luxury traveller is looking to enjoy not just a simple holiday but a real travel experience. In Italy, not only do we see the “traditional‟ luxury traveller inclined to cultural journey, but also the emergence of another luxury traveller profile – those who are fascinated by the opulent atmosphere of such destinations as India, Arabia and Russia. The most requested months for travelling are December (57,6%) and August (43,5%), with a ten-day stay on average (49,9%) and a soaring taste towards destinations with peculiar hotel brands (58,1%), Spa and sport facilities (54,1%) and, of course, places of extraordinary beauty (50%).
Italian luxury travellers are “holidays-for-couples” supporters (87,8%), prefer the Italian airline companies (94,7%) and are used to getting information from the Internet (47,9%) without forgetting to exchange ideas and opinions with friends (41,1%) and TOs’ brochures (39,7%).
Where do Italian luxury travellers spend their holidays? The Mediterranean area is a favourite with Greece, Spain, France as well as Italy, especially Sardinia, Amalfi Coast, Tuscany and Venice on top. The most
sought after accommodations are first class hotels (91,9%) and “A Thousand and One Nights” castles, – trends which are shared with the Spanish (98%) and the English (72,4%).
The results clearly demonstrate that Spanish travellers prefer to travel during August (42,4%), October and November (34,3% each). Croatia, Greece, Egypt, Turkey, Syria and Jordan are the much sought-after destinations.
As well as Italians, Spanish travellers are sensitive to environmental preservation (eco-tourism), they also prefer to travel in a couple (61,2%), reach destinations with luxury hotel brands (60%), Spas, fitness centres and similar (40,8%) but moreover, move towards the most natural and breathtaking places (70,4%)
Very committed to the national airline companies (98%), the Spanish luxury travellers rely on travel specialised publications (55%) to collect information, whereas in Germany TV, radio and press (50,3%) are the most consulted media.
German luxury travellers, unlike Spanish, seem not to pay much attention to eco-sustainable tourism while choosing destinations or accommodation facilities as long as they can succeed in spending their sought-after holidays. Their choice goes to specific hotel brands (50,1%) or is influenced by word of mouth (40,6%). 10 days or a little more is the average length of stay.
Among German preferences: Majorca, Marbella, Switzerland, Austria and Italy (Sardinia, most of all). The average luxury German traveller is between 40 and 70 years old and prefers travelling with their partner (87,8%) towards destinations with a strong gastronomic tradition, in which it is possible to practice sports and enjoy relaxing breaks as well.
Finally, the concept of luxury in the British market is bound to a combination of criteria that make a place an “appealing-destination”: exclusivity, historical and cultural inheritance, highest-branded accommodations, wide choice of activities. UK travellers show a strong inclination towards holidays in a couple (93,1%), national airlines (89,7%) and exclusive hotels as well as ancient castles (72,4%) without setting aside cruises (20,7%). This luxury traveller has between 30 and 40 years, usually pays great attention to word-of-mouth advice while choosing a destination (65,5%) and always looks for further travel information on Internet (72,4%) and on travel magazines (44,8%). Accordingly to the UK travellers Greece, Spain, Turkey and Italy are the most popular luxury destinations.
Regardless of the country of origin and the holiday duration, the AIGO-Pangaea Network survey highlights a new consumer profile, always looking for highest-class options and an experiential holiday, not willing to accept any compromise upon the quality of the service.
A sophisticated and highly-demanding traveller, aware about the advantages he can obtain thanks to an increasing market competitiveness.
In light of the considerations that have been shown up to this point it will be definitely necessary to develop new products able to satisfy any kind of expectation and spread out their added value in the most appropriate and right way.
