International Luxury Travel Market Asia 2016 (www.iltm.com/asia) marked its 10th year 30 May – 2 June in Shanghai, bringing together Asia’s most high level and productive luxury travel agents with 500 luxury travel exhibitors. ILTM Asia is long established as the most significant industry event of the annual business calendar for the luxury travel industry in the region and a highly significant source of business generation for all of the participants. Exhibitors came from 53 countries covering a wide range of categories, introducing global luxury travel brands to the Asian market.
Over the four-day event ILTM Asia facilitated over 25,000 one-to-one, mutually matched appointments between those representing global luxury travel experiences from across the world and 500 high-end Asian travel agents, each specialized in creating and planning luxury travel for their high net worth clients.
Exhibitors were enthusiastic about their ILTM Asia experience and the impact of the show on the luxury travel industry and their business throughout the year.
Federico Versari, General Manager, Grand Hotel et de Milan said:
“As a first time exhibitor, I’m very impressed with ILTM Asia 2016 and the organization from Reed. I had very good business meetings, met powerful brands and influential buyers, and secured great opportunities for our hotel and the destinations of Milan and Italy. I will definitely return next year.”
Ôn Nhã Nghi, Director of Sales & Marketing, The Reverie, Saigon, said:
“It’s a fascinating experience to be here and I was especially impressed and enthralled with the seminars and educational component. ILTM Asia is a perfect platform for us to target the Chinese luxury market and generation Y.”
Cathy Favaloro, Regional Director of Sales, Four Seasons Hotels & Resorts, said:
“ILTM Asia is an opportunity to meet with existing customers and make connections with those who do not visit Australia. Without ILTM Asia we would not have the opportunity to meet with new luxury buyers. Having been in the industry for 20 years, it is fabulous to have a conduit to be introduced to new targeted buyers for Four Seasons.”
Steve Odell, SVP and Managing Director Australasia, Regent Seven Seas Cruises, said:
“The concentration of appointments over the three days gives us an opportunity to see a lot of existing partners and new buyers over a short space of time. The fact that all the buyers are pre-vetted and selected means that we meet only the right people. The organization is excellent and within our region, I think it’s the most important industry event.”
Filip Boyen, Chief Executive Officer, Small Luxury Hotels of the World, said:
“Asian travellers around the world are growing significantly as a customer segment and companies are well-advised to pay attention. I was incredibly impressed by this year’s speakers and the insights on the luxury sector. ILTM Asia plays an important educational role in the market.”
Jack Lim, Regional VP Sales Marketing China, Kempinski Hotels, said:
“ILTM Asia is the annual event where we can focus our energy every year to showcase our product and meet new quality buyers. It’s an investment that’s dependably valuable for us every year”
Steve McLoughlin, Director of Sales Australasia, Ponant Yacht Cruises & Expeditions, said:
“I’ve been to ILTM Asia a number of years and it improves like a fine wine. This tenth anniversary year has been the best yet, organization was perfect, social events outstanding, and the standard of buyers continues to increase. I’ll definitely be back next year.”
The event also created business opportunities for the buyers:
Margaret Lange from Savenio, said,
“The opening forum speakers were insightful, Rachel Botsman opened our eyes to the future and was a fantastic stimulant for the appointments to follow - we have all been set a challenge. Appointments at ILTM are geared to high end products with suppliers who not only deliver their content but work with us to further engage our clients. ILTM Asia has delivered all the elements; connections, knowledge and experience, every detail is covered. This is my first time and I will be back”
Zan Wu of Zanadu, added,
“We always come to ILTM Asia. It is the best opportunity for us to maintain relationships with clients as well as finding out about what is new. The appointments are also a great chance for our agents to update suppliers on what our clients are looking for”
Henrik Bork, President & Founder of Lychee.com, said,
“For my business, this is the most important trade event every year. Each time we attend, we leave with 30 or 40 new deals agreed. I have been coming to ILTM Asia for three years and once again I have been introduced to some stunning new properties”
Kathryn Davies, Hong Kong Manager for 360 Private Travel and first time buyer added,
“We have recently expanded our business into the Asian market and naturally were thrilled to receive the invitation to ILTM Asia. For our clients, it’s all about experiences, ILTM Asia has given us the opportunity to meet with some incredible experiences that we can now share and present to our clients.
Linda Kiernander, MTA Travel said,
“This is my first time at ILTM Asia and I have found this to be the most valuable trade networking show I have experienced in all my years in the industry. It is fantastic having the extra time to actually absorb and discuss the products and services. The supplier contacts have all been very welcoming and will be invaluable for future business.”
Alison Gilmore, ILTM Portfolio Director, said:
“We feel that the tenth edition of ILTM Asia has been our most successful yet. We have welcomed 500 buyers to the show, many for the first time. Luxury travellers from Asia continue to seek new experiences, the likes of which have been taking part in ILTM Asia 2016. The relationships formed this week will continue to shape the future of the luxury travel industry in the region.”
Earlier in the week, the 10th edition of ILTM Asia opened with the powerful message that affluent travellers from across Asia are set to significantly increase their overseas leisure travel during the next year.
ASIAN TRAVELLERS NOW DRIVEN BY TOTAL EXPERIENCE RATHER THAN DESTINATION CHOICE ALONE
A dedicated seminar by Amrita Banta of Agility Research revealed the findings of their new survey ‘The Future of the Asian Luxury Traveller”. The survey explores the attitudes to travel and patterns of travel of 5,373 high net worth individuals across 8 countries in Asia: China, India, Singapore, Hong Kong, Malaysia, South Korea, Taiwan and Japan, an average of more than 300 in each territory.
Amrita reported that the new Asian high net worth traveller is now seeking luxury in the way they travel: Indians are cited as wanting to travel first class and stay in five star hotels. She also highlighted that these travellers are seeking new, unexplored destinations and new experiences; travellers from Hong Kong are going to Japan to ski and Chinese travellers have nature tours and safaris at the top of their list.
While China is the leading leisure travel source market of these eight regions studied, Singaporeans are the most frequent travellers. Tokyo is not only a top destination for the Chinese, but increasingly tourists from across Asia; Osaka is also becoming a major destination. Finally, travel and luxury shopping go hand in hand for the Asian traveller – shopping is a major motivator for choosing travel destinations.
IN 2016, FOR THE FIRST TIME CHINA HAS OVERTAKEN THE USA IN POPULATION OF DOLLAR BILLIONAIRES
The ILTM Asia Opening Forum featured, Rupert Hoogewerf – Chairman and Chief Researcher of the renowned Hurun Report Inc, who addressed ‘Why China’s Generation Y is Driving Global Luxury’ and the serious effects of Chinese rapid wealth creation on the global luxury market.
Rupert shared key findings from the report including the significant spending power that China now contributes to the global luxury sector. The report findings show that 2016 is the first year that not only have the Chinese have overtaken the US in the number of US$ billionaires, but the first year Beijing has overtaken New York City in billionaires. 20% of the world’s USD billionaires are Chinese and the younger generation (Generation Y) have a significant influence on how their wealth is spent - 60% are considering emigration and 80% send their children abroad for education, ensuring a Chinese population that’s more economically powerful and international than ever before.
TODAY’S LUXURY TRAVELLER IS NOW ENJOYING THE LUXURY OF CONTINUOUS CHOICE RATHER THAN DIRECT OWNERSHIP WITH A WIDER VARIETY OF PRODUCTS AND SERVICES THAN EVER BEFORE
The ILTM Asia Opening Forum continued with a presentation by entrepreneur and writer Rachel Botsman, who originally defined the theory of ‘collaborative consumption’ in 2010. Rachel discussed resource-sharing platforms such as Airbnb and Uber and how they represent a generational shift in the way people access and consume goods and services. She highlighted the fact that media consumption has already completely moved from physical ownership to on-demand consumption where content is accessed but not owned and commented: “For the first time, we have a generation that trusts and takes risks in an entirely new way. They seek the experience of having continuing choice rather than ownership - this is a generation that sees their smart-phones as a remote control to the physical world. “
Rachel refers to an ‘asset-light’ generation that can afford to buy but would prefer to purchase access through subscription models that allow flexibility and choice. “Airbnb has created a market for things that people didn’t even think they wanted,” she said.
Over the next decade Rachel predicts that the asset-light generation will lead a major shift from asset ownership to “on-demand solutions for everything, be it helicopters, cars, groceries, hotel rooms, and indeed any experience that you can think of and many you may not have even considered yet. “
