Luxury brands thrive as the economy strengthens: study
Published: 06 Jun 2011
Companies are reinvesting in travel after having to tighten their belts during the recession. And luxury brand hotels are in a “fantastic position” to benefit from this since they rely significantly on business travel, according to a new report.
According to iPerceptions’ Hospitality and Tourism Industry Report for Q1 2011, luxury brands are benefitting from the increase in discretionary income and corporate travel budgets more than any other tier. Luxury brands were among the most negatively impacted by the recent economic downturn. Economic indicators such as increases in employment, disposable incomes and corporate budgets for business travel, all point to the reasons of their strong recovery.
Important findings from the report include:
Business travel increased from 29 percent in Q4 2010 to 32 percent in Q1 2011, while leisure travel decreased from 63 percent to 60 percent during the same time period.
Luxury hotel stays increased from 36 percent in Q4 2010 to 44 percent in Q1 2011. As a result, there was a decrease in visitors who stayed at midscale and economy hotels.
Technical difficulties increased from 14 percent in Q4 2010 to 18 percent in Q1 2011 for visitors who came to make a reservation and encountered booking problems.
Business travellers continued to have difficulty finding specific information related to their stay, such as conference room details, maps/distance to meeting locations and shuttle service.