Luxury Travel, Lifestyle and Marketing Trends

6 Things to Know About Mobile Consumers in 2016

mobile consumers 2016

 

One of the better articles I’ve read lately about the mobile consumer and some powerful statistics was in Adweek. Entitled “Dialing into Mobile Consumers 2016”, here are the article’s 6 major takeaways:

 

  • Mobile purchasing decisions are now heavily influenced by content that users generate and others read, primarily through product reviews and social media
  • Consumers are spending more time in apps than watching TV. In 2015 US smartphone and tablet users spent an average of 3 hours and 5 minutes a day using mobile apps, up from 2 hours and 51 minutes in 2014
  • 60% of buyers use mobile devices to research their purchases
  • If you combine Android and Apple stores there are over 2 million apps for consumers to download
  • According to a Pew report, 90 % of American adults own a mobile phone, 32 % an e reader and 42 % a tablet computer so a multi device approach to mobile purchasing is key
  • Building trust and having authentic content are essential

 

The author of the article on mobile consumers 2016 is Andrew Paradise, founder and CEO of Skillz, a mobile E-Sports company.

Photo courtesy of www.martechadvisor.com

It’s the Little Things That Count

“It’s the little things that count”. That was the tent card in my room at the Crowne Plaza hotel in Gurgaon, India. I couldn’t agree with them more – especially since they delivered on their promise. The hotel was my last stop on a several week trip to India staying at one of the better hotels in each destination which sometimes was barely three star. So the details on my final stop were especially welcome – from Dead Sea Salts for my bath and every other bath and toilet amenity you can think of to preparing a boxed breakfast to go since my departure was before the restaurant opened.

Taj Mahal Palace Hotel

During my trip I experienced other notable and original touches and amenities that will surely remain top of mind long after I’ve departed which should be every hotel’s goal. In the Taj Mahal Palace Hotel in Mumbai it was the manicure kit complete with nail polish remover, nail clipper,  emory board and cream and oil delivered on a tray with rose petals and a hammered brass bowl.

When the laundry was returned, a sachet bag graced the top of the linen cover.

taj mahal palace hotel

Then in New Delhi on the club floor at the Taj Palace Hotel they sent a mini-facial treatment kit.

Even a three star hotel in a rural village, the Dera Village Retreat, staged a dance presentation complete with popcorn and saris on loan for the women and a turban for the men.

dera village retreat

These kind of details and hotel amenities go a long way not only in making memories for guests and giving value add, but creating long term fans plus generating word of mouth and oftentimes press coverage. So Crowne Plaza. It IS all about the details.

A Destination That Does It Right

red inclusive card

You’ve read here about destinations that do it right – social media campaigns (Swedish Tourist Board), advertising concept (Amsterdam Tourist Board) and the UK does an especially good job of capitalizing on country milestones and cultural events. That these destinations are cutting edge probably isn’t very surprising. But would you believe The Black Forest Highlands in Southwestern Germany (Hochschwarzwald) is right up there with some innovative product offerings that show their understanding of what today’s travelers want: product with a sense of place, technology, superior value and experiences.

Let’s start with value. Travelers who stay for two nights or more at any one of over 300 holiday accommodations get a Red Inclusive Card free. Often destination value cards have a lot of features but most of them are of little interest. This is a notable exception. The card with a clever tag line of “experiences included” features not only the usual free admissions to numerous attractions and cultural offerings, but also, free local transportation anywhere in the region, guided electric bike tours, golf, spas, rental of cross country ski equipment, and, most impressive, use of a BMW i3 to discover the Black Forest landscape with climate neutral transportation. Besides the value appeal, the features encourage travelers to immerse themselves in the destination, making for a richer, more memorable holiday.

And then there are the unique accommodations, Black Forest Highland Design Apartments dubbed with the clever name of “cuckoosnests”. With their wood and rock faces, tree stumps for bedside tables and specially designed furniture, they appeal to the growing number of travelers who want to stay in lodging that offers a sense of place.

Is this all working? According to Thorsten Rudolph, CEO of the Black Forest Highlands,   the cards have increased tourism to the area from 2010 to 2014 by 27.5%. Each year about 245,000 cards are given out and since 2010, more than two million cards have been used registered. Especially valued and used are the free entrances to the various activities and highlights including Ski Tickets to the Feldberg, Spa Paradise Blackforest, boat trips on the Titisee. When the Black Forest Highlands Card started in 2010 there were 180 participating hotels and now there are 345. Sounds like a success by any measure.

High End Bricks and Mortar Retail: Last Man Standing

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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.

 

 

 

 

Behind the Scenes Travel Experiences

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It’s natural to think, who would be interested in a behind the scenes look at the engine room of a cruise ship? Or a look at the housekeeping department of a hotel? The answer, a lot of people. One of the favorite pastimes of cruise ship passengers at Carnival is the engine room tour.

In this day and age when all surveys point to an interest in travel experiences, certainly up there at the top are opportunities to see what is happening behind the scenes. This works not only for travelers, but also, for luxury brands in particular. It’s an opportunity to demonstrate craftsmanship, artisanry, expertise. A company that really gets the value of this is LVMH. And when they get behind a concept, they go all the way.

Case in point, in 2011 they launched what they called Open Days in which 25 of their brands from Dior to Dom Perignon opened their usually closed ateliers to the public. Tickets were free, but reservations were necessary. As reported in the New York Times, in year one 6,000 spaces allotted for Louis Vuitton’s workshop in Asnieres were taken within 90 seconds of release; for the Christian Dior Couture atelier it took 3 minutes to fill. They wrote, “From Paris to Poland, where Belvedere vodka is based, some 100,000 people attended the first open atelier weekend. Last year, the total was 120,000 and a third weekend is planned for 2015.”

This is obviously a low cost/no cost initiative and one most products and services could be able to do. Love to hear any behind the scenes offerings you do at your firm.

Photo courtesy of www.nytimes.com