The luxury travel industry has been the core of my business world for many years. In my role as marketing consultant have seen travel companies grow and fall as the trends for vacations and short breaks changed in line with needs for the industry’s most important component – the customer.
From just one holiday or vacation a year, the trend has grown to a pattern of two maybe even three vacations. For those with more disposable income, a sprinkling of short breaks throughout the year has become a typical indulgence… until now.
With the onset of the financial recession from 2008 onwards large families and travelers in their 40-50s were hardest hit in terms of the number and quality of holidays taken. Excited at the opportunities afforded by budget flights and exciting destinations many families looked forward to a few weeks in the sun with cheap food and drink plus the opportunity to pick up some duty free luxuries and a tan.
But the fall out from flight route closures on the cheaper airlines, the rising costs of hold baggage and the affects of currency fluctuations have made larger numbers of potential holiday makers taking the cheaper option and staying at home.
The younger singles market still managed the short luxury breaks to European cities such as Prague and Barcelona and the island retreats of Ibiza and Mallorca. But even this market is being eroded as salaries dip in line with recession. Currency fluctuation and exchange rates have hit the cost of bed and board rises dramatically in the once celebrated destinations. Add in the effect of ‘global warming’ on the conscience of the younger travelers and its easy to see why so many of the budget holiday companies are falling on difficult times.
And what about the luxury end of the market? Believe it or now but some of the top end companies are having a very profitable time. How? They have talked to each other, joined forces and shared resources to help bring their marketing costs down and in many cases their market coverage up.
I have seen groups of top Scottish Hotels who might have been fighting for a customers attention, become a collaborative marketing group whose aim is to sell the destination first and then divide up the spoils among their spa resorts, golf complexes, boutique hotel partners and city centre apartments.
I have also seen small specialist travel agents collaborate by forming a collaborative venture specializing in high end luxury travel destinations – each member having a unique destination or service. With one innovative marketing message they have a louder voice than they might have as individual travel operators.
On the customer side collaboration is also proving very beneficial. Instead of taking lots of individual holidays there is a growing trend for groups who might have booked separate hotels and a similar destination to team up and book a large villa or apartment. Combining their entrepreneurial skills, purchasing skills and cooking skills they are able to eat well, organize great activities while staying at some of the most exclusive holiday destinations.