Transcription
Engaging theASIA PACIFIC MILLIONAIRETRAVELLERAgility Affluent Insights Summary ReportILTM Asia Pacific Agility Research & Strategy, 20181
CONTENTS3ABOUT AGILITY4INTRODUCTION TO THE REPORT5TRENDS IN ASIA PACIFIC LUXURY TRAVEL16TRAVEL AND LUXURY SHOPPING22TRAVEL PURCHASE PREFERENCES27TRAVEL INFORMATION SOURCES AND INFLUENCES30WHAT THIS ALL MEANS TO TRAVEL BRANDS Agility Research & Strategy, 2018
3INTRODUCINGAgility and AffluentialAgility Research & Strategy is a World Class Research and Consultingcompany with a core focus on the Affluent and Luxury Consumers forpremium brands. With over 30 years combined experience inunderstanding the Affluent consumer, we are truly Fluent on theAffluentTM.We partner with leading brands in helping to provide actionable insightsthrough a suite of solutions that lead to growing their market share.Affluential, powered by Agility, is a leading consumer intelligence portalhelping brands engage with Affluent consumers in more than 20 keyeconomies across the United States, Europe and Asia Pacific.We work with brands catering to affluent consumers around the world: Agility Research & Strategy, 20183
4ABOUT THIS REPORTThis report is based on findings from the Affluent Insights Luxury Study: Fielded in Nov/ Dec 2017 Covers 8 markets: China (52% in Tier 1. 48% in Tiers 2/3 ) , Hong Kong,Singapore, Thailand, Malaysia, Australia, Japan, South Korea Total sample size across markets was 1,056 millionaire respondents whoall have US 1 million in investable assetsS. KOREACHINAMillionaire Sample n 109Millionaire Sample n 305JAPANTHAILANDMillionaire Sample n 107Millionaire Sample n 100HONG KONGMillionaire Sample n 127MALAYSIAMillionaire Sample n 94AUSTRALIAMillionaire Sample n 105SINGAPOREMillionaire Sample n 109CHHKSGMYTHKRJPAU18-3435-4445 %27%12%14%74%14%18%68%30512710994100109107105n Note: The percentages throughout this report have been rounded to the nearest percentagepoint and may not add up to 100%.4Copyright note:Agility Research and Strategy retains all rights to this report. By acquiring this report, the acquirer is grantedthe right to share this report and its contents within the organization it was acquired for, and agrees toattribute all content quoted from the report to this source. This report or any part of it cannot be sold ordistributed to a third party without prior consent from Agility Research and Strategy. Agility Research & Strategy, 2018Age
GENERAL TRENDSin luxury travel Asia PacificTravel remains a big focus for Asian millionaires, with over 70% in mostmarkets confirming their intention to travel more for leisure in the next12 months (with Japan as the most favoured destination), and with over50% of all respondents confirming that they routinely spend more ontravel than on any other luxury goods category.Millionaires in Malaysia and Thailand are showing a growing propensityto spend on luxury items overall and on travel in particular, and to do soin style, flying in business and first class.Personalized travel experiences and activities have become essential tothe travel experience, with respondents spending on average more onexperiences than on hotel accommodation.Cruises are becoming increasingly popular among Asian millionaires,with all markets showing consistent y-o-y increases on cruise spend.Whilst many travel brands are targeting millennials, older demographics(35 ) still represent a large potential market, with 38% of the segmenttaking more than 3 trips annually.The most popular information channels for travel are online search andOnline and social media advertisements are the top 2 influencers whenchoosing a travel brand. Nevertheless, offline channels are still relevant,with between 35% and 41% of respondents indicating that they are stillinfluenced most by physical interaction with the brands or throughtraditional media exposure.5 Agility Research & Strategy, 2018brand websites. The brand website, often overlooked in terms of budgetallocation vs social media, remains an essential tool to showcase andpromote a brand.
6Asia Pacific millionaires are generallyFREQUENCY frequentinternational travellers, with theof the Japanese millionaires,OF TRAVEL whoexceptionhave travelled less internationally thanother markets.Overall, 71% of the millionaires surveyedtravelled internationally for leisure 2 timesor more in the past 12 months.Thai and Malaysian millionaires exceed allother markets for propensity to travel,reflecting the increasing wealthy status ofboth countries.2 in 5 HNWIsgo on 3 or moreleisure trips annually.CHINAHONG KONGSINGAPORE5%24%40%2% 20%35%5% 9%32%24%THAILAND7% 8%17%35%8%29%27%AUSTRALIA12%0 Trips20%32%42%14%39%1 trip32%33%17%17%28%2 trips3-4 tripsCHINAHONG KONGSINGAPOREM A L AY S I ATHAILANDKOREAJ A PA NAUSTRALIA19%17%11%12%9%5 trips36%82%71%77%86%84%72%74%Q:How many international trips have you taken in the past 12 months for the following purposes (Leisure)?Q: Looking ahead to the next 12 months, and comparing it to the previous 12 months, please rate how strongly you agreewith the statements. (Top-2-box)6 Agility Research & Strategy, 2018All markets, except Japan, showhigh propensity to travel forleisure in the next 12 months.(“More likely to travel abroad forvacation in the next 12 months”)7%35%2% 10%JAPAN9%37%MALAYSIAKOREA23%
7On average, one in every four trips Chinese millionaires take mixesleisure and business. “Bleasure” poses peculiar challenges to luxurytravel brands: they must learn to look at their guests’ trips holistically, sothey can provide different experiences during the same trip dependingon the stage the guest is at.Number of Trips in Past 12 MonthsLeisure(Average 2.51)10 05-9 2%5%7%124%3-423%Business(Average 2.24)10 5-9 3%7%240%3-416%Bleisure(Average 1.74)3-413%021%122%10 5-9 2%5%034%231%121%Q:How many international trips have you taken in the past 12 months for the following purposes? Base: China, n 3057 Agility Research & Strategy, 2018226%
8TRAVELSPENDINGPRIORITIESTravel has become one of the mostimportant spending categories formillionaires in Asia Pacific, withover half of all interviewedexpressing the intention to spendmore on travel than on other luxuryitems in the next 12 months.China: I spend more ontravel than on luxury goodsThis trend is most evident inChina, with a 9% increaseYoY of respondents spendingmore on travel than on luxurygoods.Millionaires in China, Malaysia and Thailandshow higher propensity to travel in style and tospend on luxury items overall.I spend more ontravel than on luxurygoodsCHINAHONG KONG60%53%I normally book myleisure travel inbusiness or first classI will likely spend moreon luxury %JAPANAUSTRALIA56%38%39%42%79%42%60%58%35%42%Q. Please rate how strongly you agree or disagree with each of the following statements. (Top-2-box) Base: HNWIs8 Agility Research & Strategy, 2018SINGAPOREKOREA51%82%
9In most markets, millionaires arewilling to spend on travelexperiences and activities morethan on luxury accommodation.TRAVELEXPERIENCES& ACTIVITIESCruise travel is growing acrossAPAC, particularly in Malaysia, Koreaand Australia, which show relativelyhigher spending on cruise travel.CHINA4%9%HONG %9%8%1%8%5%Airline ticketsTravel experiences / activitiesHotel / AccomodationCruiseTREND With cruises becoming increasingly popular with the mass affluentmarket, millionaires increasingly feel that while cruises offer luxury, they doLuxury hotel brands are also extending into the small cruise market. Forexample, Belmond's luxury barges sail through France, to explore wine regionscrossed by the smaller rivers and The Ritz-Carlton plans to launch the YachtCollection in 2019.Q:How much did you spend in the following categories in the last 12 months?9 Agility Research & Strategy, 2018not offer the privacy and exclusivity they are accustomed to. Small-shipexpedition cruises are a niche but rising segment among adventurous wealthiertravellers, who are looking to discover far-flung destinations which are notaccessible to larger cruise ships.
10Travel Remains Top of Mind for MillionairesTravel accounts for a lion’s share of spending on discretionary goodsand services in most Asia Pacific countries, with Australia showing thehighest share.SHARE OF WALLETCHINAHONG %28%8%16%26%9%12%30%8%8%6%Jewellery & WatchesDining & EntertainmentCosmetics & Skin Care8%8% 3%8% 2%Fashion & Accessories Agility Research & Strategy, 2018Travel & Leisure8%7%10%Q: How much did you spend in the following categories in the last 12 months?105%9% 2%16%15%36%8%5% 7% 4%13%26%9%13%5%19%28%AUSTRALIA13%
11The research strongly shows that no matter what type ofexperience is considered, all must have one common trait:customization by understanding and anticipating themillionaire's needs.I expect a highly customizedexperience when buyingluxury products or servicesCHINAHONG KONG85%59%“A great experience I associatewith a luxury brand is one thatoffers thoughtful, bespoke,intelligent service and solutions,and fulfil needs that you mightnot even anticipate yourself.”— HONG KONG ANAUSTRALIA91%57%46%62%Luxury travel brands need toset up personalized digital tooffline customer journeys,using the trove of data availabletoday. They have to make theend-to-end journey oneseamless process, payingparticular attention to painpoints in between stages.tours and activities. They thus pose a potentially big challenge for the luxurytravel advisor community. While the traditional travel advisor will still be ableto provide good recommendations to long term customers, Airbnb's use ofbig data and AI enables it to better understand new demographics’ needs andpick up growing trends much faster, all in one easily accessible platform.Q: Please rate how strongly you agree or disagree with each of the following statements. (Top-2-box) Base: HNWIs11 Agility Research & Strategy, 2018TREND Airbnb Trips platform provide personalized, locally-operated
12Although millennial (those inthe 18-34 years of age bracket)millionaires in Asia Pacific goon international leisure trips ona more frequent basis than the oldermillionaire segment, the difference isnot as marked as one could expect.46% of millennials took at least 3leisure trips annually, compared to 38%for the elder segmentMILLENNIALS’LEISURE TRAVELBEHAVIOUROlder demographics remain animportant contributor to the luxurytravel industry. Their spending powercannot be discounted.TOTALN 1,056MILLENNIALS(18- 34 YEARSOLD)N 38920%6% 18%12%0 Trips30%31%21%28%29%1 trip26%2 trips25%3-4 trips16%18%13%5 tripsQ:How many international trips have you taken in the past 12 months for the following purposes (Leisure)?12 Agility Research & Strategy, 2018OLDER SEGMENT(35 )N 6689%
13Japan, the Most Popular Travel DestinationJapan is the most sought after country to travel to by Asianmillionaires, due to the low Yen, variety of destinations, authenticculture and attention to the environment.CHINAHONG KONGSINGAPOREMALAYSIATHAILANDSOUTH KOREAJAPAN13 Q:What destinations have you travelled to for leisure in the past 12 months? Agility Research & Strategy, 2018AUSTRALIA
14Favourite Travel ActivitiesShopping, sightseeing and dining are the most popular leisure travelactivities for travellers from countries across Asia Pacific. Interestingly, Chinashows a more diverse set of activities than most other APAC countries, whichindicates that the Chinese traveller is evolving, becoming more curious andsophisticated in its travel habits.ACTIVITIES DONE DURING LEISURE TRAVEL IN THEPAST 12 MONTHS BY ALL 8 MARKETS Agility Research & Strategy, 201814 Q:What activities have you done during your leisure travels in the past 12 months?
15Travel Luxury Shopping PreferencesBetter selections offered is one of the key reasons for buying luxuryproducts during travel. Still, most of the HNWIs would like to buy theluxury product tax free and at the best possible price.The HNWIs in China, Malaysia and Thailand show higher interest inbuying luxury products during travel.I like to buy from outside myhome city because of thebetter selection offeredI mainly buy luxury brandswhen I get them tax freeIt is important for me to getthe best possible price whenbuying luxury brands72%69%69%CHINAHONG STRALIACHINAHONG KONGSINGAPORE74%64%74%33%50%47%46%I mainly buy luxurybrands when travellingI travel to destinationswhere I can find luxuryproducts to e rate how strongly you agree with each of the following statements. (Completely agree somewhat agree) Agility Research & Strategy, 201878%AUSTRALIA60%53%THAILAND30%I prefer to purchase luxuryitems at the airport ratherthan in the SIAKOREA15Q:64%77%57%58%47%
16Travel Luxury Shopping InfluencersUnsurprisingly, given the region’s widespread adoption of mobileconnectivity, online search, social media apps and travel / guideapps are the channels of choice when researching luxury shoppingduring travel.But face-to-face recommendations remain important in certainmarkets, with HK and SG indicating Tourist Information Centres andJapan and Australia indicating Hotel Concierge as important sources ofrecommendations.1st2nd3rdCHINAOnline searchSocial media appsTravel / guide appsHONG KONGOnline searchTourist informationTravel / guide appscenter or kioskSINGAPOREOnline searchTourist informationTravel / guide appscenter or kioskMALAYSIAOnline searchTravel / guide appsSocial media appsTHAILANDOnline searchSocial media appsTravel / guide appsKOREAOnline searchTravel / guide appsSocial media appsJAPANOnline searchHotel conciergeTravel / guide appsAUSTRALIAOnline searchHotel conciergeTourist informationcenter or kioskINFLUENCERSQ. While you are travelling overseas, which of the following do you use to help you make purchase decisions and findshopping destinations for luxury and premium goods?16 Agility Research & Strategy, 2018TOP 3
17Travel Luxury Shopping InfluencersMILLENNIALS prefer to source information themselves, withoutthird party help, either online (search or social media) or in print. Veryfew rely on Hotel Concierge or Tourist Info Centre as a source ofinformation.TOP 31st2nd3rdCHINAOnline searchTravel / guide appsSocial media appsHONG KONGOnline searchBrochures andguides picked up at Travel / guide appsthe airportSINGAPOREOnline searchTourist informationTravel / guide appscenter or kioskINFLUENCERSMALAYSIATravel / guide appsOnline searchBrochures andguides picked up atthe airportTHAILANDOnline searchSocial media appsHotel conciergeOnline searchTravel / guide appsJAPANBrochures andguides picked up atthe airportHotel conciergeOnline searchHotel conciergeOnline searchSocial media appsAUSTRALIAQ. While you are travelling overseas, which of the following do you use to help you make purchase decisions and findshopping destinations for luxury and premium goods?17 Agility Research & Strategy, 2018KOREASocial media appsand brochures /guides
18Definition of LuxuryCHINAHONG KONGConsumers in China identify luxurywith high quality, most likely as alegacy of the decade long problemof poor-quality fakes, and withidentity. Chinese consumers useluxury to define their personalityand to signify to others their statusin an ever evolving society.In Hong Kong, the most importantmarkers of luxury are “expensive”and “enjoyment”, reflective of thecity’s love affair with luxury as a plaything in an hedonistic and guiltlesssociety.SINGAPORESOUTH KOREAQ: What does “luxury” mean to you? Please feel free to express yourself in a sentence or two.18 Agility Research & Strategy, 2018Both Singapore and South Koreahighlight “quality of life” as amarker of luxury, indicating thatconsumers in both markets seeluxury more of an enabler tolifestyle, rather than an end in itselfor a mark of status.
19THAILANDMALAYSIARespondents in both Thailand andMalaysia display a more classicalview of luxury. On one hand, theyhighlight the price tag ("expensive"),but on the other, they drawattention to the status that havingluxury bestows on the owners("wealth").JAPANQ: What does “luxury” mean to you? Please feel free to express yourself in a sentence or two.19AUSTRALIA Agility Research & Strategy, 2018Japan and Australia indicate“expensive” as the first marker ofluxury, but the price tag in bothcases is associated with, and justifiedby, the “high quality” of the luxuryproducts purchased or luxuryservices enjoyed.
20WELLNESSIS THE NEWLUXURYMillionaires across Asia increasinglyassign more value to health andwellness than to material objects.I will focus on my healthQ. Looking ahead to the next 12 months, andcomparing it to the previous 12 months, please ratehow strongly you agree with each of the followingstatements. (Top-2-box)The definition of health andwellness has evolved toencompass a more holisticquality of life, where one’smental, physical, andemotional health are balancedwith the daily grind ofmodern life. Chinesemillionaires in particularclearly recognize that healthand wellness are important inlife, with 90% expressing thedesire to focus more on theirhealth in the current year, awhopping 10% increase inonly 3 years. Agility Research & Strategy, 201820
21TRAVELPURCHASECHANNELSOverall, most of the travelpurchases made in this region arecompleted online, particularlythrough a local website / app.This is, however, not true forcruises, which are more likely to bebooked through traditional travelagents and travel conciergeservices, especially in markets likeHong Kong and Japan.50%44%Online from a localwebsite/app29%39%16%21%17%18%Online from a foreignwebsite/app19%19%Through a traditional travelagentThrough a travel concierge12%11%19%15%4%4%7%6%Airline Tickets (n 759)Hotels/Accommodation (n 736)Cruises (n 194)Travel Experiences/activities(n 743)Q: What percentage of your purchases for each of the following travel categories was from each of the following channels?Base: P12M Category Purchasers, All 8 markets21 Agility Research & Strategy, 2018Other29%22%
22Millennials’ Purchase ChannelsMillennials are more interested in booking air tickers and hotelaccommodations through a foreign website / app than the oldersegment, reflecting both deeper familiarity with new technologiesand a willingness to test new websites when it is convenient to do so.AIR TICKETS50% 44% 53%Total (n 760)16% 19% 13%19% 18% 20%Millennials (n 283)Older segment (n 477)Online from a local Online from a foreign Through a traditionalwebsite/appwebsite / apptravel agentHOTEL / ACCOMMODATION44% 39% 48%Total (n 736)21% 23% 20%19% 20% 19%Millennials (n 267)Older segment (n 469)Online from a local Online from a foreign Through a traditionalwebsite/appwebsite / apptravel agentTRAVEL ACTIVITIESTotal (n 744)39% 37% 40%18% 18% 18%22% 22% 23%Older segment (n 471)Online from a local Online from a foreign Through a traditionalwebsite/appwebsite / apptravel agentQ: What percentage of your purchases for each of the following travel categories was from each of the followingchannels?22 Agility Research & Strategy, 2018Millennials (n 273)
23Air Ticket Booking WebsitesThe most common websites for booking air tickets are the officialwebsites of the airlines. Some also book through travel portals, such asCtrip and Expedia.CHINAHONG KONGSINGAPOREMALAYSIATHAILANDSOUTH KOREAJAPANQ: What websites have you used to book the following travel categories in the past 12 months?23 Agility Research & Strategy, 2018AUSTRALIA
24Hotel & Accommodation Booking WebsitesTravel portals are more popular for hotel / accommodation booking,because of the various choices available for comparison and the ease ofbooking.CHINAHONG KONGSINGAPOREMALAYSIATHAILANDSOUTH KOREAJAPANQ: What websites have you used to book the following travel categories in the past 12 months?24 Agility Research & Strategy, 2018AUSTRALIA
25Travel Experiences & Activities Booking WebsitesSimilarly, travel portals like Ctrip, Expedia and TripAdvisor are morepopular channels for booking travel activities.CHINAHONG KONGSINGAPOREMALAYSIATHAILANDSOUTH KOREAJAPANAUSTRALIA Agility Research & Strategy, 2018Q: What websites have you used to book the following travel categories in the past 12 months?25
26Popular Information Sources for Hotels & TravelFOR ALL AGE GROUPS The most popular information channelsfor hotels and travel are online search and brand websites.The brand website, often overlooked in terms of budget allocation vssocial media, remains an essential tool to showcase and promote a brand.2nd3rdCHBrand websiteOnline searchSocial mediaHKBrand websiteOnline searchSocial mediaSGOnline searchBrand websiteSocial mediaMYOnline searchWebsites specific to thecategoryBrand websiteTHOnline searchOnline videoWebsite adsKROnline searchBrand websiteSocial mediaJPOnline searchWebsites specific to thecategoryBrand websiteAUOnline searchBrand websiteWebsites specificto the categoryQ. In which of the following places, venues, or media do you look for or pay attention to information or advertising ofproducts in the following categories: Hotel and Travel26 Agility Research & Strategy, 20181st
27Popular Information Sources for Hotels & TravelFOR MILLENNIALS, social media shows greater influence in thechoices of hotel and travel whereas the older segment still showspreference to traditional medias for information.TOTAL(n 1019)MILLENNIALS OLDER SEGMENT(n 381)(n 638)1.Online ads andcontentSocial mediaTraditional media2.Social mediaInteractions withthe brandOnline ads and content3.Interactions withthe brandOnline ads andcontentSocial mediaTraditional mediaInteractions withthe brandCelebrities andopinion leaderCelebrities andopinion leader4. Traditional media5.Celebrities andopinion leaderQ. In which of the following places, venues, or media do you look for or pay attention to information oradvertising of products in the following categories: Hotels and Travel Agility Research & Strategy, 201827
28Share of Influence for Media/Information SourcesOnline ads and social media are the top 2 influencers for brand choicesduring travel, but between 35% and 41% of respondents are stillinfluenced most by physical interaction with a brand’s space orthrough traditional media exposure.CHINAHONG 17%7%17%20%21%4%6%11% 6%3%5%20%27%Q: Thinking about what influences your brands choices in each of the following categories. Please estimate the share ofinfluence of each of the following media and touchpoints where brands advertise, communicate and interact with you.28 Agility Research & Strategy, 2018Online ads and content (excluding social media)Social media (facebook, wechat, twitter, etc.)Interactions with brand (in stores, events, etc.)Traditional media (TV, radio, print and outdoor ads, etc.)Celebrities and other opinion leaders promoting brandOther
WHAT DOES THIS MEANFOR ME AS A BRAND?Brands can expect travel to continue to grow. While China remains animportant contributor to APAC luxury travel, other markets in SEA,specifically Malaysia and Thailand, show growth promise in this research.Brands must realize that different markets are at different growth stages,and they need to put in place strategies which reflect each stage. WhileJapan is a mature market with less frequent travel but high spend onaverage for each trip, Malaysia and Thailand post higher frequency butsmaller amount of spend per trip.Japanese travellers expect that every stage of the trip meets the sameluxury standard, while Thai and Malaysian travellers will pick and choosea mix of affordable and luxury solutions for each stage.Brands need to understand what motivates millionaires from differentcountries to travel. While shopping and sightseeing are equally enjoyedactivities, each market displays particular interests. For Thai millionaires,photography is an important activity, while for South Koreans, readingranks high among their priorities. Both Chinese and Australianmillionaires show a wide variety of interests. Gone are the days whenChinese tourists all behaved according to a predictable pattern.latter group still representing a large contributor to luxury travel.29 Agility Research & Strategy, 2018Brands need to cater to both millennials and the older generation, the
30While travel and luxury shopping go hand in hand, each marketdisplays slightly different reasons to travel. Thai, Malaysian and Chinesemillionaires travel to selected destinations for the shopping opportunitiesand the larger assortment they offer, while Singaporean, Hong Kong andJapanese travellers go to certain destinations to take advantage of lowerprices, given that their cities already offer well-stocked and diverseshopping options.Travellers are going beyond sightseeing and looking for experiencesand activities that will (1) enrich their understanding of the local culture,(2) increase their knowledge and (3) benefit their overall health.Millionaires, regardless of age, expect personalized, bespoke andproactive activities, tailored to their needs. For brands, the challenge liesin being able to predict travellers’ preferences, so that they can deliverexperiences that feel natural and effortless.While new social media channels and influencers are gainingpopularity, more traditional channels, such as the brand website andother traditional offline channels, are still very relevant, particularly forthe older segments. Agility Research & Strategy, 201830
Affluent Insights 2017/2018 Travel ReportsCHINAHONG KONGTHAILANDSINGAPOREAUSTRALIAJAPANMALAYSIAS. KOREAEmail: contact@affluential.com31 Agility Research & Strategy, 2018Please contact us for the full report, with additional topicareas and detailed reporting, which is available for purchase.Country specific reports and different segment reports arealso available.
Millionaire Sample n 305 AUSTRALIA THAILAND Millionaire Sample n 100 MALAYSIA Millionaire Sample n 94 SINGAPORE Millionaire Sample n 109 CHINA Millionaire Sample n 107 JAPAN S. KOREA Millionaire Sample n 127 HONG KONG ABOUT THIS REPORT Millionaire Sample n 109 Millionaire Sample n 105 Age CH HK SG MY TH KR JP AU 18-34 49% 35% 37% 38% 48% 39% 12 .
