1. The Future of Travel
The New Vocabulary of
Travel and Tourism
2009–2010
1

2. Contents
• About the Studies:
_ The Future of Travel
_ The New Consumer
• Topline Findings
_ Overview: Conflicts Blended and
Transcended
_ Led by Prosumers
_ How Green Was My Travel
_ Citizens of the World: Mindful
Tourism
_ So Far and Yet So Near: The
Tech-Connect
_ Luxury and Service Redefined
_ On the Horizon
_ Rules of the Road
• Appendix: Country Breakouts
2

3. About Euro RSCG’s The Future of Travel Study
• In-depth online survey conducted by
Market Probe International
• 2,357 adults in the United States,
United Kingdom, and France
• Momentum testing of 78 brands n=751 n=752
• Semiotic exploration of “service,”
including a look at codes and cues in
service cultures of U.S., U.K., India,
Japan, China
n=854
• Extensive secondary research into
trends driving the category
Images: photoeverywhere.co.uk
3

4. About Euro RSCG’s The New Consumer Study
• Also including in this presentation
are select findings from The New
Consumer (2009), adding insights
to the trends we are seeing in the
travel and tourism (T&T) category
• In-depth online survey conducted
by Market Probe International
• 7,000 adults in Brazil, China,
France, Japan, the Netherlands, the
United Kingdom, and the United
n=1,000 in each market
States
• Extensive secondary research into
trends driving the category
mileusna, flckr.com
Images: photoeverywhere.co.uk
4

5. Overview: A Category in Transition
Who are Prosumers?
• While the jet set continues to rack up
The roughly 15–20% of
frequent-flier miles and hard-core
leading-edge consumers
backpackers are still surviving on who are influencing trends
dehydrated noodles, the most and shaping markets around
influential travelers—Prosumers—are the globe
pushing new pursuits and priorities Key characteristics:
into T&T * Embrace innovation
* Constantly seek out
information and new
experiences
* Enthusiastic adopters of
new media and
technologies
* “Human media” who
Trey Ratcliff/stuckincustoms.smugmug.com/
transport attitudes and
ideas
* Marketing savvy and
demanding of brand
partners
* Highly influential and
sought-after for opinions
and recommendations
5

6. Prosumers Embrace Travel and Tourism…
• Prosumers travel more often than Prosumers
I enjoy planning vacation
Mainstream
mainstream consumers and derive travel; it’s fun to explore all
greater pleasure from it 70% the options and find the best
deals
58%
• Euro RSCG studies since 2001 have
found Prosumers are more likely to Prosumers I try to go somewhere Mainstream
enjoy seeing new places, trying new 69% different for vacation every
time 55%
foods, exploring other cultures,
shopping, and engaging in luxury
experiences Prosumers
I consider myself
Mainstream
68% well-traveled 42%
Prosumers If I could afford the time and Mainstream Prosumers Mainstream
95% money, I would travel much
more often 89% 81% I own a passport
69%
Prosumers Many of my best memories Mainstream Prosumers Mean # of overnight Mainstream
82% come from vacations and
other trips 68% 6.0 personal trips taken in
past year 4.3
Euro RSCG Worldwide ● The Future of Travel 2009
6

7. …And Are Blending and Transcending Category
Conflicts
• Traditionally, T&T has been a category marked by conflict:
Exotic and New vs. Familiar
Luxury/Comfort vs. Responsible Consumption/Simplicity
Getting Away from It All vs. Staying Totally Connected
Fun and Indulgence vs. Knowledge and Growth
Relaxation vs. Adventure
Individual Gratification vs. Communalism
High Tech vs. High Touch
• Now Prosumers are finding creative ways to blend and transcend these and
other dichotomies, combining indulgence and altruism, relaxation and
adventure, luxury and simplicity…
• New approach is spawning its own vocabulary, including such neologisms as
geotourism, flashpacking, slow travel, voluntourism, and Rough Luxe
Images: photoeverywhere.co.uk
7

8. Four Vital Trends We’ll Explore
• By looking at those areas in which
Prosumers are well ahead of the
mainstream, we are able to identify 4
major groupings of trends that are
shaping the competitive landscape and
offer significant opportunity for businesses
in the T&T space
• To lead in the category going forward,
brands will need to excel at these 4
things:
_ Accepting and embracing “green” as a way
to do business
_ Offering experiences that provide personal
growth, education, and/or a sense of
community/interconnectedness
_ Staying in sync with customers’ new media
usage
_ Embracing emerging models of luxury and
customer service
8

9. Trend #1: How Green Was My Travel?
Prosumers Making environmentally Mainstream
The New Vocabulary of T&T
e·co·tour·ism (n.): Conservation 74% friendly choices makes me
feel good 62%
through ecologically responsible
travel
Prosumers Mainstream
I feel good about reducing
78% the amount of waste I create 70%
• Increased eco-consciousness
among consumers—and
especially among Prosumers—is Prosumers
The most successful and
Mainstream
having an effect on T&T choices profitable businesses in the
75% future will be those that
practice sustainability
63%
• Smart brands are moving toward
greater sustainability in I am paying more attention
operations and products/services Prosumers than in the past to the Mainstream
63% environmental and/or
social impact of the 52%
products I buy
Prosumers Mainstream
I am making an effort to buy
62% fewer disposable goods 52%
Euro RSCG Worldwide ● The New Consumer 2009
9

10. ls…
et s and towe
nd reusing she
Moving beyo
10

11. Taking Steps Toward Sustainability
Plaza Hotel is
one of a growing
# to offer menu
of dishes made
exclusively from
ingredients
produced within
100 miles
Hyatt Hotels have cross-functional Green Teams at
every property
“Our customers—individual travelers and
large corporate clients—want to know more
about what we are doing. Do we have a Enterprise, the largest car-rental co
CSR statement? What is our recycling in U.S. (also operates National and
Alamo) has joined the car-sharing
policy? The public expects us to movement with WeCar; users can
communicate what we’re doing and why.” go online to find a nearby car from
the all-hybrid fleet and enter it
using an electronic key card
—Brigitta Witt, VP for environmental affairs, Hyatt
11

12. • Marriott is
expanding
its “green
hotels” from
30 to nearly
500—
adhering to
LEED design
principles
and
incorporating
such things
as
ecorooms,
public
transport
options,
and green
roofs
“Living roof” on
parking garage
of Marriott Hotel
in Victoria, BC
12

13. • Hotels and resorts are bringing in Walls,
eco-friendly natural materials to structural
elements,
lower carbon footprints while also and
feeding the senses and slowing furnishings
the tempo of modern life of Lake
Tahoe’s 968
Park Hotel
are built
from
reclaimed/
recycled
materials
Guests at this Dutch
hotel are housed in
repurposed 15K-liter
wine barrels, which
once contained
Beaujolais
13

14. Reconnecting with Nature
• In our increasingly
artificial world,
nature = luxury
• In France, Louis &
Nathalie Blanco
promote sustainable
tourism and a
reconnection with
nature through tiny
prefab structures
that can be placed
virtually anywhere
• Each Carré d’Etoiles
unit sleeps four and
comes with a
telescope, star chart,
and retractable
skylight
14

15. Getting Particular About Indoor Environments
• Accommodations providers are getting
serious about everything that goes into
their rooms
Growth of
“EcoRooms”
featuring
products that
are energy and
water efficient,
waste
reducing,
“Pure Rooms” are virtually free of
nontoxic,
bacteria and viruses thanks to special
and/or
purification products and techniques,
biodegradable
hypoallergenic bedding, mattress
encasement, etc.; Marriott and Hilton
among large chains entering this space
15

16. Rewarding Green Behaviors
Canada’s Air Miles My Planet program lets travelers accrue
points by purchasing eco-friendly products (points are
redeemable for green rewards)
Renaissance Chicago O’Hare
Hotel offers complimentary,
prime parking spots, a pair of In celebration of Earth
Chicago Transit Authority Day 2009, Travelocity
passes, and a cup of purchased carbon
Starbucks coffee to guests offsets (to fund
driving hybrid vehicles planting of native
trees) for travelers
who booked a stay at
a green hotel
16

17. Going Green: Key Takeaway for Brands
• Today, brands in every category must
operate in the sustainability space and be
subject to increasing scrutiny
• Green efforts must be bottom-up, well-
integrated, transparent, and ceaselessly
proactive
• Virtue may be its own reward, but
quantifying green policies and practices
will lead to better sell-in among all
stakeholders
• Seek credible, respected outside
certification (e.g., Green Globe, LEED)
• Educate, engage, and reward customers
for their participation; green is a
collaborative effort, and consumers want
to know their travel choices are right for
themselves, their values—and for the
planet
17

18. Trend #2: Citizens of the World: Mindful Tourism
The New Vocabulary of T&T
Geo·tour·ism (n.): Tourism that sustains
or enhances the geographical character of
a place—its environment, culture,
aesthetics, heritage, and the well-being of
its residents [National Geographic]
• Mindful travel goes well beyond “green”
• With social responsibility increasingly
guiding consumer decisions, cultural travel
is now about acting and interacting,
educating and giving—it’s about tourism
with greater meaning and effect
• New breed of consumer is looking for
experiences that offer a deeper connection
to “authentic” cultures, opportunities for
doing good/giving back, and an immersive
cultural experience
18

19. Prosumers Seek Deeper Cultural Experiences
When I travel for pleasure, it is VERY
I am a citizen of the world
Prosumers
(love to travel and bring
Mainstream IMPORTANT that I…
66% home bits from exotic
destinations)
43% Prosumers Mainstream
83% See new places
74%
Prosumers Mainstream
I am a foodie/gastronome
68% 47%
Prosumers Mainstream Dine out/try new foods
(a real lover of gourmet
73% eating pleasure and/or
cooking)
54%
Prosumers Mainstream
58% Learn about a new culture
44%
Prosumers I am a pop-culture lover Mainstream Prosumers Mainstream
69% (really into music, art,
fashion, and/or scenes) 41% 56% Visit historical sites
49%
Prosumers Mainstream
Enjoy cultural experiences
44% (e.g., theater, art) 30%
Prosumers I am a serious-culture lover Mainstream
66% (literature, art-house cinema,
46% Prosumers
Experience/do something
Mainstream
fine art, classical music, etc.)
44% few people I know have done 28%
Euro RSCG Worldwide ● The Future of Travel 2009
19

20. Widespread Concern over Modern Life…
• Prosumers’ desire to get more out of
Prosumers In many ways, I think society Mainstream
their travel experiences has its roots
in a widespread feeling of 64% is moving in the wrong
direction 57%
emptiness, disconnectedness, and U.S.: 73% U.S.: 65%
lack of authenticity
I worry that society has
Prosumers Mainstream
• Euro RSCG has uncovered a growing become too shallow,
dissatisfaction with modern life—on 79% focusing on things that don’t
really matter
67%
U.S.: 91% U.S.: 76%
both a personal and societal level
• These feelings are most widespread
Prosumers Most of us would be better Mainstream
in the United States
71% off if we lived more
simply 66%
U.S.: 84% U.S.: 76%
Prosumers I worry that people have Mainstream
66% become too disconnected
from the natural world 57%
U.S.: 69% U.S.: 59%
Euro RSCG Worldwide ● The New Consumer 2009
20

21. ...and an Intensified Hunger for SOMETHING
MORE
• People are looking for something more—
Prosumers I am actively trying to Mainstream
for greater meaning in how they live, for
a sense of purpose 63% figure out what makes
me happy 48%
• Actively seeking improvement—in
themselves and their lifestyles
Prosumers I wish I could start fresh Mainstream
• Many are looking for something bigger
than self—to be part of an important 49% with an entirely different
lifestyle 43%
cause
• Americans more inclined than most Prosumers Mainstream
toward self-improvement and connection I sometimes feel as though
to something bigger than self 41% I’m wasting my life 37%
Prosumers Mainstream Prosumers Mainstream
I am making an effort to I would like to be part of a
84% improve the person I am 68% 62% truly important cause 48%
U.S.: 91% U.S.: 75% U.S.: 72% U.S.: 54%
Prosumers Mainstream Prosumers Mainstream
I am making an effort to I would like to lead a more
84% improve the way I live 69% 47% spiritual life 39%
U.S.: 92% U.S.: 75% U.S.: 58% U.S.: 49%
Euro RSCG Worldwide ● The New Consumer 2009
21

22. The Benefits of Travel Reach Deep
If people traveled more often
Prosumers Mainstream
to other parts of the world,
69% there would be less
prejudice and hatred
62%
Prosumers Extensive travel typically Mainstream
73% makes a person more
interesting 52%
Image: Trey Ratcliff/stuckincustoms.smugmug.com/
Prosumers Mainstream
Where and how I travel says
59% a lot about who I am 37% • Connecting people to the rest of the world
• “Bettering” people by making them more
knowledgeable, attuned to others, and
interesting
Prosumers One of the best things about Mainstream
• Travel choices are intensely personal and
69% travel is talking about my
experiences afterward 55% help to determine—and communicate—
who a person is
Euro RSCG Worldwide ● The Future of Travel 2009
22

23. Cultural/Education Tourism
• Cultural tourism has evolved
from “7 Countries in 6 Days”
into something more focused
and personal
• Whether one’s interest is a
popular book or movie (“Tracing
the Da Vinci Code”), cultural
heritage (“Discover the Real
Scotland”), or so-called “dark
tourism,” a.k.a. Thanatourism
(“Hurricane Katrina Tour”),
someone has found a way to
package it
• Particularly robust these days is
gastronomic tourism, which has
grown right alongside foodie
culture and comes in culinary, Image: Trey Ratcliff/stuckincustoms.smugmug.com/
wine, and agro variants
_ Mintel estimates 27MM Americans,
or about 17% of leisure travelers,
could be described as gastronomic
tourists
23

24. Something Bigger Than Self: Voluntourism
The New Vocabulary of T&T
Vol·un·tour·ism (n.): Voluntary service experiences that
include travel to a destination in order to realize one’s
service intentions; the conscious, seamlessly integrated
combination of voluntary service to a destination with
the traditional elements of travel and tourism (arts,
culture, geography, history, and recreation)
• From offering animal therapy for autistic
children in the U.S. to teaching English in Image: Planeterra.org
Cambodia, there are thousands of options for
travel that gives back
_ Condé Nast poll found 14% of Americans have
taken some kind of volunteerism holiday, and 55%
say they want to
• Blogs, webcasts, and newsletters create a
feedback loop, keeping people connected to the
experience—and the cause
24

25. Ritz-Carlton Give Back Getaways
• Through its Give Back Getaways
program, Ritz-Carlton has guests pay
for the privilege of devoting a few
hours to a good cause
“You will come face-to-face with the animals as
you perform a number of essential tasks
including cleaning and building cages, preparing
food, feeding animals, and mowing grass…”
(Sarasota, Florida)
“Travel south of the Yangtze
“[Help] children with autism, Down River to Wuzhen, an ancient
Syndrome and other disabilities water town dating back 1,300
learn to communicate through the years…To assist with the
power of music. After meeting with restoration, conservation and
therapists to learn how to work with community development
the children, you will participate in efforts, you will plant trees and
a music therapy session that has work alongside the water
ancient roots in Turkish-Islamic town’s artisans to help restore
medicine.” (Istanbul) a home to its original condition
by cleaning and painting.”
(Shanghai)
25

26. Seeking Personal Connections
• In our increasingly artificial, technology-
Prosumers I worry that digital Mainstream
mediated world, people are looking for a
greater sense of interconnectedness and 53% communications is
weakening human bonds* 51%
deeper personal relationships
• T&T offers opportunities to build these
connections
When traveling for pleasure,
Prosumers Mainstream
it is very or somewhat
81% important that I meet
new people**
80%
Prosumers Mainstream
I sometimes feel I don’t have
46% enough close friendships* 42%
The main way I stay
Prosumers connected with old friends Mainstream
Image: Trey Ratcliff/stuckincustoms.smugmug.com/ 60% and colleagues is through
e-mail and/or social 48%
networking sites*
*Euro RSCG Worldwide ● The New Consumer 2009
**Euro RSCG Worldwide ● The Future of Travel 2009
26

27. Seeking Personal Connections
27

28. Mindful Tourism: Key Takeaway for Brands
• People are looking for more in their lives: more meaning and purpose, more
interconnectedness, more humanism
• The T&T category offers plenty of opportunities to speak to these emerging
needs and mindset
_ Cultural immersion
_ Education
_ Personal growth
_ Community and interconnectedness
_ Giving back
• In the emerging culture of mindful consumption, people want to feel good
about making smart, conscientious choices; the most successful brands will
give consumers the incentives (practical, emotional) they need to make the
choices they believe to be “right” for them and for others
Images: photoeverywhere.co.uk
28

29. Trend #3: So Far and Yet So Near: The Tech-Connect
• New technologies are changing
virtually every aspect of the travel
experience—from inspiration and
planning to purchasing and
remembering
• Technology lets users score the best
deals, stay connected while on the
road, and extend the experience
through social media
According to Pew
Internet & American
Life survey, 50% of
U.S. adults made a
travel reservation
online in 2009, up
from 19% in 2001
Image: www.rockcheetah.com/.../travel-process.jpg
29

30. Internet Has Reinvented the Industry
Which of the following do you typically do
• In U.S., travel is now the top-selling when planning a vacation?
product online, with most analysts
estimating that nearly 40% of all Prosumers
Research hotels or other
Mainstream
leisure, unmanaged business, and 89% accommodations online 75%
corporate travel bookings flow through U.S.: 87% U.S.: 83%
online channels [Mintel 2009]
Prosumers Research airlines/trains/ Mainstream
• 7 in 10 respondents to Future of Travel
study say Internet is important part of 79% buses and/or car-rental
companies online 58%
U.S.: 83% U.S.: 74%
their travel planning (see Appendix)
• In U.S., even mainstream consumers Prosumers Mainstream
Research area attractions
show high rates of Internet use for
travel 78% online 56%
U.S.: 86% U.S.: 77%
Prosumers Mainstream
The Internet is an important Prosumers Mainstream
86% part of my travel planning 69% 64% Visit a travel website for
reviews and recommendations 45%
U.S.: 89% U.S.: 79%
U.S.: 59% U.S.: 46%
Prosumers I’d rather book a trip over Mainstream Prosumers Mainstream
Search for a coupon or
67% the Internet than meet with
a travel agent 50% 49% promotional code online 31%
U.S.: 68% U.S.: 63% U.S.: 60% U.S.: 48%
Euro RSCG Worldwide ● The Future of Travel 2009
30

31. E-Peers Are Key Influencers
• Travelers more informed thanks to Prosumers
I have chosen a hotel or other
Mainstream
online forums, bulletin boards, and accommodation based on
blogs on which consumers share 64% recommendations/ratings
from people online
43%
travel experiences, research
destinations, and rate travel brands
• Only 8% of Americans typically visit I read travel-related blogs or
Prosumers Mainstream
visit independent travel-
a travel agent in person, compared
with 29% in U.K. and 32% in France
60% related websites (not owned
by hotel, airline, etc.)
40%
(see Appendix)
What has the largest impact on your travel
decisions? I have chosen a travel
Prosumers Mainstream
destination based on
Advertisements
53% recommendations/ratings
from people online
30%
22% 9%
15% Magazines/Feature
Articles
Friends & Family
People Online
15% I have posted a comment or
Prosumers Mainstream
39% Other recommendation on a
40% travel-related blog or
website
20%
Euro RSCG Worldwide ● The Future of Travel 2009
31

32. Rank the following from 1 to 6 in terms of how important
they are to your travel plans (1=most important, 6=least
important)
1st/2nd/3rd Rank Summary
Relative Importance of Online Travel-Planning Sites
Google or other search 74
engine
Travel aggregator 59
(e.g., Expedia, Kayak)
Regional/local tourism 51
bureau
Consumer opinion site 44
(e.g., TripAdvisor)
Airline website 37
Hotel chain website 35
0 10 20 30 40 50 60 70 80
Americans are significantly more likely than others to visit airline and hotel websites;
French are most likely (83%) to rate search engines among top 3 choices (see Appendix)
Euro RSCG Worldwide ● The Future of Travel 2009
32

33. Social Media Emerging as Powerful Marketing Tool
• From Hertz to Marriott to United, major brands in
T&T space are embracing social media—with
applications before, during, and after the travel
experience
• Much more than a popularity contest, such
initiatives boost customer service,
responsiveness, and positive buzz
• Southwest Airlines has 70,000 fans on its
Facebook page
• JetBlue tweets “cheeps” (discounted fares) to its
700,000 followers on Twitter every Monday, good
while supplies last
• “Tweet watchers” (volunteers for Southwestern
and JetBlue) track and advise travelers on issues
such as flight delays and traffic jams near
airports
“Social media sites like Facebook and Twitter
allow traveler companies to talk directly to
their customers and for us to talk back.”
—Christopher Elliott,
National Geographic Traveler
33

34. Travelers Take Charge of the Online Experience
• Sharing news of the good, bad, and
ugly
• Offering tips and cautions
• Using the weight of social media to
influence brand behavior
After United failed to reimburse him
for a guitar broken by baggage
handlers, singer Dave Carroll of the
Sons of Maxwell band posted a
song about the incident and
United’s poor customer service on
YouTube; video has garnered
7MM+ views as of Jan. ’10 and was
TripAdvisor.com has 32MM unique monthly visitors named 1 of the top viral videos of
and 30MM+ traveler reviews 2009 by Time
34

35. Staying Connected Wherever You Are
Receiving and posting reviews and
recommendations on the go
Real-time travel blogs
9-minute YouTube video of travelers’ 2-
day saga trying to get home from NYC to
Sacramento on JetBlue
35

36. Competing on Tech
NYC’s Pod Hotel lets visitors make
advanced connections with other
Image: Elitemeetings.com
guests via PodCulture closed
social network; guests connect
online in specific forums to meet
up in real life to drink, dine, shop
or go out. Sales and traffic +40%
since PodCulture was introduced.
Hotel Sax, Chicago: Guest receive free laptop and MP3 [psfk.com]
player for use during stay; entertainment lounge and
high-tech studios offer spaces in which to work and play
Poland’s Blow Up
Hall5050 has no room
numbers or door
keys; each guest gets
an iPhone that
recognizes the right
door and lights it up.
Applications
preloaded onto phone
act as a concierge
during the stay
36

37. The Tech-Connect: Key Takeaway for Brands
• The travel industry’s products, practices, and business approaches are
in a state of constant change, responding to adjustments in customer
demands and newly available technologies
• Social media offers enormous scope for brands to…
_ Engage in ongoing, multiparty dialogues
_ Recruit and empower online ambassadors
_ Build communities
_ Revolutionize customer service
Images: freedigitalphotos.net
37

38. Trend #4: Luxury and Service Redefined
• While excess consumption was
The recession has served to
the common practice prior to Prosumers
remind people of what’s
Mainstream
the economic downturn, we are 62% really important in life—and 55%
now seeing a strong U.S.: 73% that’s a good thing U.S.: 65%
countervailing trend of mindful
consumption that is changing
I’m getting a sense of
how people define value and Prosumers
satisfaction from reducing
Mainstream
what they seek—and 46% my purchases during 36%
increasingly expect—in their U.S.: 58% the downturn U.S.: 47%
brand experiences
• Where once “more was more,”
now different perspectives on Prosumers I won’t go back to my old Mainstream
luxury and service are 54% shopping patterns even when
the economy rebounds 46%
emerging, with important U.S.: 58% U.S.: 50%
implications for T&T
I’m looking forward to a
• Trend is especially strong in Prosumers holiday season that’s less Mainstream
U.S.
70% about shopping and more
about family and simple 61%
U.S.: 79% pleasures U.S.: 71%
Euro RSCG Worldwide ● The New Consumer 2009
38

39. The New Elite?
Prosumers Mainstream
I respect/admire people
76% who live simply 68%
U.S.: 84% U.S.: 78%
VS.
Prosumers I respect/admire people Mainstream
24% who live a high-luxury
lifestyle 17%
U.S.: 21% U.S.: 13%
Euro RSCG Worldwide ● The New Consumer 2009
39

40. Prosumers Driving a More Mindful Approach to Consumption
Prosumers Mainstream
I am shopping more carefully
80% and mindfully than I used to 70%
U.S.: 86% U.S.: 79%
Compared with a few years
Prosumers ago, it’s more important for Mainstream
61% me to feel good about the
companies with which I do 47%
U.S.: 70% business U.S.: 54%
Prosumers I am more interested today Mainstream
62% in how and where products
are made 48%
U.S.: 66% U.S.: 52%
Prosumers It makes me feel good to Mainstream
Image: freedigitalphotos.net
63% support local producers,
artisans, and manufacturers 55%
U.S.: 76% U.S.: 67%
Euro RSCG Worldwide ● The New Consumer 2009
40

41. Rough Luxe: Luxury Gets Real
The New Vocabulary of T&T
Rough Luxe (n.): Luxury experiences that incorporate
time for reflection and personal encounters with people,
nature, and architecture, as well as food and social and
cultural experiences linked to geographic locations
• Mindfulness has infiltrated the luxury category
• Rough Luxe is a growing movement of like-
minded hotels, restaurants, retailers, and
artisans connected by a philosophy of luxury London’s Rough Luxe Hotel features
that emphasizes authenticity over bling and wallpaper peeled down to the 1920s stratum
experiences over excess Vorstadt 14: “This gently renovated 15th century
• Key components: building offers the perfect combination of down to
earth history and avant-garde design.”
_ Sustainability—from reclaimed building materials
through to organic and locally sourced foods
_ Heritage and provenance
_ Art, architecture, and design
_ Rare objects
_ Impeccable service
_ Engaging, one-of-a-kind experiences
Source: RoughLuxe.com
41

42. Flashpacking
The New Vocabulary of T&T
Flash·pack·ing (n.): Backpacking with flash or
style; travel that combines modest
accommodation with free spending on activities
and other indulgences; budget backpacking that
incorporates high-end technology
“We’re going flashpacking…It’s like
backpacking with less pack and
more flash…For the most part,
• Flashpackers (next generation of we’re skipping hostel cooking,
backpackers) blend authentic chicken buses, and group
accommodations in favor of
experiences with a touch of luxury— restaurants, discount airlines, and
eschewing traditional youth hostels something with a lock on the door,
a soft bed, and sometimes Wi-Fi.”
and other bare-bones —Curtis, Flashpackinglife.com
accommodations in favor of boutique
hotels and B&Bs
• Their version of “roughing it” comes
complete with such must-haves as
laptops and Wi-Fi—essential for
round-the-clock blogging and
Facebook updates
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43. Uncovering a New Service Paradigm
• Just as the definitions of value* and luxury are changing, so, too, are expectations
regarding service
• Using our proprietary Decipher® semiotics tool, Euro RSCG has identified key shifts
in the role of service providers and their relationship with customers
• Previously, service was highly centralized and tightly controlled
_ Workers expected to be courteous rather than considerate, professional rather than caring
_ Tasks and boundaries clearly delineated (no room for improvisation)
_ Highest levels of service reserved for upper classes
• In recent years, service has been more democratic, seen less as a “value add” than
an expected accompaniment to every purchase
_ Employees trained to be friendly and accommodating, but to remain well within bounds
set by corporate center or local execs
_ Little room for spontaneity or personalized interaction
• Now, we’re seeing evidence of a shift toward a more humanized approach
_ Rather than “putting out fires” (addressing complaints and crises), personnel are
expected to develop relationships with customers based on collaboration and mutual
respect
Images: photoeverywhere.co.uk
*See Euro RSCG’s The Future of Value (Knowledge Exchange)
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44. 44

45. Two Important Concepts at Work in New Service Paradigm
• “Democracy of Individuals”:
_ Underlying principle is that best service is provided by a team of equals with
complementary skills working toward a common goal
_ Each service provider is uniquely capable of adding something to service equation—e.g.,
encyclopedic knowledge of nearby attractions, deep understanding of local
history/culture, ability to reassure panicky fliers, gift for intellectual engagement
_ More collaborative approach allows brands to build relationships and exceed customers’
expectations
• “Assured Improvisation”:
_ Value of Democracy of Individuals stems in part from each employee’s ability to adapt
and respond to shifting conditions and requirements with ingenuity and
resourcefulness
_ Skilled at devising solutions on the fly
_ Like a supremely talented musician, these individuals don’t make it up as they go along
but, rather, work within existing templates to create something new and sublime
_ Moves service from programmed empowered, from proactive responsive
_ Rejects rote answers in favor of asking the right questions
_ About discovering and fulfilling individuals’ unexpressed desires, not about assuming
what those desires will be
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46. New-Fashioned Luxury = Service with More Than a Smile
Maia luxury resort in the
Seychelles requires staff to
attend yoga sessions before
each shift to ensure they “Luxury, before,
transmit only positive vibes was about being
fancy. It’s not
about being fancy
anymore. It’s
more about
responsiveness
and about being
individualized
toward the
Staff training at
customer, and
Conrad Hotel in doing it all
Indianapolis defect-free.”
includes lessons
in body
language and —Hotelier Horst
tone of voice to Schulze
ensure guests
aren’t
misunderstood
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47. Luxury and Service Redefined: Key Takeaway for Brands
• The emerging traveler
doesn’t want tinny smiles
and pretty facades; the new
luxury is more personal,
more authentic, more “real”
• While Prosumers appreciate
material luxuries, they are
not looking to be waited
upon or doted on by a
subservient worker; what
they seek is a more
enriching interaction that
helps to envelop them in the
local culture
• The new, more mindful
consumer seeks brand Image: freedigitalphotos.net
partners that offer a more
conscious—and
conscientious—approach to
travel
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48. On the Horizon
The New Vocabulary of T&T Vir·tu·al tour·ism (n.): A computer
Slow trav·el (n.): Travel that provides representation of a real place where
an opportunity to become part of local geometrical properties of space are
life and to connect to a place, its conveyed in such a way that the user
people, and its culture feels he or she is actually there
• Sibling to the slow food movement • Slowly emerging as environmental-
impact-free and supremely
• Affords a lighter impact on
inexpensive way to see the world
environment and a heavier focus on
culture • As technology improves and allows
for a richer visual and sensory
• It’s about staying put and absorbing
experience, people will be able to
and interacting with local culture
experience sites too difficult to get to
rather than a constant rush from one
and places too delicate for tourist
place/experience to the next
traffic
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49. In Closing, a Few Rules of the Road
• Brands looking to thrive in this new T&T space
must…
_ Extend the Conversation: Focus on building
relationships/creating experiences not just during
the time spent in actual travel, but in the periods
leading to and following it; keeping the
conversation going builds loyalty and creates a
pipeline for ideas
_ Remember, It’s All Interconnected: In the
new world of travel, trends are overlapping and
complementary. Going green is about preserving Image: photoeverywhere.co.uk
an environment that includes people and culture;
sustainability is about preserving identity as well
as saving money and the planet. There is
authenticity to be found in both luxury and
poverty. Catering to one need should seldom
come at the expense of another.
_ Mind the Gap: As the new consumer strives
toward greater mindfulness, heightened attention
is being paid to how a brand communicates vs.
how it acts. True authenticity requires
communication, transparency, and honesty.
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50. For more insights from Euro RSCG research,
visit www.prosumer-report.com
And follow us on Twitter (@prosumer_report)
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51. Media Inquiries
For inquiries regarding Euro RSCG Worldwide’s studies, please contact:
Lisa Gruber
Global Communications Manager
Euro RSCG Worldwide
T +1 212.886.2018
E lisa.gruber@eurorscg.com
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