Welcome Sept 2007

September 1-30, 2007E. Craig - Instructor

Welcome……


Welcome……Online Marketing for Luxury Hotels


Wired and wealthy online…..


Who are they…..


Who are they……where do they go onlineWhat do they buy online….what are theOpportunities for hoteliers?


This brief course for hospitality professionalsWill explore these questions……plus


•Creating exclusivity online

•3rd Party Distribution for Luxury and Distinctive Properties

•Emerging Luxury Markets…Asia + Russia

•Opportuntity…Trading Up New Luxury buyers


•Creating exclusivity online

•3rd Party Distribution for Luxury and Distinctive Properties

•Emerging Luxury Markets…Asia + Russia

•Opportuntity…Trading Up New Luxury buyers

One module per week…plus videos, articles and resources


But……


But……your participation will make thisCourse lively, informative…and relevant.


Please feel free to post questions andcomments….contribute to the discusssions…It won’t take much time.


Please feel free to post questions andcomments….contribute to the discusssions…It won’t take much time……

Everyone will benefit from shared expertise.


So now to get started….some background information..


The luxury consumer has changed….

And there are more opportunities, globally….

Three tiers of affluence (Premium Knowledge Group)

Wealthy Tier - $1M minimum in investable/ leveragable assets 600,000 households with $10m in assets.High Net Worth Individuals (HNWI)The number of households in this category is doubling annually

Affluent Tier - Minimum $150K HHI 6M+ households (top 5%) 35K new millionaires created each month

Mass Affluent Tier - 75K HHI 16M households (next 15%) Aspirational buyers who are trading up Young Affluents – young families is the strongest growth sector forTravel and hotel industry.

Retailers and consulting groups define wealthyConsumers….

http://www.premiumknowledge.net/

How affluents obtained their wealth varies….

Business ownership or sale of business ownership is the primary source (37%) of wealth for the majority of the world’s HNWIs.

Income ranks second at 24% Inheritance is third at 18%

In 2001, for HNWI, inheritance was •North America 21% •Europe 37%

•15% percent of global population is 56+ years old. •61% of HNWI are 56+ years old.

•$41 trillion will change hands over the next 40 years via inheritance in the United States.

•19% of HNWI American’s children live outside the United States. •$31 billion – amount Warren Buffett pledged to the Bill & Melinda Gates Foundation.

•92% of HNWIs are projected to transfer their wealth to extended and immediate family.

Retail In 2006 Luxury Retail Goods are estimated at $194 billion globally.

•Approx 16.9% of all retail is luxury •Europe consumes 41% of all luxury products.

•The United States is only 30% •Asia is 25%

•20% - 30% annual growth in luxury retail segment •General retail growth is less than 5%

Online retail (mass and luxury) spending reached $102.1 billion in 2006 – •a 24-percent increase versus 2005.

Online holiday e-commerce accounted for $24.6 billion, up 26 percent versus last year. 3.1% Percent of pretax income spent on food

41.4% of that goes toward food consumed outside the home.

Retail and online purchasing growth rate isSignificantly above ‘standard’ e-commercegrowth….


Do affluent consumers shop and buy online?


Do affluent consumers shop and buy online?…Yes…the ‘wired and wealthy’ are more comfortable with online purchases, financial transactions, auctions

than the ‘average’ consumer.

Luxury Collectables

Luxury and Designer Brands

Luxury ‘Art de Vivre’

Luxury Items Auctions

Luxury High-Tech Accessories


So, what does this all mean for you…A luxury hotelier?


Opportunity…..


Opportunity….especially for those who understandHow affluent consumers relate to the Internet.


Stop by each week…

at the end of the courseYou will have a good understanding of how toCapture this customer segment online….and deliverMore business to your hotel.


Questions, comments, suggestions…..


Questions, comments, suggestions…..Just let me know…we’ll be happy to hear from you.

[email protected]