Client Profile

NEW IMPERITIVES IN LUXURY MARKETING

Effective marketing adapts to the mindset of today’s luxury travellers and the many ways they can be engaged. So says sales and marketing guru Peter J Bates.

In my three decades of working in the luxury tourism marketplace, emerging from the latest recession has been one of the more challenging and intriguing times I’ve faced.

Despite the recession, the U.S. market remains a considerable force for domestic and international tourism entities, and should be regarded as an integral part of your marketing mix.  While I hold dual citizenship in the U.S. and the U.K., I have been living on the other side of the pond for over 16 years and have been fortunate to gain an invaluable perspective into what motivates Americans to travel, particularly as of late. 

My extensive contacts within the travel industry have proven to be an enlightening resource into how to effectively connect with high-net-worth consumers particularly as we continue moving forward through post-recession recovery.  Charting the course for renewed profitability in the hospitality and tourism sectors requires a comprehensive understanding of the new imperatives in luxury marketing.  In our ‘new think’ for the 21st century, a new type of customer yields a new set of rules. 

Know Thy Customer

Engaging your customers has always been the backbone of effectual marketing.  In today’s business climate, the mindset of luxury travellers and the ways in which you engage them have significantly changed, which is why marketing strategy always needs to be adaptive.

Upscale Americans are indeed travelling again although they continue to exercise caution and discretion with their spending.  For high-net-worth U.S. travellers, showcasing ‘bling’ and affluence is out.  Embracing experiential and enriching travel is in.  The value of a high-end vacation is not found in the price of a trip but in the profound enrichment a customer derives from it. 

Customization is King

More so today than ever before, customisation is one of the central components to success in marketing to luxury travellers.  To achieve optimum results, it is essential for marketers to connect with customers through a cohesive strategy that taps into various communications vehicles (advertising, e-mail, direct mail, website, social and mobile media) and brings to life the story of a unique, bespoke travel experience.

Leisure travellers are looking for magical moments of delight that captivate and inspire them – and they must be individualized.  One-to-one marketing should put the consumer in the centre of the travel story.  Upscale American travellers aren’t necessarily looking for a deal – what they crave is a personally crafted adventure to suit their individual tastes. 

In conjunction with the individualised experience, the trend of multigenerational travel is growing in the U.S.  Following the recession, consumers are endeared to spend more time with their families to develop indelible experiences they can enjoy together – another key factor to consider in targeted communications.

Agents as Influencers

The travel agent community is one of the most powerful influencers affecting up-market vacation decisions.  When customers are booking on the luxury level, especially for international travel, they seek true advisors they can trust.  The success of the agent – consumer relationship is built on confidence in an advisor’s skill set and knowledge plus their ability to customise travel to specific tastes and interests.  In essence, marketers and agents share a similar goal – connecting with consumers on a personal level. 

How can travel marketers incentivise these influencers?  Connect with agents and give them the wealth of knowledge they need to be your ambassador.  Arm them with materials that tell an enchanting story.  Inspire them with a vision to sell to their clients.  Ensure that the dream the agent creates for clients is flawlessly executed on the property level. 

Online travel agencies and direct bookings on websites have not diminished the value of a travel agent to U.S. luxury consumers.  The larger challenge they face is in cultivating young professionals to make a career in the travel industry.  Luxury agencies must grow their talent pool with savvy, motivated staff who can appeal to an equally sophisticated and professional client base.

Corporate & MICE Business

I’ve talked a lot about the leisure market but it’s important to address corporate and group travel and how they’ve changed post-recession.
Going ‘one-to-one’ is extremely relevant and impactful for small-sized corporate businesses.  Small companies are using one of their most treasured assets – the human factor – and are basically taking their marketing to the field by making sure they see their valued customers face-to-face.  To them, these personal interactions create stronger bonds and do more for their bottom line than video-conferencing or other virtual tools.  Conversely, though, large-sized companies are still stringent with their budgets.  They are doing less travelling and are relying more on video-conferencing for connections.
The U.S. incentive market is eyeing encouraging growth as companies want to reward the performance of their valued team players.  The meetings business is also picking up but there’s still pressure on hotels to reduce rate, which can adversely affect service, and ultimately satisfaction levels.

Standing Strong on Brand Integrity

As a marketing communications consultancy for luxury brands, one of our chief goals is to keep clients focused on maintaining their product’s brand integrity.  I continue to travel the world meeting with hoteliers and destinations, and I attempt to impart this wisdom – If you ride the highs and lows of the economy with intense trepidation and make moves such as cutting your rate, then you set yourself up for a more difficult climb back to prosperity. 
The idea of ‘strategy’ doesn’t come and go with a recession.  Strategy keeps you focused on your end-goal.  Sometimes you simply need to reinvent the strategy and discover the ‘new imperatives of marketing’ based on the pulse of the economic climate and the ever-evolving consumer.

Peter J Bates is the Founder and President of the marketing communications consultancy Strategic Vision. Throughout the course of his global sales and marketing career, he has served in a variety of roles, including senior executive and board positions with Cunard Line, based in the U.S.; Mandarin Oriental Hotel Group, based in Hong Kong; and the Savoy Group of Hotels in London. He was responsible for the re-branding of over 100 hotels throughout the U.K. under the Thistle Hotels brand and, earlier in his career, re-launched Scotland's famous Gleneagles Hotel in Perthshire.

Bates has been nominated a Fellow of the Chartered Institute of Marketing, the Institute of Hospitality, and the Tourism Society.  He is a Certified Travel Counselor (CTC) and a Freeman of the City of London.

Based in New York, Bates consults throughout the world with many well-known brands in the luxury marketplace, including publications, hotels, resorts and destinations. To find out more about Peter, visit www.strategicvision.org