LUXURY
at 150 to 200,” added Riley. “The key is to identify the markets that have the depth of business to sustain luxury. There is a lot of product out there which describes itself as luxury but it’s not – you have to provide a level of uniqueness. Our Dubai resort, on the beach and close to Downtown, is quite a rare combination and it will appeal to business and leisure travellers.” Such is the growth of the luxury travel market that according to Allied Market Research, it is projected to reach US$1,154 billion globally by 2022 and grow at a CAGR of 6.4 percent In the Middle East and North Africa, Egypt is the largest market by luxury volume while Dubai and UAE markets account for a combined 61 percent of the region’s current five-star pipeline. But with the growth of the digital market and companies such as Airbnb, consumers are now being provided with a much broader range of choice in terms of where they are going to stay and what they are going to do. Yet, Riley believes this increased competition can help the luxury market. He said: “That’s been a real positive for hospitality, because it’s bringing more people into the industry. But it does mean you need to recognise the range of competitors is broadening. It means you have to work out your point of difference, how you’re going to compete, rather than just feeling there is a market.” Currently, China and India are spearheading luxury growth, with China globally recognised as the largest market for luxury hotels. Demand is also increasing and in 2017 its luxury revenue grew by 7.9 percent. Riley concurs that the “big growth” is coming from outbound
Asian travel, with more people prepared to spend on experiences rather than goods. In terms of the millennials and luxury travel, he said a certain number are willing to spend but they’re a small part of the overall market. Explaining: “In essence, what one’s trying to do is to create something that appeals to millennials but actually is used by those of a greater age group.” Luxury travellers now have the opportunity to experience a hybrid experience that combines the convenience of the internet with the ‘hyper-personalised’ experience of liaising with travel experts to curate bespoke itineraries. One of the key growth areas is destination weddings, where a third party is more likely to be involved in order to design the ‘perfect day’.
THE KEY IS TO IDENTIFY MARKETS THAT HAVE THE DEPTH OF BUSINESS TO SUSTAIN LUXURY. THERE IS A LOT OF PRODUCT OUT THERE DESCRIBEB AS LUXURY BUT IT’S NOT – YOU HAVE TO PROVIDE A LEVEL OF UNIQUENESS
James Riley
This is in line with WTM’s findings in its Trends in Luxury Travel report which highlighted that personal and exclusive experience that ‘let the client be in control’ are becoming increasingly popular. Hotels like Barriere Le Fouquet’s in Paris allow their guests to choose details such as pillow type, the music they want played when they walk in, and even the type of flowers they want in the room. This is especially helpful for hotels as it allows guests to feel that their stay is unique and especially tailored for them, and more importantly, different from all the other guests staying in the same hotel. Increasingly, travellers are happy to tailor their preferences before they travel and are prepared to pay a little extra in order to give their travel experience an element of exclusivity.
Mandarin Oriental Jumeira, Dubai
The lobby at the Mandarin Oriental Jumeira, Dubai
Look out for The Evolution of Bespoke Luxury Travel seminar (April 30, 1.45pm-2.45pm), where brand leaders and travel operators will discuss how established brands can adapt their products and attract customers who are seeking something far more than a generic hotel or resort experience.
ATM PREVIEW 2019
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