Thematic Research: Premiumization in Tourism 2019

Thematic Research: Premiumization in Tourism 2019

Summary

International travel used to be exclusively for the super-rich but with low-cost flights and package deals, it has become much more inclusive in recent decades. However, there are still ample opportunities to keep attracting those able and willing to spend a great deal on travel experiences. When traveling, visitors tend to spend more than they would usually in day-to-day life, which results in an ideal environment for premiumization. Hyper-premiumization is another step further, reserved for those with a very high net-worth.

International travel used to be exclusively for the super-rich but with low-cost flights and package deals, it has become much more inclusive in recent decades. However, there are still ample opportunities to keep attracting those able and willing to spend a great deal on travel experiences. When traveling, visitors tend to spend more than they would usually in day-to-day life, which results in an ideal environment for premiumization. Hyper-premiumization is another step further, reserved for those with a very high net-worth.

Key Highlights

  • Conspicuous consumption means that people are willing to pay a lot of money to give the impression that they are elite travelers and social media has intensified this trend even further. Five-star hotels and luxury airlines can charge high prices for goods that would be much cheaper elsewhere as they know guests will be willing to pay more.
  • Having an online presence is increasingly important, especially as travelers are highly influenced by what they see online. Influencers and celebrities can have a huge influence on the holidays people choose, in younger generations especially.
  • Hotel chains typically have a number of different brands in their portfolio to spread risk and those with the biggest luxury brands include Marriott, Hilton, and Accor. Conversely, companies such as the Four Seasons and Kempinski are fully focused on premiumization and do not want to water down their brands by offering lower-end accommodation options.
  • In terms of airlines, most full service carriers (FSCs) are engaged in premiumization in one way or another through their business and first class offerings. Singapore Airlines, Emirates, Etihad, and Air France are just some of those often listed on lists of the best luxury airlines.
Scope
  • This report provides an overview of premiumization as a theme within the travel & tourism industry.
  • It clearly defines and explains the concepts of premiumization and hyperpremiumization.
  • It identifies the opportunities available for companies offering premium products and services and assesses how these can best be exploited.
  • It provides an inisght into the purchaser profile of premium tourism services.
  • It presents a number of real-world case studies that clearly illustrate premiumization in action.
Reasons to buy
  • Understand what premiumization and hyperpremiumization are
  • Understand who buys such services
  • Learn about the opportunities that premiumization presents for players in the hotels, retail, and airlines industries
  • Identify key case studies to understand how premiumization works in reality


  • Introduction
  • Players
    • Table Figure 1: Who are the big players in premiumization?
  • Trends
    • Macroeconomic trends
      • Table Macroeconomic trends
    • Premiumization trends in travel and tourism
      • Table Premiumization trends in travel and tourism
  • Case studies
    • The Balmoral Cashmere Butler, Edinburgh
    • Hotel Imperial, Vienna
    • The St. Regis Butler Service
    • Iberostar App
    • The Residence private suite, Etihad Airways
    • Royal Mansour, Marrakesh
    • Burj Al Arab, Dubai
  • Thematic analysis
    • Luxury hotels tend to be the smallest segment of establishments
      • Table Figure 2: China, Mexico, and the US have the largest number of luxury hotels globally
    • RevPAR and RevPOR indicate that luxury rooms are highly valuable
      • Table Figure 3: Croatia, France, and Mauritius have the highest RevPAR for luxury hotels
    • A range of destinations feature on the list of countries in which tourists spend most
      • Table Figure 4: Australia, US, and the Maldives are the countries where travelers spend most on average
    • Outbound spending shows travelers from Australia, Qatar, and the US are the biggest spenders
      • Table Figure 5: Citizens from Australia, Qatar, and the US spend the most when on holiday
    • Timeline
      • Table Figure 6: The story of premiumization…
    • Mergers and acquisitions
      • Table Mergers and acquisitions
    • Impact of premiumization on the travel and tourism industry
    • Recommendations for travel and tourism companies
  • Companies section
    • Publicly traded companies
      • Table Publicly traded companies
    • Private companies
      • Table Private companies
  • Briefing
    • What is premiumization?
  • Glossary
    • Table Glossary
  • Appendix: Our "Thematic" research methodology
    • Viewing the world's data by themes makes it easier to make important decisions
    • Traditional research does a poor job of picking winners and losers
    • That is why we developed our "thematic engine"
    • How do we create our sector scorecards?
      • Table Figure 7: Our five-step approach for generating a sector scorecard
    • What is in our sector scorecards?
    • How do we score companies in our thematic screen?
    • How our research reports fit into our overall thematic research ecosystem
    • About GlobalData
    • Contact us
    • Disclaimer

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