the future of travel
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11
2009–2010
The Future of Travel
The New Vocabulary of Travel and Tourism
22
Contents
•
About the Studies:_ The Future of Travel_ The New Consumer
•
Topline Findings_ Overview: Conflicts Blended and
Transcended_ Led by Prosumers_ How Green Was My Travel_ Citizens of the World: Mindful
Tourism_ So Far and Yet So Near: The
Tech-Connect_ Luxury and Service Redefined_ On the Horizon_ Rules of the Road
•
Appendix: Country Breakouts
33
About Euro RSCG’s The Future of Travel Study
•
In-depth online survey conducted by Market Probe International
•
2,357 adults in the United States, United Kingdom, and France
•
Momentum testing of 78 brands
•
Semiotic exploration of “service,”
including a look at codes and cues in service cultures of U.S., U.K., India, Japan, China
•
Extensive secondary research into trends driving the category
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Images: photoeverywhere.co.uk
44
About Euro RSCG’s The New Consumer Study
•
Also including in this presentation are select findings from The New Consumer (2009), adding insights to the trends we are seeing in the travel and tourism (T&T) category
•
In-depth online survey conducted by Market Probe International
•
7,000 adults in Brazil, China, France, Japan, the Netherlands, the United Kingdom, and the United States
•
Extensive secondary research into trends driving the category
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n=1,000 in each market
Images: photoeverywhere.co.uk
55
Overview: A Category in Transition
•
While the jet set continues to rack up frequent-flier miles and hard-core backpackers are still surviving on dehydrated noodles, the most influential travelers—Prosumers—are pushing new pursuits and priorities into T&T
Who are Prosumers?The roughly 15–20% of
leading-edge consumers who are influencing trends and shaping markets around the globe
Key characteristics:* Embrace innovation * Constantly seek out information and new experiences* Enthusiastic adopters of new media and technologies* “Human media”
who transport attitudes and ideas* Marketing savvy and demanding of brand partners* Highly influential and sought-after for opinions and recommendationsT
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Prosumers Embrace Travel and Tourism…
•
Prosumers travel more often than mainstream consumers and derive greater pleasure from it
•
Euro RSCG studies since 2001 have found Prosumers are more likely to enjoy seeing new places, trying new foods, exploring other cultures, shopping, and engaging in luxury experiences
Prosumers
70%Mainstream
58%I enjoy planning vacation
travel; it’s fun to explore all the options and find the best
deals
Prosumers
69%Mainstream
55%I try to go somewhere
different for vacation every time
Prosumers
6.0Mainstream
4.3Mean # of overnight
personal trips taken in past year
Prosumers
81%Mainstream
69%I own a passport
Prosumers
68%Mainstream
42%I consider myself
well-traveled
Prosumers
95%Mainstream
89%If I could afford the time and money, I would travel much
more often
Prosumers
82%Mainstream
68%Many of my best memories come from vacations and
other trips
Euro RSCG Worldwide ●
The Future of Travel 2009
77
…And Are Blending and Transcending Category Conflicts
•
Traditionally, T&T has been a category marked by conflict:Exotic and New vs. FamiliarLuxury/Comfort vs. Responsible Consumption/SimplicityGetting Away from It All vs. Staying Totally ConnectedFun and Indulgence vs. Knowledge and GrowthRelaxation vs.
AdventureIndividual Gratification vs. CommunalismHigh Tech vs. High Touch
•
Now Prosumers are finding creative ways to blend and transcend these and other dichotomies, combining indulgence and altruism, relaxation
and adventure, luxury and simplicity…
•
New approach is spawning its own vocabulary, including such neologisms as geotourism, flashpacking, slow travel, voluntourism, and
Rough Luxe
Images: photoeverywhere.co.uk
88
Four Vital Trends We’ll Explore
•
By looking at those areas in which Prosumers are well ahead of the mainstream, we are able to identify 4 major groupings of trends that are shaping the competitive landscape and offer significant opportunity for businesses in the T&T space
•
To lead in the category going forward, brands will need to excel at these 4 things:_
Accepting and embracing “green”
as a way to do business
_
Offering experiences that provide personal growth, education, and/or
a sense of community/interconnectedness
_
Staying in sync with customers’
new media
usage
_
Embracing emerging models of luxury and
customer service
99
Trend #1: How Green Was My Travel?
The New Vocabulary of T&Te·co·tour·ism (n.): Conservation through ecologically responsible travel
Prosumers
74%Mainstream
62%Making environmentally
friendly choices makes me feel good
Prosumers
78%Mainstream
70%I feel good about reducing
the amount of waste I create
Prosumers
63%Mainstream
52%
I am paying more attention than in the past to the environmental and/or
social impact of the products I buy
Prosumers
75%Mainstream
63%The most successful and
profitable businesses in the future will be those that
practice sustainability
•
Increased eco-consciousness among consumers—and especially among Prosumers—is having an effect on T&T choices
•
Smart brands are moving toward greater sustainability in operations and products/services
Prosumers
62%Mainstream
52%I am making an effort to buy
fewer disposable goods
Euro RSCG Worldwide ●
The New Consumer 2009
1010
Moving beyond reusing sheets and towels…
1111
Taking Steps Toward Sustainability
“Our customers—individual travelers and large corporate clients—want to know more
about what we are doing. Do we have a CSR statement? What is our recycling
policy? The public expects us to communicate what we’re doing and why.”
—Brigitta Witt, VP for environmental affairs, Hyatt
Hyatt Hotels have cross-functional Green Teams
at every property
Plaza Hotel
is one of a growing # to offer menu of dishes made
exclusively from ingredients
produced within 100 miles
Enterprise, the largest car-rental co in U.S. (also operates National and Alamo) has joined the car-sharing movement
with WeCar; users can go online to find a nearby car from
the all-hybrid fleet and enter it using an electronic key card
1212
•
Marriott is expanding its “green hotels”
from 30 to nearly 500—
adhering to LEED design principles and incorporating such things as ecorooms, public transport options, and
green roofs
“Living roof”
on parking garage
of Marriott Hotel in Victoria, BC
1313
•
Hotels and resorts are bringing in eco-friendly natural materials to lower carbon footprints while also feeding the senses and slowing the tempo of modern life
Walls, structural elements, and furnishings of Lake Tahoe’s 968 Park Hotel are built from reclaimed/
recycled materials
Guests at this Dutch hotel are housed in repurposed 15K-liter wine barrels, which once contained Beaujolais
1414
Reconnecting with Nature
•
In our increasingly artificial world, nature = luxury
•
In France, Louis & Nathalie Blanco promote sustainable tourism and a reconnection with nature through tiny prefab structures that can be placed virtually anywhere
•
Each Carré
d’Etoiles unit sleeps four and comes with a telescope, star chart, and retractable skylight
1515
Getting Particular About Indoor Environments
•
Accommodations providers are getting serious about everything that goes into their rooms
“Pure Rooms”
are virtually free of bacteria and viruses thanks to special purification products and techniques, hypoallergenic bedding, mattress encasement, etc.; Marriott and Hilton among large chains entering this space
Growth of “EcoRooms”
featuring products that
are energy and water efficient,
waste reducing, nontoxic,
and/or biodegradable
1616
Rewarding Green Behaviors
Renaissance Chicago O’Hare Hotel offers complimentary, prime parking spots, a pair of Chicago Transit Authority passes, and a cup of Starbucks coffee to guests driving hybrid vehicles
Canada’s Air Miles My Planet program lets travelers accrue points by purchasing eco-friendly products
(points are redeemable for green rewards)
In celebration of Earth Day 2009, Travelocity
purchased carbon offsets
(to fund planting of native trees) for travelers
who booked a stay at a green hotel
1717
Going Green: Key Takeaway for Brands
•
Today, brands in every category must operate in the sustainability space and be subject to increasing scrutiny
•
Green efforts must be bottom-up, well-
integrated, transparent, and ceaselessly proactive
•
Virtue may be its own reward, but quantifying green policies and practices will lead to better sell-in among all stakeholders
•
Seek credible, respected outside certification (e.g., Green Globe, LEED)
•
Educate, engage, and reward customers for their participation; green is a collaborative effort, and consumers want to know their travel choices are right for themselves, their values—and for the planet
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Trend #2: Citizens of the World: Mindful Tourism
•
Mindful travel goes well beyond “green”
•
With social responsibility increasingly guiding consumer decisions, cultural travel is now about acting and interacting, educating and giving—it’s about tourism with greater meaning and effect
•
New breed of consumer is looking for experiences that offer a deeper connection to “authentic”
cultures, opportunities for doing good/giving back, and an immersive cultural experience
The New Vocabulary of T&TGeo·tour·ism (n.): Tourism that sustains or enhances the geographical character of a place—its environment, culture, aesthetics, heritage, and the well-being of its residents [National Geographic]
1919
Prosumers Seek Deeper Cultural Experiences
When I travel for pleasure, it is VERY IMPORTANT that I…Prosumers
66%Mainstream
43%I am a citizen of the world (love to travel and bring
home bits from exotic destinations)
Prosumers
73%Mainstream
54%I am a foodie/gastronome
(a real lover of gourmet eating pleasure and/or
cooking)
Prosumers
66%Mainstream
46%I am a serious-culture lover
(literature, art-house cinema, fine art, classical music, etc.)
Prosumers
69%Mainstream
41%I am a pop-culture lover (really into music, art, fashion, and/or scenes)
Euro RSCG Worldwide ●
The Future of Travel 2009
Prosumers
83%Mainstream
74%See new places
Prosumers
68%Mainstream
47%Dine out/try new foods
Prosumers
58%Mainstream
44%Learn about a new culture
Prosumers
56%Mainstream
49%Visit historical sites
Prosumers
44%Mainstream
30%Enjoy cultural experiences
(e.g., theater, art)
Prosumers
44%Mainstream
28%Experience/do something
few people I know have done
2020
Widespread Concern over Modern Life…
•
Prosumers’
desire to get more out of their travel experiences has its roots in a widespread feeling of emptiness, disconnectedness, and lack of authenticity
•
Euro RSCG has uncovered a growing dissatisfaction with modern life—on both a personal and societal level
•
These feelings are most widespread in the United States
Euro RSCG Worldwide ●
The New Consumer 2009
Prosumers
64%Mainstream
57%In many ways, I think society
is moving in the wrong direction
U.S.: 73% U.S.: 65%
Prosumers
79%Mainstream
67%I worry that society has
become too shallow, focusing on things that don’t
really matterU.S.: 91% U.S.: 76%
Prosumers
71%Mainstream
66%Most of us would be better
off if we lived more simply
U.S.: 84% U.S.: 76%
Prosumers
66%Mainstream
57%I worry that people have become too disconnected
from the natural worldU.S.: 69% U.S.: 59%
2121
...and an Intensified Hunger for SOMETHING MORE
•
People are looking for something more— for greater meaning in how they live, for a sense of purpose
•
Actively seeking improvement—in themselves and their lifestyles
•
Many are looking for something bigger than self—to be part of an important cause
•
Americans more inclined than most toward self-improvement and connection to something bigger than self
Prosumers
49%Mainstream
43%I wish I could start fresh with an entirely different
lifestyle
Prosumers
41%Mainstream
37%I sometimes feel as though
I’m wasting my life
Euro RSCG Worldwide ●
The New Consumer 2009
Prosumers
63%Mainstream
48%I am actively trying to figure out what makes
me happy
Prosumers
62%Mainstream
48%I would like to be part of a
truly important cause
U.S.: 72% U.S.: 54%
Prosumers
47%Mainstream
39%I would like to lead a more
spiritual life
U.S.: 58% U.S.: 49%
Prosumers
84%Mainstream
68%I am making an effort to improve the person I am
U.S.: 91% U.S.: 75%
Prosumers
84%Mainstream
69%I am making an effort to
improve the way I live
U.S.: 92% U.S.: 75%
2222
The Benefits of Travel Reach Deep
•
Connecting people to the rest of the world
•
“Bettering”
people by making them more knowledgeable, attuned to others, and interesting
•
Travel choices are intensely personal and help to determine—and communicate—
who a person is
Prosumers
69%Mainstream
62%If people traveled more often to other parts of the world,
there would be less prejudice and hatred
Prosumers
73%Mainstream
52%Extensive travel typically
makes a person more interesting
Prosumers
69%Mainstream
55%One of the best things about
travel is talking about my experiences afterward
Prosumers
59%Mainstream
37%Where and how I travel says
a lot about who I am
Euro RSCG Worldwide ●
The Future of Travel 2009
Image: Trey Ratcliff/stuckincustoms.smugmug.com/
2323
Cultural/Education Tourism
•
Cultural tourism has evolved from “7 Countries in 6 Days”
into something more focused and personal
•
Whether one’s interest is a popular book or movie (“Tracing the Da Vinci Code”), cultural heritage (“Discover the Real Scotland”), or so-called “dark tourism,”
a.k.a. Thanatourism (“Hurricane Katrina Tour”), someone has found a way to package it
•
Particularly robust these days is gastronomic tourism, which has grown right alongside foodie culture and comes in culinary, wine, and agro variants_
Mintel estimates 27MM Americans, or about 17% of leisure travelers, could be described as gastronomic tourists
Image: Trey Ratcliff/stuckincustoms.smugmug.com/
2424
Something Bigger Than Self: Voluntourism
•
From offering animal therapy for autistic children in the U.S. to teaching English in Cambodia, there are thousands of options for travel that gives back_
Condé
Nast poll found 14% of Americans have taken some kind of volunteerism holiday, and 55% say they want to
•
Blogs, webcasts, and newsletters create a feedback loop, keeping people connected to the experience—and the cause
The New Vocabulary of T&TVol·un·tour·ism (n.): Voluntary service experiences that include travel to a destination in order to realize one’s service intentions; the conscious, seamlessly integrated combination of voluntary service to a destination with the traditional elements of travel and tourism (arts, culture, geography, history, and recreation)
Image: Planeterra.org
2525
Ritz-Carlton Give Back Getaways
•
Through its Give Back Getaways program, Ritz-Carlton has guests pay for the privilege of devoting a few hours to a good cause
“You will come face-to-face with the animals as you perform a number of essential tasks including cleaning and building cages, preparing food, feeding animals, and mowing grass…”
(Sarasota, Florida)
“Travel south of the Yangtze River to Wuzhen, an ancient water town dating back 1,300 years…To assist with the restoration, conservation and community development efforts, you will plant trees and work alongside the water town’s artisans to help restore a home to its original condition by cleaning and painting.”
(Shanghai)
“[Help] children with autism, Down Syndrome and other disabilities learn to communicate through the power of music. After meeting with therapists to learn how to work with the children, you will participate in a music therapy session that has ancient roots in Turkish-Islamic medicine.”
(Istanbul)
2626
Seeking Personal Connections
•
In our increasingly artificial, technology-
mediated world, people are looking for a greater sense of interconnectedness and deeper personal relationships
•
T&T offers opportunities to build these connections
Prosumers
81%Mainstream
80%When traveling for pleasure,
it is very or somewhat important that I meet
new people**
Prosumers
60%Mainstream
48%
The main way I stay connected with old friends and colleagues is through
e-mail and/or social
networking sites*
Prosumers
46%Mainstream
42%I sometimes feel I don’t have
enough close friendships*
*Euro RSCG Worldwide ●
The New Consumer 2009
Prosumers
53%Mainstream
51%I worry that digital communications is
weakening human bonds*
**Euro RSCG Worldwide ●
The Future of Travel 2009
Image: Trey Ratcliff/stuckincustoms.smugmug.com/
2727
Seeking Personal Connections
2828
Mindful Tourism: Key Takeaway for Brands
•
People are looking for more in their lives: more meaning and purpose, more interconnectedness, more humanism
•
The T&T category offers plenty of opportunities to speak to these emerging needs and mindset_
Cultural immersion_
Education_
Personal growth_
Community and interconnectedness_
Giving back
•
In the emerging culture of mindful consumption, people want to feel good about making smart, conscientious choices; the most successful brands will give consumers the incentives (practical, emotional) they need to make the choices they believe to be “right”
for them and for others
Images: photoeverywhere.co.uk
2929
Trend #3: So Far and Yet So Near: The Tech-Connect
•
New technologies are changing virtually every aspect of the travel experience—from inspiration and planning to purchasing and remembering
•
Technology lets users score the best deals, stay connected while on the road, and extend the experience through social media
According to Pew Internet & American Life survey, 50% of U.S. adults made a travel reservation online in 2009, up from 19% in 2001
Image: www.rockcheetah.com/.../travel-process.jpg
3030
Internet Has Reinvented the Industry
•
In U.S., travel is now the top-selling product online, with most analysts estimating that nearly 40% of all leisure, unmanaged business, and corporate travel bookings flow through online channels [Mintel 2009]
•
7 in 10 respondents to Future of Travel study say Internet is important part of their travel planning (see Appendix)
•
In U.S., even mainstream consumers show high rates of Internet use for travel
Which of the following do you typically do when planning a vacation?
Prosumers
49%Mainstream
31%Search for a coupon or promotional code online
Euro RSCG Worldwide ●
The Future of Travel 2009
Prosumers
86%Mainstream
69%The Internet is an important
part of my travel planning
U.S.: 89% U.S.: 79%
Prosumers
67%Mainstream
50%I’d rather book a trip over
the Internet than meet with a travel agent
U.S.: 68% U.S.: 63%
Prosumers
89%Mainstream
75%Research hotels or other accommodations online
U.S.: 87% U.S.: 83%
Prosumers
79%Mainstream
58%Research airlines/trains/
buses and/or car-rental companies online
U.S.: 83% U.S.: 74%
Prosumers
78%Mainstream
56%Research area attractions
onlineU.S.: 86% U.S.: 77%
Prosumers
64%Mainstream
45%Visit a travel website for
reviews and recommendationsU.S.: 59% U.S.: 46%
U.S.: 60% U.S.: 48%
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E-Peers Are Key Influencers
•
Travelers more informed thanks to online forums, bulletin boards, and blogs on which consumers share travel experiences, research destinations, and rate travel brands
•
Only 8% of Americans typically visit a travel agent in person, compared with 29% in U.K. and 32% in France (see Appendix)
Prosumers
64%Mainstream
43%I have chosen a hotel or other
accommodation based on recommendations/ratings
from people online
Prosumers
40%Mainstream
20%I have posted a comment or
recommendation on a travel-related blog or
website
Prosumers
53%Mainstream
30%I have chosen a travel destination based on
recommendations/ratings from people online
Prosumers
60%Mainstream
40%I read travel-related blogs or
visit independent travel-
related websites (not owned
by hotel, airline, etc.)
What has the largest impact on your travel decisions?
9%15%
39%
15%
22%
Advertisements
Magazines/FeatureArticlesFriends & Family
People Online
Other
Euro RSCG Worldwide ●
The Future of Travel 2009
3232
35
37
44
51
59
74
0 10 20 30 40 50 60 70 80
Hotel chain website
Airline website
Consumer opinion site(e.g., TripAdvisor)
Regional/local tourismbureau
Travel aggregator(e.g., Expedia, Kayak)
Google or other searchengine
Relative Importance of Online Travel-Planning Sites
Rank the following from 1 to 6 in terms of how important they are to your travel plans (1=most important, 6=least
important)1st/2nd/3rd Rank Summary
Euro RSCG Worldwide ●
The Future of Travel 2009
Americans are significantly more likely than others to visit airline and hotel websites; French are most likely (83%) to rate search engines among top 3 choices (see Appendix)
3333
Social Media Emerging as Powerful Marketing Tool
•
From Hertz to Marriott to United, major brands in T&T space are embracing social media—with applications before, during, and after the travel experience
•
Much more than a popularity contest, such initiatives boost customer service, responsiveness, and positive buzz
•
Southwest Airlines has 70,000 fans on its Facebook page
•
JetBlue tweets “cheeps”
(discounted fares) to its 700,000 followers on Twitter every Monday, good while supplies last
•
“Tweet watchers”
(volunteers for Southwestern and JetBlue) track and advise travelers on issues such as flight delays and traffic jams near airports
“Social media sites like Facebook and Twitter allow traveler companies to talk directly to their customers and for us to talk back.”
—Christopher Elliott, National Geographic Traveler
3434
Travelers Take Charge of the Online Experience
•
Sharing news of the good, bad, and ugly
•
Offering tips and cautions
•
Using the weight of social media to influence brand behavior
After United failed to reimburse him for a guitar broken by baggage handlers, singer Dave Carroll of the Sons of Maxwell band posted a song about the incident and United’s poor customer service on YouTube; video has garnered 7MM+ views as of Jan. ’10 and was named 1 of the top viral videos of 2009 by Time
TripAdvisor.com has 32MM unique monthly visitors and 30MM+ traveler reviews
3535
Staying Connected Wherever You Are
Real-time travel blogs
Receiving and posting reviews and recommendations on the go
9-minute YouTube video of travelers’
2-
day saga trying to get home from NYC to Sacramento on JetBlue
3636
Competing on Tech
Hotel Sax, Chicago:
Guest receive free laptop and MP3 player for use during stay; entertainment lounge and high-tech studios offer spaces in which to work and play
Poland’s Blow Up Hall5050
has no room numbers or door keys; each guest gets an iPhone that recognizes the right door and lights it up. Applications preloaded onto phone act as a concierge during the stay
Image:
Elit
em
eet
ings.
com
NYC’s Pod Hotel lets visitors make advanced connections with other
guests via PodCulture
closed social network; guests connect
online in specific forums to meet up in real life to drink, dine, shop or go out. Sales and traffic +40% since PodCulture was introduced.
[psfk.com]
3737
The Tech-Connect: Key Takeaway for Brands
•
The travel industry’s products, practices, and business approaches are in a state of constant change, responding to adjustments in customer demands and newly available technologies
•
Social media offers enormous scope for brands to…_
Engage in ongoing, multiparty dialogues_
Recruit and empower online ambassadors_
Build communities_
Revolutionize customer service
Images: freedigitalphotos.net
3838
Trend #4: Luxury and Service Redefined
•
While excess consumption was the common practice prior to the economic downturn, we are now seeing a strong countervailing trend of mindful consumption
that is changing how people define value and what they seek—and increasingly expect—in their brand experiences
•
Where once “more was more,”
now different perspectives on luxury and service are emerging, with important implications for T&T
•
Trend is especially strong in U.S.
Euro RSCG Worldwide ●
The New Consumer 2009
Prosumers
62%Mainstream
55%The recession has served to
remind people of what’s really important in life—and
that’s a good thingU.S.: 73% U.S.: 65%
Prosumers
46%Mainstream
36%I’m getting a sense of
satisfaction from reducing
my purchases during the downturnU.S.: 58% U.S.: 47%
Prosumers
54%Mainstream
46%I won’t go back to my old
shopping patterns even when the economy rebounds
U.S.: 58% U.S.: 50%
Prosumers
70%Mainstream
61%
I’m looking forward to a holiday season that’s less about shopping and more about family and simple
pleasuresU.S.: 79% U.S.: 71%
3939
The New Elite?
Prosumers
76%Mainstream
68%I respect/admire people
who live simply
VS.
U.S.: 84%
Prosumers
24%Mainstream
17%I respect/admire people who live a high-luxury
lifestyleU.S.: 21% U.S.: 13%
U.S.: 78%
Euro RSCG Worldwide ●
The New Consumer 2009
4040
Prosumers Driving a More Mindful Approach to Consumption
Euro RSCG Worldwide ●
The New Consumer 2009
Prosumers
80%Mainstream
70%I am shopping more carefully and mindfully than I used to
U.S.: 86% U.S.: 79%
Prosumers
61%Mainstream
47%
Compared with a few years ago, it’s more important for me to feel good about the companies with which I do
businessU.S.: 70% U.S.: 54%
Prosumers
62%Mainstream
48%I am more interested today in how and where products
are madeU.S.: 66% U.S.: 52%
Prosumers
63%Mainstream
55%It makes me feel good to support local producers,
artisans, and manufacturersU.S.: 76% U.S.: 67%
Image:
free
dig
italp
hoto
s.net
4141
Rough Luxe: Luxury Gets Real
•
Mindfulness has infiltrated the luxury category•
Rough Luxe is a growing movement of like-
minded hotels, restaurants, retailers, and artisans connected by a philosophy of luxury that emphasizes authenticity over bling and experiences over excess
•
Key components:_
Sustainability—from reclaimed building materials through to organic and locally sourced foods
_
Heritage and provenance_
Art, architecture, and design_
Rare objects_
Impeccable service_
Engaging, one-of-a-kind experiences
The New Vocabulary of T&TRough Luxe (n.): Luxury experiences that incorporate time for reflection and personal encounters with people, nature, and architecture, as well as food and social and cultural experiences linked to geographic locations
London’s Rough Luxe Hotel features wallpaper peeled down to the 1920s stratum
Vorstadt 14: “This gently renovated 15th century building offers the perfect combination of down to earth history and avant-garde design.”
Source: RoughLuxe.com
4242
Flashpacking
•
Flashpackers (next generation of backpackers) blend authentic experiences with a touch of luxury—
eschewing traditional youth hostels and other bare-bones accommodations in favor of boutique hotels and B&Bs
•
Their version of “roughing it”
comes complete with such must-haves as laptops and Wi-Fi—essential for round-the-clock blogging and Facebook updates
The New Vocabulary of T&TFlash·pack·ing (n.): Backpacking with flash or style; travel that combines modest accommodation with free spending on activities and other indulgences; budget backpacking that incorporates high-end technology
“We’re going flashpacking…It’s like backpacking with less pack and more flash…For the most part, we’re skipping hostel cooking,
chicken buses, and group accommodations in favor of
restaurants, discount airlines, and something with a lock on the door, a soft bed, and sometimes Wi-Fi.”
—Curtis, Flashpackinglife.com
4343
Uncovering a New Service Paradigm
•
Just as the definitions of value* and luxury are changing, so, too, are expectations regarding service
•
Using our proprietary Decipher®
semiotics tool, Euro RSCG has identified key shifts in the role of service providers and their relationship with customers
•
Previously, service was highly centralized and tightly controlled_
Workers expected to be courteous rather than considerate, professional rather than caring_
Tasks and boundaries clearly delineated (no room for improvisation)_
Highest levels of service reserved for upper classes
•
In recent years, service has been more democratic, seen less as a “value add”
than an expected accompaniment to every purchase_
Employees trained to be friendly and accommodating, but to remain well within bounds set by corporate center or local execs
_
Little room for spontaneity or personalized interaction
•
Now, we’re seeing evidence of a shift toward a more humanized approach_
Rather than “putting out fires”
(addressing complaints and crises), personnel are expected to develop relationships with customers based on collaboration and mutual respect
*See Euro RSCG’s The Future of Value (Knowledge Exchange)Images: photoeverywhere.co.uk
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Two Important Concepts at Work in New Service Paradigm
•
“Democracy of Individuals”: _
Underlying principle is that best service is provided by a team of equals with complementary skills working toward a common goal
_
Each service provider is uniquely capable of adding something to
service equation—e.g., encyclopedic knowledge of nearby attractions, deep understanding
of local history/culture, ability to reassure panicky fliers, gift for intellectual engagement
_
More collaborative approach allows brands to build relationships
and exceed customers’
expectations
•
“Assured Improvisation”:_
Value of Democracy of Individuals stems in part from each employee’s ability to adapt and respond to shifting conditions and requirements with ingenuity and resourcefulness
_
Skilled at devising solutions on the fly_
Like a supremely talented musician, these individuals don’t make it up as they go along but, rather, work within existing templates to create something new and sublime
_
Moves service from programmed empowered, from proactive responsive_
Rejects rote answers in favor of asking the right questions_
About discovering and fulfilling individuals’
unexpressed desires, not about assuming what those desires will be
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New-Fashioned Luxury = Service with More Than a Smile
Maia luxury resort in the Seychelles requires staff to attend yoga sessions before each shift
to ensure they transmit only positive vibes
Staff training at Conrad Hotel in
Indianapolis includes lessons
in body language and
tone of voice
to ensure guests
aren’t misunderstood
“Luxury, before, was about being
fancy. It’s not about being fancy
anymore. It’s more about
responsiveness and about being individualized
toward the customer, and
doing it all defect-free.”
—Hotelier Horst Schulze
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Luxury and Service Redefined: Key Takeaway for Brands
•
The emerging traveler doesn’t want tinny smiles and pretty facades; the new luxury is more personal, more authentic, more “real”
•
While Prosumers appreciate material luxuries, they are not looking to be waited upon or doted on by a subservient worker; what they seek is a more enriching interaction that helps to envelop them in the local culture
•
The new, more mindful consumer seeks brand partners that offer a more conscious—and conscientious—approach to travel
Image: freedigitalphotos.net
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On the Horizon
•
Sibling to the slow food movement
•
Affords a lighter impact on environment and a heavier focus on culture
•
It’s about staying put and absorbing and interacting with local culture rather than a constant rush from one place/experience to the next
•
Slowly emerging as environmental-
impact-free and supremely inexpensive way to see the world
•
As technology improves and allows for a richer visual and sensory experience, people will be able to experience sites too difficult to get to and places too delicate for tourist traffic
The New Vocabulary of T&TSlow trav·el (n.): Travel that provides an opportunity to become part of local life and to connect to a place, its people, and its culture
Vir·tu·al
tour·ism (n.): A computer representation of a real place where geometrical properties of space are conveyed in such a way that the user feels he or she is actually there
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In Closing, a Few Rules of the Road
•
Brands looking to thrive in this new T&T space must…_
Extend the Conversation:
Focus on building relationships/creating experiences not just during the time spent in actual travel, but in the periods leading to and following it; keeping the conversation going builds loyalty and creates a pipeline for ideas
_
Remember, It’s All Interconnected:
In the new world of travel, trends are overlapping and complementary. Going green is about preserving an environment that includes people and culture; sustainability is about preserving identity as well as saving money and the planet. There is authenticity to be found in both luxury and poverty. Catering to one need should seldom come at the expense of another.
_
Mind the Gap:
As the new consumer strives toward greater mindfulness, heightened attention is being paid to how a brand communicates vs. how it acts. True authenticity requires communication, transparency, and honesty.
Image: photoeverywhere.co.uk
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For more insights from Euro RSCG research, visit www.prosumer-report.com
And follow us on Twitter
(@prosumer_report)
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Media Inquiries
For inquiries regarding Euro RSCG Worldwide’s studies, please contact:
Lisa Gruber
Global Communications Manager
Euro RSCG Worldwide
T +1 212.886.2018 E [email protected]