SPECIAL REPORT forum for an invitation-only audience at The Savoy in London. Erica Bush reports Headline sponsors


‘Mainstream brands should not misuse the luxury label’


Sponsors A


Hollie-Rae Brader, Aspire, with panellists Jeannette Ho, Raffles, and Kerry Golds, Abercrombie & Kent


n increasing number of travel sellers are miscategorising their product as


luxury, according to the boss of Abercrombie & Kent. Mainstream brands are marketing


their product as high-end without a correct understanding of what the


term meant, said managing director Kerry Golds. She insisted more care needs to


be exercised to ensure customers’ expectations are met. “Tere are a lot of people jumping


on the bandwagon,” she said. “Tere are a lot of people who


believe by puting luxury at the beginning of a term and puting a high price point [on the product], it means it’s luxury, and it really isn’t. “Ultimately, luxury is really


defining and understanding what your clients’ needs are and delivering against that brand promise. To do that, you’ve got to have the knowledge and the people at the point of sale and in the destination.” In a session discussing growth


and acquisition, Golds said the rise of digital bookings and online marketing had made it easier for brands to target the luxury market.


However, she said she understood


the allure for mainstream brands to move into the sector. “Global sales for luxury product


have been increasing in the last 10 years quite substantially – you’re talking about more than $200 billion worth of global product sold annually,” she said. “Tere’s certainly a lot of people


who want to go into the luxury sector.” Belmond chief executive Roeland


Vos agreed, adding: “I agree with you fully that [luxury] is not just a word that you tag on.” However, other industry leaders


challenged the claim. Derek Jones, chief executive of Kuoni parent Der Touristik UK, tweeted: “If all it takes to hijack the category is a ‘luxury’ label then the luxury sector needs to work harder to demonstrate that it’s more than just a label.”


I see lots of opportunities in this growing market that will outpace the rest of the travel industry by a long shot


‘Pay for branded content on social media sites’


Travel companies were advised to consider branded content on social media as part of their advertising strategy. Branded content is defined as creator or publisher


content, which is paid for or influenced by a business for “an exchange of value”. Allison Busacca, head of travel product


marketing at Facebook and Instagram, said this new form of advertising held big rewards, provided brands know how it works and whom to partner with. “Influencers are a new way to


reach consumers,” she said. “We know they are being


Roeland Vos


travelweekly.co.uk


seen as a road to relevance. So when you think about the audiences you haven’t yet tapped in to, or the


Allison Busacca


4 JULY 2019


demographics you have not yet reached, influencers might be a way forward.” Travel is the most-talked-about topic on Facebook


and the number-one interest on Instagram, Busacca revealed. She also quoted in-house research that found


80% of Instagrammers come to the platform to connect with a business, and 53% make a


purchase aſter watching a branded video on one of the platforms. She advised travel brands to target


partnerships with “micro-influencers” – those


with smaller but more-targeted audiences – who genuinely fit the brand’s identity and already enjoy the product. “A more-targeted audience actually has


a higher level of influence than those with a large following,” she said.


13


PICTURES: Sarah Lucy Brown


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