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Dealing With A Downturn: Recommendations From A Keen-Eyed Observer of Luxury Land Print E-mail

Karen Weiner Escalera, a veteran luxury marketing and public relations executive who heads up KWE Group in Coral Gables, recently took a look at the current economic situation and offered her outlook and advice; here’s a summary:
   

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AVOID DISCOUNTING:
•     As former Ritz-Carlton executive Joseph Freni, famously said in a previous downturn, “When times are tough, raise your rates.” Instead, highlight ways to save by traveling smart (off- season and midweek for resorts; weekend and holidays for urban hotels).
•     A recent survey of millionaires by the authors of the book, “Middle Class Millionaire” revealed that close to 90% of U.S. millionaires with household incomes of $1 million to $10 million say they would increase their spending if offered a special value add.

UP THE SERVICE ANTE:
•     Seek to elicit the “wow factor” among consumers. According to an Accenture study, more than half of consumers reported their expectations for better service increased over the past five years. One third said they were higher than a year ago. Guests require their every desire – expressed or unspoken – be met.
•     Gather all the information you can about guests’ likes and dislikes and add to the database – down to packets of gum for the gum chewer and up to a crib from Neiman Marcus to the loyal guest/expectant mother. But beware of overly attentive service, which can become obtrusive or overbearing – a “no-no” for younger travelers in particular.

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COPY NON-TRAVEL DOTCOMS: 
•     Luxury travel brands should emulate other luxury brands like Gucci and Louis Vuitton on content-rich information – becoming a coveted online resource about their destination, connecting to their location. That may mean insider tips, the hottest power tables in town, or adding an RSS subscription or posting Trip Advisor reviews about your hotel to your site.
•     And speaking of shopping, some luxury hotels are working with top designers to create limited edition collections not available anywhere else. Example: Guests of Mandarin Oriental hotels in London and New York receive a cashmere eye mask designed by Donna Karan, plus a gift certificate redeemable for matching slippers at local Karan boutiques.
 
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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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