Wealthy Rush to Join Social Media Revolution-Luxury Institute
The latest Wealth Survey out of The Luxury Institute trumpets an explosion of participation by US affluent in online social networks – soaring from 27% in January 2007 to 60% a mere year later.
Luxury Institute CEO Milton Pedraza thinks marketers might be lagging behind that march, saying, “While some in the luxury industry are still debating e-commerce, search and banner ads, the majority of their customers have leaped into the online dialogue.
“Luxury,” asserts Pedraza, “needs to catch up quickly.”
Pedraza’s research showed that the average, affluent US Internet users
is a member of three online social networks – with 110 online
connections through these sites.
Looking ahead, he sees online communities continuing to fragment into
specialized and selective entities of like-minded members. For
marketers, that should make it easier to target if they handle it right.
No-no’s, according to Pedraza, are tactics like forcible opt-out’s on
private purchase information, difficulty in dropping out, etc.
An eMarketer analysis sees the affluent – with annual HHI of
$100,000-plus – constituting a full quarter of US Internet users, up
from 16% in 2001.
And perhaps belying once and for all the notion that social media are
for the young, Nielsen Online, according to eMarketer, sees the
affluent as representing nearly 30% of Facebook users and about 22% of
MySpace users.
A little quieter, yes. With sensible adjectives like authentic, natural, affordable, even "simplistic and humble," as Jeff Weinstein, Editor of Hotels Magazine puts it. Indeed, he adds, "..opulence may be going on a much needed vacation."
You will notice, however, that important travel brands defining themserlves as "Luxury"-Small Luxury Hotels, Luxury Link, Starwood's Luxury Collection, and Luxury Travel 360, of course---have no intention of changing the name plates on the door.
I, for one, see affluent consumers simply refining the descriptors to reflect what really counts: the best of service, a caring attitude, and the assurance of a level of comfort and mostly quiet ambience that continues to enrich the travel experience. We are, I believe, simply ‘turning down the noise" to a level that suits a less exuberant mood everywhere in the world. When I am told I can get "luxury accommodations for less", that takes nothing away from my feeling of enjoying a special reward.
We may well be moving to a healthier time in travel, where more and more aspiring middle class and mildly affluent people will be sharing experiences of life long dreams that they will live over and over again.
So, as I leave for our annual summer sabbatical-no newsletter issues until September-I am confident that Fall will bring better news and less wringing of hands over the future of the New Luxury-a better place for all.
The headline said "Guilt trip; Luxury travelers are toning it down, keeping it quiet or canceling vacations to avoid flaunting wealth in hard times". The story in March 6 USA Today was by Jayne Clark, who ‘carried it off' in splendid style. Here's the saucy essence, followed by the link to the full treatment.
"In a time when posh has become a four-letter word, forget about keeping up with the Joneses. It's more socially expedient to stay down with them. Economic turmoil is giving luxury a bad name, it seems, and not just among the private-jet set, either. The desire to tone down consumption is affecting how some Americans vacation -- or at least how they say they vacation." Much of the anecdotal material in this USA Today piece comes from travel agents -worth the trip.
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