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10
     Things You Need to Know
     About Luxury Travel:
     Opportunities for Asia
RESEARCH
Survey of Affluence & Wealth by the Harrison Group and American Express Publishing
                                  SURVEY DATES: JUNE 2010-JUNE 2011

                                Targeted the top 10% of affluent Americans.




                            Travel + Leisure Asia Survey Results
                                  SURVEY DATES: MAY 16 – MAY 30, 2011
                                      Conducted by ROI Research.

                                           Average HHI: $175,471




                           Travel + Leisure Travel Trends Survey
                                 SURVEY DATES: JUNE 6 – JUNE 20, 2011

                                           Average HHI: $196,324




                  International Luxury Travel Market Report June 2011
                                            SURVEY DATE: 2011
              Analyzing industry trends and interviewing international luxury travel buyers and
               suppliers in Asia (Singapore), Europe (London) and the Americas (New York).
1                                            LUXURY OVERVIEW
     This year, luxury spending is forecasted to increase to $27 billion, with an 11% rise in luxury travel.


             of Respondents to the Survey of Affluence & Wealth:                    TOP 3
                                                                                  PRIORITIES
                   67%                               76%                            BECOME
               of these consumers
                                                consider themselves
                                                  successful in their
                                                                                   HEALTHIER
                     consider                  personal lives because
                themselves happy               they have more control
                                                   of their finances
                                                                                  SPEND MORE
                                                                                TIME WITH FAMILY

                                                                                 SEE MORE OF
    Family ranked as the top passion at
                                          61%     followed by travel at
                                                                          53%     THE WORLD

    A quieter, more discreet style of luxury is now preferred.




     SOURCE: INTERNATIONAL LUXURY TRAVEL MARKET REPORT 2011
2                                         WHICH COUNTRIES ARE THEY CONSIDERING VISITING?

                                           1     Hong Kong
                                                                                   40%
                                                 Thailand

21% OF T+L
                                          2                                        35%
                                                 People’s Republic of China
                                          3                                        34%
                                                 Vietnam

 READERS                                  4
                                          5
                                                 Singapore
                                                                                   28%

                                                                                   26%


  PLAN TO
                                                 Japan
                                                                                   21%
                                          6      India
                                                                                   20%


 VISIT ASIA                               7      Cambodia
                                                                                   15%
                                                 Indonesia
                                          8                                        12%

     IN THE
                                                 Malaysia
                                          9                                        11%
                                                 Maldives
                                                                                    8%

NEXT YEAR
                                         10      South Korea
                                                                                    8%
                                         11      Philippines
                                                                                    7%
                                         12      Taiwan
                                                                                    7%
                                                 Macau
                                         13                                         5%
                                                 Nepal
                                         14                                        4%
                                                 Sri Lanka
                                                                                    3%
                                         15      Laos
                                                                                    3%
                                         16      Myanmar
                                                                                    3%



    SOURCE: TRAVEL + LEISURE ASIA SURVEY RESULTS, JUNE 2011
3
       T+L READERS SPEND SIGNIFICANT TIME & MONEY IN ASIA
                                                    AVERAGE # HOTEL NIGHTS



                     LEISURE TRAVEL                                               BUSINESS TRAVEL



                               10                                                      8
                                    SPENDING ON MOST RECENT TRIP TO ASIA*



                   AVERAGE SPEND                                                    TV/RADIO



               $9,142                                                         1/3         of readers
                                                                                          spent $10,000+


*INCLUDES: AIRFARE, ACCOMMODATIONS, FOOD AND BEVERAGES, SHOPPING, ENTERTAINMENT
BASE: TRAVELED TO ASIA IN PAST 3 YEARS
4
                             CITIES ARE THE TOP DESTINATION

                                                AREAS THEY PLAN TO VISIT




                                                  COUNTRYSIDE/
                    CITIES                      MOUNTAINS/FORESTS          BEACHES



               97             %                      67       %            47   %




BASE: PLAN TO TRAVEL TO ASIA IN THE NEXT YEAR
5            TOP MOTIVATIONS FOR TRAVELING TO ASIA
               1   Sightseeing
                                                             55%

SIGHTSEEING    2
               3
                   Cultural enrichment
                   One-of-a-kind experiences
                                                             52%


  & CULTURE    4   Experiencing the local cuisine and wine
                                                             31%

                                                             25%


    ARE KEY    5
               6
                   Good value
                   Adventure
                                                             19%



MOTIVATORS
                                                             17%
               7   Off-the-beaten-path destinations
                                                             17%
               8   Luxury accommodations
                                                             16%
               9   Shopping experiences
                                                             11%
              10   Friendly people
                                                             10%
              11   Stress relief/relaxation
                                                             9%
              12   High level of personalized service
                                                             9%
              13   Spiritual/well-being retreat
                                                             5%
              14   Volunteer vacations
                                                             4%
              15   Medical tourism/health travel
                                                             2%
6
                    TOP FACTORS INFLUENCING HOTEL
                    CHOICE WHEN TRAVELING TO ASIA
                1   Location of accommodations
                                                                59%

 LOCATION +     2
                3
                    Value for price paid
                    Luxury accommodations
                                                                46%


VALUE HIGHLY
                                                                27%
                4   Reputation
                                                                24%
                5   Security/safety

     IMPACT
                                                                23%
                6   Free Wi-Fi
                                                                17%
                7   Frequent guest program

HOTEL CHOICE
                                                                15%
                8   Atmosphere
                                                                12%
                9   Past experience
                                                                12%
               10   Bed comfort
                                                                12%
               11   Knowledgeable + efficient staff
                                                                9%
               12   Low cost
                                                                7%
               13   On-premise restaurant/fine dining choices
                                                                7%
               14   Room upgrade
                                                                6%
               15   Room choices
                                                                4%
               16   All-inclusive package
                                                                4%
               17   Complimentary transfers
                                                                4%
               18   In-room entertainment
                                                                3%
7
             PERSONAL CONTACT DRIVES TRAVEL BOOKINGS

                                                     TOP BOOKING CHANNELS



                                            DIRECTLY               DIRECTLY
                                           VIA PHONE             VIA WEBSITE



                                           97           %         81        %
                         OTA’S
              (ONLINE TRAVEL AGENTS:
                                                      TRAVEL AGENT/
             EXPEDIA, TRAVELOCITY, ETC.)                 AGENCY             TOUR OPERATORS



                   67              %                     37      %              26  %

SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011
8                   WHEN DO THEY TRAVEL?
           PERCENTAGE OF LEISURE TRAVELERS BY SEASON


                                      SUMMER           FALL   WINTER   SPRING

    United States                         78            69      52      60

    Canada                                59            39      15       21

    Europe                                44            58      16       43

    Caribbean/Bermuda                     25            28      47       33

    Mexico                                23            33      45       36

    Central/South America                 22            34      56       38

    Asia                                  22            44      40      30

    Australia/New Zealand                 21            30      51       23

    Africa                                20            33      35      30

    Middle East                           20            50      33       26

    SOURCE: THE LAUNCHPAD, TRAVEL + LEISURE RESEARCH 2011
9
                                 AVERAGE # OF HOTEL NIGHTS FOR LEISURE
                                       INTERNATIONAL                       DOMESTIC




 LOCATION &
                                               10                            11
      VALUE            WHEN DO THEY BOOK DOMESTIC HOTEL STAYS?
DRIVE HOTEL           1 Location

     CHOICE           2 Value for price paid
                      3 Past experience
                                                                                      46%
                                                                                      43%
                                                                                      19%
                      4 Reputation
                                                                                      17%
                      5 Ability to use frequent guest program
                                                                                      16%
                      6 Luxury accommodations
                                                                                      15%
                      7 Free Wi-Fi
                                                                                      14%
                      8 Bed comfort
                                                                                      14%
                      9 Star/diamond rating
                                                                                      14%
                      10 Low cost                                                     13%
                      11 Security/safety                                              10%
      75%             12 Atmosphere
  belong to a hotel                                                                   9%
  loyalty program     13 Room choices
                                                                                      7%
                      SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011
10
          WHEN DO THEY BOOK DOMESTIC HOTEL STAYS?

     SHORT-HAUL STAYS ARE TYPICALLY BOOKED LESS THAN TWO MONTHS PRIOR TO TRAVEL

 LONG-HAUL STAYS HAVE A SLIGHTLY LONGER BOOKING WINDOW OF UP TO FOUR MONTHS




 # OF WEEKS BOOKED                                 SHORT HAUL TRAVEL   LONG HAUL TRAVEL
   PRIOR TO TRAVEL                                        {DRIVING}      {NON-DRIVING}


         less than 2 weeks                                   26%              9%
       2 to less than 4 weeks                                30%              21%
            1-2 months                                       30%              35%
            3-4 months                                       9%               21%
            5-6 months                                       3%               10%
            7-8 months                                       1%               2%
           9-10 months                                       1%               1%
           11-12 months                                      0%               1%
            Over 1 year                                      0%               0%


     SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011
10      continued



      WHEN DO THEY BOOK INTERNATIONAL HOTEL STAYS?

                            TYPICALLY BOOKED 1-4 MONTHS PRIOR TO TRAVEL




     # OF WEEKS BOOKED                              SHORT HAUL TRAVEL      LONG HAUL TRAVEL
       PRIOR TO TRAVEL                                 {FLIGHT TIME LESS   {FLIGHT TIME 10+ HRS}
                                                         THAN 10 HRS}

          less than 2 weeks                                   6%                    5%
       2 to less than 4 weeks                                 8%                    6%
             1-2 months                                       28%                   21%
             3-4 months                                       25%                   26%
             5-6 months                                       17%                   19%
             7-8 months                                       5%                    8%
             9-10 months                                      5%                    6%
             11-12 months                                     3%                    5%
             Over 1 year                                      3%                    5%


      SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011
THANK YOU.

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Opportunities for Asia: 10 Things You Need to Know About Luxury Travel

  • 1. 10 Things You Need to Know About Luxury Travel: Opportunities for Asia
  • 2. RESEARCH Survey of Affluence & Wealth by the Harrison Group and American Express Publishing SURVEY DATES: JUNE 2010-JUNE 2011 Targeted the top 10% of affluent Americans. Travel + Leisure Asia Survey Results SURVEY DATES: MAY 16 – MAY 30, 2011 Conducted by ROI Research. Average HHI: $175,471 Travel + Leisure Travel Trends Survey SURVEY DATES: JUNE 6 – JUNE 20, 2011 Average HHI: $196,324 International Luxury Travel Market Report June 2011 SURVEY DATE: 2011 Analyzing industry trends and interviewing international luxury travel buyers and suppliers in Asia (Singapore), Europe (London) and the Americas (New York).
  • 3. 1 LUXURY OVERVIEW This year, luxury spending is forecasted to increase to $27 billion, with an 11% rise in luxury travel. of Respondents to the Survey of Affluence & Wealth: TOP 3 PRIORITIES 67% 76% BECOME of these consumers consider themselves successful in their HEALTHIER consider personal lives because themselves happy they have more control of their finances SPEND MORE TIME WITH FAMILY SEE MORE OF Family ranked as the top passion at 61% followed by travel at 53% THE WORLD A quieter, more discreet style of luxury is now preferred. SOURCE: INTERNATIONAL LUXURY TRAVEL MARKET REPORT 2011
  • 4. 2 WHICH COUNTRIES ARE THEY CONSIDERING VISITING? 1 Hong Kong 40% Thailand 21% OF T+L 2 35% People’s Republic of China 3 34% Vietnam READERS 4 5 Singapore 28% 26% PLAN TO Japan 21% 6 India 20% VISIT ASIA 7 Cambodia 15% Indonesia 8 12% IN THE Malaysia 9 11% Maldives 8% NEXT YEAR 10 South Korea 8% 11 Philippines 7% 12 Taiwan 7% Macau 13 5% Nepal 14 4% Sri Lanka 3% 15 Laos 3% 16 Myanmar 3% SOURCE: TRAVEL + LEISURE ASIA SURVEY RESULTS, JUNE 2011
  • 5. 3 T+L READERS SPEND SIGNIFICANT TIME & MONEY IN ASIA AVERAGE # HOTEL NIGHTS LEISURE TRAVEL BUSINESS TRAVEL 10 8 SPENDING ON MOST RECENT TRIP TO ASIA* AVERAGE SPEND TV/RADIO $9,142 1/3 of readers spent $10,000+ *INCLUDES: AIRFARE, ACCOMMODATIONS, FOOD AND BEVERAGES, SHOPPING, ENTERTAINMENT BASE: TRAVELED TO ASIA IN PAST 3 YEARS
  • 6. 4 CITIES ARE THE TOP DESTINATION AREAS THEY PLAN TO VISIT COUNTRYSIDE/ CITIES MOUNTAINS/FORESTS BEACHES 97 % 67 % 47 % BASE: PLAN TO TRAVEL TO ASIA IN THE NEXT YEAR
  • 7. 5 TOP MOTIVATIONS FOR TRAVELING TO ASIA 1 Sightseeing 55% SIGHTSEEING 2 3 Cultural enrichment One-of-a-kind experiences 52% & CULTURE 4 Experiencing the local cuisine and wine 31% 25% ARE KEY 5 6 Good value Adventure 19% MOTIVATORS 17% 7 Off-the-beaten-path destinations 17% 8 Luxury accommodations 16% 9 Shopping experiences 11% 10 Friendly people 10% 11 Stress relief/relaxation 9% 12 High level of personalized service 9% 13 Spiritual/well-being retreat 5% 14 Volunteer vacations 4% 15 Medical tourism/health travel 2%
  • 8. 6 TOP FACTORS INFLUENCING HOTEL CHOICE WHEN TRAVELING TO ASIA 1 Location of accommodations 59% LOCATION + 2 3 Value for price paid Luxury accommodations 46% VALUE HIGHLY 27% 4 Reputation 24% 5 Security/safety IMPACT 23% 6 Free Wi-Fi 17% 7 Frequent guest program HOTEL CHOICE 15% 8 Atmosphere 12% 9 Past experience 12% 10 Bed comfort 12% 11 Knowledgeable + efficient staff 9% 12 Low cost 7% 13 On-premise restaurant/fine dining choices 7% 14 Room upgrade 6% 15 Room choices 4% 16 All-inclusive package 4% 17 Complimentary transfers 4% 18 In-room entertainment 3%
  • 9. 7 PERSONAL CONTACT DRIVES TRAVEL BOOKINGS TOP BOOKING CHANNELS DIRECTLY DIRECTLY VIA PHONE VIA WEBSITE 97 % 81 % OTA’S (ONLINE TRAVEL AGENTS: TRAVEL AGENT/ EXPEDIA, TRAVELOCITY, ETC.) AGENCY TOUR OPERATORS 67 % 37 % 26 % SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011
  • 10. 8 WHEN DO THEY TRAVEL? PERCENTAGE OF LEISURE TRAVELERS BY SEASON SUMMER FALL WINTER SPRING United States 78 69 52 60 Canada 59 39 15 21 Europe 44 58 16 43 Caribbean/Bermuda 25 28 47 33 Mexico 23 33 45 36 Central/South America 22 34 56 38 Asia 22 44 40 30 Australia/New Zealand 21 30 51 23 Africa 20 33 35 30 Middle East 20 50 33 26 SOURCE: THE LAUNCHPAD, TRAVEL + LEISURE RESEARCH 2011
  • 11. 9 AVERAGE # OF HOTEL NIGHTS FOR LEISURE INTERNATIONAL DOMESTIC LOCATION & 10 11 VALUE WHEN DO THEY BOOK DOMESTIC HOTEL STAYS? DRIVE HOTEL 1 Location CHOICE 2 Value for price paid 3 Past experience 46% 43% 19% 4 Reputation 17% 5 Ability to use frequent guest program 16% 6 Luxury accommodations 15% 7 Free Wi-Fi 14% 8 Bed comfort 14% 9 Star/diamond rating 14% 10 Low cost 13% 11 Security/safety 10% 75% 12 Atmosphere belong to a hotel 9% loyalty program 13 Room choices 7% SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011
  • 12. 10 WHEN DO THEY BOOK DOMESTIC HOTEL STAYS? SHORT-HAUL STAYS ARE TYPICALLY BOOKED LESS THAN TWO MONTHS PRIOR TO TRAVEL LONG-HAUL STAYS HAVE A SLIGHTLY LONGER BOOKING WINDOW OF UP TO FOUR MONTHS # OF WEEKS BOOKED SHORT HAUL TRAVEL LONG HAUL TRAVEL PRIOR TO TRAVEL {DRIVING} {NON-DRIVING} less than 2 weeks 26% 9% 2 to less than 4 weeks 30% 21% 1-2 months 30% 35% 3-4 months 9% 21% 5-6 months 3% 10% 7-8 months 1% 2% 9-10 months 1% 1% 11-12 months 0% 1% Over 1 year 0% 0% SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011
  • 13. 10 continued WHEN DO THEY BOOK INTERNATIONAL HOTEL STAYS? TYPICALLY BOOKED 1-4 MONTHS PRIOR TO TRAVEL # OF WEEKS BOOKED SHORT HAUL TRAVEL LONG HAUL TRAVEL PRIOR TO TRAVEL {FLIGHT TIME LESS {FLIGHT TIME 10+ HRS} THAN 10 HRS} less than 2 weeks 6% 5% 2 to less than 4 weeks 8% 6% 1-2 months 28% 21% 3-4 months 25% 26% 5-6 months 17% 19% 7-8 months 5% 8% 9-10 months 5% 6% 11-12 months 3% 5% Over 1 year 3% 5% SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011