This document discusses research on the emerging class of global affluent consumers. It finds that global wealth grew to $263 trillion in 2014, creating more affluent individuals worldwide. This new elite class is defined more by shared values of hard work, education, and entrepreneurship than cultural differences. They seek high-quality real estate, prioritizing amenities, security, and location. When purchasing property, affluent buyers want an agent who provides knowledge, respects their time, and makes the process enjoyable.
This year is shaping up to be a significant one for tourism, challenging business leaders to think differently about the emotional and human truths that are driving people to travel.
As the world forges ahead through 2018, we looked at the various cultural forces that are impacting how consumers are thinking about and planning travel this year.
The report, which is the latest edition in a benchmark study first conducted in 2002 and then 2007, looks at why, how and where young people travel to, as well as the growing requirements of the ever expanding industry.
This year is shaping up to be a significant one for tourism, challenging business leaders to think differently about the emotional and human truths that are driving people to travel.
As the world forges ahead through 2018, we looked at the various cultural forces that are impacting how consumers are thinking about and planning travel this year.
The report, which is the latest edition in a benchmark study first conducted in 2002 and then 2007, looks at why, how and where young people travel to, as well as the growing requirements of the ever expanding industry.
Download the full Gen Z 2025 report here: http://bit.ly/1Vcecow
The future will be defined by a generation that promises to learn from the lessons of the past to create a world unlike anything we’ve ever seen.
Growing up in the shadow of global meltdowns and watching their Millennial siblings flail, Generation Z have resolved to do things differently. In an instant everything world, these kids are present in today, but curate their experiences for tomorrow. But, what will Gen Z be in 2025?
In Gen Z 2025, we unpack the present to unveil a future defined by the next greatest generation’s evolving worlds of work, education and digital, and the dissolving boundaries between social and cultural norms. Exposed to the breakneck speed of culture, Gen Z will transform our very understanding of generations to come.
PUTTING YOUR PLACE ON THE MILLENNIAL MAP (and staying there)TOPOSOPHY
Are you working for a tourism board that’s trying to
figure out its next-gen strategy? Looking to sort the Millennial
myths from the hype? Welcome to Toposophy’s
free guide for destinations and travel brands.
Here, Peter Jordan, Toposophy’s Senior Tourism
Analyst explains the basics of understanding Millennials
and ensuring that your place branding and management
strategy is in tune with this new generation of
consumers.
USA Travel Industry outlook and Trends 2018. Deloitte Report. David Vicent
A very complete report by Deloitte about travel and tourism industry trends in USA. Very nice report model to analyce key facts in any latin american country.
Africa is home to entrepreneurs who are spurring the continent's growth in unique and dynamic ways. More: http://knlg.net/1QJ426P
Knowledge@Wharton recently joined Katherine Klein, Wharton management professor and vice dean for the Wharton Social Impact Initiative, and Nick Ashburn, the Initiative’s director of emerging markets, at the African Leadership Network’s 2015 annual gathering where they interviewed 18 entrepreneurs and executives who are leading, launching, scaling and supporting businesses across the continent.
For a decade The Wealth Report has served as the industry’s leading publication documenting the performance of the luxury market and its interaction with wealth creation around the world. No other outlet covers the trends and flow of wealth as comprehensively as The Wealth Report.
The world is becoming an ever smaller place and operates more as a global marketplace.The impact of how one region performs can positively or negatively affect another. The Wealth Report offers invaluable insight into global trends and what will impact personal assets.
DESTINATIONS AND COVID-19: HOW TO BUILD A SUSTAINABLE PATH TO RECOVERYTOPOSOPHY
Last week we published the Covid-19 DMMO Continuity Checklist, a practical resource to guide destinations everywhere on their Covid-19 response, and help them towards a sustainable recovery
When compiling the Checklist, in partnership with European Cities Marketing, we looked, as we usually do, beyond the travel and tourism sector to get the big picture. This helped us to assess some of the broader shifts and trends in the economy and society that were already occurring before storm corona hit at the beginning of this year. Sounds interesting, right? However there’s little point about observing these trends without considering what they could mean for us in practical terms, and at TOPOSOPHY we are all about turning insights into practical solutions! We’ve condensed our trend analysis into five areas:
1. The Place
2. Citizens’ Expectations
3. The Industry Approach
4.Contextual Challenges, and finally what all this means for...
5. The Purpose and Vision of DMMOs
To build a tourism strategy that lasts and that works for all, you have to be realistic in analysing what works and what doesn’t. In the second of this ‘‘Uncovered’’ series of reports, experts at TOPOSOPHY lift the lid on tourism trends in Mexico and make an honest, frank assessment of the top priorities for government and business in the
country today.
Domestic and international tourism in Mexico is continuously growing. The tourism industry growth continues to ride higher than the average national GDP growth and investment in the tourism sector is pouring into the country as the main source market, the United States, recovers from the global financial crisis. Nevertheless image remains the main concern as incidents relating to organised crime continue to affect parts of the country and Mexican citizens have mobilized to demand more security as mid-term elections approach (Summer 2015).
As this report will explain, the media often reports a distorted view of the reality of daily life in Mexico. Furthermore, Mexicans’ views of their own country can often be subject to an inferiority complex or over-influenced by current events. Discover TOPOSOPHY’s take on the current state of Mexican Tourism in this candid report that aims to provide an external view and an independent perspective on how a tourism industry with high potential can deliver for the country in the future.
Informe de la revista Skift, donde se detallan diferentes tendencias para el sector turístico en el año 2019, tanto desde la perspectiva empresarial como de los destinos turísticos.
In this end of year report we highlight some of the key trend narratives and events that we think will be shaping the consumer landscape in the coming year as well as signposting the global economic outlook. We also review some of the biggest and most significant trend shifts and insights from 2013, identifying what happened across areas such as retail, technology and finance. Find out more about us at futurefoundation.net
Advertising for Good, What Is It Good For? @SXSW2017TOYGUN YILMAZER
It has been, for the last ten years, de rigueur for brands and marketers to shift their focus on advertising that brings some good for the people. From Unilever to Coca-Cola, to Google to Puma; hundreds of brands create advertising that is not trying to sell a product, but to help a cause or to relieve an issue of humanity. On the other hand these efforts are criticised for not actually solving anything and for ultimately being another way of self-promotion. This is an honest take by two ad-guys on what ‘advertising for good’ is actually good for.
http://schedule.sxsw.com/2017/events/PP60527
WWR 2016 - Top 10 Markets by HNWI PopulationCapgemini
HNWI population and wealth information for the top 10 (by HNWI population) markets across the globe
Meta Keywords: WWR, WWR2016, HNWI, Top markets, Top 10, HNWI Population, HNWI Wealth, World Wealth Report, HNWI Market, Wealth Management
Download the full Gen Z 2025 report here: http://bit.ly/1Vcecow
The future will be defined by a generation that promises to learn from the lessons of the past to create a world unlike anything we’ve ever seen.
Growing up in the shadow of global meltdowns and watching their Millennial siblings flail, Generation Z have resolved to do things differently. In an instant everything world, these kids are present in today, but curate their experiences for tomorrow. But, what will Gen Z be in 2025?
In Gen Z 2025, we unpack the present to unveil a future defined by the next greatest generation’s evolving worlds of work, education and digital, and the dissolving boundaries between social and cultural norms. Exposed to the breakneck speed of culture, Gen Z will transform our very understanding of generations to come.
PUTTING YOUR PLACE ON THE MILLENNIAL MAP (and staying there)TOPOSOPHY
Are you working for a tourism board that’s trying to
figure out its next-gen strategy? Looking to sort the Millennial
myths from the hype? Welcome to Toposophy’s
free guide for destinations and travel brands.
Here, Peter Jordan, Toposophy’s Senior Tourism
Analyst explains the basics of understanding Millennials
and ensuring that your place branding and management
strategy is in tune with this new generation of
consumers.
USA Travel Industry outlook and Trends 2018. Deloitte Report. David Vicent
A very complete report by Deloitte about travel and tourism industry trends in USA. Very nice report model to analyce key facts in any latin american country.
Africa is home to entrepreneurs who are spurring the continent's growth in unique and dynamic ways. More: http://knlg.net/1QJ426P
Knowledge@Wharton recently joined Katherine Klein, Wharton management professor and vice dean for the Wharton Social Impact Initiative, and Nick Ashburn, the Initiative’s director of emerging markets, at the African Leadership Network’s 2015 annual gathering where they interviewed 18 entrepreneurs and executives who are leading, launching, scaling and supporting businesses across the continent.
For a decade The Wealth Report has served as the industry’s leading publication documenting the performance of the luxury market and its interaction with wealth creation around the world. No other outlet covers the trends and flow of wealth as comprehensively as The Wealth Report.
The world is becoming an ever smaller place and operates more as a global marketplace.The impact of how one region performs can positively or negatively affect another. The Wealth Report offers invaluable insight into global trends and what will impact personal assets.
DESTINATIONS AND COVID-19: HOW TO BUILD A SUSTAINABLE PATH TO RECOVERYTOPOSOPHY
Last week we published the Covid-19 DMMO Continuity Checklist, a practical resource to guide destinations everywhere on their Covid-19 response, and help them towards a sustainable recovery
When compiling the Checklist, in partnership with European Cities Marketing, we looked, as we usually do, beyond the travel and tourism sector to get the big picture. This helped us to assess some of the broader shifts and trends in the economy and society that were already occurring before storm corona hit at the beginning of this year. Sounds interesting, right? However there’s little point about observing these trends without considering what they could mean for us in practical terms, and at TOPOSOPHY we are all about turning insights into practical solutions! We’ve condensed our trend analysis into five areas:
1. The Place
2. Citizens’ Expectations
3. The Industry Approach
4.Contextual Challenges, and finally what all this means for...
5. The Purpose and Vision of DMMOs
To build a tourism strategy that lasts and that works for all, you have to be realistic in analysing what works and what doesn’t. In the second of this ‘‘Uncovered’’ series of reports, experts at TOPOSOPHY lift the lid on tourism trends in Mexico and make an honest, frank assessment of the top priorities for government and business in the
country today.
Domestic and international tourism in Mexico is continuously growing. The tourism industry growth continues to ride higher than the average national GDP growth and investment in the tourism sector is pouring into the country as the main source market, the United States, recovers from the global financial crisis. Nevertheless image remains the main concern as incidents relating to organised crime continue to affect parts of the country and Mexican citizens have mobilized to demand more security as mid-term elections approach (Summer 2015).
As this report will explain, the media often reports a distorted view of the reality of daily life in Mexico. Furthermore, Mexicans’ views of their own country can often be subject to an inferiority complex or over-influenced by current events. Discover TOPOSOPHY’s take on the current state of Mexican Tourism in this candid report that aims to provide an external view and an independent perspective on how a tourism industry with high potential can deliver for the country in the future.
Informe de la revista Skift, donde se detallan diferentes tendencias para el sector turístico en el año 2019, tanto desde la perspectiva empresarial como de los destinos turísticos.
In this end of year report we highlight some of the key trend narratives and events that we think will be shaping the consumer landscape in the coming year as well as signposting the global economic outlook. We also review some of the biggest and most significant trend shifts and insights from 2013, identifying what happened across areas such as retail, technology and finance. Find out more about us at futurefoundation.net
Advertising for Good, What Is It Good For? @SXSW2017TOYGUN YILMAZER
It has been, for the last ten years, de rigueur for brands and marketers to shift their focus on advertising that brings some good for the people. From Unilever to Coca-Cola, to Google to Puma; hundreds of brands create advertising that is not trying to sell a product, but to help a cause or to relieve an issue of humanity. On the other hand these efforts are criticised for not actually solving anything and for ultimately being another way of self-promotion. This is an honest take by two ad-guys on what ‘advertising for good’ is actually good for.
http://schedule.sxsw.com/2017/events/PP60527
WWR 2016 - Top 10 Markets by HNWI PopulationCapgemini
HNWI population and wealth information for the top 10 (by HNWI population) markets across the globe
Meta Keywords: WWR, WWR2016, HNWI, Top markets, Top 10, HNWI Population, HNWI Wealth, World Wealth Report, HNWI Market, Wealth Management
As the first true generation of digital natives, Gen Z teens are coming of age and our world will soon be reshaped in their image. In this report, we will take a closer look at this unique generation's outlook on media, their shopping habits, and other hot topics. This is a must-have resource for marketers who want to reach the influential consumers of today and tomorrow.
Introducing our 2015 FMCG trend report. We have looked at all the recent global and local trends on the FMCG category across the Consumer and Food Services industry. Enjoy!
This presentation focuses on the 18 to 35 year-old age group and what their desires are when they travel. It will be of use to those marketing travel products to them or travel advisors seeking to expand their portfolio of clients in this age bracket.
The results of Aimia’s 2011 consumer
research in Canada, the UK and the
US reveal surprising insights into the
behavior of Generation Y and their
relationship to technology, data privacy,
brand loyalty and reward programs.
TripBarometer : les tendances du tourisme en 2016Ipsos France
TripBarometer est la plus importante enquête sur les voyageurs et l'hébergement à l'échelle mondiale. Elle analyse plus de 44 000 réponses de voyageurs et d'hôteliers des quatre coins du globe. Pourquoi les personnes voyageront-elles en 2016 ? Comment ces voyageurs décideront-ils quoi faire et où séjourner ? Dépenseront-ils plus ou moins qu'en 2015 ? Quel est l'impact de leurs choix sur le secteur du tourisme dans son ensemble ? Notre dernière enquête TripBarometer répond à toutes ces questions et à bien d'autres encore.
2015 transitioning into a mobile world mpiRich Benjamin
Mobile web is evolving at an alarming rate, Businesses must adapt to the new consumers and how they search for products.
The Millennial Generation is a perfect example of the ever changing experience in web sales and marketing. There is not a one size fits all sales approach. Marketers must consider several sets of demographic behavior and develop individual strategies
You are your content - Being here, now: State of content 2017Accenture Insurance
Our relationship to content has been transformed. So many aspects of our lives, big and small, are lived online. From education to recreation, one is hard-pressed to identify aspects of modern life not changed by digital content. This second annual study from Accenture Interactive surveyed over 1,000 executives from 14 countries and 18 industries to understand this shifting paradigm, and to help organizations respond.
Content must be a vital expression of an organizations purpose, and true to its lifeblood. Content is how the organization expresses itself. In this hyper-connected age, You are Your Content, it is the voice of your organization. And so, it is no surprise that organizations are beginning to want to own that voice, building new in-house capabilities, innovating in distribution channels, focusing on quality, and establishing stewardship at the most senior levels of the organization in order to be everywhere for their audiences.
Tianguis Turistico 2014 Presentation: Mexico, Millennial and Luxury TravelRuthanneT
This presentation was given on May 8, 2014 at Tianguis Turistico 2014 in Cancun. It provides data and trends on travel to Mexico, Millennial Travel and Luxury Travel Trends.
3. Luxury Portfolio International®
|| 3
As wealth accumulates in savings accounts and by asset appreciation, a rosier household spending
outlook has emerged: by Q3 2014, the percentage of affluent and wealthy planning to increase
their discretionary spending during the next 12 months reached 20%, more than double the 9%
planning to reduce it, resulting in the greatest plus market since the time before the recession.
Global research demonstrates that an emergent class of
world-wide affluence is bonding into a permanent fixture on
the world stage—better understood for their stewardship of
global enterprises than their culture of origin. We start with an
understanding that the world is populated by a volume of wealth
that is distributed, with the exception of the U.S., almost equally
across the planet. But the catch is it’s not equitably distributed
among the planet’s population. The top ten percent, in
household income terms, earn 33 percent of the world’s income,
and control 86 percent of the world’s assets. Furthermore, the
top one percent owns 43 percent of the world’s personal assets.
In other words, a group of people rooted in common values
for themselves, their children, their businesses and their futures
share both a global economy and the fruits of a global economy.
The new elite are better understood by their common set of values than
by the differences in cultural heritage.
% of households planning to increase/decrease discretionary spending
20%
15%
10%
5%
0%
Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014
16%
9%
11% 11%
14%
17%
18%
20%
10%
13%
10% 10% 10%
9%
11%
9%
Increase
Decrease
Top 1%
(43%)
Rest of
the world
(57%)
Percent ownership of
the world’s assets
4. 4 || Luxury Portfolio International®
By and large the children of post-World War II working parents, the “affluent class” grew up
believing in hard work, education and reward-by-merit. While some of the old aristocracy hangs
on in the wealth class, most contemporary success stories have been written since the eighties and
the nineties. The typical journey to success starts with parents ambitious for the success of their
children, early and hard work, a well-chosen college education and entrance to the professional
class through jobs in large corporations of professional service firms.
Ideas, innovations in technology, a willingness to risk and a solid
reliance on one’s instincts leads to entrepreneurship and success.
With this journey come lessons in incomes, assets, values
about success and the connections and travel that expose
people, once culturally and socially isolated, to a position on
the world’s affluent stage. What they discover on this journey is
that the world has leveled the success pyramid by tempering
performance with professional credentials. The jobs frequently
held by the affluent have become professionalized, which is to
say, a set of standards that are globally recognized and upheld,
for those from the U.S. to China alike. These standards not only
describe the job, but have come to describe the professional
him or herself: honest, intelligent, focused on details, leadership.
The rise of the global corporation has also caused people to
value one another around the world without regard to country of
origin. Now the real axis of business credibility is on the ability of
people to form cohesive teams that can get the job done.
This remarkable transformation of professions and people has,
of course, been attended by the growth of information and
digital technologies that have simultaneously reduced the costs
of communication and given people the ability to be in touch
from virtually anywhere.
We live in a world in which the barriers
to international business relationships
have declined while the art of comparative
performance measurement has been raised
to a science thanks to the likes of:
The Silver Lining
of the Recession
As the Recession
came to a head,
72%of affluent
families decided
to become
resourceful,
independent
from persuasion
of marketers and
experts on living,
and embraced
financially
responsible
decision making.
Facebook Twitter Pinterest Amazon TripAdvisor
5. Luxury Portfolio International®
|| 5
That’s given us a world of connected, affluent people discovering what matters through common
experience and expertise. At the highest levels of wealth there is great cross-ownership in business
interests, club membership, destination property ownership, shared flight itineraries, preferred
hotels, and favorite pastimes. This has become a true network of global affluence.
For affluent consumers around the world, discretionary spending in real
estate, travel, entertainment, even fashion and automobiles, is on the rise.
Estimates like these are being forecast for the enclave of affluent communities all over the world.
In large part, they have focused on the interests that serve their family and their business first and
foremost. Real estate is center among them.
The Global Real Estate Market
Whether a lifestyle acquisition or portfolio addition, the desire for luxury residences continues to
buoy the recovering real estate market worldwide. The top 10% in select markets around the world
are simply thriving:
Purchase/Spending Categories, 2014 Purchase Price/ % Change from 2013
Annual Spend
Primary home
(among those in the market) $1,150,000 +12%
Next automobile
(among those in the market) $46,100 +11%
Leisure travel
(vacations, weekend trips, annual) $8,287 +4%
Out of home entertainment/Dining out
(annual) $4,886 +47%
Items for your home
(e.g. home decor, furnishings, electronics, annual) $4,735 +13%
Fashion
(apparel and accessories, annual) $2,882 +39%
Fine Jewelry/watches
(annual) $1,714 Even
Region Top 10% of Inventory in this Market (in USD)
Beverly Hills, CA $30M
Saint Barthélemy, Caribbean $27M+
Verbier, Switzerland $24M+
Geneva, Switzerland $17M
The Hamptons, NY (USA) $10M+
Vail, Co (USA) $10M+
Source: Luxury Portfolio Market Pulse
6. 6 || Luxury Portfolio International®
Around the world, purchase interest outpaces selling interest, indicating a positive seller’s market.
In the U.S. there are 50% more buyers than sellers, in Europe there are double the number of
buyers as sellers and in Asia there are nearly three buyers for every seller.
The rate of second home ownership has been steady in the U.S., growing from 26% in 2012 to
28% today, but it’s what is desired in those homes that has changed the most.
A survey of luxuryportfolio.com’s current listings from North America, Asia and Europe highlights
similar features for special properties. In the word table below, the smallest word shown represents
20% of the sampled properties highlighting this amenity.
Note the absence of adjectives or unnecessary language in the table above, and lots of details
about the amenities. Spa-like features, security, and room descriptions dominate. Affluent
consumers have learned to see through flowery marketing language and can identify the details of
distinction in a property that make it worth it to them.
Lifestyle amenities and location consistently emerge as the first step in the home buying process.
Web-searches can reveal statistical information about an area, while conversing with residents via
social networking and with your agent are ways to discover how the community truly operates.
Criteria for IDENTIFYING Great Agents
Global affluent clients see the value of an agent as a protection from risk; in fact 87% believe this is
the primary role of the agent during the transaction. Sixty-five percent believe an agent adds value
by helping navigate the overall purchase process; 61% also say the agent adds value by negotiating
on their behalf and 60% of buyers say an agent adds value by providing insights on neighborhoods,
properties and the market overall. When asked what makes an agent valuable, affluent consumers
everywhere said they want their agent to…
Help them to be equipped with knowledge and insight
Be respectful of time, privacy and to be interested in
understanding their lifestyle
Be well respected in the community and by their organization
Help make the process enjoyable
Be affiliated with a company that has a global network of
real estate agents/brokers
gated
guest
garage
kitchen
swimming
spa
systems
pool
FIREPLACES
staff sauna SECURITY
tennis
garden
glassprivateterracehome
Affluent homebuyers see
the search for a home
as a team effort and they
value that service.
In fact 68% agree that
the services an agent
offers are worth the price.
hvac
gym
views
1
2
3
4
5
7. Luxury Portfolio International®
|| 7
Final Thoughts: Four Areas to Consider
Our personal spheres are expanding from work colleagues to the people we meet by chance on
our travels, and everyone in between. Internet and social media have enabled deep relationships to
grow even when physical interaction is infrequent. By combining a wider base of local contacts, with
resources such as Leading Real Estate Companies of the World®
and luxuryportfolio.com, globally
affluent consumers can connect and curate their own experience, without the constraint of borders.
Considerations for a Significant Real Estate Purchase:
The question of how you choose to live will directly influence
not only what kind of home you buy, but also location, whether
you are looking for a primary home, or vacation home.
Talk with as many people as you can who live, or have lived, in
the community you’re considering. Issues of security, community
engagement, even the choice of a place to worship should
be factored into the way you go about the purchase process.
Ask your agent to run comparable home sales for the past
two years for a broad sense of whether the community is stable,
growing in value or in decline. Investigate the history of the
community you’ve chosen to measure against pre-recession
levels. Evaluate the factors that will make a difference in the
quality of your life. Having reviewed home and living prices,
the community and schools, decide how much you’re going
to spend and reserve 15-25% above that figure for remodeling
and furnishing expenses.
Tap your network to find an agent who is qualified to serve you.
If you are moving to a new market and your previous agent is
connected to a network, consider asking them for an introduction
to an agent with roots in the local market. After you’ve chosen an
agent talk less about how much money you want to spend and
more about how you want to live. Neighborhood, home design,
yard features and access to the things you like to do should all be
factored into your discussions.
The value of real estate is inevitably a significant part of your asset base. It is also the place where
you will live, so it behooves you to take time reflecting on the needs of your family and personal
sphere to make decisions based on the life you wish to lead, rather than the gains you expect from
an investment.
No matter where you live, a home is better understood as a cash enterprise in consumption rather
than the gains you expect from an investment. Ultimately the purchase of a home can be the
happiest experience of your life.
Lifestyle
Choices
Personal
Connections
Financial
Viability
Work with a
Professional
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