The Affluent Traveler

Affluent Traveler mitchell schlesinger

By Mitchell J. Schlesinger

Home Based agents with a strong affluent population in their marketplace have a HUGE earning opportunity, IF they are prepared to fulfill the “caviar wishes and champagne dreams” of the affluent travel market. Never has the phrase “follow the money” been more meaningful.

From a demographic standpoint, the affluent segment has its own distinct characteristics:

• It spans a wide spectrum of age and family groups. We have never been more affluent as a society and this attainment of wealth includes a younger demographic with “new” money, baby boomers who are inheriting significant amounts and seniors/retirees with a lifetime of “old” money.
• The extent of the wealth is significant. While small in terms of percentage of the population, affluent consumers are valued at $400 billion to $500 billion worldwide — and luxury research resources indicate that could double over the next five-10 years.
• And because affluent consumers span demographic groups, it is even more important to follow the money. In many cases, affluence creates its own indicators of where these consumers live and spend dollars in a local market. While they may not be “recognizable” in a supermarket, they certainly are in expensive housing communities, foreign car dealerships, upscale shopping malls, specialty boutiques, country clubs, etc. Following the money is an excellent way for you to source these clients.

The psychographic characteristics of the affluent segment are challenging and you must be prepared to meet their extensive needs:

• SERVICE is central. It must be very personalized (but not formal), attentive, professional and reflect the experience affluent clients will encounter on their trip. There is an expectation by each customer that they are your ONLY customer. This is how you earn their initial trust.
• The second aspect of fulfilling service expectations is your cataloging all of their personal tastes, needs, wants, etc. This includes room locations at hotels or on cruise ships, favorite wines, dining arrangements, activities, etc. As you plan for them, you are not asking, but confirming that this meets their desires. It reflects a very personalized approach to service.
• Luxury travel for this segment is about experiences and emotional reactions. These experiences come in two major categories. The first is the physical surroundings of a resort, a cruise ship, etc. It includes both the things they expect (great beds, high thread count sheets, upscale bathroom amenities, wonderful dining, etc.) and special touches and services they did not expect (neck massages at the pool, special transfers, champagne on the beach, cold towels brought to them on a golf course), at locations where such touches are not expected.
• The second category is focused on the destination and how they “experience” it. This cannot be the standard or ordinary, but must enable them to return with “emotional memories” of specific experiences, such as boutique lunches or dinners, tickets for performances in St. Petersburg or the Sydney Opera House, exclusive tour events, personal interactions, etc. You must attract them with travel opportunities that will fulfill their “experiential” expectations.
• Don’t ever presume that the affluent are not concerned with cost. They have achieved affluence in most cases because they are savvy consumers. They understand that the things they want cost more, but value is something they will demand. They may live in expensive homes and drive expensive cars, but they also shop at Costco, just like everyone else. The expectation of value never escapes them, ESPECIALLY, if they have a sense of what something should cost. Sell them the travel that will fulfill their psychographic for prestige and exclusivity. Just make sure that they clearly see the “value” in what they are spending.
• There are excellent Web sites (justluxe.com and 4hoteliers.com) with information and articles on luxury traveler expectations and new and innovative products.

Vital Aspects
You must incorporate two final vital aspects if you are to be successful in dealing with the affluent market:1. Be imaginative in sending information to stimulate travel appetites and retain loyalty. Some examples: A personalized letter on textured paper with a new brochure from a luxury cruise line including a request to “make an appointment” to discuss new itineraries and destinations; an E-mail with a Web link for a new resort in a destination they indicated interest in visiting; for golfers, a complete itinerary for a 7-day package in Hawaii or Scotland; and at birthday/anniversary time, a suggestion they’ll perceive as personal.

2. Finally, everything comes down to your ability to have prospective clients recognize that you are an expert at selling luxury travel and servicing affluent clients. This includes a style you portray that reflects the level of service clients can expect, communicating the “experiential” elements they seek and recommending upscale travel alternatives that meet their expectations. You must establish yourself as a “luxury service” brand that clients will trust, learn to rely on and best of all, share with their affluent family and friends.
The affluent customer segment represents a significant compensation opportunity that can change the way you approach selling travel overall. I have a very close friend in the retail business who, every year, sends a group of 20-30 guests on a full world cruise. Consider that.
If there is an affluent audience prevalent in your marketplace, you have the opportunity to make this demographic group “pay off” for you.

Mitchell J. Schlesinger, president of MJS Consultants and a cruise industry veteran, can be reached at mjschlesinger@bellsouth.net