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. 

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? - Fees & Social Media

Last time I wrote, I shared insights about popular/less popular destinations and travel trends of today’s affluent consumer based on a survey Strategic Vision conducted with approximately 50 travel advisors at the owner or manager level. We learned that Italy was one of the most popular destinations for bookings in the last six months, Southeast Asia and the U.S. are trending up destinations, Hawaii and villa rentals in Italy and France continue to grow in popularity for family travel (a burgeoning trend in itself), and much more. We also heard from numerous agencies that are experiencing different trends than those surveyed, so I’d like to thank those who shared their feedback.

Keeping the dialogue going, here I review survey results on the subjects of ancillary fees and social media. 

EXPLAINING FEES

We’ve been concerned about fees and wanted to follow the conversation.  Respondents overwhelmingly believed in clearly outlining all fees to their clients – whether ancillary fees from hotels and airlines or service charges from travel agencies – so there are no surprises.  One respondent said their agency has a spreadsheet with all ancillary expenses clearly defined, and that travel counselors “are trained to explain each fee along the way.”  Respondents noted that fees are a “sign of the times” and “part of today’s landscape,” and one commented that “it is a way of life but there are ways around it.”

While the fees are not necessarily a “major issue questioned by luxury clients” because most are “used to them” and not “price-sensitive,” clients do demand more transparency so as to understand exactly what they are paying. This desire for transparency goes beyond fees – clients are continuing to require a cost breakdown for all the elements of their trip.

In terms of agency fees, they cover “time, research and expertise” for “customized services beyond the travel components,” and clients tend to be “amiable” if they understand what the charges are for.

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.

Navigating Modern-Day Content & Consumer Engagement

The expression “the more things change, the more they stay the same” is one we might forget in our rapid-speed, tech-driven way of conducting business but I feel compelled to remind luxury marketers about the importance of circling back to a principle that should guide us – at the core, marketers must engage consumers. Regardless of the tools we use to achieve that goal, we need to move the needle forward to create brand loyalty and generate sales.

To help move that needle in today’s 24-hour, tech-savvy world, we need to treat SoMoLo (social, mobile and local) channels differently. They dominate the daily mindset and increasingly draw a larger share of the marketing budget, but it is a huge marketing misstep to lump these platforms into one category and treat its users the same. To secure the coveted customer, we must understand/engage/inspire them – but we should also give that same attention to the individual social networks. While remaining rich, inspiring and interesting, content should be amended to fit the audience and the channel they are using.

Keep in mind that social is akin to “digital word of mouth.” With social media, luxury marketers have the opportunity to tap into these crucial conversations, help change opinions, and embrace the power of brand advocates across large networks.

Twitter – The Power of 140 Characters
Twitter epitomizes the “less is more” approach. Has brevity ever been more powerful? Tweets are effectively today’s sound-bytes – must-have deals that spur clicks and sales, an endorsement, a statement on news, sharing of opinions, etc. Chuck Todd, NBC’s chief White House correspondent, even likens Twitter to a newswire for the digital age (Adweek article – October 29, 2012).

Today, we rely on the consumer to further our messaging more than ever before (consider the analogy of Twitter being like a coffee house where people come together to share ideas and drive conversation). Consumers become our brand advocates, and they emerge as valuable influencers among known, and in some cases unknown, social networks. When a luxury brand’s tweet is re-tweeted, we know we’ve done something right – the message was worthy, relevant and spot-on, and it inspired our followers to share it with their network of followers.

The Highs, Middles & Lows of Today

Now that we’re at the half-year point, I’d like to take the time to pause and reflect on the past six months of 2012. One thing we know for sure is that U.S. consumers are indeed traveling again but there is still some skepticism among them. The psyche of today’s high-end consumer requires constant examination to ensure that our messaging is spot-on. Plus, economics around the world (think of the state of the Euro) and U.S. politics (the Presidential election and Wall Street in particular) continue to impact consumer mindsets and tourism in various ways.

Therefore, as we recall the past and look toward the future, I’ve outlined some highs, lows and of course, some points that fall into the middle for us luxury travel marketers to consider.

High #1 – Understanding Today’s Affluents
The most recent “Survey of Affluence and Wealth in America,” produced by American Express Publishing and Harrison Group, delivered some great news for our industry! “Travel is the number one discretionary spending category for affluent and wealthy families” – and this is because travel is a means towards achieving the goal of spending quality time with the people who matter most.

Additionally, enjoying positive and enriching experiences that encourage ‘quality in life’ are paramount to this audience. “Affluent and wealthy consumers across generations wants experiences that support their goals, values and passions in very personal ways, within an environment that shields them from the noise of the debate over wealth and success.” As luxury travel marketers for the finest experiences and products, we are poised to continue excelling as long as our delivery, attention to detail and customer service are flawless.

I was fortunate to have been asked to write a column for the U.K.'s Profile LEADER: Essential Reading for Hospitality Management on the subject of "New Imperatives in Luxury Marketing." I addressed how effective marketing adapts to the mindset of today's luxury travelers and the many ways they can be engaged. I hope you enjoy reading this column. Do please share your thoughts with me. http://www.pmsr.com/leader/april11/peter-bates.asp

2010 - 'A Year in Review' - Market Rebound, Growth, Opportunity & 'Editors of Travel'

For those of us whose lifeblood is in the luxury travel business, I’m sure you’ll join me in celebrating the rebound that is penetrating the market. I’m confident that 2010 is closing more positively than it began, and as we move forth in 2011, we must stay on a path of resurgence with verve and enthusiasm.

So, with the New Year on the horizon, I wanted to take this opportunity to share with you some of my thoughts, culled from my travels and discussions with tourism and hospitality professionals as well as those in the agent community.

1) As we know, luxury travel is rebounding – and with the economic recovery, the luxury travel market is becoming more experiential. When consumers spend money on a customized holiday, they want it to be more meaningful then ever before. That means delving deeper into a culture, a lifestyle, a true experience (such as art, spa/wellness, adventure and the like) so that a memorable travel journey with a ‘wow’ factor can be crafted for a customer.

2) The outlook for growth of business travel is positive as we move into 2011 and 2012 – but of course they’ll be challenges for corporate travel managers who’ll be faced with handling the dichotomy between rising air and hotel costs and the need to manage budgets, re-examine cost-control tactics, and increase business efficiencies. Companies are still tightening their purse strings on the corporate side, which makes leisure travel even more vital to the mix.