Opportunities for Asia: Luxury Travel

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

Survey of Affluence & Wealth by the Harrison Group and American Express PublishingSURVEY 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 2011SURVEY DATE: 2011

Analyzing industry trends and interviewing international luxury travel buyers and suppliers in Asia (Singapore), Europe (London) and the Americas (New York).

RESEARCH

LUXURY OVERVIEW

TOP 3 PRIORITIES

BECOME HEALTHIER

SPEND MORE TIME WITH FAMILY

SEE MORE OF THE WORLD

67%of these consumers

consider themselves happy

76%consider themselves

successful in their personal lives because they have more control

of their finances

Family ranked as the top passion at 61% followed by travel at 53%

This year, luxury spending is forecasted to increase to $27 billion, with an 11% rise in luxury travel.

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SOURCE: INTERNATIONAL LUXURY TRAVEL MARKET REPORT 2011

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

of Respondents to the Survey of Affluence & Wealth:

21% OF T+L READERS PLAN TO

VISIT ASIA IN THE

NEXT YEAR

Hong Kong

Thailand

People’s Republic of China

Vietnam

Singapore

Japan

India

Cambodia

Indonesia Malaysia

Maldives

South Korea

Philippines

Taiwan

Macau

Nepal

Sri Lanka

Laos Myanmar

40%

34%

26%

20%

12%

8%

35%

28%

21%

15%

8%

11%

7%

7%

5%

4%

3%

3%

3%

1

2

3

4

5

67

8

9

10

1112

13

1415

16

SOURCE: TRAVEL + LEISURE ASIA SURVEY RESULTS, JUNE 2011

2 WHICH COUNTRIES ARE THEY CONSIDERING VISITING?

LUXURY OVERVIEW

T+L READERS SPEND SIGNIFICANT TIME & MONEY IN ASIA

LEISURE TRAVEL

10BUSINESS TRAVEL

8

AVERAGE # HOTEL NIGHTS

SPENDING ON MOST RECENT TRIP TO ASIA*

TV/RADIO AVERAGE SPEND

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

*INCLUDES: AIRFARE, ACCOMMODATIONS, FOOD AND BEVERAGES, SHOPPING, ENTERTAINMENT BASE: TRAVELED TO ASIA IN PAST 3 YEARS

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CITIES ARE THE TOP DESTINATION

AREAS THEY PLAN TO VISIT

BASE: PLAN TO TRAVEL TO ASIA IN THE NEXT YEAR

CITIES

97%

COUNTRYSIDE/MOUNTAINS/FORESTS

67%

BEACHES

47%

4

SIGHTSEEING & CULTURE

ARE KEY MOTIVATORS

Sightseeing

Cultural enrichment

One-of-a-kind experiences

Experiencing the local cuisine and wine

Good value

Adventure

Off-the-beaten-path destinations

Luxury accommodations

Shopping experiences

Friendly people

Stress relief/relaxation

High level of personalized service

Spiritual/well-being retreat

Volunteer vacations

Medical tourism/health travel

55%

31%

19%

17%

16%

52%

25%

17%

10%

11%

9%

9%

5%

4%

2%

1

2

3

4

5

67

8

9

10

1112

13

1415

TOP MOTIVATIONS FOR TRAVELING TO ASIA5

LOCATION + VALUE HIGHLY

IMPACT HOTEL CHOICE

Location of accommodationsValue for price paidLuxury accommodationsReputationSecurity/safetyFree Wi-FiFrequent guest programAtmospherePast experienceBed comfort Knowledgeable + efficient staffLow costOn-premise restaurant/fine dining choicesRoom upgradeRoom choicesAll-inclusive packageComplimentary transfersIn-room entertainment

59%

27%

23%

17%

12%

46%

24%

15%

12%

12%

9%

7%

7%6%

4%

4%

4%

3%

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101112131415161718

6 TOP FACTORS INFLUENCING HOTEL CHOICE WHEN TRAVELING TO ASIA

PERSONAL CONTACT DRIVES TRAVEL BOOKINGS

DIRECTLYVIA PHONE

97%

DIRECTLYVIA WEBSITE

81%TOUR OPERATORS

26%

OTA’S(ONLINE TRAVEL AGENTS:

EXPEDIA, TRAVELOCITY, ETC.)

67%

TRAVEL AGENT/AGENCY

37%

TOP BOOKING CHANNELS

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SOURCE: TRAVEL + LEISURE TRAVEL TRENDS SURVEY 2011

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

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SOURCE: THE LAUNCHPAD, TRAVEL + LEISURE RESEARCH 2011

LOCATION & VALUE

DRIVE HOTEL CHOICE

Location

Value for price paid

Past experience

Reputation

Ability to use frequent guest program

Luxury accommodations

Free Wi-Fi

Bed comfort

Star/diamond rating

Low cost

Security/safety

Atmosphere

Room choices

46%

43%

19%

17%

16%

15%

14%

14%

14%

13%

10%

9%

7%

1

2

3

4

5

6

7

8

9

10

11

12

13

75% belong to a hotel loyalty program

INTERNATIONAL

10DOMESTIC

11

AVERAGE # OF HOTEL NIGHTS FOR LEISURE9

WHEN DO THEY BOOK DOMESTIC HOTEL STAYS?


less than 2 weeks

2 to less than 4 weeks

1-2 months

3-4 months

5-6 months

7-8 months

9-10 months

11-12 months

Over 1 year

26%

30%

30%

9%

3%

1%

1%

0%

0%

9%

21%

35%

21%

10%

2%

1%

1%

0%

# OF WEEKS BOOKED PRIOR TO TRAVEL

LONG HAUL TRAVEL {NON-DRIVING}

SHORT HAUL TRAVEL {DRIVING}

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

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less than 2 weeks

2 to less than 4 weeks

1-2 months

3-4 months

5-6 months

7-8 months

9-10 months

11-12 months

Over 1 year

6%

8%

28%

25%

17%

5%

5%

3%

3%

5%

6%

21%

26%

19%

8%

6%

5%

5%

# OF WEEKS BOOKED PRIOR TO TRAVEL

LONG HAUL TRAVEL {FLIGHT TIME 10+ HRS}

SHORT HAUL TRAVEL {FLIGHT TIME LESS

THAN 10 HRS}

WHEN DO THEY BOOK INTERNATIONAL HOTEL STAYS?

TYPICALLY BOOKED 1-4 MONTHS PRIOR TO TRAVEL

continued10


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Opportunities for Asia: Luxury Travel

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