As global wealth expands, and new inbound and outbound markets continue to emerge, the luxury travel industry faces disruption from a new generation of well educated, highly demanding travel consumers. To respond, the hospitality industry has been forced to redefine both the definition of luxury and its role as a service.
The new trend report by Skift suggests that this rethinking revolves around "the 5 C’s of Luxury Travel," a group of principles that engage consumers emotionally and physically before, during, and after a travel experience.
The 5 C's of Luxury Travel: Culture, Cuisine, Community, Content and Customizationare not new in themselves. Yet top travel brands are incorporating and utilizing each of these C's in novel ways to respond to industry demands and maintain brand relevance.
1. Culture
Both cultural heritage and local culture are huge drivers of global travel. 27% of U.S. international travelers view themselves as "sophisticated explorers" who state their primary travel motivation as the desire to explore new cultures and traditions while on vacation. These travelers want to learn new things and have new experiences while abroad. They value cultural heritage, performance arts, storytelling, and luxury products that showcase unique traditions and techniques.
Travelers looking for a luxury trip want their dreams to become reality. They look for something unique, above their expectations with superb service where their needs and wants are fulfilled. This includes exclusivity, privacy, and everything from relaxation to adventure, with pampering and extras. Carrie McDougall, President, Cultural Crossroads
2. Cuisine
All travelers need cuisine, but the luxury travelers seeks out culinary experiences as a hallmark of their vacation. Whether in taking local cooking classes on their trip, using a culinary experience as a trip theme (as in wine region tourism), or dining at fine restaurants around the world, travelers make cuisine a priority of their travel dollars. For these travelers, local sourcing and sustainability issues increase the cache of this travel. Consumers are willing to pay more for upmarket experiences, yet have high expectations of quality and authenticity.
3. Community
While luxury travelers may not want shared travel experiences such as group tours or dormitory accommodations, they do want community. Upmarket travel accommodates this by leveraging storytelling and community in the marketing materials and by hosting non-site events that allow travelers to opt in to sharing community with other guests. A nightly happy hour or optional tours coordinated by the hotel allow travel providers to cultivate community.
Luxury is defined by attention to the details. Meticulous workmanship, sumptuous atmosphere and discerning good taste. Robert Mackasek, CEO, Valera Global
4. Content
Content in the form of marketing materials, web content, and real-time event or travel programming is a highlight of luxury travel. Busy travel consumers may enjoy planning, but want easy access to experiences coordinated by others. Standalone luxury content materials and offerings fills this niche and allow consumers to sample as they like.
5. Customization
Perhaps the biggest of the 5 C's, customization allows luxury travelers to orchestrate their own unique travel experiences. From allowing travelers to select meals to letting them purchase day tours to select locations, the luxury travel industry faces continued disruption to packaged travel tours, cruises, and other traditional mainstays. The more choice consumers are allowed, the happier they may be - a strong incentive to entice repeat business.
Luxury, by definition, means something that appears to be the best of whatever it represents. It's a word that raises people's expectations, whether talking about clothing for women or locations for people to live ... You pay for recognition, but probably the most important thing it represents is delivery on the promise of the brand's name." Isadore Sharp, Founder, Chairman & CEO, Four Seasons Hotels & Resorts
As the 5 C's make it clear, traditional perceptions of luxury travel are challenged by the evolving needs of modern consumers. By embracing these shifts, forward-thinking companies can remain competitive in their niche and embrace this transformation.
FAQs
Those 5 C's of Luxury Travel are: Culture, Cuisine, Community, Content and Customization. Regardless of the actual travel product or destination, these five combined elements are the primary drivers of engagement in luxury travel worldwide.
What are the 5 C's a new definition of luxury travel? ›
The 5Cs of Luxury Travel
Luxury travel has always been about experiencing the best of what the world has to offer. However, with the rising demand for unique and personalized experiences, luxury travel has evolved to revolve around the 5Cs – Culture, Cuisine, Community, Content, and Customization.
What are the 5 C's of tourism? ›
Those 5 C's of Luxury Travel are: Culture, Cuisine, Community, Content and Customization.
What is the definition of luxury travel? ›
Premium travel refers to any travel that is above average in terms of cost or quality. Luxury travel, on the other hand, is defined as travel that is excessive in cost or extravagant in nature and typically involves a unique experience.
What does luxury travel look like? ›
The desire for experiences
As a result, luxury tourism operators offer carefully crafted experiences that include immersive activities, interactions with local culture, indulgence in gourmet cuisine, and opportunities for an authentic travel experience.
What do the 5 C's stand for? ›
Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.
What is the key elements of the 5 C's? ›
The five Cs of credit are important because lenders use these factors to determine whether to approve you for a financial product. Lenders also use these five Cs—character, capacity, capital, collateral, and conditions—to set your loan rates and loan terms.
What are the 5 C's model? ›
Consider 5Cs--Customers, Collaborators, Capabilities, Competitors, Conditions--In Onboarding Prep.
What are the 5 C's of community? ›
Strategic Factors for Building Community: The Five C's Community, Connections, Control, Cash, & Collective Action.
What are the five 5 characteristics of tourism products? ›
Tourism products/services differ from other manufacturing goods in terms of five main characteristics viz. intangibility, heterogeneity, perishability, inseparability and ownership.
Luxury today is about value, not property.
Gen Z and millennials paid far more attention to social issues, such as health and sustainability. Successful producers and manufacturers of high-end goods note this new attention and the sense of responsibility it has led to.
What is the best definition of luxury? ›
great comfort, esp. as provided by expensive and beautiful possessions, surroundings, or food, or something enjoyable and often expensive but not necessary: [ U ] a life of luxury.
What is the meaning of luxury luxury? ›
: a condition of abundance or great ease and comfort : sumptuous environment. lived in luxury. 2. a. : something adding to pleasure or comfort but not absolutely necessary.
What is the new luxury in travel? ›
Hyper-Personalized Luxury Travel
The ability to hyper-personalize luxury travel has reached new levels because technology can track and manage guest preferences. “In the past, you had a world-class GM with a great Rolodex filled with everything about guests,” Knapp says.
Who is the target audience for luxury travel? ›
The emerging middle class is a huge market for luxury travel. These people have disposable income and want to spend it on exclusive experiences. We also see older Millennials as the most willing to spend on luxury travel. There is a difference between the personal luxury traveler and the business luxury traveler.
What does a luxury traveler want? ›
- Reflecting a desire for more space, privacy and exclusivity, more than 50% of affluent travelers expressed interest in experiences such as luxurious villa stays with in-house amenities and private yacht expeditions.
What are the 5 A's of travel? ›
These key elements are known as the 5 A's: Access, Accommodation, Attractions, Activities, and Amenities.
What are the 5a in travel? ›
Accommodation, Accessibility, Activities, Amenities, and Attractions.
What are the key principles of luxury? ›
Mastering Luxury: 15 Essential Brand Principles For The Luxury...
- Exclusivity. ...
- Superior Quality. ...
- Exceptional Design & Aesthetics. ...
- Personalisation. ...
- Premium Pricing. ...
- Outstanding Customer Service. ...
- Brand Story & Heritage. ...
- Ethical & Sustainable Practices.
