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news conference report
ttglive.com
ILTM 2008
December 8-11 ■ Cannes, France
Delegates at the International Luxury Travel Market heard how the downturn is
tipped to hit the sector. ttgluxury editor April Hutchinson reports from Cannes
RECESSION. 2009 PROMOTIONS.
‘
Keep marketing
in the recession’
THE LUXURY travel sector will have to work
harder to ensure bookings in 2009, according to
attendees at ILTM.
Exhibition director Christina Wood said:
“There is an acknowledgement of the downturn
but the key feeling seems to have been one of
grabbing opportunities and working hard to get
the best of the show and of their relationships.
“Everyone knows they need to be much more
competitive into next year.”
In light of a PricewaterhouseCoopers report
predicting a slowdown in luxury travel, agents
and operators at ILTM pledged to start 2009
with a new vigour, maintaining or enhancing
Luxury faces slowdown
marketing plans.
Speaking at the show, Andrew Brownrigg,
managing director of Haslemere Travel, said:
“We need to look at all elements of how we do
business. We will definitely be reaching out even
THE LUXURY travel sector is far from recession- 10% seen since 2007, while just 5% thought the more to our customers and have a marketing
proof, according to a PricewaterhouseCoopers luxury market would continue to grow at the plan in place for the new year.”
report revealed during ILTM. same rate. In a live survey of attendees at a Future Forum
The report predicted “aspirational” holiday- A further 24% reported forward bookings up session, 77% of those present said they would
makers will abandon luxury travel in the year-on-year. maintain or increase marketing spend for 2009,
downturn, heralding a prolonged period of poor The 19% who said sales would “decline in albeit with a higher focus on electronic channels.
health for the sector. real terms” were being the most honest and Panellist Piers Bracher, founder of Diamond
Guy Gillon, PricewaterhouseCoopers’ head of realistic, according to Destinology managing Marketing, said: “I was heartened to hear people
travel and tourism mergers and acquisitions, director Dominic Speakman. say they will continue to market through the
said: “This ‘aspirational’ demographic will He said: “Anyone who doesn’t think the busi- recession. Our criticism generally has been that
disappear from the luxury market and trade ness is dropping off, or will drop off, is in denial. luxury travel brands were driven by the rational,
down in terms of holiday style, and stop taking “There will be a lot of casualties; those who but they need to focus on customers’ feelings.
additional short breaks. survive will be those who adapt.” They will reach customers by appealing to the
“House price deflation, lack of credit, High net worth individuals – of which there are emotional – not by ploughing the same old furrow.”
employment uncertainty and bonus reduction all an estimated 10.1 million worldwide – will also
make luxury travel an unaffordable discretion be more cautious and book late, said Gillon.
ILTM in numbers
for them.” “Due to market volatility, their net worth on a
In its first-ever audience polling, ILTM asked day-to-day basis is unclear. They will adopt a ■ Almost 3,500 buyers and suppliers,
conference attendees about their business. wait and see approach to travel bookings.” an increase of 10% on 2007
Some 62% said they believed the sector would Britons are estimated to spend £5 billion a ■ 130 UK buyers
continue to grow but at a slower rate than the year on luxury travel.
16 19.12.2008
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