Luxury tourism: big hype chasing small numbers

Castle Hotel, Huntley, Scotland.
A perfect luxury destination: authentic, low-key and secluded

So, you are selling luxury travel! How's business? I mean the real numbers, the ones only your accountant gets to see. Yeah … I know, it is very competitive out there. Instead of following the hyped-up press releases, go for a reality check and dig in the obscure and boring luxury travel statistics. Granted, they are hard to come by as the luxury travel tag gets slapped on anything from the true 5-star experience to the overpriced package that could not possibly sell without it. Even hotel class ratings are not comparable from one country to the next, and that is only for the very few countries that do have a formal rating system. But after I show you the facts, I will also point out overlooked opportunities.

Now is a great time to sell Thailand!

Empty chairs in the peak of season

Thailand is in the news again with violent incidents in political demonstrations. As expected, Thailand as a destination is being pulled from travel shop windows in London, moved to the back pages of travel sites in the US and removed from all promotions in the generating markets ... as usual! But let’s look at the facts and see the opportunity:

#1. It is affecting the tourism industry, but not the tourists

Unlike political crises in other tourism destinations around the world, the events in Thailand are not rooted in religious or nationalist extremism. Foreigners and tourists are not targeted at all, they are not even a factor in the political conflict. The disruption and violent incidents have only occurred within the perimeter of the demonstrations and, unlike in previous crises, airports and shopping centers remain unaffected and open for business.

Chinese tourists: The second wave

Chinese tourists are currently the darlings of all tourism related businesses, particularly in Europe being their favorite destination outside Asia. Looking at the data generally referenced in the trade, it’s all good with fantastic growth to come. However, digging deeper into the stats reveals that changes in their travelling and shopping preferences are already happening. It is still looking very good, in fact, the future looks even brighter if you are aware and prepared for these changes.

If you work in the luxury shops popular with Chinese tourists, you have probably noticed that lately, more Chinese tourists speak at least some English, that they are becoming more selective in their shopping, but that they are spending less money, not more!