Luxury Travel, Lifestyle and Marketing Trends

Real estate developers are joining homeowners in creating the new “must have” space in a luxury home – the Teen Suite or Teen Lounge. And, based on the trappings and amenities of these new designer spaces, “Go to your room” will no longer be a punishment for teens. To the contrary. A recent article in the Wall Street Journal described a 1,000 square foot teen suite in a Manhattan townhouse, built at a cost of $750,000 that has ping pong and billiard tables, a recording studio, kitchen, and theater for movies and videogames. Posher yet is a Michigan home with what they call a “kid zone” with two master suite size bedrooms, a movie theater, full kitchen, indoor basketball court, DJ mixing station and sleepover space with hanging bunk beds. In luxury condos, it seems it’s no longer enough to have a kids playroom. Now Miami condo Jade Signature will have a teen lounge complete with the latest motion sensor videogames, a computerized blackboard system and ping pong tables.

The travel industry, on the other hand, has been slow to successfully address the teen market, though there have been fitful attempts for over 20 years. Granted, it’s not an easy challenge as many have seen. Most hotels, when they have done something, settle for a lounge where teens can hang out, enjoying a game of ping pong and billiards, videogames and movies. Where hotels have met success (and increased revenue) is with teen spa and beauty treatments — for teens alone and mother/daughter and father/son offerings. Probably the travel industry segment that has done the best job are the major lines in the cruise industry. A good description of the programs is in www.thecruisecritic. Many divide their programs into “tweens” – 12 to 14 and “teens” 15-17. Besides a dedicated meeting space , they offer a full blown activity program ranging from parties and nightly disco to sports competitions, dance classes and even a take off on America’s Idols, “junior Star Seeker”. It helps, too, that the larger ships have a variety of sports facilities, like Royal Caribbean’s ice skating rink, rock climbing wall, mini golf, and basketball. These serve, too, for opportunities for parents to share activities with their kids, making for bonding, much sought after today. Special food options are offered as well, such as NCL’s teen passport where for $34.50 a teen can order 20 smoothies or other non alcoholic drinks.

Not only do teens have a voice In impacting travel choices, but also, today’s teens are tomorrow’s twenty something adults. So I say to colleagues in the travel industry, invite your creative minds to address this market. The opportunities are there for the taking.

I was recently a panelist on “The Changing Face of PR” at the ATME Conference (Association of Travel Marketing Executives) in Miami last month. With social media, depleted editorial staffs in the nation’s leading newspapers, declining viewership in network TV, and the “consumer terrorism” of online reviews, what does all of this mean for the PR industry today? My topic, ‘Top Three Must Do’s in PR’ in today’s world helps PR Pros tackle these issues:

1. Produce Quality, Quantity and Diverse Content

-        The good news? There are abundant distribution channels that exist today to get your message out. But you must be present across the consumer’s behavioral path, because each is a potential contact point and integrating these marketing channels can provide a comprehensive approach.

The 3 P’s of traditional PR content are still valid – product, packages, and promotions. But now we need to think beyond these and create content that addresses the psychographics of your target markets, e.g. their special interests and passions. Think not only in niche terms, but micro-niche.

-        A growth area for content is service articles, traditionally the staple of B2B programs. There are endless opportunities, e.g. articles on tips, how-to’s (look at ehow.com’s success), and top 10 lists via slideshows which the media love, as well as copy.

-        Content that shows thought leadership and innovation to establish clients as an industry authority, a source for the media. Admittedly it’s a process, but once you achieve this, it’s the gift keeps on giving. Surveys, audits, research are all effective platforms to launch this approach.

2. Customize Your Message to Your Audience, to the Medium

What hasn’t changed in decades is being relevant to the media you’re addressing, using targeted, customized pitches and lists.

-        In a PR GENIE survey of journalists in 26 countries, the #1 complaint (59.5%) with PR is irrelevant PR pitches. That’s up 2.5% just in one year.

-        The #2 complaint (new this year) is mass PR pitching over social media. Messages need to be further refined for each social media channel, as people want different things from Twitter and Facebook, which are still different from Pinterest, Tumblr, and Instagram.

3. Build Relationships with Media; Make It Easy For Them to Experience Your Product

-        Nothing can replace face-to-face meetings and press visits, which remain powerful PR tools. Such interaction helps keep you top of mind when looking for their next source.

-        Following and friending media and other influencers on social media offer insight into their personality, their interests, their travels, stories they may be working on, and plant story ideas. In the same PR GENIE survey, 59% of journalists say they follow and friend PR professionals on social media. 70% have used twitter to post a question to get public reaction and used replies as a part of a story; 62% have done so on Facebook.

-        Also facilitate  relationships with  the product itself. Brand managers are rethinking the traditional presentation of their products and finding other ways to reach out such as pop ups – shops, restaurants, hotels – which celebrate the essence of a brand for a targeted audience or timeframe. Low budget alternatives are DIY packages to create the experience at home.

The following is an expanded version of this speech, which includes industry examples for each topic.

Blogpost by Karen Weiner Escalera, President & Chief Strategist

It’s a different work world out there. And if you believe the projections, by the year 2020 it will be even more different as Millennials (persons born in the 80’s or 90’s) will make up 40% of the world’s professionals. Having a son on the younger side of the age category and working with interns, I see the change in work style and the need to understand and adapt to their special sensibilities. I recently read an article in Public Relations Tactics on how to work with Millennials in 5 easy steps. Very helpful! Here’s a summary:

1. Collaboration:
Don’t be surprised if this generation is quick to give you their opinions. Not only do they feel comfortable doing this, but they expect to be heard and their opinions respected. It’s part of the collaborative way they approach challenges.

2. Customized jobs and professional development:
Traditional courses that the HR department might offer don’t work especially well for them. They learn best by having them define their goals and be involved in their own plan for  training and development. Exposure to  and involvement in professional organizations works especially well, giving them the opportunity to learn at their own pace.

3. Freedom & flexibility:
No surprise this one – they see all aspects of their life being 24/7 so the concept of a 9 to 5 job is alien. They work best working hard for a few hours, coming back to work later after having “mixed it up”, having done something completely different. They’re also open to working not only from the office, but from the road, at Starbucks, home or wherever.

4. Mutual respect:
They’ll be most productive if they feel their opinions are valued and respected.

5. Fun at work:
Lightening up the work environment brings out the best in them. Think work-life balance and having fun in a relaxed setting.

Blogpost by Karen Weiner Escalera

“Nobody Writes Notes Anymore, Do You?” was the title of a blogpost by Ad Exec Bruce Turkel. Always thoughtful and insightful, Bruce got me to thinking more about what my hero Marshall McLuhan said decades ago about “High Tech, High Touch”. Bruce quoted a recent survey in the Harvard Business Review about how the average corporate email account sends or receives more than 100 emails per day and that Americans between the ages of 18 and 29 now send or receive nearly 100 texts per day. So how does one  standout? Think about it. Maybe you don’t open your “snail mail” first but don’t you spend more time with it per correspondence? I sure do.

And it seems that a number of the commenters on Bruce’s blog agreed that it’s a good idea, and have also realized the power of a hand written note and use it in everything from birthdays and holiday greetings, to thanking a new client for the piece of business or for potential client/client interaction. I was wondering, though, what Gen Y says thinks about this?

Then, lo and behold, my newest employee, who is on the lower side of Gen Y, traveled on her first press trip with me to a client property overseas. Our firm paid for her ticket since it was a familiarization exercise that I wanted her to have. But that notwithstanding, she bought me a gift and with it a long hand written note thanking me for the opportunity and saying how much she enjoys working with our firm. That gesture made major points with me!  And in the past year or two I have received thank you notes from college students thanking me for my time in granting them the interview. I wonder if they’re learning this in college, at home, or both. Wherever, it’s very refreshing in this digital age.

Post by Karen Weiner Escalera

“How to Use Social Media without Diluting the Luxury Brand” was the topic of a webinar held by Luxury Daily. The takeaway for “must do’s” were: 1.Make sure you have a strategy that addresses who your audience is and their voice; 2.Take care in who you hire as the Community Manager as s/he is the voice of the brand; 3/Remember SM is a dialogue; 4/Every post should promote the core messaging but also be playful. No big surprises, but everything is worth repeating. Interesting that all panelists named Burberry tops in social media.

Hotel spas, shops, anywhere there’s retail involved there’s opportunity in the take-it-for-granted shopping bag. One company that didn’t overlook this ”evergreen” opportunity is  Nespresso of the coffee, coffee machines and coffee bar fame . They used their shopping bag to highlight a new limited edition of Italian inspired coffees — Napoli and Trieste (which, by the way, are wonderful). I bought some coffee and then went walking on Lincoln Road and popped into Williams Sonoma. Someone in the store asked me if I had tried the coffee and we struck up a conversation about Nespresso. That’s just one person who commented, but how about others who saw the bag and found out about the new product line? How does that translate to hotel and cruise ship retail outlets, and to spas? Selling a new line, new collection, or having a sale? Get your bag to help do the promotion for you. A slam dunk.

Brands are quickly moving into the editorial space, even in some of the more prominent media. Sponsored content is a relatively new form of advertising medium that blurs conventional distinctions between what constitutes advertising and what constitutes editorial/entertainment. This takes me to an article, “Sponsors Now Pay for Online Articles, Not Just Ads” in the New York Times . Forbes has worked with two dozen brands  such as FedEX for over two years on branded content, saying that it’s “not advertising, but it’s about big issues that relate to thought leadership”. The content runs alongside editorial on many sites, which can be ranked and shared on social media along with other articles. Other big names like Mashable and Huffington Post (for Johnson & Johnson and Cisco Systems among others) are doing this as well, drawing the line at a direct pitch to consumers, and it’s very effective.

I often read Eater.com, a foodie blog that covers restaurant, bar, and nightclub openings and closings, reviews, and closely watched lists of what’s hot. With greater frequency, there are more sponsored posts from them and their sister site, curbed.com, and I find myself clicking on them. There are more sponsored tweets as well, but I personally find that medium less effective than blog posts which allow for more information. As far as I and, from what I’m reading, a lot of other people think, as long as the content is useful, informative, and especially fresh, it’s worth one’s time.

In PR, content related to thought leadership as well as what we call “service” information  (other then op-ed pieces) was primarily the stock in trade of B2B  programs. For instance, when we worked for the Service Companies, the leader in hotel outsourcing, we regularly did articles reinforcing their position as the authority in the field, with titles ranging from “Frequently Asked Questions on Hotel Outsourcing” to “How to Choose a Hotel Outsourcing Company”. (see our case study, B2B Brand Building).  Now, with all of the new media distribution channels with their need for content, and the increasing blurring of lines between editorial and advertising, this kind of content is highly effective in disseminating branding messages. The caveat? The company “plug” has to be subtle and very select.

By Karen Weiner Escalera, President and Chief Strategist

An interesting article in Luxury Briefing documented a repositioning trend with upmarket brands.In an about face, a luxury marketing trend 2013, major  players are making strategic moves to switch emphasis from entry level and aspirational products to those driving sales of higher end goods and price points. It’s all about raising the quality and exclusivity, as they look to price rather than volume to be the revenue driver.  We’ve  documented in KWE’s trends letters how the anti-brand movement continues to grow, especially in retail, where counterfeit goods have weakened the appeal of logo merchandise.  Both Louis Vuitton and Gucci report particular sales success with their non- monogrammed products, with Gucci’s leathergoods and exotic skin items posting double digit growth last year.  The big names are looking to slow the rate of new store growth, preferring to concentrate on improving profit margins in existing locations and seeing this as an opportunity to prevent excessive inventory which leads to big markdowns. Raising opening price points, they all would agree,  also enhances upmarket positioning which helps with the most robust segment of the affluent market, hyper luxury . In a similar vein, there’s also a push toward more made-to-order and bespoke in everything from leathergoods and watches to jewelry and fragrance, all available at higher price points of course.

Effective example of discreetly promoting twitter use

So easy to do, and low cost, too. Surprising more shops, hotels, spas don’t do it for events, tastings, openings, etc. Include the twitter handle discreetly placed in the invitation so readers will help you spread the message (see photo of a perfect example of the way to do it). Then, at the event, have a sign that’s prominently displayed that shows your twitter handle. Twitter luxury?  You may say that it’s too commercial for a luxury establishment, and maybe even pushy. To the contrary, to anyone who tweets, and there are millions of us — many affluent, we view it as a service. And it enables you to reach a younger demographic. The other day I was at a  tony membership event for a leading performing arts group that teamed up with a big name luxury retailer in Bal Harbour Shops. We had a performance by members of the troupe (perfect for a short video) and fashion show. Content perfect for twitter (and You Tube). I had to ask what the twitter handle was. Much better if the shop had posted a discreet sign with the information. Plus, the sign would have served as a suggestion for people to tweet what they saw and heard. Easy and effective.

By Karen Weiner Escalera, President and Chief Strategist

Cultural organizations often bemoan the challenge of getting new, especially younger, audiences. In recent years many have formed groups of young professionals who plan their own events. They sport names like “Young Contemporaries”, “Friends of  xxxx, and so on. And now they’re taking this a step further and, I might say, with much success based on the numbers and demographic of patrons at events I’ve been to in the past year.Arts organizations are shaking things up with  interactive events, more about fun and, in the process, reaching out to new audiences.  Earlier in the month I went to the Miami City Ballet’s Open Barre, billed as a chance to get “up close and personal” with the dancers in a 200 seat intimate studio theater. And up close and personal it was, thanks to an interactive discussion with Lourdes Lopez, Artistic Director; a Q and A with the dancers; and live music and dancing. Great fun, and only $25. Nearby the Bass Museum has its “Hot Nights and Cool Jazz” where they open the galleries at night and an outdoor patio is the scene of a live jazz band and complimentary bar.

By far the most cutting edge — and they’re always ahead of the pack — is the New World Symphony’s Pulse 2.0, a fusion of classical and dance music that is part concert, part nightclub, and admission is a bargain $25. Brilliant, the way the symphony hall is transformed for the evening with its orchestra “in the round”: guests surround the orchestra which is in the center of the room. In last Friday’s event while the musicians played works by Shostakovich and Leonard Bernstein among others, abstract videos were projected on the upper walls. Those who preferred to sit (and who arrived early as seating is limited), could enjoy the music and people show from on high. After the concert, legendary DJ Sean Drake spun electronic dance music with strobe type lighting overhead, while the mostly young crowd did their dance party thing. Glad to see how effective this is as it’s critical to the future of the arts.

Post by Karen Weiner Escalera, President & Chief Strategist