A GLobAL SnApshot - International Luxury Travel Market

Luxury Futures:
A gLobAL
snApshot oF new
And emerging
trends in the
AsiAn Luxury
trAveL mArket
By Future Poll, the research division of
The Future Laboratory

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Future Poll : the research division oF the Future laboratory

Opposite page from
clockwise top left: Raffles
Hotel, Singapore; Selfridges
Womenswear Designer
Galleries, London; W retreat
and spa, Seminyak, Bali;
Ulpotha, Sri Lanka; Vivanta by
Taj Yeshwantpur, Bangalore;
Song Saa, Cambodia; Hotel
ICON
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04
05
09
11
25
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contents.
IntroductIon
Methodology
overvIew
luxury travel drIvers
new asIan luxe travellers
asIan travel Futures
Key taKe-outs
iltM asia : luxury travel Futures
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03
introduction.
Asian luxury travellers are a ray of optimistic light amid
the gloom of global economic turmoil. Protected from
recession by economies in good health, they desire
experiences and are using their social media savvy to find
unusual and rewarding travel experiences.
New luxury travel tribes are emerging, representing exciting
and significant opportunities for the brands that can meet
their challenging and sometimes contradictory demands.
W retreat & spa, Seminyak, Bali
Future Poll : the research division oF the Future laboratory

methodoLogy.
This report by Future Poll, the research division of The
Future Laboratory, was commissioned by International
Luxury Travel Market to investigate and forecast new and
emerging trends among Asian luxury travellers.
In-depth interviews with leading industry experts and
analysts were combined with extensive desk and visual
research to produce a qualitative report that identifies key
drivers, and paints a nuanced picture of the affluent travel
tribes that exist across national borders and demographics.
The Governor’s Residence, Myanmar
The experts who offered informed
and thought-provoking perspectives
on the future of the Asian luxury
travel market were:
Alison Gilmore, exhibition director,
International Luxury Travel Market (ILTM)
Doris Goh, vice-president, sales and
marketing, Alila Hotels and Resorts
Richard Hatter, general manager,
Hotel ICON
Gabriela Henrichwark, group
marketing director, COMO Hotels
and Resorts
Nigel Horne, senior vice-president
sales and marketing, APAC and The
Americas, Kuoni Global Travel Services
Lim Hui-Juan, director and cofounder,
Quotient Travelplanner
Vikram Madhok, managing director,
Abercrombie & Kent India
George Morgan-Grenville, founder
of Red Savannah
Priya Paul, chairperson, Apeejay
Surrendra Park Hotels
Marion Walsh-Hédouin, group
director of public relations, Anantara
Hotels, Resorts & Spas
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overview.
It is often said that the devil is in the detail, and that is certainly true for any
brand seeking to address the desires and demands of the Asian luxury
traveller. It is also tempting to envisage Asian affluents as a homogenous
whole, or to make assumptions about their level of sophistication or
expectations based on their country of origin.
Such assumptions must be set aside, as Asian travellers are united by
their level of earnings, their online awareness, and a desire for new
experiences, rather than by their place of birth. We have identified the
luxury travel tribes which are shaping the present and will become even
more influential in the future as follows:
• New Sophisticates are rejecting ‘vanilla’ trips to tried-and-trusted
destinations in favour of Yangtze River cruises, holidays on the
Galápagos Islands and high-end safaris, demonstrating their newly
found connoisseur sensibilities.
• Heritage brands and those that can offer exclusive experiences are
capturing the attention of the Status Hunters.
• Online peer-to-peer comparisons are leading the Young Guns
towards adventures at the South Pole and other relatively unexplored
parts of the world.
• In India, Single Saris are on the move, spawning an all-female travel
industry, while Luxury Pilgrims are demanding religious pilgrimage with
five-star facilities and services.
• Using their £200,000 wedding budgets, Ultra-honeymooners have
their eyes on Bali, the Maldives and Hawaii.
• China’s Frugal Millionaires are demanding value-for-money luxury.
• Eco-luxury in places such as Cambodia is winning the hearts and
minds of the environmentally sensitive, culturally curious Green Shoots.
• Five-star destinations that will cater for multi-generational, extended
family groups are high on the Luxe Pack traveller’s shopping list.
Future Poll : the research division oF the Future laboratory
Opposite page from
clockwise top left: The
Upper House, Hong Kong;
Selfridges Womenswear
Designer Galleries, London;
W Retreat & Spa, Seminyak,
Bali; Women on Wanderlust;
Ulpotha, Sri Lanka; Song
Saa, Cambodia; Chonge
River House, South Africa

iltM asia : luxury travel Futures
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Future Poll : the research division oF the Future laboratory

The expectations and desires of these influential travellers are shaping an
Asian luxury travel future which is exciting and rich with possibilities, but
full of pitfalls for the unwary:
• High service standards in Thailand and Indonesia are driving Service
2.0, forcing travel brands to step up to the plate across the globe.
However, China is struggling to recruit and train staff who can provide
five-star service.
• The new wave of luxury travellers taking advantage of Asia’s steadily
improving air and transport connectivity means that hotel groups face
a circle of supply balancing act, where they need to provide exactly
the right number of rooms and corresponding facilities.
• Home Comforts are a must for the Asian Luxe crowd. Brands need
to provide familiar food and communicate in visitors’ native language
in a way that is respectful and empowering, not as a patronising
comfort blanket.
• Family First travellers are looking for ultra-luxury destinations that
their young families can enjoy too.
• Time-poor Young Guns want travel brands that will Customise and
Curate the bespoke holiday of their dreams.
• Clean Air Adventurers want to escape polluted major cities in a
search for pristine environments, and a taste of forbidden fruit.
Opposite page from
clockwise top left: The
Market Sushi Station, Hotel
ICON; The Hualuxe Brand by
IHG; Cox and Kings Family
Holiday; DDB Canada; The
Strand, Myanmar
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Luxury trAveL drivers.
recession resistance
The UK’s GDP shrank by 0.2% in the first quarter of 2012,
according to the Office for National Statistics, plunging
the country into its second period of recession in three
years, and many eurozone countries are also struggling.
However, the situation in Asia is different.
‘It is well known and reported that Asia is a huge area
of economic growth in the world and that Western
consumers are still suffering from the global recession,’ says
Gabriela Henrichwark, group marketing director, COMO
Hotels and Resorts. ‘Naturally this has had a positive effect
on spending power for travellers residing in Asia.’
China is a case in point. The country is home to more
than 500,000 people with disposable assets of $1.6m,
according to the 2011 China Personal Fortune Report. In
2012, China has 4,000 yuan billionaires, according to
the Hurun Report. Consequently, the number of Chinese
outbound tourists rose by 22.42% in 2011 to 70.25m,
according to the National Tourism Administration of China.
Future Poll : the research division oF the Future laboratory

experience-seeking
A global hunt for bling by Asian luxury travellers is
beginning to evolve into a desire for rare and rewarding
experiences. ‘With regards to aspirations and desires,
high-net-worth individuals in China are starting to spend
more on experiences, including travel and wellness,
as opposed to luxury goods such as fashion and
handbags,’ says Henrichwark. ‘Key drivers in consumer
spend are now more skewed towards experience and
self-reward as opposed to being status-symbol driven.’
Doris Goh, vice-president, sales and marketing, Alila
Hotels and Resorts, sees the same profound shift. ‘China
is the key driver of global luxury. The country has an
estimated 250m people defined as buyers of luxury
who are following the Western trend of spending for
experiences in their travel preferences,’ she says.
Media explosion
Asian luxury travellers are social network
veterans. They scour peer-to-peer reviews
and comparison shop before making their
travel decisions.
‘With the explosion of social media in
the past five years, views and opinions of
travellers and well-known figures are shared
through sites such as Sina Weibo, Facebook,
Twitter and TripAdvisor,’ says Henrichwark.
‘The result is an incredible transparency for
products, services and experiences. Whether
they are looking for a handbag in Paris or a
week in the Maldives, consumers can make
an informed decision on all purchases. It
is therefore vital that all companies follow
through on their brand offerings and promises.’
Goh agrees about the importance of online
interaction: ‘It will be increasingly difficult to
keep the luxury travel experience fresh and
unique and to maintain market distinction.
Companies will need to communicate with
customers through the growing number of
digital media platforms.’
Left to right: Mandarin
Oriental Hotel, Sanya;
Ulpotha, Sri Lanka; Digital
Art Wall, Selfridges Galleries
changing rooms, London
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new AsiAn Luxe
trAveLLers.
Any remaining belief that Asian luxe
travellers are a homogenous mass
whose hopes, dreams and desires can
be stereotyped purely by their country
of origin are finally laid to rest by the
emergence of new tribes that cut across
borders and demographics.
new sophisticates
Future Poll : the research division oF the Future laboratory
A growing and influential minority in China, India and
Indonesia, New Sophisticates are seasoned travellers
who see experience as status. Hotels such as Raffles
in Singapore, with heritage tales to tell, and one-off
boutiques such as The Upper House in Hong Kong, are
typical of their accommodation of choice.
‘Istanbul, offering ancient culture at the end of a four-hour
flight, is a very hot destination with the discerning highnet-worth
individual from India. South Africa is starting to
appear on their radar too,’ says Priya Paul, chairperson of
Apeejay Surrendra Park Hotels (The Park Hotels’ chain of
boutique hotels) and a prominent entrepreneur in India.
‘The day of the vanilla holiday destination is gone,’ says
Vikram Madhok, managing director, Abercrombie & Kent
India. ‘Indian luxury travellers are buying experiences now,
not mere destinations.

So, they will book a specific high-end spa hotel in
the Cotswolds, a golf break at a hotel attached to a
famous course in Scotland, or a gourmet wine and food
appreciation week in Tuscany. Their spend per night
has risen from £300 per person to £700, and we are
seeing double-digit growth in our outbound business.’
The New Sophisticates are becoming more adventurous
too. ‘We are seeing cruises on the Yangtze, luxury
tented safaris in Botswana rather than Kenya, and trips
to the Galápagos Islands,’ says Madhok.
Luxury travellers from Singapore and Indonesia are
targeting European cultural centres that have an edgier
feel. ‘Croatia and Montenegro are becoming popular,’
says Lim Hui-Juan, director and co-founder of Quotient
Travelplanner, a bespoke travel concierge. ‘They don’t
want to tick the boxes with Paris and London any longer.
They are intrigued by countries full of rich European
history and culture, and some that have
recently been touched by war. They are
looking for authenticity and uniqueness in a
destination.’
Goh backs this up: ‘We are seeing the
emergence of a super-active, independently
minded, educated traveller. They want an
authentic travel experience which is highly
personalised, regardless of price.’
George Morgan-Grenville, founder of Red
Savannah, a bespoke travel specialist which
has Chinese, Indian, Malaysian, Thai and
Indonesian clients, agrees: ‘We have just
organised an ultra-bespoke £300,000 safari for
a Beijing businessman and 10 of his associates,’
he says. ‘It involves travelling by helicopter and
bi-plane and bringing down an elephant with
a tranquiliser dart to put a tracking collar on it,
things that no average safari-goer would ever
dream of seeing and doing.’
Service expectations are often high among
New Sophisticates. ‘Many Indian luxe
travellers are familiar with European and
North American service standards and are
accustomed to hired help in the home,’ says
Madhok. ‘Consequently they demand high
levels of service above all else from their hotel
or resort brand of choice.’
Left to right: Stamford Raffles
Dining Room, Raffles Hotel,
Singapore; The Upper House,
Hong Kong; The Long Bar,
Raffles Hotel, Singapore
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status hunters
Status Hunters are brand-conscious consumers who
make up the majority of the luxe market in India, China
and Indonesia. They want to keep up with the very rich
Joneses by visiting marque hotels in Europe and the US.
‘Often they travel to shop at stores in Europe and the
US because this allows them to demonstrate their brand
status. It also shows that they are value-savvy because
retailers abroad sell iconic names at lower prices than
brand flagships in Shanghai and Mumbai,’ says Nigel
Horne, senior vice-president sales and marketing, APAC
and The Americas, Kuoni Global Travel Services.
‘Around 25% of Kuoni’s business in Asia consists of luxury
travellers booking five-star hotel stays for this purpose.’
Breathtaking overseas shopping splurges are the
hallmark of the Status Hunter. ‘I recently met a group
of Chinese high net worths, four women and a man,
who had spent between $20,000 and $30,000
each in Paris in just three days on luxury brand goods,’
says Morgan-Grenville. ‘You cannot overestimate the
obsession with the Hermès Birkin bag in China right
now. People travel the globe looking for brands that
epitomise rarity in order to demonstrate their own status.’
Chinese Status Hunters in particular are exhibiting the tendency
of European and US affluents to seek out brand narratives
to reinforce their own sense of a product’s status value.
‘They want a travel company to arrange for them to see
behind-the-scenes, to allow them to explore the artisan
qualities of high status items,’ says Morgan-Greville. ‘So,
they want to see the workshop at Asprey and to watch
craftsmen working leather and making jewellery by hand.’
Future Poll : the research division oF the Future laboratory
This group’s influence in Europe and the US
can be seen in the way retailers and even
governments are responding and benefiting.
Harvey Nichols, an upmarket department
store in London, saw post-tax profits rise 32%
in December 2011, mainly as a result of
Christmas spending by Chinese customers,
according to a company spokesman.
Selfridges, another luxury store in London,
began accepting China UnionPay cards
in 2011 to cater for a huge increase in
Chinese customers, according to ChinaDaily.
com, while the store’s Manchester branch
has introduced Mandarin lessons for staff.
In February 2012, US president Barack
Obama ordered the Department of Homeland
Security to make plans to reduce visa
application times for Chinese visitors from
four months to three weeks. He believes this
will boost the economy by $850bn a year
by 2020 and will create 1.3m retail jobs,
according to Bloomberg Business Week.
Similarly, Australia is attracting significant
numbers of Asian affluents after making
it easier to get visas, says Morgan-
Grenville, who thinks the UK could do
more to attract visitors from Asia. ‘The UK
insists on the completion of a 13-page
application form, backed up by reams of
official documentation. Chinese travellers in
particular are antagonised by this,’ he says.

Selfridges Womenswear
Designer Galleries, London
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young Guns
Young populations in China, India and Indonesia are
producing a wave of 20 and 30something luxury
travellers. In the US, 50% of Class As (adults with
incomes 200% higher than the average gross salary)
are over 50, according to Euromonitor. In China, 70% of
Class As are under 50.
‘The 35–44 age group is growing rapidly due to the
rising affluence of young business executives in emerging
Asian economies,’ says Goh.
According to Paul, there is a large increase in teenage
and 20something Indians who are travelling alone:
‘Aged 18 to 21, they are the adventurous children of
entrepreneurs who travel to destinations and to music
festivals without their parents.
‘It has never happened before. They are being given much
more independence, much younger, than the previous
generation and of course they have much, much more
disposable income,’ she says.
Exposed to premium Western lifestyles via the internet,
they aspire to the luxury travel experiences enjoyed by
those in the US and in Europe. They use their digitalsavvy
skills to comparison shop, weighing up value for
money and the overall package before making their
choice, according to Paul.
‘This streetwise traveller is a DIY online search advocate
who will be happiest to find the best possible value, as
they can travel off-season at attractive prices,’ she says.
Future Poll : the research division oF the Future laboratory
Hotel brands are facilitating the Young Guns’
desire for online comparison possibilities.
The Starwood Hotels chain has launched
a lifestyle site for young affluent Chinese
consumers, and its W Hotels brand allows
visitors to post live and unmediated Twitter
reviews on its website.
A newly launched Four Seasons iPad app
also allows live and unmediated customer
reviews, and the company encourages
staff to respond immediately to any posted
complaints or concerns.
Bragging rights to new destinations are
key travel motivators for this group. ‘We’re
seeing increased interest in expeditions to
the North Pole and South Pole among late
30somethings and early 40somethings,’
says Morgan-Grenville. ‘They are attracted
to destinations associated with snow, which
they consider to be extreme conditions
because it is rare where they come from.
This gains them face with friends and
associates. Everyone has been to Mauritius,
but telling guests at a dinner party that you’ve
just returned from Mustang, northwest of
Annapurna, bestows major bragging rights.’

Clockwise left: W retreat
& spa, Seminyak, Bali;
W Residences Screenshot;
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single saris
A new generation of middle class Asian career women is on the move, with
the independence, confidence and financial clout to travel solo.
In India, domestic travel brands have not been slow to notice this expanding
new market. Women on Wanderlust (WOW) is just one of several Indian
travel agencies set up to cater for lone female travellers. Others include Girls
on the Go, which is run by Piya Bose; Shireen Mehra’s Women on Clouds;
Kesari My Fair Lady, which is headed by Veena Patil, and Asmeeta Jacob’s
Travel Smart.
All of these companies offer female-only travel packages to Indian and
foreign destinations which are often sold out. Providing safety in numbers,
WOW allows women to meet other like-minded solo female travellers and
to cut costs by sharing rooms. The company uses Facebook and Twitter to
connect to its audience.
The founder of WOW, and a former travel writer, Sumitra Senapata reports
100% growth per year and a wide spectrum of customers: the women are
aged between 26 and 65, and are single, married or divorced. Many are
professionals and some are self-employed.
Leading Indian hotels, such ITC Gardenia in Bangalore, which has sister
properties in India’s major urban centres, are also reaching out to the Single
Saris: with Eva floors reserved exclusively for female guests, they feature allwomen
staff, feminine décor and girly extras such as chick lit and curling irons.
Chinese women are becoming more confident about travelling. ‘Nowadays
the Chinese, and women in particular, have a preference for independent
travel versus group travel,’ says Henrichwark. ‘Independent tourism has been
made much more accessible due to easier visa and passport formalities.’
Future Poll : the research division oF the Future laboratory

Lotus Pavilion ITC Gardenia,
Bangalore; Women on
Wanderlust
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luxury Pilgrims
Religious pilgrimage has never been so popular in India.
In 2010, more than 650m Hindu and Sikh worshippers
set off to pilgrimage sites across the subcontinent, a rise
of 15.5% on the previous year, according to the Indian
government. Adults aged 20 to 30 make up 70% of
India’s religious tourism market.
In India, 87% of the population makes at least one
pilgrimage in their lifetime, while 57% make a religious
trip each year, according to TripAdvisor. The domestic
market for religious tourism is growing by 10% a year,
according to The Bird Group, one of the major hospitality
and travel brands racing to meet rising demand.
Pleasure-seeking pilgrims are aged 20 to 40 and are
upwardly mobile, made rich by India’s booming IT and
service sector. Some have worked and lived abroad and
have mature expectations of the luxury market, according
to Condé Nast Traveller India.
Luxury Pilgrims are not content to sleep in a crowded bunk
house or on the floor of a local community centre, says
the Economic Times. They have disposable income and
are prepared to pay for a room in a fashionable hotel
and for fine dining. They may spend an afternoon in a
spa or visit tourist hotspots. More than 96% of pilgrims
combine their religious duties with a trip to a luxury hotel,
beach resort or urban shopping destination, according to
a 2011 TripAdvisor survey.
Future Poll : the research division oF the Future laboratory
A new luxury train service, Deccan Odyssey,
connects Delhi with five of Sikhism’s holiest
places, including Amritsar’s Golden Temple.
The nine-day service is sponsored by the
Punjab Heritage & Tourism Promotion Board,
a region where 60% of the population is
Sikh. Deccan Odyssey has a spa, fine dining,
multiple lounge cars, butlers, libraries and two
presidential suites. It has been sold out since
its maiden voyage in 2010, despite a $750
per seat price tag.

Ulpotha, Sri Lanka
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ultra-honeymooners
‘Rich Indian families think nothing of booking 200 rooms
at a five- star hotel for 400 or more guests, and flying in
entertainment, food, designers and waiting staff,’ says Paul.
Six Senses Zighy Bay in Oman has two private retreats
which are signature Ultra-Honeymoon destinations. Each
comprises two large pavilions which are joined, and there
is a spa, library, infinity pool and a private beach. A
butler is also provided.
Frégate, a private eco-island in the Seychelles, with its
romantic honeymooners lair, Bird’s Nest, hidden in the
treetops amid 140 species of rare tropical birds, could be
on their wish list too.
According to Alison Gilmore, exhibition director,
International Luxury Travel Market, Bali, the Maldives and
Hawaii are also high on Ultra-Honeymooners’ wish lists,
and for the Japanese, for some time.
‘Japanese clients are high-value and high-spending, but
expect their cultural expectations to be catered for as part
of the package,’ says Gilmore. ‘That means they expect
a home away from home - Japanese speaking staff and
menus in Japanese available.’
Future Poll : the research division oF the Future laboratory
Fregate, The Honeymoon Bird’s Nest, Seychelles

Frugal Millionaires
China’s self-made millionaires are highly price sensitive.
‘They can be extremely frugal,’ says Gilmore. ‘They may
be making a £50,000 booking but they will shop around
and go to the travel agent down the road if he can offer
the package for £50 less.’
‘Five-star destinations are a difficult proposition for new
money entrepreneurs,’ says Lim. ‘They are still new to
affluence and tend to question just how much value for
money they are getting with the high prices such hotels
are asking them to pay.’
Morgan-Grenville has noted the same traits among
Frugal Millionaires. ‘They may travel with the intention
of spending tens of thousands of pounds on designer
brands, but they will stay at a very average hotel because
the accommodation is not the purpose of their stay and
so they don’t want to waste money on it.’
Another challenge in China is for travel
company and hotel staff to understand and to
meet the expectations of these luxury travellers.
‘Travel company staff in China find it incredibly
difficult to empathise with the desires of their
rich clientele,’ says Morgan-Grenville. ‘On the
whole, these Chinese members of staff have
never left their home town, so how can they be
expected to design a luxury trip to Paris for a
multi-millionaire? It’s a situation that offers huge
opportunities to savvy brands that understand
how to strike the balance.’
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Green shoots
Alongside a desire for experience, the first glimmerings
of an environmentally sensitive, culturally curious travel
movement have been detected.
Asian luxury travellers are increasingly aware that they
have rare and exotic destinations on their doorsteps: for
example, Sri Lanka has recently become a key destination
of choice for well-heeled Singaporeans.
‘When the Sri Lankan civil war ended and the beauties
of the country began to feature in travel magazines and
newspapers, eyes were opened to the untouched beauty
just a short-haul flight away,’ says Lim. ‘A hankering
for unspoilt nature is a growing trend and Asians are
beginning to see that they don’t have to travel to the
Amazon to find it. It’s here, in our own backyard.’
Song Saa, a private island resort in Cambodia, is typical
of the brands that Green Shoots travellers are seeking.
It has funded waste-management systems for nearby
villages and has set up a local school providing free
education. It also has an in-house marine biology team
which safeguards wildlife and water quality.
Curiosity about their ethnic heritage is also
fuelling a race by Chinese Singaporeans
to explore China. ‘They go looking for their
roots, travelling back to the village that their
family came from four generations ago,’ says
Lim. ‘Then they stay to explore the big cities,
taking advantage of luxury shopping and
accommodation possibilities.’
‘Environmentally concerned and culturally
interested travellers are on the rise,’ says Goh.
‘Destinations with fascinating cultures and
traditions like Bali, Israel and Peru are growing
in popularity with affluent travellers, as are
destinations which are working to protect
nature and endangered animal species.’
Song Saa, Cambodia
Future Poll : the research division oF the Future laboratory

luxe Packs
Many Asian luxury travellers move in packs, taking large
groups of friends or their extended family with them. ‘The
50th birthday celebration has become almost an industry
in itself for very affluent Indians,’ says Paul. ‘People will
take their entire extended family and all their friends away
with them, almost taking over a resort or hotel.’
Abercrombie & Kent has launched a brochure aimed at
Luxe Pack travellers. The company offers multiple-bedroom
properties which ‘provide the convenience of a single
booking while allowing for the exclusivity and comfort of
a private home’.
One destination is The Somerset resort on Grace Bay
(Turks and Caicos Islands), which has luxury family suites
for people travelling with multiple generations.
The Somerset resort on Grace
Bay, Turks & Caicos,
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AsiAn trAveL
Futures.
Service standards that shake the world,
but present a challenge to Asia’s dominant
power, China, respect-hungry affluents
who want to be offered home comforts but
hate to feel patronised, and a fascinating
circle of supply and demand that appears
to stand classical economic theory on its
head – these are just three of the scenarios
that offer tremendous opportunities to
the brands that get it right, and potential
disaster to those that don’t.
service 2.0
The superb standard of service available in Asian
destinations such as Thailand are making waves
worldwide, forcing luxury hotels and resorts in the US,
Europe and the Caribbean to raise their game.
‘Asian affluents, that is, anyone earning over £100,000 a
year, have at least a driver and a maid at home. A hotel
that offers anything less is asking them to take a step down
in their living standards,’ says Horne. ‘Growing numbers of
Asian luxury travellers will raise the bar in terms of service
expectations across the globe. Three-star European brands
are opening five-star destinations in Asia with rooftop
Olympic-sized swimming pools. Five-star brands must raise
their standards to differentiate their offer.’
However, China in particular is struggling to overcome
cultural barriers to luxury travel brand-building.
Hotel ICON
Future Poll : the research division oF the Future laboratory

‘Five-star hotels are struggling to find, train and retain
enough high-calibre staff. Some have been unable to
open floors due to staff shortages,’ says Gilmore. ‘For
some, there is a danger of running before they can walk
in terms of training and retaining staff, with possible
damage to their brands as a result. Aman Resorts offers
a good example of recruiting, retaining and training
locally sourced staff.’
There are historic and cultural reasons for this situation.
‘Most Chinese people still believe that jobs in the
hospitality industry are subservient,’ says Richard
Hatter, general manager at Hotel ICON in Kowloon,
Hong Kong, which runs a highly respected training
programme. ‘The hotel industry is about serving guests,
but the concept of ‘face’ is very important for the
Chinese, and serving people is equal to losing face.
‘China’s collectivist society makes it difficult
for most Chinese to express their personal
opinion. However, a crucial aspect of the
service industry is being able to make a
decision within a few seconds. Saying
something inappropriate or making the
wrong decision will be feared by the Chinese
employee who does not want to lose face.’
Training programmes focused solely on job
skills are inadequate to the challenge. ‘Training
needs to centre on developing the whole
person, which is difficult due to the high
turnover rate,’ says Hatter. ‘In Shanghai, for
example, on average a front-line employee will
stay with a company for six to eight months.’
Hotel ICON
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subcontinent connectivity
India is leading the way to facilitate travel by improving airline and road
infrastructure.
According to Paul, 12m Indians travel overseas each year, and with a
growing population, currently at 1.2bn people, there is tremendous potential.
‘There has been an exponential growth in domestic and international
connectivity after huge improvements in airport and associated infrastructure,’
says Paul. ‘Airlines are working together regarding flight routes and there is an
explosion of outbound travellers.’
New Delhi’s T3 airport terminal opened in 2010 for the Commonwealth
Games and will handle 34m passengers annually. The departure hall houses
168 check-in counters mounted on six islands, connected to the rest of the
airport by 92 automatic walkalators and 78 aerobridges.
Mumbai’s Sahar Airport is being transformed into an ultra-modern
400,000-square-metre integrated terminal with 52 aerobridges and a
capacity to handle 40m passengers annually.
A futuristic rapid transit system by Ultra Global has been built to bring Luxury
Pilgrims to the Golden Temple at Amritsar, the holiest shrine of the Sikh faith.
It is the world’s largest such system and can carry 100,000 people a day in
200 pods servicing seven stations along a 4.8-mile elevated guideway.
China has also shifted the development of its transport infrastructure into high
gear. Beijing Daxing International Airport, roughly the size of Bermuda, with
nine runways and capable of handling 370,000 passengers a day, will
become the world’s busiest aviation hub when it opens in 2015, according
to a report in the Daily Telegraph. China is planning to open 45 new
airports in the next five years, according to Airports-China.com.
Future Poll : the research division oF the Future laboratory

circle of supply
Forward-thinking brands have created a virtual circle of supply
and demand by taking a ‘build it and they will come’ approach
to hotel construction.
‘Asia seems almost to have reversed the traditional supply and
demand equation,’ says Horne. ‘Hotel groups have created
a huge supply of accommodation, believing that a clientele
existed, and found that they can never exhaust the demand.
That looks to continue for some years to come.’
Sanya, the southernmost city in China, is trying to make itself
into ‘the Miami of the East’ as part of a plan to attract more
tourists from home and abroad. Plans now exist to complete
40 five-star hotels in five years along an 11-mile stretch of the
city’s Haitang Bay. Half of them will be operating before 2015,
almost doubling the number of hotels in Sanya.
China now has 660 five-star hotels and another 500 are either
under development or waiting for five-star recognition, according
to Meadin.com, a web portal for the hotel industry in China.
However, the future will be a delicate balancing act. ‘The luxury
travel industry’s model of supply and demand is a combination
of two cultures that may not necessarily work well together,’ says
Goh. ‘Buyers develop their product in tandem with tourism trends
whereas suppliers (developers) weigh risk factors against the
market’s maturity. The future of luxury travel in Asia will depend on
buyers and sellers working together to meet the demand.’
Mandarin Oriental Hotel, Sanya
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home comforts
A new breed of experienced and demanding Asian traveller
is emerging. ‘New-found confidence is convincing luxury
travellers from Asia that the world should adapt to them
rather than them adapting to the world,’ says Horne. ‘They
no longer want to take their home abroad with them. They
expect their home language and foods to be available
should they require. These are minimum requirements.’
For experienced luxury travellers, the availability of familiar
foods and lifestyle elements is not about wanting the
reassurance of the familiar in an unfamiliar country. ‘It’s
a matter of respect, of face,’ says Morgan-Grenville. ‘By
providing their native food and language, a travel brand
is saying that it respects their needs and desires, rather
than simply wanting to take their money. That’s incredibly
important for Asian travellers.’
The Hualuxe Brand by IHG
Future Poll : the research division oF the Future laboratory
Global companies are bearing cultural needs
in mind when providing for internal travellers
too. For example, InterContinental Hotels
Group, which opened its first hotel in China 30
years ago, has launched its Hualuxe brand.
According to the company, the service and
facilities at Hualuxe hotels will be based on
the four priorities that Chinese travellers want
from an upscale hotel: tradition, rejuvenation,
status and familiar spaces. Hualuxe will open
its first hotel in China in 2013, comprising a
luxury tea house, rejuvenation centre and a
garden to meet Chinese guests’ treasured sense
of balance and nature. The Hualuxe concept
is expected to be rolled out in more than 100
Chinese cities over 20 years.

Family First
Asian Young Guns want luxury family travel options. ‘We are
looking at an explosion in family luxury travel in Asia because
these affluents are young and much more likely to have schoolage
children,’ says Horne.
Four Seasons Hotels and Resorts has recognised this
development by emphasising the family-friendliness of their
Asian hotels and launching a blog called ‘Have Family, Will
Travel – a modern blog for the modern family’.
Ayada luxury resort in the Maldives meets the requirements of
affluent parents, with leisure facilities such as tennis courts and
beachfront infinity pools, along with high-end kids’ clubs and
babysitting services.
Mount Kilimanjaro, Cox and Kings
Four Seasons Resort on Koh Samui, Thailand,
allows Family First travellers to relax by the pool
while children take part in cultural activities such
as traditional Thai games, and seashell and
coral collecting.
Cox & Kings India, one of the oldest travel
organisations in India, and Abercrombie & Kent
offer specialist family luxury holiday packages.
Abercrombie and Kent
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customise and curate
They may be cash-rich, but Asia’s Young Guns are
extremely time poor. ‘Brands which can offer bespoke and
customised luxury travel options will prosper in the years
ahead,’ says Horne.
‘High-level executives are suffering from information
overload,’ says Lim. ‘They know how to research their
travel plans online but they lack the time to process all the
information and to reach a good decision. Increasingly,
they are relying on travel concierges like me to sift through
all the options for them, to join the dots and put the whole
travel package together for them.’
DDB Canada
Future Poll : the research division oF the Future laboratory
The Customise and Curate crowd is drawn to
peer-to-peer travel companies such as Trippy,
a California-based start-up that uses Facebook
to spread tales of travel experiences among
groups of online friends.
Delta Air Lines has launched the Away
We Go travel app, aimed at the same
group. Users link up via Facebook to help
each other plan, promote and share travel
plans. DBB Canada’s award-winning Keep
Exploring campaign for the Canada Tourism
Commission uses authentic traveller-to-traveller
experiences to tell stories.

clean air adventurers
Young Guns from Asia’s expanding, often polluted, major cities
will embark on adventure travel as a way to connect with the
pristine environments on their doorsteps and further afield.
‘Adventure travel will appear on the radars of this group over
the next 10 years, and not just for the sense of exploration
and the buzz of adrenalin,’ says Morgan-Grenville.
‘A lot of these people live in metropolitan areas which are
growing, such as Beijing, where low visibility and poor air
quality as a result of pollution are an everyday reality. The
allure of clean air and unspoilt landscapes will be a key factor
in their travel choices.’
Signs of this can already be seen in the growing number of
Chinese luxury travellers heading for Xishuangbanna, a remote
resort in Yunan province, on their country’s border with Laos.
‘Its sub-tropical climate and unspoilt environment have made
it something of a fabled, Shangri-La destination for affluent
Chinese,’ says Marion Walsh-Hédouin, group director of
public relations, Anantara Hotels, Resorts & Spas.
‘People are going crazy for Burma too. Prices
are rocketing as Asian luxury travellers queue
up to be the first to go there now that the
country is finally opening up. Glamorous,
old, up-market hotels such as The Governor’s
Residence and The Strand are sought after,
along with the handful of boutique hotels that
currently exist there.’
A chance to taste forbidden fruit will shape
this trend too. ‘Gun ownership is illegal in
China,’ says Morgan-Grenville. ‘But we
are seeing a growing group of well-heeled
Chinese booking shooting trips to the UK.
They train with clay pigeons for a day or
two, and then take part in pheasant shoots
in places like Buckinghamshire. It’s about
experiencing things that are commonplace
for affluent people in other countries, but
forbidden in your own.’
The Governor’s
Residence, Myanmar
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key tAke-outs.
Expanding economies, a growing desire for rare
and rewarding experiences, and an explosion of
digital peer-to-peer research is breeding new and
exciting categories of Asian luxury traveller:
Growing and influential New Sophisticates from China,
India and Indonesia, who value experience above status,
are abandoning ‘vanilla’ travel for Yangtze River cruises,
Galápagos Islands tours and bespoke ultra-safaris.
Status Hunters are seeking travel brands which can
offer behind-the-scenes glimpses of the craftsmanship that
goes into producing the iconic products they crave.
Smart brands offer social media review opportunities
to the online-savvy affluent Young Guns from
China, Indonesia and India who are comparisonshopping
their way around the world.
Single Saris, professional Indian women travelling
alone for the first time, are being catered for by
female-only travel services, and by hotels.
Travel brands are offering high-end accommodation
and transport opportunities to the millions of Luxury
Pilgrims in India who are combining religious
pilgrimage with five-star hotels and spa treats.
Young Indian, Chinese and Japanese Ultra-honeymooners
are booking £200,000 wedding and honeymoon
packages in Bali, the Maldives and Hawaii.
China’s self-made Frugal Millionaires are challenging
brands to provide five-star luxury at a discount.
Future Poll : the research division oF the Future laboratory
Luxe Pack travellers, touring the globe
with friends and extended family, are
convincing companies to beef up
their luxury family travel offers.
Sri Lanka, Cambodia and rural China are
popular destinations for the Green Shoots
who are looking for environmentally sensitive
and culturally aware travel opportunities.
Asia’s superb service standards are raising
the bar worldwide, but posing recruitment
and training challenges in China.
Vivanta by Taj Yeshwantpur, Bangalore

New Delhi’s new T3 airport terminal and Beijing’s
vast Daxing International Airport demonstrate the
increased airline and road connectivity that is
driving the next generation of Asian luxury travel.
Hotel and resort brands have created a circle of
supply, building accommodation to drive demand.
Asian luxe travellers demand familiar food and
language from brands as a mark of respect,
rather than for a rush of reassurance.
Vivanta by Taj Yeshwantpur, Bangalore
Asian Young Guns will travel with kids in tow,
necessitating luxury with a Family First feel.
Customised and curated packages
will draw time-poor Young Guns to the
brands that can offer such services.
Unspoilt vistas and pristine environments will
be irresistible to the Clean Air Adventurers
from Asia’s often-polluted major cities.
iltM asia : luxury travel Futures
34

For further information please contact:
Simon Mayle
Marketing Manager
ILTM, ILTM Asia and ILTM Americas
Tel: +44 (0) 20 8910 7868
Email: simon.mayle@reedexpo.co.uk
For media enquires please contact:
Lucy Clifton
Cut Communications
Tel: +44 (0) 20 8334 4008
Email: lucy.clifton@cut-coms.co.uk