How Much Word of Mouth in Luxury Travel? Surprise! Surprise!
This past Spring, at the Amex Luxury Summit, I had a chance to visit with Jim Taylor, President of Harrison Group, and get beyond the Summit Agenda. “How much interest among your research clients in Word of Mouth ?,” I asked,
“There's an enormous supplier desire to understand the storytelling issue in travel, and how people craft the stories they tell, “ Jim said. “And there's a lot of mythology about when people come home from a vacation, what they do with their story. Everybody wants to talk ‘word of mouth’ without really understanding how a person comes to be responsible for a recommendation that important.
“ Luxury marketers want to understand how it is a person comes to
engage a property, not as a room and a bed, but as a story. And then
they want to understand the circumstances under which the person will
pass the story on to another. And I think that it's difficult for
marketers to understand how risky it is to make a travel recommendation
to a friend.
“It's one of those things where if you're wrong it can really hurt a
relationship, so you do it with a lot of care. You really have to know
what you're doing. And then it's not quite as cut and dried as it might
seem ...buzz networks and all that…as though the consumers are willing
subordinates in their travel marketing job. And consumers are not. They
are is doing it as a real favor to a friend, and they're really careful
about it.”
A new report, The NEXT gen Traveler—co-authored by PhoCusWright and Ypartnership—declares that "next generation" travelers, heavy users of the latest technology, are highly educated, affluent, and are equally likely to be Echo Boomers (18-28) as Baby Boomers (43 to 61), thereby debunking the belief that the usage of new technology is concentrated among younger travelers. They have a zest for travel and spend, on average, over 50% more on travel services annually than their less tech-savvy.
Nat Ives, in Ad Age Online Sept 6, cites new data from Ipsos MMR which assures that well-off readers read print publications just as much now as they did 5 years ago.
Also, survey respondents making more than $100,000 annually said their average hours online had grown to 22.1 each week from 10.7, while the time they said they spent watching TV sunk to 18.6 hours from 23.7 in the 2003 survey. Read the full Ives story at http://adage.com/mediaworks/article?article_id=130685. Lux 360 attended the client briefing this week and will provide additional perspective in our Sept. 30 issue, interviewing Ipsos MMR President Bob Shullman.