What's common between Sossusvlei, Tswalu and Kyoto? The luxury traveller
Exploring emerging consumer behaviour and the fascinating synergy between luxury fashion and luxury travel, where focus is on specifically curated, exceptional and more impactful experiences
Move over tourist laden, glitzy streets of 1) Paris, 2) New York, and 3) London!
Welcome -
1) Dunes of Sossusvlei, Namibia while one is on a quest for rare Namibian Tourmalines, Diamonds and Chrysocolla,
2) The largest privately protected conservation area in South Africa, Tswalu, home to the black-maned Kalahari lion and known for its meerkat experience, and
3) The “City of Ten Thousand Shrines” where traditional geisha still live and practice - Kyoto.
The worlds of luxury fashion and hospitality have always been acquainted, but a new era of collaboration is emerging. Both industries thrive on creating exceptional and highly personalised experiences for a discerning clientele. The more eclectic or rare the experience - the better it is for the discerning traveller. The biggest common denominator between both industries is - loyalty.
The luxury travel industry has rebounded to pre-pandemic levels and is currently thriving, with a global market value of US$1.2 trillion in 2021 and a projected Compound Annual Growth Rate (CAGR) of 7.6% until 2030, according to market research surveys. In its recent report, experts at Deloitte pinpoint the five noteworthy trends shaping the future of luxury travel -
Luxury travel advisers
Digital innovation
Ecosystem collaboration
Sustainability
Hyper-personalisation
The report recognises that changing consumer preferences, influenced by social media, have heightened demand for destinations that are deemed "Instagram-worthy," increasing awareness and interest in more remote and unique locations. This newsletter explores the exciting parallels between these sectors, the changing preferences in travel experiences, choices strengthening the connection between luxury fashion and travel, and the emerging opportunity for entrepreneurs in these industries to drive positive social and environmental impact.
The proof of luxury is - in a commodity’s composition
Luxury fashion commodities are not your typical everyday wear. They are crafted from high-quality materials, often by hand, and come with a hefty price tag. Some specific materials that luxury fashion customers gravitate towards are :
- Leather, which is used in a variety of luxury fashion items, from handbags and shoes to jackets and coats. Luxurious leather comes from animals like crocodile, alligator, and ostrich. These leathers are prized for their beauty, durability, and rarity.
- Cashmere, which is soft, fine wool that is derived from the undercoat of goats. It is known for its warmth, lightness, and luxurious feel and often used in shawls, sweaters, scarves, throws and hats.
- Silk, is a natural fiber produced by silkworms. It is known for its lustrous sheen, soft drape, and strength, and is used to make an array of garments such as dresses, blouses, and lingerie. Silk also finds extensive use in making exquisite upholstery, curtains, lampshades and even wall art where the silk can be used to cover pieces of art canvas.
- Furs: Real fur has long been a symbol of luxury and status. However, due to ethical concerns, many luxury fashion houses are now using faux fur.
- Precious metals and gems, which are often used in jewellery, watches and accessories. Diamonds, sapphires, rubies, emeralds and tourmalines are some examples of precious gems that are popular in luxury fashion.
(We will speak about sustainable alternatives and their use, in the coming editions. For now, let’s look at the emerging patterns in the luxury marketplace.)
Gauging consumer behaviour
In the realm of luxury travel, choosing high-quality materials transcends mere aesthetics. It becomes a woven thread that defines the entire experience, reflecting not only the destination's essence but also the discerning taste of the luxury consumer.
In both fashion and travel, the focus on high-quality materials can now encompass sustainable practices. While the adoption of sustainable materials in the luxury fashion segment might be slow for now, it has surely begun. For instance, in 2021 Hermès embraced vegan leathers made from mycelium – the thread-like structure of fungi, that we mentioned previously in our clean tech edition.
Sylvania, the resulting material was created as part of a three-year collaboration between MycoWorks and Hermès to fine-tune mycelium leather for use in its Victoria shopper bag. These sheets are tanned and finished by Hermès tanneries in France, much like real leather, to imitate its look and feel from the wrinkling all the way to the subtle color gradient.
Similarly, luxury travel providers are becoming increasingly curious about sustainability and demanding eco-friendly experiences. This could involve using sustainably harvested woods in their accommodations, locally-sourced linens, or energy-efficient appliances. These choices demonstrate a commitment to environmental responsibility without sacrificing the essence of luxury.
In a recent New York Times article, Milton Pedraza, the founder and chief executive of the Luxury Institute, a consultancy specialising in luxury consumer research says that -
“The sophisticated traveler has “seen it, done it.” So when someone has the opportunity to access an exclusive experience in a far-flung part of the world, it makes your life more unique and everybody wants to be seen as authentic, unique and genuine..They love to engage with the product while meeting people who are their peers and who come through trusted brands and curators..You get to demonstrate your expertise..The experience has made you an insider.”
Interestingly, in the article Amy Elliott discusses a growing trend of luxury travel that combines fashion and travel with a focus on gemstones and jewellery. Some of the hyper-specific and curated experiences she talks about include trips, such as one to the opal mines in Querétaro, Mexico, led by gemologists Carlos Torres and Dr. Laurent Massi, costing around $3,700 per person, not including airfare.
Another itinerary gaining traction is the The Spotlight on Fabergé package offered by Regent Seven Seas Cruises in collaboration with Fabergé. The 11-day voyage starts from the Civitavecchia port in Rome and includes destinations such as the Sicilian city of Taormina; Ibiza, Spain; and Nice, France, ending in Monaco (from $12,999 per person, including airfare).
“We pride ourselves on offering our guests immersive and culturally enlightening itineraries as well as enriching onboard programming,”
- Andrea DeMarco, President of Regent Seven Seas Cruises
For the uninitiated, Amy explains that - The Grandeur, which was launched in November, has its own 1,600-piece art collection, including a Fabergé egg in an ocean theme with blue guilloché enamel, diamonds and pearls, called “Journey in Jewels,” which was commissioned by Regent Seven Seas. The programming is to include Fabergé expert-led lectures, screenings and master classes, as well as shore excursions attuned to the participants’ interests in the decorative arts.
"Clients who care about art and culture and would happily sit for an hour or so to learn about the history of Fabergé’s royal clients then and now.”
-Josina von dem Bussche-Kessell, Fabergé’s Creative Director
Amy poignantly calls it a - floating symposium - a kind of sleepover camp on a luxury scale - effectively creates a community for people who share a common passion.
This growing trend is not restricted just to high end jewellery aficionados. Caren Jochner, Global Head of Brand Experience at Bentley Motors, said the company has “travel and journeys as a core part of its DNA.” Curated for once-in-a-lifetime road trips, Bentley launched a global calendar of curated Extraordinary Journeys and touts its offering as providing access to “the very best of local cuisine, design, architecture, and wellness.” Costing approximately $27,755 per person, travellers have the option to choose between three destinations - Scandinavia, New Mexico and the UK.
Measure impact to gain competitive advantage
By embracing sustainability, hospitality businesses are attracting this growing market segment, all while reducing operational costs and building a positive brand reputation. Travellers are increasingly seeking information on the impact of their journeys, and businesses that embrace sustainability and transparency are leading the charge. Let’s take a look at a brilliant example of impact assessment.
Tswalu Kalahari provides private and exclusive safari experiences for a maximum of 40 guests in one of their three luxury safari camps, and their ratio of guests to wilderness space is one of the lowest in South Africa. In 2021, Tswalu released its first impact statement. Developed with The Long Run, this statement is a new tool for hospitality businesses to calculate the environmental and social impact alongside the economic cost of operation. This economic "nutrition label" provides a clear picture of where guest spending goes and the positive contributions it makes.
Traditionally, information on how revenue is used has been limited. Tswalu's annual impact statement, based on actual data rather than projections, reveals how a significant portion of guest stays directly supports protecting the Kalahari ecosystem and restoring Africa's biodiversity. The focus on climate change has driven a demand for sustainable travel options. Travelers are more mindful of their impact and increasingly willing to invest in responsible experiences. Transparency and accountability are crucial in this space, as highlighted by The Long Run's then Executive director, now Advisor, Delphine Malleret-King.
Tswalu's commitment to sustainability goes beyond just accommodation. With the lowest guest-to-space ratio in any South African private reserve, their focus is on providing exclusive access to a pristine wilderness. Choosing Tswalu allows guests to become active participants in conservation efforts.
By being transparent about their finances, Tswalu fosters a deeper understanding of the true cost of conservation and sustainable operations. A stay at Tswalu directly contributes to the conservation of 114,000 hectares of land and impacts the lives of 282 residents. In 2021 alone, their nature-based tourism initiatives provided vital healthcare to over 991 people through their free community clinic. Furthermore, Tswalu invested a substantial $5.779 million in conservation and community programs. For a detailed look at the impact of guest spending, you can explore Tswalu's 2021 impact statement.
Tswalu Kalahari's leadership in measuring and communicating their impact paves the way for a more sustainable future for the hospitality industry, where travellers can actively contribute to positive change.
Where do we begin? Here.
Whether this type of consumer behaviour is just an offshoot of the hype wave that sustainability is riding on or not, remains to be seen. Nonetheless, as entrepreneurs it is important to reimagine the contours of being profitable as a luxury business, to include two affirmative actions ab intio:
Measure Impact - As illustrated with Tswalu’s example above, by measuring your carbon footprint, one can identify areas for improvement. This allows you to implement targeted strategies and track progress towards a more sustainable future. One can model their impact assessment metrics on Tswalu’s as a starting point (picture attached above).
Build a Sustainability Strategy : By adopting sustainable practices, a hospitality business can become a leader in responsible tourism. This not only benefits the environment, but it can also attract eco-conscious travellers and boost your reputation. Moving towards sustainable practices in certain crucial areas not only benefits the environment, but it can also enhance one’s business. The three areas one can immediately turn one’s attention to are :
- Ethical Sourcing: Promote authentic experiences that highlight responsible mining and sourcing practices, allowing guests to connect with local communities while minimising environmental impact.
- Transparency: Partner with businesses that prioritise transparency in their operations, as consumers are becoming increasingly curious to know the story behind what they buy. This allows guests to witness sustainable practices firsthand, creating a more impactful travel experience.
- Supporting Local Artisans: Promote bespoke experiences connecting high-end travellers with local artisans who use sustainable practices. This could involve visiting workshops that utilize recycled materials or source gemstones responsibly, catering to the growing demand for eco-conscious travel.
And finally, COLLABORATE - vertically and sideways!
To reiterate from our last edition on the future of travel, legal frameworks can provide a strong foundation, but true progress requires a collective effort. For instance, hospitality leaders must work with lawyers to design compliance programs that not only meet legal requirements but also go beyond by promoting sustainable practices. Collaboration with environmental groups can lead to innovative waste management solutions or partnerships with local communities can ensure cultural sensitivity and responsible tourism development.
By fostering a spirit of collaboration, the overall hospitality industry can navigate the legal landscape while simultaneously ensuring a positive environmental, social, and cultural impact.
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Let's work together for a greener, more sustainable travel industry!
Do send this edition to your friends in the luxury fashion and the luxury hospitality industry who you will benefit from this!