The idea of luxury has changed. It is no longer about owning expensive objects and showing others what some can have and others cannot. Now the luxury is close. At least, that’s how the director of the International Tourism Group (ITG) in Spain, Chris Pomeroy, sees it. “What they are looking for is the experience, not necessarily the ownership of that experience. There are people who enjoy using a luxury watch, but do not need to have it for it, we have concepts such as renting and sharing items, “he explained this Thursday during the presentation of Forward_MAD, the first international meeting to place Madrid as a luxury destination on a global level organized by the City Council of the capital.
This democratization of luxury means that the enjoyment of top-quality services is not only suitable for a small elite. In fact, this is one of the main characteristics of the Spanish tourist, according to the head of the Support Unit for the General Directorate of Turespaña, Magí Castelltort. “We mix our experience of middle-class society with the experience of luxury. This combination is what makes it unique ”, he clarified. Therefore, he insisted on the need to customize the service to focus on the needs and expectations of customers, which do not have to coincide. “What may be a luxury experience for a person from a certain country may mean something different or it may just be a middle-class experience for a person from another destination. And the good thing about Spain is that we can adapt these different tastes to luxury ”, he assured.
But although each tourist has different expectations, there are certain patterns that repeat themselves. Luxury tourism has fallen 54% in 2020 due to the pandemic. However, it is estimated that this year the recovery will be 26% and by 2023 the figures will be the same as in 2019. What will not be repeated, instead, will be what these high-value tourists are looking for.
What is a luxury experience for a person from a certain country may only be a middle class experience for a person from another destination.
Surveys carried out by ITG after the health crisis show that the priorities of travelers who spend more than 30,000 euros on their holidays have changed. What matters most to them now is health and hygiene. “It’s what they expect at least in any destination,” said Pomeroy. At number two is “living new experiences”, something that in the case of tourists who spend less than 30,000 euros moves up to twelfth position. “Those with the highest incomes are looking for new experiences that do not necessarily have to be related to rest and relaxation or the sun and the beach. They are looking for something different and that is where destiny must be creative ”, warned the group’s director.
For the head of the global brand development group at The Red Sea Development Company, Tracy Lanza, that experience must be linked to sustainability. “People want to feel good about the way they spend their tickets during the trip and that well-being is achieved through inclusion at the destination. He wants to feel that he is contributing to the local community and, especially, he wants to feel that he is not damaging the planet, “he said.
The latest ITG study proves him right. For the 35.8% of tourists who spend the most in destinations, nature and the outdoors are more valuable aspects than culture (31.6%), large cities (28%) or wellness and spa places (25.5%). In addition, 21.9% of high-level tourists have participated in some rural or community tourism activity on their last vacation, in contrast to only 9.5% of travelers who have spent less. This, according to Castelltort, has to do with a keyword for premium tourists: legacy. “If you are a wealthy person, you want to leave a legacy so that everyone remembers that you have done something good for the community,” he acknowledged.
Authentic gastronomy and accommodation
In this eagerness to live new experiences, gastronomy is one of the main protagonists and, in addition, it is one of the aspects of the trip in which the most money is spent. Still, this year’s results differ from what might be expected of a tourist with the option of choosing the restaurant they want. “Exciting dining experiences”, ranked eighth on the list, are more motivating for the trip than a “good dinner” at a fancy restaurant, ranked 12th. “The most important thing is to have an authentic gastronomic experience that they cannot have at home and it does not have to be in a quality restaurant. The Michelin star is a great business card and is a great attraction for luxury tourism, but those same people who visit a restaurant with this rating today want to go to a market tomorrow and have dinner at a local restaurant, ”suggested Pomeroy.
Another trend that has changed as a result of the pandemic is the type of accommodation that is in demand. 9.3% of those surveyed continue to choose luxury hotels, but private accommodations, such as villas (8.9%) or private houses (7.9%), are gaining ground. The curious thing, said the director of the group, is that only 3.1% would choose global brands of five-star hotel chains such as Marriott or Hilton. “It is not to say that having a Four Seasons or a Ritz is not beneficial to the city. It certainly is, but even the big global brands are creating sub-brands to differentiate themselves from the major ones. Differentiation becomes very important ”, he clarified. In marine trips, privacy also takes on importance and the preference for private yachts (4.5%) exceeds that of high-level cruises (3.4%).
In 2021, more than 42% of luxury tourists spent around 50,000 euros on their vacations. Next year, 70.7% expect to exceed it. The question is how to reach these tourists who are no longer dazzled by the stars. For the first time, Pomeroy explained, what influences them the most is not the recommendations of friends and family, but social media. Once again, it’s all about differentiation: Tik Tok already surpasses Tripadvisor in influence among those under 45 years old. For the elderly, company websites and travel media are what inspires them the most.
An opportunity for small towns
- Spanish advantage. The democratization of luxury has made high-end travel accessible to a greater number of the population. But, in addition, it has also opened new doors to destinations that are not the main ones. “This is one of the advantages of Spain, that what in other countries would be a secondary city, for us they are also very important,” said Castelltort, from Turespaña.
- Examples “Salou is a small city, but it is a great tourist destination. Marbella is not a capital city, but it is a great luxury destination. The good thing about Spain is that we have small cities that have developed by themselves and have become a very strong brand in the tourism sector ”, he continued. In addition, he presented the example of the city of Zaragoza, a destination attended by, above all, Chinese tourists. “It is an example of how we can develop,” he stressed.
- History. The second national advantage, according to Castelltort, is that Spain has a huge historical and cultural legacy that is scattered throughout the geography. “We have the beach line and the coastal regions, on the one hand, and the rural areas of the interior, on the other. It is very easy for us to promote these so-called different ‘second cities’ ”, he confessed.
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