Luxury - Defining the luxury traveller of today

What is a luxury traveller today?
Luxury is rare and not easy to get! It is never an everywhere me-too!
"Let me tell you about the very rich," said F. Scott Fitzgerald. "They are different from you and me." F. Scott Fitzgerald couldn’t have been more spot on.
We know about different luxury related groups, the "rich", categorized by marketing gurus: Affluent, HNWI (High Net Worth Individuals) and UHNWI (Ultra High Net worth Individuals). The "poor" among this money loaded clientele are the Affluent.
It is the similar group in our todays societies, as in the beginning of the industrial revolution or later during BELLE ÉPOQUE (bɛleˈpɔk), and earlier with the very beginning of capitalism. The very similar set of people that payed fortunes for First Class cabins and first real suites onboard BELLE ÉPOQUE, FINE DE SIECLE and heydays 1930s transatlantic liners or later payed lavishly the tickets for a flight in the CONCORDE.
by Earl of Cruise

Infinity pool overlooking the sea - Source: BROWN+HUDSON

Luxury -  So prevalent is this vocabulary is, a careful reading shows this term is applied from toilet paper, cupcake commoisseurship to the MONACO BOAT SHOW. Luxury is used inflationary, not for the real, but for chi-chi.
As luxury travellers’ needs keep evolving, it gets more and more complex to define who they are and what they really want. And most of todays managers have no real clue who these people are, as they never met one, or learned about how they "tick".

Regardless of the language used to describe the tastes and travels of the wealthy, they have an outsized impact on the travel and tourism industry as a whole. Tourism Economics forecasts that the global travel and tourism industry will grow at an average rate of 4.8% per year between 2015 and 2025, but luxury travel is expected to grow an average of 6.2% per year - almost a third greater than travel overall as RESONANCE stated. In fact, in its 2015 Luxury Goods Worldwide Market Study, BAIN & COMPANY found that spending on luxury hospitality grew 7% between 2014 and 2015 - the fastest-growing category in the entire luxury goods and services industry.

For this group of rich travellers the Grand or Palace Hotels in late 19th century during BELLE ÉPOQUE sprouted from the ground ashore, and a certain Albert Ballin invented for them the Grand Hotel at sea, by implementing the Grand Hotel´s standards for the First Class of his ships, beginning with famous AUGUSTA VICTORIA. She was the first real luxurious liner, while up to her the liners, and manny still after, only had been mere ferries with low standards.
Today we see the the same group decribed as HNWIs and UHNWIs, with the same wish to be among each others and not being mixed with the "normal people", despite their social engagements.

But today it is no longer just about targeting who like travelling First and Business Class, or who prefers an above 600 thread-count in their bedsheets, or need a fake 6star branding - but there is no 6th star! It is only a vulgar and silly marketing word, worth for nothing than effect hash. Here we find the most the mass and emerging affluent, that desperately need to be seprated from the "poor masses", as to be seen as part of the rich. The affluent have a "social climbing" problem - not accepted by the real rich, but no longer "belonging" to the "normal people" (working class). For this clientele we have the so-called luxury offers ashore and at sea. In marketing and financial services, mass affluent and emerging affluent are the high end of the mass market. Mass affluent consumers are an important target market for sellers of luxury goods (brands as LOUIS VUITTON, etc.) and cruises. And with this group the marketing managers stop thinking about rich. Are they afraid of the real rich?
The group of HNWIs and UHNWIs are even accept "roughed nature" surroundings, if it is added with spoiling services.

EUROPA 2 of HAPAG-LLOYD CRUISES off Korcula, a sample for "known luxury" from the upper end of mass market - courtesy HAPAG-LLOYD CRUISES

As Yran Storbraten´s design for EUROPA was really near to that of yachts, ending last milenium, the new EUROPA 2 looks like a mass market floating object, where one has released some air to shrink, nothing exceptionel. And for the interior, even after the fresh renovation is said: One wanted, but wasn´t able to raise his leg to pee.

With an ever changing fast-paced global economy, coupled with travellers’ varying needs and personalities, pinning down the ‘prototype’ of today’s luxury traveller is more challenging than it was a decade ago. But on the other hand the luxury traveller is setting future standards, preferences and trends for travellers in general.

Grand Salon (First Class) onboard NORMANDIE, what was golden glittering was gold - courtesy colouring by Steve Walker
When NORMANDIE started taking shape, his mastermind Dal Piaz was aiming in first place at the luxury travellers, and it was realised with two-thirds of the liners space dedicating to First Class with all luxuries of the time. Even today these then contemporary luxuries are a benchmark for luxury ships, but never reached.
Being luxury today, and being the same NORMANDIE, it should be a 400 passenger vessel all over real First Class!

The longer we have to live in the, still existing, 2007 financial crisis, the more we will see more HNWIs and UHNWIs. But except for the affluent there is no real offer in the cruise industry, except a privat charter yacht.
During the aftermath of 9/11 and again during the financial crisis 2007 most "luxury cruise brands" offered and still offer bargains ... the moment you give a bargain your product is reduced to "a sell out" and old, or it was an overpriced product that has leave the storage. But it shows too, the real customer base is - the up market highly volatile mass maket and not a far more stable luxury market.
Despite the 1930s Great Depression, where the then high potentials had been hit by the crisis themselves, todays HNWIs and UHNWIs experience not such impacts.

Luxury travel brands rely on reports and surveys such as SKIFT´s latest report on the latest habits of luxury travellers to get a better grasp of who their target market is. But actually the most managers of the luxury cruise brands, have no background of luxury, means they have no real "luxury genes" as they first did not grow up there, and now create a fake luxury that is only impressing "wanna-be´s". And second most are afraid of that particular customer, as if he would be an alien.
And therefore the so called luxury offers of today are only simple mass market offers from the upper end of the vast multimillion Dollar market.
The cruise industry once tried to open up again the door to real luxury, but refused to open that door and walk trough. They stopped at the upper end and declared it the top of the notch luxury ... what a mistake!

my TOPAZ - Source: YACHT

The real challenging customer in the travel industry is at the lower end of the food chain - an overdemanding, nosy and most clueless and about cruises uneducated group !!!except cruise lovers!!! and/or ship aficionados, who simply enjoy the life on sea, even in a floating amusement park and shopping mall.
Some ways how new brands can get to know today’s luxury travellers better, as any established cruise company can´t go that way - they would make their "luxury" obsolete if they would go real luxury with a single first.

1) Know their numbers and where they come from
The real luxury - in its original meaning! - is not for the affluent, even if they wish, is for the "super rich" of old and new money - HNWIs and UHNWIs.
High Net Worth Individual (HNWI) is a term used by some segments of the financial services industry to designate persons whose investible assets (such as stocks and bonds) exceed a given amount. Typically, these individuals are defined as holding financial assets (excluding their primary residence) with a value greater than US$1 million.However, there are distinct classifications of HNWI and the exact dividing lines depend on how a bank wishes to segment its market. For example, an investor with less than US$1 million but more than US$ 100,000.00 is considered to be "Affluent", or perhaps even "Sub-HNWI". "Very-HNWI" (VHNWI) can refer to someone with a net worth of at least US$ 5,000,000,000.00. By 2007, the expansion of HNWI assets led to the creation of a super class of HNWIs, known as Ultra-High Net Worth Individuals (UHNWIs), i.e. those with US$30 million in liquid financial assets according to the CAPGEMINI and MERILL LYNCH World Wealth Report 2016 or with a disposable income of more than US$20 million. At the end of 2016, there were just over 16.5 million HNWIs and UHNWIs in the world. The United States of America had the highest number of HNWIs (4,500,000) of any country, whilst London had the most HNWIs (357,200) among cities as based on data from the CAPGEMINI Wealth Report.

HNWI Population growth from 2015 to 2016 - courtesy CAPGEMINI

Ultra-High Net Worth Individuals (UHNWI) are defined as having assets valued at more than $50 million. Based on the 2016 CREDIT SUISSE Global Wealth Report (PDF), there are only 140,900 ultra-wealthy.

The report reveals that the United States leads by a huge margin with 70,400 UHNW adults, equivalent to 50 percent of the group total. China occupies second place with 11,000 UHNW individuals (up 640 on the year). Next on the list are Germany, the United Kingdom, France, and Japan.
This number but is only for those who have the controll over ... and those have most a family, so the total number benefitting from these riches is much higher.In the end a group served only by a few, such as concierge travel agencies - e.g. BROWN+HUDSON, NOTA BENE, London, FISHER TRAVEL, in New York (here you have to pay a fee of US $ 100,000.00 only to be listed in their data base - but in the end you get a pampering service).

2) Know their lifestyle and what they want to get out of travel

HNWIs and UHNWIs are not a homogeneous group! They are varying depending on their social and cultural background - e.g. despite bragging with wealth, the European HNWIs and UHNWIs are more shy about their wealth (the head of OTTO Group, Hamburg, was asking FORBES to be delisted on their annual list of rich people!). In Europe it is the attitude - you have money or not, and if you have you don´t speak about; but if you speak about, you desperately need it!
Eastern European, especially Russian HNWIs and UHNWIs,have a more oriental approach to their wealth, similar to US American and most Asian HNWIs and UHNWIs.

QUINTESSENTALLLY ONE - courtesy YRAN STORBRATEN DESIGN

QUINTESSENTIALLY a conciege agency club tried establishing a luxury club cruise vessel, but failed for financing. No luxury hotel group wanted to cooperate and the project was too near to the mass market offers, as too many passengers should have been on board. With the reactions over the 2007 financial crisis the intended vessel finally sank to Nirvana.
A similar reason why we may not see the controvercial discussed Le Nouveau FRANCE, a design created by Didier Spade, which raced last time in 2015 through media. Besides the project was in the end watered down into a me-too mass market project with around 800 passengers.

Le Nouveau FRANDE by Didier Spade - courtesy Le Nouveau FRANCE

Anthony Lassman, co-founder of NOTA BENE GLOBAL, (FB link), a London-based bespoke travel service company, shares that high achievers, no matter where they are from, are hungry to consume travel and are on a constant quest for discovery and unique.

Lassman notes that their expectations are extremely high. "It’s about precision; it’s about knowing individual travel quirks; it’s about top-tier service. Luxury for the UHNW crowd is about space, time, privacy and doing things wherever and in your time and at your pace."

Philippe Brown, founder of the London-based luxury travel consultancy BROWN+HUDSON (FB link) further adds, "Our clients want to do things that no one else has done before and will never do again. This is what Bespoke 2.0 is all about. It’s the essence of personal."

my CHRISTINA O, 99m length, 18 cabins, 36 guests, charter € 560,000.00 per week - Source: ELYSEE
That charter price but is only for the vessel, it does not include the fuel costs, port charges, Food&Beverage, etc. onboard, and not to forget crew tipping, which is 10% of the charter fee

Going back to the Credit Suisse Global Wealth Report, even when they reside in different continents, UNHW individuals tend to share more similar lifestyles, participating in the same global markets for luxury goods.

Rendering of the proposed RITZ CARLTON yacht style cruise vessels - courtesy RITZ CARLTON YACHT COLLECTION

The RITZ CARLTON YACHT COLLECTION is the first real attempt, beside SCENIC and CRYSTAL YACHTS, to attract the HNWIs and UHNWIs
3) Know what they don’t want

Because they are prepared to pay a premium for experiences that either no one has done before, or can only be done once in a lifetime, these luxury travellers do not want to have to deal with petty annoyances.

They are more than willing to pay for someone to worry about the small details for them so they can focus more on the bespoke experience. And they do not want to spend money for chi-chi and fakes, or any other me-too product or experience.

Philippe Brown further adds that their clients expect "trust, personal security, fluidity, access, logistics, control."
Every luxury travel brand looks to create and sell an experience that will resonate with their customers. But, many miss the opportunity to up-sell the experience by not paying attention to what travellers are looking for, and what they're willing to spend money on.
Once in a while there can be the wish for the pure and simple ... but even that simplicity is luxurious, because of the ingredients. 
4) Know that they may want the same things as us but on a much grander level

UHNW individuals, just like us, seek unique and immersive experiences in their travels. However, unlike you and I, they have financial resources that allow them freedom to say that sky is the limit when it comes to possibilities.

According to BROWN+HUDSON, their clients want to do things that no one else has done before and will never do again. "This is what Bespoke 2.0 is all about. It’s the essence of personal. Everything is possible. If it doesn’t exist, we create it, If it hasn’t been done, then it’s time someone did."

A private dinner with Desmond Tutu or opportunities to play a grand piano on stage at Reykjavik’s Harpa Concert Hall are just a couple of examples that BROWN+HUDSON have arranged for their clients.
Other offers can include a private tour in a museum after closing for the public, a concert, a fashion show, etc.

5) Get familiar with the term `Luxpedition´

Perhaps, due to a combination of factors like people having a healthier lifestyle in general, being fitter in general, therefore allowing them to achieve more adventurous bucket list items and also having a more experience-focused mindset, outdoor and adventure destinations continue to get more popular among HNWI and UHNW individuals.

Destinations like New Zealand, Iceland, Norway, and Rwanda (for gorilla trekking) continuously get frequented by luxury travellers with an adventurous side.

Dubbing this type of travel as ‘Luxpeditions’,  BROWN+HUDSON (FB link) says that they try to “make the most challenging journey into the unknown achievable without the inconveniences.”

For instance, the uber-wealthy might choose Papua New Guinea as a travel destination. But they will easily get into a helicopter to get to the back country. Or they may want to stay at an exclusive estate on Mount Kenya that comes complete with a private plane to explore the Great Rift Valley.

Anthony Lassman cleverly summarises it simply: "Even when the ultra-rich are roughing it, they aren’t really roughing it."

Couple on board a yacht  - courtesy RESONANCE, photo courtesy Aaron Gordon

6) Trends 

6.1) Travel as Transformation 

Experiences can only be deemed `transformative´ if they change you. But for the highly evolved species that is the luxury traveler, who has seen and done much, can transformation only come from an out of this world experience? 

6.2) Art as the New Food 

Food was once a quintessential expression of local, a placemaking tool, a destination-maker, and a refuge for connoisseurs and the curious. Today, art is the new food. And travelers, wealthy and otherwise, are developing a taste for it. 

6.3) Well, Well, Well 

Once, there was a world without wellness; now it’s ubiquitous. Today, `Well-being´, a word that includes health, comfort and happiness, is the next addition to the vocabulary of health - and to the aspirations of luxury travelers. 

6.4) Hospitality’s Asian Turn 

As Asian hospitality interests look overseas for growth and aggressively buy up western brands, they’re targeting wealthy travelers from around the world. But they’re also looking ahead to providing accommodation for the ever-growing numbers of Asian leisure and business travelers. 

6.5) Togethering is Everything 

Multi-generational travel has been the biggest trend in tourism for more than five years. Now it’s not changing the configuration of resort and second home destinations as the wealthy demand ever-larger lodgings to accommodate extended families and friends – and sometimes, entire communities. 

6.6) Unreal Real Estate 

Ownership of a vacation home, or many homes, has always been one of the most desirable luxuries for the wealthy. But today, technology is changing the way the affluent access, use and buy - or don’t buy - vacation properties around the world. 

6.7) Warm is the New Cool 

Hospitality design once placed wealthy travelers in an opulent bubble. Then came contemporary interiors, with their rarified materials and clean, hard edges. Now, luxury has warmed up to its surroundings and opened up to the out of doors. But the wow remains. 

6.8) Athletic Pursuits 

As extreme athletics take the place of golf as the go-to pass time for a new generation of executives, destinations and hospitality providers have new opportunities to attract a wealthy demographic that will go anywhere and spend what is costs to maximize their fitness and improve their results. 

6.9) Trip. Advisers 

Luxury travelers want advisors, not agents; they seek connoisseur-level experts who cultivate relationships and deep knowledge of individual needs in order to assemble experiences as unique as the people who will enjoy them. The advisors who will flourish in the future are those who can combine the human element with innovative uses of technology. 

6.10) Higher Flyers
It used to be that a vacation didn’t really start until travelers had checked into the hotel, found a quiet spot by the pool and taken that first sip of wine. But for wealthy, experience-seeking travelers, carriers are making the getaway begin before the plane even takes off. And in a world where flying is drudgery, the journey is once again becoming as memorable as the destination.
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And luxury tourism is far more enviromental saving, than any so called "green" mass tourism offer, especially in the mass cruise business. If you ever have seen a mass market diving spot, e.g. in the reefs of the Maldives (one island is dedicated to 3star offers!) or in Egypt´s Red Sea you may understand. Further mass market tourism revenues are far less than that of luxury tourism. The real going green for the mass market cruise companies won´t pay off that early as they need to have the revenues to survive. The prices they offer are lower than healthy, and therefore they hve to rely on extras on board, and revenues from their shopping on board. the mass market cruiser is spending, but it needs a great number of mass market cruisers spending to reach that of one real wealthy tourist.
Mauritius made this experience with the COSTA engangement, when COSTA was starting to sail through the Indian Ocean out of Port Louis. COSTA is far away from luxury as a 3star budget brand as Andromeda is from Earth. Mauritius benefited only from the fees from the masses transfered from airport to ship, but nothing aside, no revenue in the shops, hotels, bars and restaurants contrary to COSTA´s declarations.
CRYSTAL CRUISES is going as SCENIC in the real luxury with its new products - CRYSTAL YACHTING, CRYSTAL AIR ans SCENIC with its expedition yacht, according to passenger numbers far under 400. But CRYSTAL´s EXCLUSIVE Class is with its 1,000 passengers on board a mass luxury market me-too, despite selling condos on board and having a 1 to 1 passenger crew ratio.
As having a personal contact with Lars M. Classen CEO of RITZ CARLTON YACHT COLLECTION, I know about the background for that particlar project. We had been working together in a high end cruise project, of which parts are incorporated in the newbuildings for RITZ CARLTON. But if the reality is meeting the real luxury is to be seen.
For another project for the luxury it is still under discussion how far the luxury will be - 400 oder even 600 passengers the new KUNGSHOLM V.

SEA DREAM YACHT CLUB service on the beach - courtesy SEA DREAM YACHT CLUB

SEA DREAM is offering its guests an exceptional pampering service, but lacking the modern accomadations reuired by its guests, as too small cabins or double cabins named suites ...

Beside personalised service, without being stiff or servile, there is another major part for being luxurious: SPACE, SPACE and SPACE. This for the privat accomodations as well the social rooms.

Deluxe - How Luxury and Cruise Lost its Luster

Deluxe - How Luxury Lost its Luster

The style of bygone sealife

Luxury - A crystal Chandelier does not make any luxury yet 

Discovery Deluxe - CRYSTAL CRUISES first-ever expedition mega yacht CRYSTAL ENDEAVOR 

Discovery Deluxe - SCENIC ECLIPSE

Deluxe - KUNGSHOLM V (2020+) of SWEDISH AMERICAN LINE

"The 1 percent are looking for the same things from travel - experiences and bragging rights. They just have the means to take it up a few notches beyond the other 99 percent."

Laura Powell