With the entire world in our reach and unlimited experiences to be lived, the profile of the future luxury traveller is one based on personal indulgence, of well-earned rewards – hence the term “Reward Hunters”.
Reward Hunters travel the world to reward themselves for their hard work and professional achievements. They are searching for a personalized experience and, according to the report, Future Travel Tribes 2030, published this year by Amadeus, Reward Hunters will not be afraid to spend in order to get it. This means that the luxury tourism industry must discover efficient ways to give this discerning group an individual experience that transcends the prior business models of influencing trends with a S-M-L-XL size fits all attitude.
Pricing gets personal
These new models will also inevitably require hotels, airlines, and other tourism related businesses to personalize their pricing in order to take full advantage of the Reward Hunter’s purchasing power while not losing out on other segments who may be more price-cautious.
Personalizing an offer to meet the desires of travellers who seek personal enrichment and indulgence to reward their achievement-based lives will still allow for a standardized product, but with the added personal details and luxury they are expecting. On the other end, the same basic product can be pared down to continue to have appeal to other more discriminate groups of travellers. A worthy analogy would be to apply the strategy employed by automobile manufacturers, whereupon a basic product is presented and the client can add a fixed selection of optional equipment to meet his or her personal needs. The difference being that the luxury tourism sector will need to have a wider variety of extras that can easily be mixed and matched to create a product that is entirely personal. Not to mention, the international hospitality industry will have to be able to so in real time in order to capture the Reward Hunter when his or her spontaneity peaks.
Reward Hunters are the premium
Reward hunters seek out that ‘must have’ experience. They want to enrich their lives, to stimulate their sense of satisfaction both physically and mentally. In doing so they want to enjoy the highest standards of hospitality available.
Whether it is recovering at a world-class health spa in the Pacific or a weekend escape to New York City, according to Amadeus, the Reward Hunter will be looking to make the experience extraordinary by involving a spectacular event like flying in a private helicopter or attending an international music festival. The Reward Hunter works hard to enjoy these life-affirming indulgences and to make them happen will require, often times with little or no planning, will require new approach to serving the luxury travel & tourism market.
Concierge services reign
The Reward Hunter’s objective it to have a rewarding and memorable travel experience, but they rarely have enough time to organize these experiences personally. This is where an increased demand for specialized concierge services will come into play by giving the Reward Hunter what they want with very little personal effort that would distract from their already hectic work and personal lives. Amadeus predicts that concierge services personal assistants, and outsourced travel management firms will need to be able to make the Reward Hunter’s experience happen at the “drop of a hat”. They anticipate future demand to be strong for these personalized and flexible services, maintaining a current 20% annual growth rate well into the future.
The numbers are clear
According to data released in the Future Travel Tribes 2030 report, the trend towards single households continues to grow around the world. By 2030, they will represent 20% of households worldwide and currently, in Western Europe, approximately 30% of households single individuals. These singles have more spending power and are more interested in the personal experiences made available to them through their increased affluence. Furthermore, even when households consist of multiple members, travelling alone is growing due to busy and often times conflicting schedules. Solo travel is rising especially with the younger consumers who often travel to discover themselves or are looking for self-developmental experiences.
Another interesting piece of data comes from the growth of the world’s urban population, which according to research, will account to 86.5% of the world’s population by 2035. With this comes an increase in economic affluence, cultural literacy, and an inevitable desire to occasionally escape those bustling confines in order to rejuvenate and grow personally.
Although foreshadowed by temporary inequality, the continued concentration of wealth in both developed and emerging markets is expected to provide an ever-growing market of wealthy individuals who possess the means to reward themselves through travel around the world. According to the Organization for Economic Co-operation and Development (OECD), the average income of the richest 10% of the population is about nine times that of the poorest 10%, up from seven times 25 years ago across member nations. Most forecasts suggest this trend will continue well into the future. These future travellers with expendable incomes are the Reward Hunters.
Looking to the future
Based on these future trends and the current growth in luxury tourism, we have discovered there is a definite advantage for hospitality professionals who develop the skills needed to successfully accommodate the luxury tourism sector. The new Postgraduate in Marketing Management for Luxury Tourism has been included in Les Roches Marbella’s programs of study with the mission to prepare future professionals to design strategies aimed at optimizing their organization’s share of segmented groups like the future Reward Hunters. Being prepared with insights into these future growth trends is crucial to being successful in the global travel & tourism industry today, tomorrow, and beyond.