The world of luxury is changing and wealthy consumers are becoming active participants to save our world from extinction. As a result, luxury travel brands are changing with the times to become more sustainable. Protecting the environment is paramount in high-end experiential travel and MATTER’s 2019 report promotes how travel brands can adapt to survive and remain connected with their consumers through three main trends:
Consumers seek self-fulfilment through the new sustainable luxury
There is a growing demand of luxury sustainable travel due to a developing demographic of socially conscious, high-net-worth consumers who are increasingly rejecting overt displays of wealth in favour of inconspicuous and responsible consumption. These elite customers value green, inconspicuous luxury and are driven by self-fulfilment and personalised experiences. And so, luxury travel and hospitality is being redefined to incorporate artisanship, authenticity and sustainability, as well as ethical living. Experience and transformation have become the new currency for these next-gen jetsetters, who seek self-fulfilment through green travel, while ‘doing good’ for people and the planet.
Future consumers will invest more in sustainable luxury travel
High-net-worth wealth is transferring into younger hands at a fast rate. According to the study, 72% of Millennials and Gen Zs would pay more for products and services from companies that are committed to social and environmental change. Therefore, these consumers are more willing to invest in sustainable luxury travel and value green brands more than their predecessors. The young elite are reshaping philanthropy by seeking more ways to give back, and the travel industry is supporting their mission through new initiatives from one-off donations to long-term initiatives and volunteering.
Successful luxury travel brands will make sustainability part of the guest experience
Innovators in luxury hospitality are stepping up to environmental and social challenges, by putting sustainability at the centre of their business model and guest experience. From addressing the rise in veganism to rethinking waste, luxury hotels and resorts are honing their offer to attract future guests. Eco-tourism and conservation brand Singita allows guests to take part in sustainable and community initiatives when on safari, guests can leave a legacy from holidaying with Singita and contribute to their 100 year purpose to preserve and protect the African wilderness for future generations.
To download the report in full, please visit MATTER’s website.
Last night, V&VPR attended the annual Skift Megatrends event which looked into the future of travel in 2020. As the travel industry’s premier intelligence brand, Skift deciphered and defined trends for the coming year. Here are this year’s key themes:
For years, the travel industry has known that its next big opportunity is Gen Z, as they are a travel-savvy generation and research shows that they are heavily involved in trip planning. This year, many of them are entering adulthood and will soon have the money and autonomy to take control of their own trips and companies need to make sure they entice them through environmentally friendly and sustainable practices. Therefore, the travel industry should be leaning towards transformative travel that gives back to the environment; for example, Dutch airline KLM’s ‘fly responsibly’ campaign, which encouraged customers to invest in its carbon-offset scheme, pack lighter, and even consider flying less!
New concepts of urban living will start to evolve in 2020, ensuring cities are even more attractive destinations for both working, living and visiting. And so, hospitality brands need to rethink the role they play for both visitors and residents. Mixed-use developments that include restaurants, shops, offices, hotels and rental spaces are becoming increasingly popular as they provide a compelling experience for both residents and tourists – offering visitors a true ‘local experience’.
Customer loyalty means more than simply giving them rewards, today it has evolved with consistent engagement, and so travel is evolving to embrace a membership model that touches on aspects of a traveler’s life beyond their trip. This year the travel industry will aim to engage guests through experiences that tie into emerging and existing lifestyles through subscriptions and memberships that put the customer first, such as loyalty programmes, to create lasting relationships with consumers.
Tourism boards and destination marketers are increasingly aiming to protect and not just promote destinations. Sustainable tourism has now come to mean tourism that local residents and stakeholders feel good about and increasingly, the travel industry is striving to ensure this. Skift predicts this shift will happen through the use of technology, data and participation in order to improve a traveller, and residents, experience of a destination whilst ensuring preservation.
It was an incredible night of learning and networking, and we look forward to Skift Forum Asia happening in our home base of Singapore later this year.