The
evolving dynamics of the luxury segment of the hospitality and leisure industry
was discussed in a seminar held during the second day of the Arabian Travel
Market (ATM) 2014 with a panel of experts agreeing that the high number of
millionaires in the region has created a tiered set of expectations when it
comes to all things luxury.
The
focused seminar was part of ATM’s newly launched Spotlight on Luxury theme for
2014 with hosted buyers representing this valuable market segment, luxury
destinations and high-end hospitality companies also taking part.
Given
the scale of the number of millionaires in the region, the panel agreed that
the expectations of individual HNWIs from across the GCC play a significant
part in the travel decision-making process, which has led to the evolution of a
tier system when booking anything from a first class airplane ticket to a
private island stay.
"The
luxury travel market is unique on different levels, but it works on a tier
system where, for example, an individual will ask: ‘How much am I willing to
pay for privacy’, but does this mean the individual is happy sharing [space]
with two people or maybe more. It varies from person to person," said Scott
Booth, Associate Research Director at YouGov MENA.
“According
to a 2012 Credit Suisse report, the number of millionaires in the UAE is set to
grow by 12% by 2017, reaching 48,000 individuals. GCC nationals also spend 260%
more on airfares against other nationalities, with between 40-60% booking
business class travel, and also spending 430% more on accommodation and 558%
more on dining; so the opportunity to develop highly specialised offerings for
the upper luxury bracket presents a unique challenge,” said Mark Walsh,
Portfolio Director, Reed Travel Exhibitions.
The
rising tide of younger millionaires coming on the scene is also changing the
landscape of the GCC luxury market and the challenge for the hospitality and
leisure industry serving this market is the ability to evolve to meet new
expectations and demands.
"The
demographics are changing and luxury needs vary and need to be considered, with
the older generation expecting larger rooms and the younger generation looking
to get out quickly and enjoy themselves," said Jacqueline Campbell, MD,
The Travel Collection.
Haitham
Mattar, Regional VP of Sales, Hilton Worldwide, Middle East, Africa &
Eastern Europe agreed with this outlook, adding that the new luxury hotels
coming online are more understated than the ones historically used by the older
generation.
"The
luxury experience the younger generation in the GCC look for is different
too," Mattar added. "It has to be memorable, and isn't necessarily
about money; it's about what's different, and about individuality."
Luxury
tourism, both inbound and outbound, is also heavily allied with high-end retail
and a UK tourism report published by transaction company Global Blue noted that
Middle East travellers made up 26% of the total spend by international visitors
between January and July 2013, with a focus on luxury goods.
However,
transactions aren't limited to luxury goods, unique holidays and individual
experiences are becoming increasingly popular.
"We
need to offer experiences other people can't, and to do this we need to have
dedicated teams on the ground. Local families from the GCC want to know how you
plan to fill up their day from breakfast onwards; and we had one family, for
example, who we took to Japan
High-end
exhibitors at ATM 2014 include including well-known hospitality brands including
Anantara Resorts & Spas, Mandarin Oriental, Kerzner International, Fairmont
Hotel & Resorts, Raffles Hotels & Resorts and Swissotel Hotels &
Resorts, Taj Hotels Resorts & Palaces, Oberoi Resorts & Resorts,
Bulgari Hotels & Resorts and The Ritz Carlton Hotel Company; along with
luxury destinations such as Monaco, Mauritius, Maldives and the Seychelles.
For more information on Arabian Travel
Market 2014, please log on to: www.arabiantravelmarket.com
