Northstar

www.travelweeklyweb.com www.travelweeklyweb.com 8 | ■ TRAVELWeekly AsiA | JUNE 2014 luxury travel Throughout history, the way humans travel is continuously evolving, affected by outside influences such as political climate, technology, and economic forces. There is no question that Asia Pacific is regaining its position as one of the world's leading economic forces for the first time since the Industrial Revolution. If its current pace of growth continues, Asia's per capita income could rise 600 percent in purchasing power parity by 2050, matching Europe and other Western markets. With this rise in money and power comes a new wave of affluent consumers who, in Asia Pacific especially, are looking to travel. However, today's luxury traveler is not of one age, background, social status, or profession. Rather, the profile is more about a person's sense of adventure, desire for authentic experiences, and appreciation of fine products and service. We are currently seeing the market break out into four main segments: • The Millennials : Younger, better educated and more exposed to the world thanks to the power of the Internet, Millennials have different aspirations and requirements from their predecessors who explored Asia Pacific in large groups through mass market purchasing of leisure packages. Millennials prefer to travel in smaller groups and seek out indigenous e x p e r i e n c e s a t o f f - t h e - b e a t e n - p a t h locations, which include opting for popular dining, shopping, and entertainment venues that the locals frequent over the guidebook-recommended mainstays. Armed with a vast social media network and seemingly limitless recommendations from their trusted peers, this segment takes on a more do-it-yourself approach, p r e f e r r i n g d i r e c t i n t e r a c t i o n w i t h hotel staff and other travel service providers in pursuit of a fully tailored, all-encompassing travel experience. To have the most success with Millennials, travel service providers need to address what this segment finds most appealing The Nouveau Luxury Traveller on the road less travelled By Anthony Ross, Executive Vice President of Asia Pacific, Middle East, and Africa, Preferred Hotel Group – whether that is offering an expanded social space where they can gather with other like-minded travelers, or perhaps even designer–inspired accommodations that feature the latest state-of-the-art technology. • Mainland Chinese Travelers : Already having surpassed the Germans as the biggest travel spenders in the world, Chinese outbound travel is projected to LV Garden HuangHuali West Garden at Dusk exceed the 100 million mark by the end of 2014. With the Chinese government's anti-corruption campaign in high gear, we are beginning to see a demand among Chinese luxury consumers for products and services that are personalized to their needs. Luxury Chinese travelers, similar to Millennials, are searching for ways to differentiate themselves from their peers, and strive to avoid the label of baofahu or nouveau riche. As such, they are leaning towards more bespoke itineraries, and not just the major tourist attractions, in exotic locations for their holiday plans. This shift presents a major opportunity for the travel industry, allowing smaller travel companies to capture the market by presenting something unique that Chinese travelers can go home and brag about to their peers, without the previous limitations brought by group size and travel regulations. • The Baby Boomers W i t h m o r e d i s p o s a b l e i n c o m e a n d spare time, as well as better health than past generations, Baby Boomers have spawned one of the newest trends– multigenerational travel. Since technology has invaded daily home life – with work Anthony Ross, Executive Vice President of Asia Pacific, Middle East and Africa, Preferred Hotel Group

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