What: A Luxury-Based Experience

According to the National Travel Association and Virtuoso’s 2024 Luxe Report, the top reasons behind high-end travel include:

• Exploring new, off-the-beaten path destinations
• Rest and relaxation
• Seeking authentic experiences in new destinations
• Rediscovering previously visited destinations
• Personal enrichment

“Travel & hospitality is going beyond the experience economy to the ‘transformation economy,’ where an experience changes us in some way during a particular moment in time. When travel brands can design the experience to be so significant for a particular person and provide the exact experience that they need at a particular moment in time, it becomes easier to deliver a life transforming experience. That aspiration can range anywhere from desiring to be a more creative person to being a better parent, so travel brands have an opportunity to support that evolution.”

The Evolution of Luxury Hospitality Whitepaper VERB, 2017

With this travel trend, it’s all about what the destination can offer to travelers. A smaller, lesser-known destination can be as highly successful as a luxury destination if they offer consumers unique and high-end experiences. There are a few different ways you can emphasize the high-end experiences your destination offers:

• Personalization: nothing says high-end like an experience that has been tailored for you and only you.
• Exclusivity: an exclusive experience can make a consumer feel special which is what justifies the price of luxury. 
• Authenticity: consumers are looking for authenticity from the brand selling their experience.
• Sustainability: the pandemic has inspired travelers to seek destinations that prioritize climate-conscious options in their accommodations and attractions. 

How Consumers are Finding Luxury Travel

In the niche market of luxury travel it’s important to know how consumers are finding this product.

Digital & Social Media. The most common place for consumers to research luxury experiences is through digital and social media. Luxury travelers are highly influenced by authentic brands and experiences they see on social media.

Travel influencers are a great way to pique the interest of consumers. People love consuming content that is extravagant, expensive, and unique.

Word of Mouth. Consumers also love posting that extravagant content. It is important to take into consideration how “Instagram-able” an experience is. A consumer is more willing to book a luxury experience based on how it will make them look on social media.

Find more ways to tap into a niche travel market.

Who are Luxury Travelers?

There are many different types of luxury travelers, so it’s important to first understand how luxury your target audience is. For example, one person could see a private jet as their everyday type of travel, while another could see it as a once-in-a-lifetime experience.

With so many differences, we look to similarities between luxury travelers and who is booking the most luxury travel to define the market.

Middle class. The emerging middle class is a huge market for luxury travel. This group has disposable income and wants to spend it on exclusive experiences.

Older Millennials are the most willing to spend their money on luxury travel.

Personal vs Business. There is a difference between the personal luxury traveler and the business luxury traveler, although this distinction is beginning to overlap.

By better understanding your audience’s spending habits, consuming habits, types of cars they drive and so forth, you can narrow in on how and where they spend their money or how they spend their time. Then, you can advertise on the most relevant websites, pitch stories to specific publications, and target their interests in digital advertising. For example, if they are more likely to own a Porsche, you can target publications that focus on Porsches.

Line up with the customer’s journey.

The post Luxury Travel Trends appeared first on Travel Alliance Partnership.

Takeaways from the NYSTIA Conference

Last month, I attended the 2024 New York State Tourism Industry Conference in Niagara Falls, NY. A panel discussion with tourism professionals in the outdoor sector demonstrated the force of outdoor tourism:

• Outdoor participants have become more diverse since 2022, with an increase in visitation among Black, Hispanic, and LGBTQIA+ travelers.
• 80% of outdoors activities experienced an increase in participation, from larger categories like camping to smaller categories like skateboarding.
• Outdoor recreation generates $1.1 trillion in economic output, surpassing industries like mining and farming.

An Increase in Technology

As artificial intelligence (AI) continues to expand into every facet of the industry, it’s no surprise that similar technology has made its way into the outdoor sector. Along with AI, augmented reality and virtual reality are becoming more prevalent in outdoor activities. Travelers can use programs to help map out their routes, curate experiences personalized exactly for them, or enhance their outdoor experience overall with relevant information in real-time.

The Impact of Health and Wellness

While it’s widely recognized that spending time outside has an impact on mental wellness, it seems as though travelers are embracing this self-care strategy more than ever. Wellness retreats, camping trips and other group activities offer an outlet for people to disconnect from the outside world and instead tap into their own wellbeing.

Top Outdoor Recreation Locations

Outdoor destinations should prepare to welcome travelers of all types this year. In addition to an expanded, diverse outdoor audience, travelers are opting to travel solo. More than two-thirds of travelers (69 percent) are planning on taking a solo trip in 2024, including 76 percent of Millennials and Gen-Z. Where are these adventurers going?

Truly Hidden Gems

Most travelers are actually looking to venture into unfamiliar places and discover their own hidden gems. US travelers in particular are being drawn to western scenes in outdoorsy destinations with a rustic ranch feel, and 70 percent of millennials and Gen Z’ers report seeking travel experiences to places that their family and friends haven’t heard of.

Nature Tourism

Another trend we’re seeing with tourists is the demand for nature tourism. People are yearning for a trip where they can slow down and connect with nature in ways that they haven’t before. In fact, 42% of travelers are booking activities that focus on bettering their mental and physical health, such as forest bathing. “Microadventures” are also increasingly becoming popular as they allow travelers to connect with nature on smaller, shorter, and cheaper excursions.

Sustainability

Sustainable tourism is critical for maintaining the natural beauty of a destination, minimizing littering and waste, protecting cultural and historical sites, and respecting the local communities. This travel style is no longer a niche or trend – it’s a demand. In fact, over half (53%) of travelers are seeking accommodations that blend comfort with innovative sustainability features.

Destinations also must continue to consider the effects of overtourism when it comes to sustainable tourism. The issue of overtourism arises when there are too many visitors to a particular destination. The constant stream of people at specific locations and monuments inevitably puts pressure on infrastructure and natural resources, leading to the destruction of natural ecosystems, increase in waste, and the departure of local residents. With this in mind, destinations should act as an advocate for their residents, ensuring the health and safety of their green spaces.

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To truly stand out from the crowd, you need to know what sets your destination apart from others. This process of defining yourself is known as destination positioning — and it’s essential for building an effective tourism marketing strategy.

Start by gaining a clear vision of who your target audience is. Take a hard look at both your strengths and weaknesses when compared to other destinations in your area or among your key drive markets in order to identify what makes you unique and appealing. Is there something you do better than anyone else? Something that you have more of per capita? A moment in history that only you can claim? A business that drives the entire community forward?

Pick one or two aspects of your destination (such as attractions, activities or experiences) and focus on those rather than trying too hard to appeal broadly across all demographics. By doing this, you can create personalized messaging that will resonate with potential visitors while also clearly communicating why they should choose your destination over all other options available.  

Let’s look at some examples of strong destination positioning:

New Zealand: Home of Middle Earth

The first movie in Peter Jackson’s Lord of the Ring Trilogy was released in 2001, and the stunning location known as “Hobbiton” found its home in New Zealand. Now over 20 years later the destination still considers this a cornerstone of its tourism marketing. Visit the site and you will find information on Middle Earth right on its homepage, along with itineraries, activities and tours for fans of the Lord of the Rings and Hobbit movies to engage with. You can even take a “Middle Earth” quiz to learn where your Unexpected Journey in New Zealand begins.

Hamilton, Missouri: Quilt Town, U.S.A.

Hamilton, MO got its first taste of notoriety as the home of American Businessman James Cash (J.C.) Penney, but its true claim to fame came in 2008, when Jenny Doan founded the Missouri Star Quilt Co. A little quilt shop that soon gained a big YouTube following turned this town into a destination known today as “Quilt Town, U.S.A.” Now avid quilters flock to the town to visit the quilt shops, participate in sewing classes and makers retreats, see sights like the “World’s Largest Spool of Thread,” and more.

Sierra Vista, Arizona: Hummingbird Capital of the U.S.

Sierra Vista, located in Cochise County, Arizona is home to 15 species of hummingbirds. Named one of the top bird watching places on earth (with over 300 bird species in all) — and called the Hummingbird Capital of the United States, it is a bird lover’s paradise. Visitors can find information on when, where and how to see these birds, which types can be found in specific areas of Sierra Vista and learn about studies being conducted at the Southeastern Arizona Bird Observatory. For fans of our feathered friends, it is the destination to put on your bucket list.

Once you have identified your claim, niche or destination positioning, start creating experiences, videos, messaging and framing your marketing efforts around that topic. Consider what your target audience wants and needs to know about that specific topic — will they be looking for itineraries or daytime tours? Do you need to create a product around this claim, like a trail or an experiential package?

Then consider how the other pieces of your destination fit into this larger message and the role that restaurants, accommodations or other partners play. You don’t have to ignore the “everything else,” instead understand that those partners exist to make your core message stronger.

Don’t be afraid to go all in on your one thing. There is an audience for everyone, and finding your niche will lead you to your raving fans and create repeat visitors for life.

The post Destination Positioning: How to Stake Your Claim and Find Your Niche appeared first on Travel Alliance Partnership.

A Time to Work with Intention

“Technology has slowly implanted a new set of values in our brains,” said author and podcast host Jocelyn K. Glei, who opened the conference with a keynote address. According to Glei, the way people are working – with a “speed obsessed approach” that requires instant gratification (from slack and social media to even Uber) – is something that is not sustainable and will eventually lead to burnout. How many of us have found that to be true in the last couple of years! Her four-week course titled “Reset,” identifies how to shift to a “heart centered work approach,” in order to create empowerment and feelings of inspiration and intention.

Examples of adding more meaning into your work life include:

• Less multi-tasking (each time you stop your task to check email, it takes 25 minutes to get back on track).
• Working in attention “sprints” instead.
• Placing hard limits on response rates.
• Saying no to opportunities and yes to priorities were also encouraged.

A Need to Travel with Intention

So how did feelings of inspiration and meaningful experiences fit into the rest of the conference?

An editor’s roundtable discussion confirmed that small town and experiential travel is what’s big. At the time, travel writers responded to growing concerns and reports on overtourism by helping their readers navigate by focusing a lens on second and third tier cities. Since reopening, a focus on discovering smaller destinations remains. Travelers are thirsty to actively engage with a destination’s history, culture, and off-the-beaten-path locations.

An editor’s roundtable discussion confirmed that small town and experiential travel is what’s big.

Bonus: this immersive travel style can also help counteract the speed of the digital world to simply slow down and truly experience the destination.

Second and Third-Tier City Benefits

Here’s what editors had to say about the benefits of traveling to second and third tier markets:

• It takes off the pressure to hit a checklist of sites that one may feel when visiting a major city. The opportunity to get lost and wander is when the magic happens. Show off your hidden gems!
• Less crowds means easier access to locations.
• Experiences are more personal and memorable.

How Destinations Can Take Advantage of the Experiential Travel Trend

• Character-driven stories. Identify and get to know the background of locals who are doing usual or extraordinary activities. Is there a historical transition you can use? How about an accomplished craftsman, or person who overcame a significant physical challenge to pursue a passion?

• Cultural pegs. A fresh way to look at a city could be a location’s obsession with a sporting event, traditions behind cuisine or even rituals.

• Exclusives. Special access to unusual places or spaces.

• Help solve a problem. How is your destination focusing on protecting natural resources or other news topics?

• Accompany by Adventure. If you have a new beautiful lodge, can travelers forage with the chef along nearby trails or hike with a long-time guide?

Listen to podcast episode 168: Experiential Marketing in Travel and Tourism, with Paul Soseman

The post How to Market Experiential Travel appeared first on Travel Alliance Partnership.

The rise of home DNA tests

One of the biggest trends of the 2010s was home DNA tests. As of 2020, Ancestry DNA has 16 million users and 23andMe is not far behind with 10 million users. People all over the world are learning they have ancestors in places they never imagined. Databases like Ancestry DNA can provide users with in-depth information about where their ancestors lived and worked, and what their lives were like.

What does this mean for the tourism industry?

DNA-mapped adventures are becoming increasingly popular as individuals learn more about their family history and want to connect to their roots. A study done by Airbnb found that 50% of Americans have traveled to at least one country of their ancestry. Ancestry DNA even has a specific service called Heritage Travel to plan ancestral home visits where travelers can find the exact plot of land where their family once lived. Users can also book guided tours with professional genealogists to places like Ireland, Scotland, Italy and Germany, or take genealogy cruises to learn more about where they came from through workshops and discussions.

In 2019, Airbnb partnered with 23andMe to give heritage travel recommendations to its customers. When 23andMe users get their DNA results, they also receive suggestions from Airbnb for rentals and experiences in their ancestral locations. Airbnb also has pages on its website dedicated to heritage travel. A 2018 study showed the number of travelers using Airbnb for tracing their roots had increased by 500% since 2014. They then took it one step further to see what people would be willing to give up for a chance to explore their roots. 57% of Americans reported they would be willing to give up alcohol for a year for a free heritage trip.

Countries that are known for their history of immigration are the most popular places for heritage travelers to originate. The United States is the most popular, followed by Canada and Australia. Airbnb has found that travelers ages 60 to 90 are the most likely to take ancestry trips, but these kinds of vacations could trend younger in the future.

Embracing heritage travel

Many companies have begun to capitalize on this trend. The Shelbourne Hotel in Dublin has a dedicated genealogy butler to help guests trying to track down their Irish ancestors. Tour company Classic Journeys matches travelers with specific trips after reviewing their Ancestry DNA or 23andMe results. For those willing to spend some money, luxury travel company The Conte Club designs custom ancestry travel experiences that can last several weeks and cost up to $132,000.

Historical events can lead to a rise in heritage travel as well. 2020 marks the 75th anniversary of the end of World War II, when many Polish citizens fled Eastern Europe. Many people of Polish ancestry will use this as an opportunity to visit the country their ancestors once called home. Poland has built over a dozen brand new hotels to prepare for the rise in heritage travelers looking to explore their roots.

A new era of travel

Tourists today are looking to get more out of their trips than ever before. They want to discover something new about themselves and piece together some of their story. Destinations would be wise to embrace heritage travel when creating their next travel and tourism marketing plan. Travelers are eager to find experiences that will fundamentally change them. This is not a trend that will be going away anytime soon!

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