Luxury Travel, Lifestyle and Marketing Trends

Real People

Dolce-And-Gabbana-Senior-Ads-Summer-2015

The rise of selfies, success of “Real Housewives”, interest in story telling: advertising and magazine covers with real people had to come. And so it has. This fall Redbook will be forgoing celebs and opting for “real” women on its cover. The women are winners of the magazine’s Real Women Style Awards sponsored by Dove. Said an exec in Adweek, “This is just a way to put our money where our mouths are and actually celebrate these women as being just as cool and exciting and inspiring as any celebrity out there”.

And how about advertising? Have you seen the ads for Dolce & Gabbana lately? A comely model next to  Italian grandmothers that could be off the farm or from some small country village (or without the young model as in the image above). There’s also the ad campaign for Celine with 93 year old Iris Apfel who’s stylish and chic, but not your usual demographic for a high fashion brand marketing campaign. So the age barrier is starting to break and how about weight? A major step forward is Sports Illustrated’s swimsuit issue this year which included plus size models. Plus size women are also more in evidence on national television, in the interview shows.

Interestingly enough, there’s another current, and that’s the recent backlash in France against anorexic models. A debate has been going on in the French Parliament that would set minimum weights for women and girls to work as models as a way to address the serious problem of anorexia. Modeling agencies and fashion houses that employ models whose body mass indexes (BMI) don’t meet certain standards could face criminal penalties. For example, in the index a woman who is 5 feet 7 inches tall would have to weigh at least 120 pounds. Israel already has legislation in place that prohibits the use of underweight and underage models.

And the travel industry? In many cases, it still hasn’t even embraced multi-culturalism and gender diversity in advertising and website images. Fashion almost always leads the way.

A Brilliant Promotion: Miami Beach

kwe blog miami beach promotion

 

An ideal promotion that’s a homerun has several elements:

  • It enables consumer sampling
  • It’s a public service
  • The appeal is to all ages and demographics
  • It’s low cost or no cost and is self sustaining

And so, one of the best promotions I’ve heard about of late is between Miami Beach tourism, the Mount Sinai Medical Center and Destination Brands.

The proposition: 50 dispensers to distribute sunscreen lotion will be installed at different Miami Beach public pools, parks and beach access points near lifeguard stands. The sunscreen is free for anyone visiting the beach. The specific brand is MB Miami Beach SPF  30 Triple Aciton Sea Kelp lotion. This Miami Beach brand of lotion was launched last year by Destination Brands to capitalize on the Beach’s brand and tie in with the city’s Centennial celebration this year. The product, part of a line, is also sold in retail shops in Miami Beach and  in some markets abroad.

Mount Sinai invested $25,000 to fund the dispensers. Destination Brands funds the sunscreen through revenues from the MB lotion sales.

The Beach gests a percentage of the sales revenue from this year.  “It’s an opportunity for us to increase our brand awareness and generate some revenue,” said Max Sklar, director of the Beach’s tourism, culture and economic development in an article in the Miami Herald.

Sounds like a win-win-win for everyone.

 

Photo courtesy of miamiherald.com

Gen Z and Media Habits

genz

 

They’re called Gen Z, the Centennials and the Homeland Generation (not sure why this name). They’re under 14 years old and their media habits and attitude toward content are the next logical steps in the world of digital media. Before reading an article on the topic by Scott Hess in Adweek, “Post Gen will Remake Our Media”, having seen the way this age group uses their phones and electronic toys, I anticipated some of these trends but was surprised by others. Here are the shifts:

 

  • With the ubiquitousness of advertising, one would think Gen Z would tune out, immune to their messages. Not necessarily so. They’re not immune if they’re not bored. They view advertising as another form of content. May the most interesting content win. The prize? Their attention.

 

  • Video, video, video. They’re highly visual and demand content be short.

 

  • In the competition for their attention, he who compels views now wins. The challenge is to motivate them to tune in, read, act right away or you’ve lost them. It’s all about urgency.

 

  • This one’s a surprise. They look to their Gen X parents to guide them in their content choices and consumption times. As Hess wrote, “Under 14 and under the tutelage of Gen X parents who themselves are massively adept at calendaring and multitasking, these Post Gen kids have given over the planning rei,ns entirely content to reside nose first in their devices until someone tells them otherwise.

 

  • It’s all about being real and being real means multicultural. “Post Gen won’t settle for a whitewashing”.

 

Photo courtesy of www.studenthousing.com

 

Foodie Crime

Cruffin

Cruffin

 

With the foodie craze on the consumer side commanding ever higher prices for restaurant meals especially in the form of tastings with wine pairings and on the other, the business side, opportunities for instant celebrity stardom, possible franchises or IPOs and the money that goes with it, foodie crime had to come.

And come it has. First, at Christmas 76 bottles of fine wine were stolen from Thomas Keller’s French Laundry restaurant north of San Francisco. The wine was valued at $300,000. And more recently all of the recipes were stolen from Mr.Holmes Bakery in San Francisco – recipes and nothing else. Why could this be? It turns out that Ry Stephen, a 28 year old pastry chef invented the cruffin, a muffin croissant hybrid that has created a frenzy in the city, much as the cronut did in New York. They sell out before the long line is gone. Selling at $4.50 each, the cruffin is said to take three days to make the ice cream cone shaped bakery item and comes filled with caramel, strawberry milkshake or Fluffernutter cream, among others.

Where will the foodie thieves strike next? Better put those recipes in a safe.

Photo courtesy of www.abc7news.com

Is the Term PR Dead?

The term “public relations” may be on its way out according to an article in O’Dwyer’s, a leading PR industry publication. Of 103 members in the PR Council, one of the leading organizations of prominent firms across the US, only eight use PR In their titles. And at the 2014 conference of the PR Society last October, only 11% of the 1450 registrants used PR as a part of their title. The word “communications”, however, was used by 386 or 26% of the registrants. One of the problems with this name change is, in this age of twitter and other social media, communications takes up too much real estate!

I never really liked the term PR. It might be because I always have to explain it. Most people don’t know what it means, many taking its literal meaning — dealing with the public as in  guest relations, customer relations or giving events. I remember years ago in walking around a tony area of Madrid I saw a sign, courses in public relations and learning to be an airline stewardess. Today, it’s not that bad but it’s still not understood.

“Communications” is certainly a clearer term, but it doesn’t begin to cover the breadth of what PR can be, especially in today’s business world, where the discipline has some overlap with strategic marketing and branding. “Communications” also seems a kind of passive term to me, not reflecting the creativity and proactivity of the job. An expanded role in all aspects of content management is becoming an increasingly part of PR’s role, but it also wouldn’t suit as a title.

So, you’re probably asking me what term do I like? I wish I had an answer. Any ideas on your end?

 

 

Extreme Romantic Travel

Flash mob for a wedding proposal

Flash mob for a wedding proposal

 

Romantic travel. It has a new twist as in extreme romantic travel. And we’re seeing it in everything from couples getaways and wedding proposals to honeymoons and weddings. It combines often luxurious settings with one-of-a-kind, over-the-top romantic experiences that couples might someday tell their grandchildren about.

Get this….for wedding proposals, how about a customizable flash mob? For those unfamiliar with this, it’s when a bunch of seemingly random strangers who happen to be hanging around, all of a sudden start dancing together to a song, which usually culminates in the end with something momentous, e.g. A wedding proposal.  These “strangers” are actually a combination of professional dancers and local volunteers who are recruited in advance and who train for this specific performance.

The luxury boutique hotel Napa River Inn in downtown Napa, California offers an “I Will” package where the “strangers” will be milling around on a patio downstairs, while a song begins to play.  Meanwhile the couple will be looking out from their hotel balcony at the view, or they will be downstairs on the patio, having a drink when the song begins.  The proposer can choose the particular song and the dancers will be choreographed to it by a professional in advance. Then, the Inn follows up the offering with a cleverly named “I Do” honeymoon package.

Adventure and extreme travel is an international trend as well.  A recent survey of 2,000 people in the UK revealed that the top modern honeymoon activities included such things as: zip lining, dolphin encounters, paragliding, cage diving with sharks, etc.

Meanwhile, this year several U.S. hotels offered “extreme” Valentine’s Day promotions, e.g. The Affinia Hotels had a “Naughty or Nice” promotion that included a strip poker set. The Renaissance New York Hotel 57 offered the “World’s Sweetest Suite” promotion, with more than 300 pounds of candy provided by Dylan’s Candy Bar creating a giant fantasy candy land suite for guests.  The Algonquin Hotel in New York brought back its publicity generating  $10,000 martini, that has a preselected diamond sparkling on the bottom.

So forget the chocolates and the flowers.  In the romantic travel ideas department it’s time to dive into deep waters (with dolphins) and get on board offering guests the romantic ride of their life.

New Hotel Revenue Models

the surf office

 

First it was business meetings that moved to Starbuck’s away from breakfasts at hotel restaurants or inking deals in a hotel lobby lounge. Then it was inroom movies, supplanted by laptops with streaming video or DVDs. And what about the legendary “power lunch”? As was reported recently in the New York Times, many millennials are skipping lunch for “crumbs on the keyboard”, viewing it as a waste of time.

What’s a hotel to do? Certainly the “Grab n’Go” concept manages to capture some revenue, provide a service, and appeal to a Starbucks budget and time-strapped business executives. In entertainment. Oz Eleonara,chief revenue officer for interactive content and connectivity provider Sonifi Solutions said there’s a greater movement in hospitality to combine entertainment, information and service to create new scenarios for digital interaction between hotels and guests.” In other words, turn a negative – movement away from current inroom entertainment models — to a positive – enabling hotels to connect with guests via technology. But, in the same article in Hotel Management, Scott Hansen, Director of Guest Technology for Marriott International said the company is looking it as a service and not a main revenue driver.

And now we’re seeing the beginning of the traditional hotel business/resort model under fire by offshoots of co-working spaces. In exotic locations worldwide, the countryside near urban centers, and beach destinations, properties are cropping up that offer communal work spaces, accommodations, and the opportunity to network, have fun and instant companionship.

What need does this address? Liz Elam founder of Link Coworking and executive producer of the Global Coworking Unconference said ,”More young people want work-life balance and maybe vacations completely unconnected are not feasible anymore; maybe people won’t take traditional vacations. But they can go to work in paradise for two months.” New centers described in the New York Times’ “A Desk in Paradise” have cropped up in Gran Canaria (The Surf Office), Turkey, and towns driving distance from Paris and Berlin. Right now they’re small in number and rooms and limited in facilities, but the appeal, especially to the Millennials is strong. They’re truly a new breed of “lifestyle” hotels.

The opportunity is there to expand the formula with new locations, more facilities, and ultimately, an upscale version of the concept. Let’s see who gets there first.

Authentic, Luxury Travel Word of 2014

titos-sticker

 

If I were to name the top three words and expressions in luxury travel for 2014 number one would be authentic,  followed by experiences and sense of place. What really constitutes “authentic”? “Quenching Consumers” Thirst for ‘Authentic’ Brands”, an article in the New York Times got me thinking about it. Is “real” a synonym? Checking in the Merriam Webster dictionary gave some overlapping definitions.Both can mean “true”, “genuine”. But real – and that’s the reason connotation is so important – is not associated with luxury, it’s mostly about not being an imitation. Some of you will remember one of the most iconic tag lines in advertising – Coca Cola’s “it’s the real thing, it’s Coke”.

The word “authentic” in and of itself needs additional qualifiers to be powerful in luxury branding, and that was the gist of the article. Together with the qualifiers, they’re a powerful message. In the Journal of Business Research they cite three elements: heritage, sincerity and commitment to quality.

It’s not enough ,though, to just mention the words. Alone they can seem trite. The goal is to use them in the context of telling a story. A solid example of how this is done well and the sales results that can follow is Tito’s Handmade Vodka of Austin, Texas, The website tells the life story of Tito Beverdige, the founder, and his commitment to quality, while telling how quality is achieved, following a company tradition (“the vodka is made in small batches in an old fashioned pot still using a time honored method and is distilled 6 times”). In 2014 the company sold 1.3 million cases of vodka compared with 365,000 in 2010. Story telling also establishes an emotional connection with the customer which works toward building loyalty in the long term.

Rest assured the top three words of 2014 will be in the top ten in 2015.

 

 

Site Search Tags: No tags for this post.

High End Bricks and Mortar Retail: Last Man Standing

http://media.bizj.us/view/img/4507871/design-district-3*1200xx3264-1836-0-306.jpg

All the signs are there in luxury retail trends. Soaring urban real estate costs. Inevitable lifting of rent controls, most recently in Spain. Struggling popular priced malls. Lower middle class and middle class incomes strapped by stagnating wage growth. And add to this the rapid acceleration of online shopping.  In the developed world malls and mom and pop retailers are going away, the pace picking up steam.

What will replace them? For starters, in the short term, more ubiquitous and ever larger emporiums of global luxury brands and shopping centers geared to the affluent and elite affluent. Every summer when I go to Madrid I see it happening – independent fashion boutiques replaced by the names you know. In Miami, it’s starkly apparent. With Brickell’s CitiCentre project by Swire Properties, Miami-Dade County will have four high end shopping destinations – Bal Harbour Shops, Village of Merrick Park, and the Design District. During Art Basel I paid a visit to the new section of the Design District and frankly couldn’t believe my eyes – I thought I was transported to Beijing and the shopping center adjacent to the Opposite Hotel (operated by Swire Hotels).

I wrote “the short term” because I think that longer term, the affluent will be looking for more alternatives to the same global designer fare you find in Paris, London, New York or Shanghai. LVMH, Hermes and others have recognized this, and for awhile a few years back there was talk about going global and thinking local, as in designing products that were more of the place. I think they were on to something big, but there hasn’t been much talk of that recently. Absent this, and there will come a time when the affluent will look elsewhere, which they’re already doing online.

At the same time, the cost of marketing for small, independent retailers used to make business challenging, but now, with social media, promotion for a small budget is in the cards. And how about rents? I predict independent high end retailers will thrive despite the rents, considering the kind of profit margins they enjoy.

But there’s a lesson here too for smart real estate developers. My advice? To sprinkle their shopping centers with unique shops at mid-high price points to not only provide variety, but also, draw in the lesser affluent who can make one time luxury purchases and patronize the restaurants and bars. I read that CitiCentre plans to do this very thing. The shopping part of the project is run by the owners of Bal Harbour Shops. It will be very interesting to see what they do. Stay tuned.

 

 

 

 

Baby Boomers and Retirement Niches

Noho_Sr_Arts-501

 

Arguably the most well traveled generation in American history, Baby Boomers, used to the new and different weren’t content with the same old, same old. They helped propel the niche economy, facilitated by technology. We’ve seen everything from special interest cruises and tours to dating sites and ever more niche culinary sensations which we’ve written about over the years. It’s no surprise, then, that in their retirement, boomers are looking for senior-oriented communities to pursue their special interests with the like minded and to be more active in body, mind and soul. And their numbers and healthy assets are propelling a growth in this newest niche.

True, some sports oriented communities like golf and polo have been around for decades. The differences now are that interests are a function of everything from sexual orientation to a wide range of passions and hobbies. Think LGBT focused communities and university based enclaves where residents take classes and have access to skilled nursing care. Others are devoted to the arts such as the NoHo Senior artists Colony apartments in North Hollywood, California with classes in collage construction, creative dance and screenwriting. Probably one of the most unusual is Escapees Care Center in Livingston, Texas, for those with an interest in recreational vehicles and onsite medical treatment.

But don’t think these come cheap. At one multi generational community called NewBridge on the Charles entrance fee for independent living apartments range from $600,000 to $1.3 million besides monthly expenses. The fee is 90 percent refundable but it’s still a major outlay and isn’t risk free.

With the market potential in numbers and price tag, it’s a sure bet to conclude these kind of communities will grow. What’s the next niche?

In an article in the New York Times, Max Greenberg, a senior living adviser and senior real estate specialist in Palo Alto, California predicts we’ll see ones run by large national fraternities and sororities “allowing seniors to once again experience the partying, socialization and spirit of frat life they had in collage. I wouldn’t be surprised to see a Grateful Dead oriented community sprout up in the Bay Area, “he concluded.