Benchmarking luxury
A few years ago luxury was an indulgence for the discerning, sophisticated, high echelons of society. Today, as the middle class becomes more affluent, there is a change in the “face of luxury” in terms of travel, retail and hospitality trade.
Our latest report confirms that we have entered a new age of luxury travel, where luxury is curated, real-time and experience-led. Human desire for more rewarding experiences is providing an essential catalyst to evolve and improve travel industry quality and service standards. Luxury means different things to different people and this is especially true today. As emergent middle classes seek the material aspect of luxury travel, more mature markets are craving a new, evolved kind of luxury. This is why offering customers a relevant personal and exclusive experience will become even more crucial. Understanding your business’ role in delivering an end-to-end luxury experience for a traveller is key to improving collaboration, and reinforcing an industry-wide push for consistent luxury service. Exploring the latest technologies and innovations for making the industry work better as a whole is key to achieving a new level of luxury that has never existed before.
Luxury in the Gulf has evolved during the past few years. From being perceived as a rare product that only some lucky few can own to becoming a status symbol; today the meaning of luxury is changing and is becoming more personal and immaterial. Each one of us has the right to dream and access a part of luxury even if small. Luxury can mean a perfume, a bag from a well-known brand or a jewelry piece for some, a dinner or a trip with the family for others. Whatever it is, we as a Group would like to be part of those dreams.
The Khaleeji traveller is very discerning. They know what they want, and they know how to get it. Needless to say, whatever it is, it includes 5-star accommodation and service. In terms of travel, they prioritise quality over expense. Recently, we’re seeing Khaleejis take fewer vacations, but for longer periods at a time. With social media, Arabs are seeing that there are cool, exclusive places to visit in Spain that aren’t necessarily Marbella and Barcelona. A new favorite among Saudis is Berlin and India has emerged as a new favourite honeymoon destination with Kuwaitis.
The luxury travel market is growing faster than any other: 6.2%, a third faster than overall travel. This was the inspiration for our latest piece of research, Shaping the Future of Luxury Travel, which focuses on the behaviours of luxury travellers and looks at market trends. Global consumers are increasingly spending their disposable income on experiences rather than material goods. And to help travel providers achieve the personalisation necessary to satisfy luxury travellers, this report also identifies six luxury traveller tribes: Always Luxury; Special Occasion; Bluxury; Cash-rich, time-poor; Strictly Opulent; and Independent Affluent.
There has been a constant overheating in the luxury market so brands have felt the need to constantly innovate, create new ideas for luxury. Also one of the main changes which has come as a little bit of a surprise is the rise of Airbnb. Airbnb is changing the type of experiences that you can get as a luxury traveller. With Airbnb you can stay in a tree house in Vermont, or you can stay in a boathouse in Amsterdam, or you can stay in a celebrity loft in Brooklyn or Manhattan. And those are very unique, very upscale experiences that very few other brands can offer today.