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Enter 'The Negotiator' in Luxury Land: Change of Game? You Bet! Print E-mail

Melissa Bradley, who runs Indagare, the online travel community, and who is among the most impressive thinkers in the arena of travel for the affluent, has tuned into a new phenomenon and summed it up succinctly and powerfully in a recent essay called Now The Negotiator. In summary, Bradley says that a new type of affluent consumer has emerged, who she dubs the negocionado (negotiator) "and who is growing stronger by the day." The Negotiator is a product of the economic downturn, which has precipitated massive consumer disorientation as travelers seek to negotiate the new luxury landscape.
 
Here are the highlights of Bradley's thesis:

  • The cultural landscape has been profoundly altered by the depth of this economic downturn. The country has gone from "luxury fatigue to luxury rage" as the very things that people clamored for a year ago now turn them off. What people value is being radically reevaluated.
  • Massive consumer disorientation has forced people to react. Some have become paralyzed, others seeking to compensate for past sins by "dong good."
  • But there is another category - The Negocianado, who Bradley describes as "a connoisseur of wine, cigars and cars who has always paid full price. But now with his bonus abolished and portfolio plummeting, he's "decided to take retail personally."

melissaindagare.jpgThat can mean several things:

  • Haggling with a salesperson or company over expensive items
  • Bragging about getting great deals


What is the best way for the luxury supplier to respond?



  • Recognize that in this period of disorientation the affluent need to be empowered and rewarded.
  • You have to acknowledge that making extra efforts will help conflicted spenders to justify their expenditures. A special deal and/or special attention can help relieve spending stress.
  • Provide authentic, local experiences. Don't talk about luxury. Talk about how closely your chef works with local farmers. Or how the hotel is working to protect the nearby wilderness.
  • Spread the concierge mentality throughout your staff, empowering all employees to adjust experience for each guest - kitchen tours for kids; keeping gym open for late arrivals, etc.
For Bradley's full essay, go to http://www.indagare.com/news_and_resources/article/7746.
 
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From the Editor

Ipsos Mendelsohn and American Express Publishing-Harrison Group
Offer Fresh Insight on Consumer Behavior in 2010


According to new studies from two blue-chip research sources, Ipsos Mendelsohn and American Express Publishing - the affluent are not only ready to travel -- they are frequently going to spend more on it. While the Ipsos study focused on intent and American Express Publishing on mindset, they both point to a surge in affluents taking to the road (Amex sees an increase of 6 to 8% in spending on all luxury categories). Interestingly, both studies agree on a positive attitude despite lingering concerns about the economy. Here's a look at the highlights of both 2010 studies.

LuxuryTravel 360 has long looked to the affluent as a burgeoning market in business and leisure travel, fueling growth in more affordable, common sense luxury - less glitz and glamour, but ready to pay extra for memorable family experiences and genuine local culture.

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