The New Luxury

Image The New Face Of Luxury Kleber2024

The New Face of Luxury

How Evolving Perceptions are affecting the Luxury Travel Industry

by Christin Freitag

In the ever-evolving landscape of luxury travel, traditional notions of opulence and exclusivity are being redefined. As Generation Z enters the workforce and their purchasing power continues to grow, four mega trends are emerging, shaking the very foundations of luxury. This compels more and more luxury industry players to rethink their strategies and offerings as these trends are not just shaping consumer preferences but also transforming the essence of what luxury means today. The new face of luxury, shaped by four mega-trends, presents the travel industry with new challenges, but above all, it offers opportunities to tap into new target groups and design innovative offerings.

1. Democratisation vs. Social Stratification

Luxury is no longer the sole domain of the elite. With the rise of accessible luxury, customers from diverse socioeconomic backgrounds are now seeking unique, high-quality experiences that were once considered exclusive. However, this democratisation creates a tension with the desire for social distinction, where the allure of rare and bespoke experiences remains highly valued. Luxury tourism industry players must consider which type of clientele they want to attract, how elitist or egalitarian they want their brand to be, and how much growth they are willing to accept at the risk of brand dilution. A solution could be offering a mix of elitist and egalitarian luxury options, so industry players can ensure they meet diverse customer preferences and expectations.

Elitist Luxury Tourism Segments include:

  • Private Island Resorts: Ultra-exclusive resorts offering complete privacy and luxury, catering to high-net-worth individuals.
  • Luxury Safari Experiences: Lavish lodges and private game reserves with personalised safari experiences, including private guides and bespoke itineraries.
  • Superyacht Charters: Chartering yachts featuring multiple swimming pools, cinemas, and even submarines.
  • High-End Wellness Retreats: Holistic wellness programmes, private villas, and personalised wellness consultations in exclusive, serene environments.

 

Egalitarian (Accessible) Luxury Tourism Segments include:

  • Affordable Boutique Hotels: Luxurious amenities and stylish accommodations at relatively accessible prices, targeting travellers seeking unique and comfortable stays.
  • Luxury Camping (Glamping): Luxurious tent accommodations near natural attractions, providing an upscale camping experience that is more affordable than traditional luxury hotels.
  • Experiential Travel Packages: Small group tours with high-quality accommodations and unique experiences at more accessible prices, appealing to a broader audience.
  • Luxury Cruise Lines: Luxurious amenities and high-quality service on larger cruise ships, making the luxury cruise experience more accessible to a wider range of travellers.

 

2. Virtualisation vs. Materialism

Virtualisation is closely linked to the emerging experiential luxury consumer trend, which indulges the senses on multiple levels, drawing us towards immersive experiences through technology, colour, pattern, and material. This trend, which signifies a shift to immaterial consumption, challenges traditional materialistic values of luxury, pushing the industry to blend tangible opulence with immersive, transient, and ultimately digital experiences. Travelling offers a transient experience, presenting an opportunity for tourism businesses to capitalise on this trend. While the physical aspect of luxury—comfort, ambience, and presence in a unique environment—remains crucial, integrating digital experiences can significantly enhance and extend the luxury experience. By seamlessly blending physical and digital elements, businesses can ensure that each enhances the other. Physical luxury establishes the foundation of comfort and opulence, while digital experiences contribute layers of immersion, personalisation, and extended engagement, ultimately creating a more interactive, personalised, and memorable experience for travellers.

  • VR Tours and Previews: Luxury resorts provide virtual walkthroughs of suites, spas, and amenities, allowing travellers to preview their trip and make informed decisions while building anticipation.
  • AR Enhanced Experiences: Integrating AR apps offers interactive information about historical sites, landmarks, or attractions, enriching the physical experience with digital layers. Tourists can access reconstructions of ancient ruins or detailed information about artworks, enhancing understanding and enjoyment.
  • Digital Concierge Services: High-end hotels offer personalised recommendations, itinerary planning, and real-time assistance through apps or AI assistants, blending digital convenience with luxury service for a seamless and tailored guest experience.
  • Immersive Cultural Experiences: Collaboration with local artists and technologists creates immersive cultural encounters, such as virtual reality storytelling and holographic guides, bringing destination history and culture to life for guests in unique and memorable ways.

 

3. Sustainability vs. Opulence

Sustainability and opulence are, by definition, contradictory concepts. However, environmental consciousness is now omnipresent. Two camps of consumers with conflicting values have emerged: the modern traveller increasingly seeks sustainable alternatives over sheer extravagance, while others view materialism as essential for self-enhancement and a feeling of dominance. How do businesses navigate these uncertain waters? Strategic choices are necessary: How much emphasis should a brand place on eco-centric values compared to ego-centric ones? How crucial is it for a brand to be perceived as morally upright versus simply attractive? And what’s the balance between transparency and maintaining an aura of mystery for a brand? Luxury tourism businesses must navigate these questions carefully, taking into account the values and preferences of their target clientele. Here are some examples of how sustainability is integrated into luxurious tourism offerings:

  • Exclusive eco-adventures: Luxury tour operators offer curated experiences for travellers to explore pristine environments sustainably, such as private guided tours, wildlife conservation expeditions, and eco-friendly luxury cruises.
  • Culinary sustainability: Luxury resorts prioritise locally sourced, organic ingredients for gourmet dining, partnering with local farmers to reduce the carbon footprint of food production and transportation.
  • Carbon-neutral experiences: Luxury resorts and tour operators invest in carbon offset programmes, like tree planting and renewable energy, to minimise the environmental impact of travel.

 

4. Gender Fluidity vs. Sexual Signalling

As society becomes more inclusive and diverse, major luxury brands are moving away from stereotypes. Traditional luxury often emphasised gender-specific aesthetics and experiences, rooted in evolutionary functions of luxury consumption, such as fitness signalling and reproduction. In the realm of modern luxury, traditional gender roles and displays of wealth are evolving. The days of men flaunting expensive cars to attract women and women showcasing their partners’ wealth through accessories like handbags and jewellery are not over but slowly fading into obscurity. Luxury travel providers might integrate gender fluidity into their services through the following approaches:

  • Inclusive Spa Services: Luxury spas offer treatments and services that transcend gender norms, allowing guests to choose based on personal preference rather than societal expectations. This includes diverse massage techniques, skincare treatments, and wellness therapies tailored to individual needs.
  • Unisex Fashion and Amenities: Luxury resorts provide gender-neutral options in their boutiques and shops, offering clothing, accessories, and grooming products suitable for guests of any gender identity, promoting comfort and style for all.
  • Diverse Marketing Campaigns: Luxury tourism businesses feature varied representations of gender identity in their marketing, showcasing inclusivity and acceptance through advertisements, promotional videos, and social media content.

In conclusion,

the landscape of luxury travel is undergoing a significant transformation, driven by evolving consumer preferences and societal shifts. The rise of Gen Z and the emergence of these four key trends are reshaping the essence of luxury. The democratisation of luxury has made high-quality experiences accessible to a broader audience, yet the allure of exclusivity remains. The blending of physical and digital experiences is redefining materialism in the travel industry, while the tension between sustainability and opulence highlights the need for brands to balance eco-centric values with traditional luxury. Additionally, the growing acceptance of gender fluidity is challenging conventional gender norms, leading to more inclusive and diverse luxury offerings. As these trends continue to evolve, luxury travel providers must strategically navigate these changes, embracing innovation and inclusivity to meet the diverse and dynamic preferences of modern travellers. By doing so, they can redefine luxury for the new era, creating memorable and meaningful experiences that resonate with today’s discerning travellers.

 

Source:
Dr. Felicitas Morhart & Dr. Julia Riedmeier: Luxury in Transformation. Understanding areas of tension and making luxury brands future-ready with adapted codes, Edition 2024

 

You may also be interested in: https://klebergroup.com/blog/the-luxury-of-travel-how-gen-z-is-making-their-mark-on-the-travel-industry/