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1BUTNOTASWEKNOWIT.LUXURYTRAVELAUTHORSLucyMcCabe,PresidentChristopherBrewer,VicePresidentWillamAdeney,VicePresident3ILTM(InternationalLuxuryTravelMarket)isacollectionofglobal,localandspecialistluxurytraveleventstakingplaceinsomeoftheworld’smostfascinatingdestinations—Cannes,CapeTown,Dubai,theRivieraMaya,SãoPaulo,Singapore,andShanghai.EacheventintroducesanunrivalledselectionofluxurytravelbrandstoILTM’snetworkofhandpickedluxurytraveladvisors,throughbespokeappointmentprogrammesandnetworkingsessions.Asinvitation-onlyevents,dedicatedteamsinLondonandSãoPaulovetallattendees.Fortheleadersintheworldofluxurytravel,attendingILTMeventsisamust,iftheyareluckyenoughtobeselected.OgilvyREDisastrategicconsultingpartnerforbusinesseswhowanttotransform,innovateandgrowthroughdigital.OurfocusisDigitalTransformation,MarketingTransformation,BrandTransformationandGrowth,leveragingcoredomainswhichincludeBusiness,Brand,CustomerExperience,Influence,Commerce,MartechandDataexpertise.ILTMThecontemporaryAsiantravellerisemergingfrommarketsandmaturingfromgenerationsthatarereshapingandstretchingthedefinitionofwhatweconventionallyunderstand‘luxury’tobe.Asaresult,theyarebringingtheirownneedsandexpectations.LUXURYTRAVELBUTNOTASWEKNOWIT.Thetypicaldefinitionofluxuryisthatitisanindulgenceratherthananecessity.However,inAsia,luxurytravelisnolongeraboutconspicuouslyhighpricesandconventionalbadgevalue;itisevolvingandwemustthereforeredefineluxuryinnewtermsforanewgenerationoftraveller.Thisgenerationeschewstheelaborateandornateandlooksformorespecialised,intimateexperiences.Theyarediscerningtravellerswhonotonlylikethingstolookgood,buttofeelgood.Understated,gilt-freeandguilt-freeluxury,togetherwithpersonalisedexperiences,havebecomethecornerstoneoftheluxurytravelmarket.Webelievethatnowadaysthismarketisdefinedthroughthecombinationoftherichnessanduniquenessofthetravelexperienceitself,notjustthehotelbrandortheflightclass.Accordingly,thisexperiencemustalsodeliveralevelofsocialbraggingrightsthatallowstravellerstoexpresstheirindividuality.Itneedstobeaspirational,enviable-and,aboveall,Instagrammable.INTRODUCTIONbyLucyMcCabe,President,OgilvyREDConsulting-AsiaPacific6GROWTHISNOTALLABOUTCHINA;THEREISANEXPONENTIALRISEFROMSOUTHEASTASIATHATWILLCOMEWITHVERYDIFFERENTEXPECTATIONSFORBRANDS.EVERBLURRINGLINESINTHE‘LUXURYMARKET’;BETWEENMASSANDAFFORDABLELUXURY,ANDBETWEENTRAVELSTATES,SUCHASBUSINESSANDLEISURE.NEWGENERATIONOFAFFLUENTTRAVELLERSARECOMINGOFAGE,ANDWILLFUELCATEGORYGROWTH;THESETRAVELLERSBRINGVERYDIFFERENTDEMANDS,NEEDSANDEXPECTATIONS.Inthisreportweidentifythreekeytrendsandlookatshiftsinhowtheluxurymarketiscurrentlydefined.Thesearealldrivenbyconsumerdemandsandhavebeguntoreshapetheindustrymodel.Forbrands,theimmediatenecessityistodefinewhataunique‘experience’reallyis,andhowyoucreateofferings,servicesandplatformsthatdeliverindividualismatscale.Inthisreportweshareinsightsfromourresearchandanalysethetypeoftravelexperiencesconsumerswantnow,thereasonwhytheywantthemandhow,ultimately,theyexpectthemtobedelivered.Wealsoshareourviewonhowagenciesandbrandscankeepupwithbehaviouralandattitudinalshiftsandreimaginethemselvesthroughplatforms,partnersandtheuseofdatatocreatetrulypersonaliseduniqueexperiencesthatputtheconsumeratthecentreoftheirbusinessmodels.We’vecombinedmarketresearch,marketleaderinterviews,togetherwithafieldstudyconductedwithover1,000Asian‘LuxuryTravellers’.3KEYOBSERVATIONSINOURREPORT7THECONVENTIONALDEFINITIONSOFLUXURYTRAVELHADCLEARLINESDRAWNBETWEENTHEM.UltraLuxuryAffordableLuxuryMassMarketConventionalDefinitionConventionalDefinitionConventionalDefinitionTraditional5-star(plus)luxurywheremoremoneyandstarsequalsmoreluxury.Termssuchasopulence,prestigeandexclusivitycometomind.Theexpectationsofultraluxuryhavechangedovertheyears,buttheimageandkeyinstitutionsremainthesame.Affordableluxurytargetstravellerswhocannotaffordultraluxury,butexpectmorethanthelimitedandstandardserviceofferedbybudgetandmid-markethotels.Luxurycanbefoundinmanytangibleandintangibledetailsthroughoutthestay.Themassmarketinlodginghasgrownstronglyinrecentyears,particularlythroughbudgethotelsandshorttermrentals.Mid-markethotelsalsocaterforthisspace.Alimited,standardandunanimousserviceofferingisattractivetomanytravellers.THESELINESAREBLURRING.Throughourstudy,experienceandindustrypartners,wewouldarguethatthelinesbetweenultraandaffordablearebecomingincreasinglyblurredandinbothcasestheshiftistoauthenticanduniqueexperiences.Luxurytravel,inthisnewcontext,isabouttheenjoymentoftheopportunitieslifehastooffer.Fromthisperspective,itcanbeseenasaninvestmentinpersonalwell-being,acelebrationoftheindividual.9MEETGENERATIONMEWHO?10Thereareabout1billionAsianMillennialstoday,constitutingapproximatelyaquarterofAsia’stotalpopulation.Approximately60%oftheworld’sMillennialsresideinAsia,ofwhichalmostathirdoriginatefromeitherChinaandIndia.[5]However,theluxurytravellersamongstthemalsoincludeGenZwhowill,overthenextdecade,entertheirpeakearningandspendingyears,creatingatremendousopportunityforthetravelindustry.Givenwhatourresearchhasshownaboutth