Luxury Travel Sector Hard Hit By Cut Backs In Affluent Consumer Spending
Marketers Can Participate In New Special Investigation Into How The Luxury Drought Will Impact The Luxury Travel Market In The Future
In the current recession the luxury travel sector has been particularly hard hit by cut backs in affluent consumer spending. Unity Marketing's Luxury Tracking Study fiound that spending by affluents on luxury experiences such as travel in the first half of 2009 is off by 16.1 percent, compared to last year.
In response to dramatic cuts in luxury travel spending both at the personal and corporate level, leading luxury hotel brands are reducing their services in an effort to save money and be more competitive in the current market. Bloomberg News reports that some of the St. Regis and W Hotels will reduce their level of service from five to four-stars. This follows similar moves by some Hilton and InterContinentel Hotels.
Commenting on the new luxury travel economy, Pam Danziger, president of Unity Marketing, says, "Some of the declines seen in luxury consumer's travel spending can be attributed to the exceptionally good discount offers being made by the luxury service providers. For instance, our latest survey shows a dramatic increase in the percentage of affluent consumers taking luxury cruises and staying in luxury resorts. When spending is down but purchase incidence up, that means more affluents are taking advantage of attractive discount offers that save them money but still allow them to travel in style. In other words, they are getting more for less."
Unity Marketing has just published a new report on the luxury market for experiences. Entitled The Experiential Luxury Report 2009: The annual state of the luxury market for travel and other experiences, the report is the ultimate guide to the U.S. consumer market for travel, dining, spa and other experiences. This report focuses on the buying and spending habits of the nation's affluent households -- the top quintile or 20 percent of U.S. consumer households -- of high-end or luxury services such as travel.
The Experiential Luxury Report 2009 is compiled from the quarterly luxury tracking surveys that Unity Marketing conducts every three months with 1,000-1,250 affluent consumers who purchased one or more luxuries in the study period. Unity's luxury tracking study is the only longitudinal study of its kind that tracks the luxury consumer market, what they buy, how much they spend. The sample of 4,609 luxury consumers surveyed in 2008 had an average income of about $200,000 and is representative of the 22 million affluent households in the country
Research guides luxury marketers to shifts and changes in their target customers' attitudes and shopping behavior
This report provides vital data about what luxuries affluents are buying, how much they are spending, where they are making their purchases and what brands they favor. This report provides invaluable information about the mindset, attitudes and spending habits of the affluent consumers that luxury marketers target. This is not just a report about people with high incomes, but affluents who buy luxury services and experiences.
Coming Up -- A new market research investigation planned to help marketers delve deeper into the mindset of the luxury traveler
Each quarter Unity Marketing's Luxury Tracking Study includes a special investigation into one aspect or another of the luxury consumers' lifestyle. For the 3Q2009 Luxury Tracking Survey the topic of luxury travel will the subject of a focused research initiative. The survey will field among 1,000-1,200 affluent consumers at the close of the third quarter, on or about the first week of October.
Luxury travel marketers can participate as sponsors in this new investigation and get answers to their specific questions. Sponsor participation includes adding your company's travel brand to the survey, advising on questions to include in the survey, and setting the goals and objectives of the study. Sponsors will receive the detailed survey cross-tabs within a week or so of the survey fielding, as well as the complete analysis report that is published about one month after fielding.
Unity Marketing with its extensive experience researching the purchase behavior and mindset of the luxury consumers will deliver to sponsors key strategic insights that will help them understand the needs and desires of luxury travelers in the new economy.
Sponsors participate in the research by guiding and directing the areas of investigation, defining objectives, areas of inquiry and specifying information and insights to pursue.