Luxury tourism: Needs & Profile

Luxury tourism is defined by the ability to stimulate and encourage markets to fully meet both travelers profile and needs.

Luxury tourism: Needs & Profile

Hellenic Organization of Tourism

VisitGreece

Regardless of the economic situation as a direct effect of the COVID- 19 pandemic in a global scale at these times, «luxury tourism» is surprisingly presenting a stable and, in some cases, an increasing demand from travelers , who wish to receive an above average tourism experience in a safe environment while standards, facilities and overall service reaches a top-level performance and are tailored made according to the needs and trends of the people.

Luxury tourism is an activity constantly practiced by the people with substantial material resources, even if their number may fall or rise depending on the economic impact had periods of crisis on areas of activity in which they operate.

This article aims to feature overview luxury tourism, starting with target groups and their characteristics and trends that this form of tourism has in its development, now and in the years to come which are addressed.

Several articles and research show a habit as well as the need of consumption of tourists with high material possibilities, manifested by orientation toward expensive holidays, to express social status they have managed to achieve, to offer them unique experiences and help to their presentation in the society as successful people, with a high level of life.

Luxury tourism: Needs & Profile

However, the need for safety in today’s world is also making people even though with limited financial resources to search and request primarily for “exclusivity and privatization” as the main element of their holidays package even if that means less days of holidays for them.

Several authors define luxury travel as the condition in which people seek experiences in a place away from home at a level bestowed only to those, who can afford and desire a degree of exclusivity and full quality service presented in an efficient way.

In other words, luxury tourism is a type of travel activity that involves a segment of people, who do not mind spending for high quality comforts, services, and products in a destination.
Luxury tourism: Needs & Profile

One essential point to note is that luxury tourism does not take place only in a destination, where there is a six-star hotel with a presidential suite.

Luxury travel experience also takes place in a mode of transport like an airline’s first-class cabin or a yacht that sails with a private skipper and security.

Luxury tourism may also consist of visiting or staying in the most elusive or exclusive of places, where privacy, exclusivity, upper scale service, peace and tranquility prevail.

These places increasingly defy the stereotypical concept of luxury travel.
Luxury tourism: Needs & Profile

A corollary to these places is the changing consumption patterns of the wealthy. Increasingly, destinations and commercial product advertisements have changed their language from one that is of high value to a more sensual experience.

The experiential mode plays a very important part in the design we call luxury tourism.

Developing destinations in the operational sense refer to the places that are at a stage of growth but not sufficiently productive or efficient in managing Luxury Tourism, Developing Destinations resources.

While the social and economic factors can be independent compositions of a luxury destination, there must be a certain level of infrastructure to attract luxury travelers.

Several articles studied the synergies within the tourism industry where facilities such as accommodation, entertainment and other attractions combine to determine the growth of a destination in the TALC path.

These are consumers, who are brand conscious and seek a refined way of living a good life while many such type of guests/traveler purchased luxury branded products and hire services due to the social circle where individuals follow or learn from others.

They primarily change their behavior to influence perceptions that lead to prestige and status in society.

With the development of technology and new means of transportation and facilities, most people seem to be looking to explore the beauties of nature with the majority choosing luxury and quality.

Specifically, in the field of tourism, people, due to daily and intense work schedules, increasingly choose quality accommodation in luxurious places, allowing them to distance themselves from the toxic pressures of everyday life.

For most of these people, their personality is represented by a tendency for spirituality and introversion, as there are many cases of people, who choose expensive and luxurious destinations, to get in touch with their inner selves and find peace.

Given that luxury is selectively limited and elite specific, the focus tends to be on a specific class of travelers.

A profiling of these type of guests will be attempted to identify better their characteristics as well as psychological needs.

The Super Elite:

For most people luxury means the finest facilities and materials used in combination with the highest standard of service enabling a profound experience when the feeling of being exclusive, and the overindulgence, makes someone feel pampered and special.

The expression often used is “Luxurious accommodation, with premium services”. Luxury is a state of mind, a feeling for aesthetics, and a fine taste for details.
Luxury tourism: Needs & Profile

Luxury is a feeling of peace that everything has remained untouched, pristine awaiting your arrival: Your name written on a towel, your perfume in the bathroom, your favorite dish served in a timely fashion, and anything else your heart desires, all to satisfy you …the customer.

The Super elites require high-quality facilities and first-rate amenities for their travels, and they are willing to pay a high price.

The Classic Elite:

The physical structures, facilities and amenities desired by the classic elites are not necessarily expensive and incur high cost. They put more emphasis on value, a symbolic luxury…the luxury that one cannot place a price tag on.

Some examples given on luxurious facilities for the Classic elites are:

Secret, hidden, off the beaten track. No typical franchises -local businesses, sustainable environmental, learning -non-commercialized culture.
A day hiking trip through a pristine mountain forest to a clearing, where you are offered raw organic food and take part in mindfulness meditation and yoga.
Accommodation in a medieval castle at a cost of $4k-a night(?)… luxury that allows you to feel you have stepped back in time.
Personal self-indulgences such as a rare bottle of wine or Champagne or a meal served on an original antique farm table with a price of over 1000 euros.
Something becomes luxurious, when it isn’t easily obtainable regardless of the price tag associated with it.

Lately, we also have the term of the “Hybrid consumer” in use regarding these customers that are willing to trade up and purchase “luxury products” if these products are perceived to offer something extra, have emotional ties to the consumer or if they want to show status amongst their peers.

This is interesting for tourism and hospitality organizations who need to understand that the marketplace should no longer just be targeted at the usual wealthy and luxury consumers but that consumers from the middle range, or even lower middle markets.

As potential consumers they feel that the products being offered to them will actually add value to their experience, even if it’s a once in a lifetime opportunity to consume these products and services.

This concept does not necessarily fit with traditional and stable luxury consumers, who wish to buy exclusivity from the “norm”, but is one that tourism and hospitality providers need to recognize.

Whilst the average low-cost consumer may typically be unable to purchase luxury tourism and hospitality products and services, there are these customers, who may save or loan money to experience luxury for a special life occasion such as a wedding, honeymoon, retirement celebration or other significant life events.

These also called “new luxury consumers” as those willing to pay 20% – 200% above the normal middle-market brands.

In the tourism and hospitality industry this opens up many more potential consumers to both “affordable luxury” products and traditional luxury products and services that may wish to promote their products and services to hybrid consumers.

In addition to the above, the main characteristic of these personalities is that the people, who choose luxury vacations are entrepreneurs, executives, or people of high prestige, where their daily work schedule and the stress they experience are two very strong characteristics and the creativity, they need to find new ideas and continuously evolve as professionals.

For this reason, a necessary condition for them in choosing their destination is a peaceful place, where they will find rest, and be able to use this rest constructively.

It is no coincidence that our nervous system and our brain have a direct interaction with our stress and creativity.

A typical example is the cerebellum in the brain a part of our brain that controls our movements. The interaction of the cerebellum and the brain supports the processing of mental representations, facilitating creativity and improvisation.

Therefore, the calmer and more relaxed a brain is, the more adrenaline rush it has at a productive level. When we are tired, our brain due to its tendency to over-analyze and try to control our every thought and movement, becomes inactive, resulting in inefficiency.

After all, it is no coincidence that people with serious health problems choose an expensive destination with luxury accommodation.

This is because in these places there is the possibility of activities – depending on whether one chooses the sea, the mountain, or the urban center – with the result that both the body and the soul encounter new stimuli and calm down, experiencing inner completeness and balance.

Some of the activities can be safari, skiing, hiking, scuba diving, yoga, wine or food tasting seminars and other recreational activities.

Admittedly, the Covid – 19 pandemic has affected all businesses worldwide, as well as people themselves, as stress and anxiety about everyday life have increased, resulting in greater anxiety.

However, research shows that people in the Covid-19 era are much more likely to seek out luxury destinations, especially those associated with nature, upscale service, and privacy.

The psychosynthesis of man depends a lot on the energy emitted by the space in which he moves, as well as his psychosynthesis depends on the hospitality and the reception.

When he reaches the destination he has chosen, the first image is the one that is imprinted in his mind.
Luxury tourism: Needs & Profile

Tranquility is the main element of these people and this is what they are looking for, for this reason in the rooms, the expectations are high, as it is the place where they are going to rest and relax.

Some of the rare and top branded amenities and vintage or designers’ products are well appreciated.

At this point we need to highlight another the key element regarding to the role, the attitude and strategy used by the hospitality establishments and their management towards these consumers.

To achieve this, a necessary condition is the selection of the appropriate staff in the respective departments.

Distinguished celebrity chefs, personal trainers, employees with exquisite knowledge, culture, and professional flexibility are far needed by todays Hospitality Industry. Remarkable characteristics in the personality of the employees are the politeness, the good manners, and the warm smile.

These are three personality traits that win over even the most demanding person because most consumers come from different cultures and traditional customs.

An upper-level luxury type hospitality establishment must be ready to meet any needs or requirements.
Luxury tourism: Needs & Profile

Also, just as the elegance of the space is important, so is the elegance of the employees. When one works and is part of a distinguished team, it is necessary to pay attention to their organization and operational procedures.

Furthermore, as a result of the Luxury Tourism trends and development as a wider phenomenon and aspect the Greek Tourism Ministry has also presented six actions plan as part of a tourism sector overhaul focused on quality and aimed at attracting higher income visitors to Greece in the coming years as part of the government’s 10-year tourism strategy during the virtual conference organized by the Hellenic-American Chamber of Commerce and the Panhellenic Exporters Association of Greece.

Looking ahead to 2030 the plan focuses on actions that will enhance luxury tourism with emphasis on sustainable development and the promotion of genuine experiences for tourists with respect to local communities and the environment.

The six actions presented are:

establishing a framework of operation for long-term leases of property in condo hotels
revising specifications for the creation of golf courses in Greece
establishing specifications and certification for “Glamping” activities (ie luxury camping services)
drawing up a legal framework for the development and promotion of diving tourism
creating new port facilities and entering concession deals for the operation of marinas with individuals with the aim of upgrading services offered.
certifying 12 thermal springs and the formulation of a special plan for the integration of natural springs in wellness and spa tourism, which already accounts for 6.5 percent of the tourism market.

Referring to the above it is clear that the conventional way of understanding luxury tourism is highlighted by top class facilities, amenities and service.

In order to be recognized as a premium destination the levels of service provided by companies and their employees needs to improve to those received in competitive countries, which are currently seen as being more of a luxury destination.

Whilst there will always be a small market for the Eliteluxury consumer, destinations should market themselves towards the hybrid consumer who wishes to “trade up” for memorable unique experiences.

Accommodation and hospitality providers need to ensure that they are on trend, have a sense of exclusivity, and are unique to the area.

Chain brands need to ensure that they re-brand themselves to be in-line with their local surroundings and not exact replicas to one of their other locations in a completely different destination.

In addition, technology and branding are of much importance to the modern luxury consumer as of the methods to approach and create a unique statement that will be immediately desirable.

Service should not be aligned to that of “old luxury” but towards “new luxury” concepts, where each individual is served as an individual in a friendly and welcoming manner embracing the local cultures.

Especially in the field of tourism, consciousness is very important to be able to reflect the real needs of such guests as it is necessary to have an understanding and supply if it wants to be successful in its work and stand out from the rest.

Products and services need to be designed to complement surroundings in order for the visitor to appreciate further the uniqueness of what is offered to them as an overall top-level luxury experience!