The Changing FaCe OF
• | T h e wo r l d a s y o u r o y s t er | •
The Changing Face Of By Lisa-Ann Lee
Luxury Travel Luxury travel is undergoing a transformation. No longer content with lounging at designer resorts, today’s voyagers are seeking thrills off the beaten path.
W
ith China and India’s markets growing at exponential rates and the number of millionaires in both countries on the rise, suffice it to say that the potential impact this has on the luxury travel market is enormous. Indeed, the World Tourism Organisation predicts that mainland Chinese travellers, encouraged by the growing strength of the yuan and diminishing visa regulations, will be making 100 million trips abroad by 2015. In addition to this, the Chinese National Tourism Agency predicts that overseas spending by Chinese travellers is estimated to reach USD55 billion this year alone. In India, the luxury market is growing at 15% each year and the number of outbound travellers is expected to reach 50 million by 2020. Given these figures, one can understand why luxury travel groups and buyers are so eager to court high-end travellers from these two markets. Launched five years ago, International Luxury Travel Market (ILTM) is a prestigious invite-only annual luxury travel event that has been growing at a consistent rate of 20% every year, says Simon Mayle, marketing manager of ILTM and ILTM Asia, which are held annually in Cannes and Shanghai respectively. With an expected turnout of 1,300 buyers from the Asia Pacific, this year’s event will host 400
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exhibitors including participants such as Lufthansa Private Jet, Song Saa Private Island, Regent Global Holdings, Fijian Tourism and Orient Express. Among the highlights of this year’s ILTM Asia is the launch of a new education programme to help suppliers understand the demands of luxury travellers from the four most important outbound AsiaPacific markets – China, India, Japan and Australia.
What do luxury travellers want? Both travel operators and industry insiders agree that luxury travel is no longer the same as it was a few decades ago. Compared to travellers of old, today’s jetsetters are looking for more than a five-star beach vacation. “Pre-global financial crisis, people would do what we call the fly-and-flop holiday where you’d fly off to the Maldives and spend a week at the beach,” Simon explains. “Now luxury travellers are looking for a cultural experience; they want to know more about the destinations they’re going to and experience the local culture.” Not only that, high net-worth individuals are also looking for a sense of challenge and self-fulfillment. Noting the personality traits of high net-worth individuals, Simon offers, “One thing
M illionaire A sia
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• | T h e wo r l d a s y o u r o y s t er | •
we’d say about millionaires in particular is that they’re very successful in life and they’re used to getting what they want and being able to buy what they want. More often than not, they’re also looking for something that challenges them when they’re on holiday as well. They don’t want an easy experience. In fact, there’s a growing trend of people who climb Mount Kilimanjaro because it gives them a feeling of self-fulfillment and achievement.”
The rise of adventure and eco travel As a result of this new breed of adventure seekers, the industry has also been seeing the rise of luxury adventure and eco travel, two niche travel sectors that have been enjoying significant
growth. In the case of the former, this includes activities such as luxury safaris, heli-ski trips, desert treks and multisport adventures. Luxury travel outfitters such as Abercrombie & Kent now have entire departments devoted to extreme adventures that let wayfarers rough it out without sacrificing creature comforts. More than anything, this trend demonstrates how the definition of luxury travel has changed. “Adventure and luxury are not mutually exclusive concepts,” says Rory Hunter, founder of Song Saa Private Island, Cambodia’s first luxury private island resort where guests have the opportunity to explore and experience the pristine surroundings of the unspoilt Koh Rong Archipelago, kayak up fresh water estuaries and hike through virgin rainforests among other things.
At the same time, a growing awareness of environmental issues among travellers has also led to an increase in development of sustainable ecologically responsible resorts and villas around the world. Though the concept of ecotourism has been around for decades, eco luxury travel is enjoying a resurgence as travellers demand more socially conscientious experiences. Remarking on this development, Rory notes, “Travellers want more unique destinations to experience but they also understand that tourism needs to take a different path if it is to be truly sustainable. They want to travel back home, not only feeling relaxed, but also enriched by local cultures and environments and feel like they’re helping to protect them through the choice of resort they’ve stayed in.”
Song Saa Private Island Resort in Cambodia
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M illionaire A sia
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• | T h e wo r l d a s y o u r o y s t er | •
Facing page, clockwise from top left: Orion Balcony Suite; King penguins on Macquarie Island; the Orion Expedition in Rabaul, with Mount Tavurvur Volcano in the background; snorkelling in Papua New Guinea; Melanisians on Espiritu Santo, the largest and oldest island of Vanuatu
PHOTOS COURTESY OF ORION EXPEDITION CRUISES
Going where no traveller has gone before As a result of this desire to derive a more fulfilling experience from their vacations, luxury travellers are now actively seeking out exotic destinations off the beaten tourist path. As Steve McLaughlin of Orion Expedition Cruises observes, “In my opinion, when people originally start to travel, they tend to do so as “tourists” following a well-worn path to all of the exciting “headline” destinations around the world. As they continue to travel over the years, they become more meticulous in their planning and the actual experiences they have in destinations become more and more important. This is the case with safaris and luxury trains for example as well as expedition cruising.” An Australian-based luxury expedition cruise line, Orion Expedition Cruises specialises in taking clients to remote wilderness areas, such as Australia’s remote Kimberley Coast, that are not easily accessible by conventional means of transport. “A lot of the stunning locations we visit have no infrastructure – that is one of the difficulties in our operations but is often the very reason we travel to these wilderness areas,” says Steve. The company will be expanding its fleet to include its second vessel Orion II, which will be arriving in June. It will operate a range of itineraries from the Russian Far East to the Inland Sea of Japan, where guests can witness the spectacular “Northern Ring of Fire”, the famous chain of 32 volcanoes that stretches from Japan to Russia across the Bering Sea; Borneo and South East Asia. In Borneo, travellers with an interest
in wildlife will be able to spend time with Dr Biruté Mary Galdikas, founder of the world-renowned orang utan sanctuary Camp Leakey, and enjoy exclusive back-of-house access to the camp where they can find out how the baby primates are rehabilitated.
The next ‘It’ destinations In light of the rise of luxury adventure and eco-travel, it might not come as a surprise to know that many industry insiders are viewing Asia as the next destination hotspot for the affluent. “All our buyers are telling us that Asia Pacific is the emerging market,” confirms Simon. Rory concurs, adding, “New destinations are starting to open up for the first time, particularly in South East Asia and once inaccessible locations are now only a few hours flight from centres like Hong Kong and Singapore. Asia has so much more still to explore when compared to Europe and North America, but that doesn’t mean leaving those creature comforts behind anymore.” However, some such as Lufthansa’s Frank Bornemann think that European destinations will continue to be a draw, especially for wealthy Chinese travellers. “European cities such as Berlin, Munich, London, Paris and Rome will definitely be hotspots for Europe-bound travellers as these cities combine both European history and modern life. In addition to that, exclusive destinations such as the high-society spots along the French Riviera and Monaco, as well as Switzerland because of its high-end destinations in the stunning mountains will continue to be popular among high net-worth travellers.”
International Luxury Travel Market (ITLM) Asia will be held from 13-16 June 2011 in Shanghai. For more information, please visit iltm.net/asia
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M illionaire A sia
Rising Stars
Here are four emerging destinations to keep an eye on:
Burma
A favourite with luxury travellers for its unspoilt landscapes, it has been attracting visitors with its growing number of opulent hotels and resorts such as the exclusive Governor’s Residence in Yangon, which is run by the Orient Express. For those interested in viewing Burma’s magnificent pagodas and bucolic wilderness, the company also helms a Road to Mandalay luxury cruise that takes guests from the royal city of Mandalay to the ancient capital of Bagan.
Vietnam
Almost every single luxury travel expert from Abercrombie & Kent to Cox & Kings has the former French colony on their list as the most popular emerging luxury travel destination and little wonder too given its rich heritage and culture, splendid resorts and spectacular scenery.
Cambodia
Both Simon and Rory agree that this former backpacking haven, with its upscale boutique resorts and UNESCO heritage status, is an A-list destination in-waiting. Says the latter, “I think the reason it is so popular with high net-worth clients is that 20-30 years ago, these same people were backpacking around the world and while their bank balances may have changed, their sense of adventure hasn’t.”
Colombia
According to Simon, South America is a major destination, with perennial favourites such as Brazil and Peru well set-up for the luxury jetset. However other places that one would not ordinarily think of, like Columbia, are also on track to acquiring ‘It’ status among trendsetters. Once shunned by the world community because of its reputation for lawlessness and drugs, Columbia has since been undergoing an image makeover. The historical port city of Cartagena is fast emerging as a rival to glamorous neighbours Buenos Aires and Rio de Janeiro thanks to its vibrant culture and history, beautiful colonial monuments and chic upscale boutique properties.
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The Changing Face Of By Lisa-Ann Lee
Luxury Travel Luxury travel is undergoing a transformation. No longer content with lounging at designer resorts, today’s voyagers are seeking thrills off the beaten path.
W
ith China and India’s markets growing at exponential rates and the number of millionaires in both countries on the rise, suffice it to say that the potential impact this has on the luxury travel market is enormous. Indeed, the World Tourism Organisation predicts that mainland Chinese travellers, encouraged by the growing strength of the yuan and diminishing visa regulations, will be making 100 million trips abroad by 2015. In addition to this, the Chinese National Tourism Agency predicts that overseas spending by Chinese travellers is estimated to reach USD55 billion this year alone. In India, the luxury market is growing at 15% each year and the number of outbound travellers is expected to reach 50 million by 2020. Given these figures, one can understand why luxury travel groups and buyers are so eager to court high-end travellers from these two markets. Launched five years ago, International Luxury Travel Market (ILTM) is a prestigious invite-only annual luxury travel event that has been growing at a consistent rate of 20% every year, says Simon Mayle, marketing manager of ILTM and ILTM Asia, which are held annually in Cannes and Shanghai respectively. With an expected turnout of 1,300 buyers from the Asia Pacific, this year’s event will host 400
98
exhibitors including participants such as Lufthansa Private Jet, Song Saa Private Island, Regent Global Holdings, Fijian Tourism and Orient Express. Among the highlights of this year’s ILTM Asia is the launch of a new education programme to help suppliers understand the demands of luxury travellers from the four most important outbound AsiaPacific markets – China, India, Japan and Australia.
What do luxury travellers want? Both travel operators and industry insiders agree that luxury travel is no longer the same as it was a few decades ago. Compared to travellers of old, today’s jetsetters are looking for more than a five-star beach vacation. “Pre-global financial crisis, people would do what we call the fly-and-flop holiday where you’d fly off to the Maldives and spend a week at the beach,” Simon explains. “Now luxury travellers are looking for a cultural experience; they want to know more about the destinations they’re going to and experience the local culture.” Not only that, high net-worth individuals are also looking for a sense of challenge and self-fulfillment. Noting the personality traits of high net-worth individuals, Simon offers, “One thing
M illionaire A sia
99
• | T h e wo r l d a s y o u r o y s t er | •
we’d say about millionaires in particular is that they’re very successful in life and they’re used to getting what they want and being able to buy what they want. More often than not, they’re also looking for something that challenges them when they’re on holiday as well. They don’t want an easy experience. In fact, there’s a growing trend of people who climb Mount Kilimanjaro because it gives them a feeling of self-fulfillment and achievement.”
The rise of adventure and eco travel As a result of this new breed of adventure seekers, the industry has also been seeing the rise of luxury adventure and eco travel, two niche travel sectors that have been enjoying significant
growth. In the case of the former, this includes activities such as luxury safaris, heli-ski trips, desert treks and multisport adventures. Luxury travel outfitters such as Abercrombie & Kent now have entire departments devoted to extreme adventures that let wayfarers rough it out without sacrificing creature comforts. More than anything, this trend demonstrates how the definition of luxury travel has changed. “Adventure and luxury are not mutually exclusive concepts,” says Rory Hunter, founder of Song Saa Private Island, Cambodia’s first luxury private island resort where guests have the opportunity to explore and experience the pristine surroundings of the unspoilt Koh Rong Archipelago, kayak up fresh water estuaries and hike through virgin rainforests among other things.
At the same time, a growing awareness of environmental issues among travellers has also led to an increase in development of sustainable ecologically responsible resorts and villas around the world. Though the concept of ecotourism has been around for decades, eco luxury travel is enjoying a resurgence as travellers demand more socially conscientious experiences. Remarking on this development, Rory notes, “Travellers want more unique destinations to experience but they also understand that tourism needs to take a different path if it is to be truly sustainable. They want to travel back home, not only feeling relaxed, but also enriched by local cultures and environments and feel like they’re helping to protect them through the choice of resort they’ve stayed in.”
Song Saa Private Island Resort in Cambodia
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M illionaire A sia
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• | T h e wo r l d a s y o u r o y s t er | •
Facing page, clockwise from top left: Orion Balcony Suite; King penguins on Macquarie Island; the Orion Expedition in Rabaul, with Mount Tavurvur Volcano in the background; snorkelling in Papua New Guinea; Melanisians on Espiritu Santo, the largest and oldest island of Vanuatu
PHOTOS COURTESY OF ORION EXPEDITION CRUISES
Going where no traveller has gone before As a result of this desire to derive a more fulfilling experience from their vacations, luxury travellers are now actively seeking out exotic destinations off the beaten tourist path. As Steve McLaughlin of Orion Expedition Cruises observes, “In my opinion, when people originally start to travel, they tend to do so as “tourists” following a well-worn path to all of the exciting “headline” destinations around the world. As they continue to travel over the years, they become more meticulous in their planning and the actual experiences they have in destinations become more and more important. This is the case with safaris and luxury trains for example as well as expedition cruising.” An Australian-based luxury expedition cruise line, Orion Expedition Cruises specialises in taking clients to remote wilderness areas, such as Australia’s remote Kimberley Coast, that are not easily accessible by conventional means of transport. “A lot of the stunning locations we visit have no infrastructure – that is one of the difficulties in our operations but is often the very reason we travel to these wilderness areas,” says Steve. The company will be expanding its fleet to include its second vessel Orion II, which will be arriving in June. It will operate a range of itineraries from the Russian Far East to the Inland Sea of Japan, where guests can witness the spectacular “Northern Ring of Fire”, the famous chain of 32 volcanoes that stretches from Japan to Russia across the Bering Sea; Borneo and South East Asia. In Borneo, travellers with an interest
in wildlife will be able to spend time with Dr Biruté Mary Galdikas, founder of the world-renowned orang utan sanctuary Camp Leakey, and enjoy exclusive back-of-house access to the camp where they can find out how the baby primates are rehabilitated.
The next ‘It’ destinations In light of the rise of luxury adventure and eco-travel, it might not come as a surprise to know that many industry insiders are viewing Asia as the next destination hotspot for the affluent. “All our buyers are telling us that Asia Pacific is the emerging market,” confirms Simon. Rory concurs, adding, “New destinations are starting to open up for the first time, particularly in South East Asia and once inaccessible locations are now only a few hours flight from centres like Hong Kong and Singapore. Asia has so much more still to explore when compared to Europe and North America, but that doesn’t mean leaving those creature comforts behind anymore.” However, some such as Lufthansa’s Frank Bornemann think that European destinations will continue to be a draw, especially for wealthy Chinese travellers. “European cities such as Berlin, Munich, London, Paris and Rome will definitely be hotspots for Europe-bound travellers as these cities combine both European history and modern life. In addition to that, exclusive destinations such as the high-society spots along the French Riviera and Monaco, as well as Switzerland because of its high-end destinations in the stunning mountains will continue to be popular among high net-worth travellers.”
International Luxury Travel Market (ITLM) Asia will be held from 13-16 June 2011 in Shanghai. For more information, please visit iltm.net/asia
98
M illionaire A sia
Rising Stars
Here are four emerging destinations to keep an eye on:
Burma
A favourite with luxury travellers for its unspoilt landscapes, it has been attracting visitors with its growing number of opulent hotels and resorts such as the exclusive Governor’s Residence in Yangon, which is run by the Orient Express. For those interested in viewing Burma’s magnificent pagodas and bucolic wilderness, the company also helms a Road to Mandalay luxury cruise that takes guests from the royal city of Mandalay to the ancient capital of Bagan.
Vietnam
Almost every single luxury travel expert from Abercrombie & Kent to Cox & Kings has the former French colony on their list as the most popular emerging luxury travel destination and little wonder too given its rich heritage and culture, splendid resorts and spectacular scenery.
Cambodia
Both Simon and Rory agree that this former backpacking haven, with its upscale boutique resorts and UNESCO heritage status, is an A-list destination in-waiting. Says the latter, “I think the reason it is so popular with high net-worth clients is that 20-30 years ago, these same people were backpacking around the world and while their bank balances may have changed, their sense of adventure hasn’t.”
Colombia
According to Simon, South America is a major destination, with perennial favourites such as Brazil and Peru well set-up for the luxury jetset. However other places that one would not ordinarily think of, like Columbia, are also on track to acquiring ‘It’ status among trendsetters. Once shunned by the world community because of its reputation for lawlessness and drugs, Columbia has since been undergoing an image makeover. The historical port city of Cartagena is fast emerging as a rival to glamorous neighbours Buenos Aires and Rio de Janeiro thanks to its vibrant culture and history, beautiful colonial monuments and chic upscale boutique properties.
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