Luxury Travel Summer Report: Nihiwatu, Sumba, Indonesia

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

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

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. 

Predicting Luxury Travel Trends for 2014

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

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.

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

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.”

Survey Says...

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.

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

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).

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

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.

Consolidation Breeds Confidence & Renewed Focus on Partnerships

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.