Adding further weight to several pieces of research commissioned by ILTM Asia Pacific and presented during its annual event in Singapore this week, the behaviour of the Asian millionaire traveler; their motivations, media channels, brand preferences and consumption patterns were the focus of a seminar presentation to both exhibitors and buyers.
Having interviewed 903 millionaires across China, India, Singapore, Hong Kong, South Korea and Japan, Agility Research & Strategy defined millionaires as those whose HNW was $US1m+.
Key takeaways from the study include:
– 2019 will be another year of strong growth for the luxury travel segment. Particularly encouraging is the willingness to travel manifested by Chinese and Indian millionaires, given the large number of HNW individuals residing in these two countries. Japanese millionaires, on the other hand, remain reluctant to travel internationally, a trend that persists despite a stabilizing economy and increased inbound touristic flows.
– The research indicates that millionaires’ reasons to travel are shifting from status and recognition to personal growth and better quality of life. Increasingly, business trips become a mix of business and leisure, and millionaires plan their trips with the whole family, to spend quality time with children, and to share the experiences together.
– There is increased awareness that luxury travel is more than luxury accommodation and transportation. Experience seeking has become the true motivation to travel. Food experiences remain high on the millionaires travel bucket-list, starting from a varied breakfast at the hotel, continuing with a local, authentic and safe lunch to sample the local cuisine, and ending with fine dining at a Michelin-rated restaurant. The need for authenticity drives the choice of where to travel: Japan remains a very attractive destination for Asian millionaires because it is seen as safe, diversified and authentic.
– Shopping, which until a few years ago was cited as the top reason to travel across all 6 markets covered by the study, is becoming less relevant. Asian millionaires’ interests are becoming more sophisticated: city tours, diving, beach, food, amusement parks, spas and hot springs are some of the most mentioned reasons to travel. We expect to see in the next few years an increase of interest in art & cultural travel, on the tail of the opening of major museums and cultural institutions throughout the region.
– Online and digital is gaining traction both as a channel to search for information and as way to research and book travel. At the same time, traditional channels such as recommendation from friends and family, TV and magazines are still very relevant in shaping and influencing millionaires travel decisions.
– Over 85% of millionaires surveyed in China consider a hotel’s eco-friendliness important.
“ The presentations we lined up for ILTM Asia Pacific have focused on three key subject matters, and this one analyses the upcoming trends of the luxury traveler in the region. With more than 6m millionaires in the APAC region (a double digit growth in 2018) this is a powerhouse market which continues to grow with sustained optimism. However at the same time we also can see that their travel habits are changing. As a leader in the luxury travel sector, we will continue to support every one of our events with information, trends and facts from thought leaders in this sector to help all our participants with obtaining the knowledge that will drive their business objectives through the next decade.” Said Alison Gilmore, Portfolio Director ILTM & Lifestyle Portfolios.”
The full report is available on view.iltm.com
eTN is a media partner for ILTM.