Briefing: Hospitality and tourism drive luxury consumption

The latest edition of the Bain Luxury Study has found that the overall luxury market exceeded €850 billion in 2014 and showed a growth of 7% overall. The report says that luxury hospitality (9%) was driving this growth, along with luxury cars (10%).

The worldwide market study states that: ‘The luxury-goods industry in most markets is now driven by touristic spending.’ It says that many tourists are willing to spend more when abroad than at home, and that this is particularly true of Chinese tourists who spend three times more when abroad. It is interesting to note that in 2014 luxury spending within China showed a negative trend of 1% growth for the first time since the study has been published. However, the consumer segment which report calls the ‘upper-middle-class “wannabe”’ in China is expected to double by 2017.

In this briefing experts discuss luxury brands and consumer behaviour worldwide:

In the hospitality market, luxury hotels have had steady growth (up 9%). According to the report it is ‘younger generations seeking superior lifestyle experiences’, who have helped to fuel 5% growth in the cruise market.

Research by the Travel Leaders Group found Luxury hospitality bookings in the U.S are going strong. The survey states that 92% of luxury oriented travel agents had increased or steady bookings in 2014.

The Affluence & Wealth Survey by Time Inc. and YouGov sheds some light on the luxury consumer. In a survey of high earning individuals (predominately American), 78% of people said they enjoy being treated like a VIP. 73% said they worry less about money while on holiday.

So how can brands appeal to luxury consumers? The Affluence & Wealth Survey found that 82% of people prefer brands that reflect their values, and 82% prefer brands that stay true to their history and heritage. There is also a strong use of mobile devices among luxury consumers. According to Criteo, 33% of Fashion and Luxury Transactions are on mobile.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: 60% of Consumers are acting on their conscience

Consumers’ buying choices are increasingly influenced by the social responsibility that brands have displayed, according to new research by Nielson. In the survey, 60% of global online consumers said that they are willing to pay extra for products and services from companies that are committed to positive social and environmental impact. This has increased from 45% in 2011. These attitudes were found to be strongest in the Asia-Pacific (64%), Latin America (63%), and Middle East/Africa (63%) regions.

In this briefing experts comment on how responsible business practice can drive profits and corporate value:

In September in the UK an initiative called Social Saturday encouraged consumers to buy from social enterprises. In relation to this event Social Enterprise UK and the Cabinet Office polled British adults on their attitude towards social responsibility in business. 1 in 3 people surveyed said they feel ashamed when they buy from a socially irresponsible business and 26% said that there is a stigma attached to buying from socially irresponsible businesses.

But this is more than a passive reaction to corporate responsibility. Research by Cone Communications and Echo Research found that 27% of global consumers believed that consumers themselves can have significant positive impact through their purchases. The study surveyed 10,000 citizens in 10 of the largest countries in the world (by GDP), and found that 91% of people believe companies must go beyond the minimum standards required by law to operate responsibly. It would seem that this is a matter that people not only care about but are willing to confront. Nearly two-thirds of those surveyed (62%) said they use social media to address or engage with companies around CSR and 93% said they will be more loyal to a company that supports CSR.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Disengaged employees need some inspiration

According to research by Gallup, only 13% of employees Worldwide are engaged in their work. Similarly worrying statistics have shown up across several studies in recent years. Boston Research Group, for example, found that 27% of corporate bosses and only 4% of employees believe their firms are inspiring places to work. People are vital in hospitality at all levels. Studies suggest that, when it comes to motivating teams, it can be the basics that make the difference, such as positive contact with management and a pleasant working environment.

In this briefing experts share their insights on employee engagement and motivation:

The 2013 study ‘State of the Global Workplace’ by Gallup suggests that it is important to ensure employees have good working lives. This is because “engaged employees are more likely to be ‘thriving’ – i.e., to rate their overall lives highly on a zero-to-10 scale.”

There may be many different ways of dealing with this issue across different companies and hotel brands. One element of Misha Pinkhasov’s (featured) ‘shared value’ approach to business, is to always considering things on an individual level. The approach suggests that companies as a whole need meaning so that individual employees are inspired.

Engagement, or lack thereof, also reflects in a company’s profits. Gallup estimates that employee disengagement costs Germany €112 Bn to €138 Bn per year ($151 Bn to $186 Bn) and the U.K. between £52 Bn and £70 Bn ($83 Bn to $112 Bn) per year.

A report by Towers Watson suggests that good leadership can make all the difference. It says: “in companies where both leaders and managers are perceived by employees as effective, 72% of employees are highly engaged.” This report, Global Workforce Study 2014, also states that whereas some employees may be engaged on a basic level, they are lacking the ‘enablement’ (tools and resources) and ‘energy’ (from a good work environment) to perform at their best. They say that that this ‘unsupported’ worker accounts for 19% of the global workforce.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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