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Destination Mexico: the Evolution of Luxury Travel

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Destination Mexico: the Evolution of Luxury Travel DESTINATION MEXICO: THE EVOLUTION OF LUXURY TRAVEL LIVE IT TO BELIEVE IT If you have any questions about the skift.com visitmexico.com report please contact [email protected]. Cenote el Pit, Cancun A place Soumaya Museum, Mexico City where riches are measured in flavors, sights and sounds Cabo San Lucas, Los Cabos Coba, Riviera Maya El Cielo Beach, Cozumel Uxmal, Yucatan Higuera Blanca, Vallarta-Nayarit Destination Mexico: The Evolution of Luxury Travel SKIFT REPORT 2016 3 TABLE OF CONTENTS Introduction: The evolution of the luxury traveler, and what 4 that means in Mexico Five experiences and the destinations where they resonate: 7 1. Cuisine as a cultural encounter 7 2. Hotels that are more than hotels 8 3. Adventure and nature travel 9 4. Top-of-the-line transportation 10 5. Special events 11 The challenges and opportunities of the sharing economy 12 Infrastructure upgrades 13 The evolving role of travel agents and operators 14 Key takeaways 15 ABOUT SKIFT Skift is a travel intelligence company that offers news, data, and services to professionals in travel and professional travelers, to help them make smart decisions about travel. Skift is the business of travel. Visit skift.com for more. Destination Mexico: The Evolution of Luxury Travel SKIFT REPORT 2016 4 INTRODUCTION The evolution of the luxury traveler, and what it means in Mexico Upscale travelers aren’t what they used to be, especially in Mexico. The days when a typical luxury vacation focused mostly on long stretches of sand, posh hotels and pampering spas aren’t gone, of course. But they’ve evolved to include a far wider range of activities and destinations, often far from any beach, as travelers seek more authentic experiences and a closer connection with local culture. The sometimes-overused buzzword in the industry is “experiential,” but it certainly applies to what many suppliers are aiming to emphasize in Mexico’s luxury travel segment. The Mexico Tourism Board, meanwhile, is recognizing the evolution not only of upscale travelers but of the general travel public, with an ambitious new program that just might revolutionize how the organization targets various market segments. The new strategy is centered around what the group calls a “digital ecosystem” — an interrelated series of projects designed to help the industry better understand travelers. Among the elements of this new strategy are the following: • A content generator unit, to provide text, images and videos to promote the destination • Segmented studies, to evaluate the preferences and behavior of various market segments • A business intelligence unit, to provide real-time statistical analysis of Mexico’s tourism efforts as well as those of its competition • Customer relationship management, to create personalized content and promotions and offer services like live chat with consumers • A redesigned Mexico Tourism Board site (www.visitmexico.com) and app Noting that technology places a wealth of abilities and information in the palm of travelers’ hands, the Mexico Tourism Board is actively addressing the fact that it now competes with a much broader array of destinations — in the old days, perhaps only the Caribbean and Hawaii were considered close competitors. Today, increased access to travel, news and data means that Mexico must keep an eye on regions as diverse as Europe, South America and Asia. And one-on-one marketing, coupled with a personalized tourism product, are essential in today’s ultra-competitive competitive environment. To maximize the potential of personalization and remain relevant with increasingly sophisticated travelers, the Mexico Tourism Board aims to identify specific market segments and niches, and create detailed taste and behavior profiles. Mass marketing and general advertising is becoming a thing of the past, as the organization sets its mark on ever-more- specific audiences. Destination Mexico: The Evolution of Luxury Travel SKIFT REPORT 2016 5 One of those markets, of course, is the upscale traveler. And deep-pocketed globetrotters are looking for new and authentic experiences like never before. Experience Counts The shift from passive to experiential luxury is backed up by multiple surveys. According to the 2016 Virtuoso Luxe Report, the top five travel motivations were as follows: 1. Exploring new destinations 2. Seeking authentic experiences 3. Rest and relaxation 4. Personal enrichment 5. Spending time or reconnecting with loved ones In addition, Mexico appears on three Luxe Report “top five” lists, including one that ranks the top global destinations for luxury travel. Destination Mexico: The Evolution of Luxury Travel SKIFT REPORT 2016 6 Elsewhere, Mexico scored an impressive sixth place on the list of luxury travel top destinations in the Travel Leaders Group Fall Luxury Travel Trends survey , released in October 2016. The importance of experiential travel is confirmed by the 2016 Future of Luxury Travel Report: published in September by Resonance Consultancy and based on an online survey of 1,667 U.S. travelers with annual household incomes of $200,000 or more, and/or a net worth of $2 million or more. Among the key trends identified in the 60-page report: • Travel as Transformation: Experiences that truly affect and change the traveler are a compelling aspect for upscale consumers — but since they tend to have already experienced so much, the bar is especially high. • Art is the New Food: Cuisine is a big draw for many vacationers, and so is art and culture. The fact that Mexican destinations like Mexico City and San Miguel de Allende — both of which are far from any beach or all-inclusive resort — recently topped lists of “must-visit” destinations in publications like the New York Times and Travel + Leisure further confirms that Mexico has pushed far beyond its traditional “sun and sand” allure to attract upscale travelers. Culture, history, archeology, adventure travel, cuisine, fashion and art have become increasingly important selling points. This shift in focus creates fresh opportunities for growth in the luxury segment. But destinations, suppliers and those who sell travel need to think outside the box to address the ever-changing interests of a diverse and finicky population of travelers. This trend report highlights examples of how current trends and new developments are affecting the market. Destination Mexico: The Evolution of Luxury Travel SKIFT REPORT 2016 7 FIVE EXPERIENCES, AND THE DESTINATIONS WHERE THEY RESONATE 1. CUISINE AS A CULTURAL ENCOUNTER The way to a traveler’s heart is increasingly through his or her stomach, it seems. In San Miguel de Allende, the luxurious Rosewood San Miguel de Allende recently unveiled a brand-new, open-air culinary venue and herb garden for chef-led classes and demonstrations, while in Puebla, a boutique property called Sacristia de la Compañía unlocks the secrets of mole poblano and other regional delicacies during its culinary workshops, and in the Yucatecan capital of Merida, the Los Dos cooking school has attracted fans including Martha Stewart with its guided market tours and cooking classes. “Epicureans come looking for the unique flavors of different cultures, and that is one of the reasons the gastronomical segment has been the focus of marketing efforts in the state, presenting our gastronomy in international fairs and exhibits around the world,” said Saúl Ancona, the minister of tourism for Yucatan state, of which Mérida is the capital. Also popular on the gastronomic tourism map is the city of Guadalajara, which is home to an increasing number of restaurants with popular chefs and sophisticated cuisine. Tequila, which was born in the eponymous nearby town, is also a big selling point — with tours and experiences that can include tastings and tequila pairings with gourmet cuisine. Destination Mexico: The Evolution of Luxury Travel SKIFT REPORT 2016 8 2. Hotels that are more than just a place to relax Hotels that are simply pretty places to stay may bore today’s luxury travelers. Properties that engage guests and provide insider access to local culture and authentic experiences are more likely to excite globetrotters hungry for memorable experiences. That’s why the response to the Cultural Curator program has been so positive at the St. Regis Mexico City, according to the hotel’s general manager, Bernard de Villele. “The St. Regis Mexico City is known for curating on- site and off-site experiences that inspire the senses and embody the spirit of Mexico City,” he said, referring to a portfolio of customizable activities that include private tours of top museums and galleries, invitations to special openings and events and a “personal shopping experience” that takes guests on a walking tour of some of the city’s most elegant designer shops. On the Caribbean coast, NIZUC Resort and Spa this year debuted a 56-foot catamaran that’s available for private excursions, staffed with butler, chef and expert guides. And on the Riviera Maya, an all-inclusive hotel called UNICO 20˚87˚ (named for the longitude and latitude where the property is located) slated to debut in 2017, aims to provide guests with access to contemporary local culture through what it calls a “Proud Local” approach, with customized outings, cooking classes and curated dining recommendations. Nearby, “the hotel industry in Yucatan has adapted itself to new trends in luxury travel, in which travelers not only demand comfort and luxury services, but also unique experiences,” according to Ancona, who noted as an example the soon-to-open Chablé Resort, a member of Small Luxury Hotels of the World. “Haciendas, now turned into boutique hotels, have incorporated new experiences as an added value to the guest experience, involving the communities that surround the property. For instance, there are cooking classes with people from the villages around the properties, massages with ancient Mayan techniques and elements, Mayan blessings and purification ceremonies.” Destination Mexico: The Evolution of Luxury Travel SKIFT REPORT 2016 9 Unique, hotel-led experiences await on the Pacific coast as well.
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