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Trans RINA, Vol 156, Part C1, Intl J Marine Design, Jan - Dec 2014


on average. Based on an econometric analysis over a period of 13 years, the study identified an average incremental return of $12.5 in revenue and $3.8 in profits for every dollar spent on business travel in the US. These findings were supported by the survey results of an average return on revenue of $10–$15 per dollar spent on business travel. Within this range customer meetings were proposed by respondents to generate three to five times higher benefits than attending conferences or trade shows.


CAA [16] referred to the research Omega partnership’s Project


Icarus [19], which further supported these


findings. It also identified the significance of travel for internal company reasons, as an integrated strategy with telecommunications. Global companies, such as those providing financial services, are a large part of business travel in dense markets such as London–New York, as they would be likely to have regional headquarters in major cities and internal travel naturally tends to focus on connecting the offices of the company concerned. For example, many overseas trips may involve sales teams coordinating with other sales teams within the company that are closer to the client.


2.3 LUXURY TRENDS


The high consumption of the 1980's ended by 1990 and faced with harder economic times, the aging baby boomers that had led their generation into debt re- aligned their attention away from self-indulgence to concerns for family, community, and the environment. This new focus on philanthropy bestowed status to those who "do" rather than those that "have" and as a result status seekers in society increasingly became involved in volunteerism, recycling, and promoting affairs for the good of society in general [20]. Lieberman [21] reported that the U.S. economy in 2011 was extremely challenged with unemployment at nearly ten percent and real incomes have fallen. At the same time the wealthiest Americans have got richer. In 2009, the average income of the top five percent of earners went up. This was a continuation of a 40-year trend where financial rewards are increasingly


concentrated amongst a small but


growing elite. AARC’s research [22] indicates that the American luxury market is composed of roughly the wealthiest 1% of US households. These 1.1 million households of luxury consumers, who are the most likely to be


viewed as conspicuous following profile:


 An average annual income of $982,000  They earn about 14% of the total income earned by all American households.


 They account for about 20% of all consumer spending.


In the current age of austerity, the behaviour and attitudes of New Luxurians are changing. They seek


fewer, more considered and curated experience, rather than choice. Preferring to see, do, learn, and experience new things.


demographics their formative years and circumstances are essential to


Considering understand


the luxury their


perspective as a


consumer. Mature market New Millennials grew up in a stable time of


rising affluence, confidence and


abundance. In contrast to emerging market New Millennials, who grew up in a time of scarcity. Brand- conscious and keen to spend, Millennials are expected to spend more than Baby Boomers by 2017. They expect to engage with luxury brands digitally, seek fresh travel experience and are loyal to their preferred brands [23].


For age 35+ Luxurians craftsmanship, the key concepts are: artisanship, heritage, sustainability and


simplicity. Generation Jonesers are High earners aged between 45 and 55, who typically look after their parents and their children. More than half of these wealthy consumers are now spending on a need rather than want basis, due to the recession. As a consequence of the pressures they face in their lives, they want to do something that helps them escape from their daily lives, luxury adventure instead of relaxation. Baby Boomers continue to hold a strong grip on the luxury travel market, spending more than $2 trillion each year. They appreciate ‘slowtopia’ travel: glamorous, languorous journeys, such as the nine-day trip on The Deccan Odyssey, a train in India that features a spa, fine dining, libraries, lounge cars and butlers. Reaching their twilight years, Baby Boomer Luxurians are less interested in material goods, and prefer to spend on experiential goods [23].


Experiential luxury accounts for 55% of total luxury spending worldwide with an annual growth 50% greater than luxury goods sales. Trump Card Privileges Program traveller’s find themselves the happy recipients of private dinners


prepared by world-class constantly chefs. Given the connected nature of the modern luxury


traveller’s lifestyle, brands are offering high-tech add-ons to secure their loyalty. Limousines equipped with complimentary Wi-Fi and iPads offering information on dining and spa menus became


part of the loyalty- consumers, have the


inducing package at all Four Seasons Hotels worldwide in October 2012. Guests at the Ocean House in Watch Hill, Rhode Island, are supplied with iPads and a virtual fitness machine facilitated by a virtual personal trainer. These innovative new generation loyalty schemes have measurable dividends. All operators registered benefits in terms of building relationships with customers, 84% said it had enabled them to retain existing customers, 64% said it had increased Customer Lifetime Value, 44% said that it had attracted new customers.[24]


The experiential, high-tech desires of the new generation of luxury travellers is an opportunity for collaborations between travel and non-travel brands. Where 91% of travel buyers see collaborations as the way forward, 59% believe they create enjoyable curated experiences for


consumer


© 2014: The Royal Institution of Naval Architects


C-81


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