As the global economy struggles, stocks tumble and banks merge amid the most formidable financial crisis in years after Lehman Brothers filed for the biggest bankruptcy in history, the global luxury travel industry is having to work even harder to keep to its clients’ demanding standards.
Yet, despite the major economic challenges facing UK and US consumers throughout 2008, it appears that the luxury travel industry continues to thrive.
Indeed, many see the current downturn as an opportunity for the upmarket travel agent to focus on their key clients. Matthew Upchurch, CEO of influential travel network Virtuoso is one; in his latest column in Luxury Travel (August/September issue, www.luxurytravelmagazine.co.uk), he says that the “new challenge facing us is how to build relationships that people are willing to pay for, particularly in a period of economic slowdown.”
In selling the value of the relationship, it’s key that travel professionals serve the affluent, not the rich, he argues, as there is a vast mindset difference between the two groups. The former have trusted advisers, professionals with whom they collaborate and pay for advice and wisdom; “you are part of a team, appreciated, respected and an expert in lifestyle.” The rich, however, may view fees as the cost of doing business, “thereby making you expendable.”
Some savvy travel providers are making positive changes to meet consumer demands. For example, Rothschild Safaris, a travel company specializing in bespoke African safaris, continues to send clients to Africa on luxury safaris, but timing and budget now play a more prominent role more than ever before.
"Throughout 2008 we have continued to send our clients on custom African safaris, however budget was more of a consideration during the planning process," said Leora Rothschild, president of Rothschild Safaris.
"When planning luxury safaris, we've had to be a little more creative regarding transport and accommodations. We are mixing the very high-end properties in Southern Africa with more intimate four-star properties and increasingly we are rearranging itineraries to make use of scheduled flights vs. private charters,” she adds.
Additionally, the company says it is booking significantly more last-minute travel to Africa than ever before. “Historically, our clients planned safaris at least 12 months in advance, but it's not uncommon to receive inquiries only two months in advance these days. Our luxury travel clientele rely on our first hand knowledge now more than ever as we plan these custom African safaris."
Perhaps signalling that today’s luxury travellers are in need of a little relaxation and more of a break from the depressing economic news, Rothschild safaris has seen an increase in "Bush and Beach" custom African safaris for 2009. While the big game of Africa has always been the main attraction, Rothschild Safaris is increasingly incorporating beaches such as the Lamu archipelago in Kenya, the Seychelles and Zanzibar.
Article by Alyson Cook, editor - Luxury Travel Magazine