Last year at ILTM Americas 2013, we released the first edition of The Luxury Traveller & Social Media -
We were inspired by the idea that the social media about luxury travel brands represents a living focus group; a unique lens into the experiences that luxury travellers seek and share online, one year later, this idea remains as important as ever;
This year’s report finds that it’s the little things that make a big difference to luxury travellers in the Americas. As digital content becomes more concise and marketing become truly personalised, luxury travel marketers must evolve their messages and targeting to profit from the latest digital advances.
With a specific focus on the Americas, we interpret the collective voice of luxury travellers across the region. By analysing their opinions about 2,000+ leading hotels around the world, we discover the preferences and behaviours of current and future generations of luxury travellers, and explain key changes across the global luxury travel landscape.
All insights were drawn exclusively from Brand Karma’s research on social media postings left by luxury travellers both in the Americas and globally.
On behalf of Brand Karma and ILTM, we wish you a successful ILTM Americas with hopes that the insights from this report will guide your brand’s digital journey into 2015 and beyond.
“SMALL IS THE NEW BIG” IN LUXURY TRAVEL SOCIAL MEDIA
If there’s a unifying trend across The Luxury Traveller & Social Media 2014: The Americas, it’s that small is the new big. Social media has now become so pervasive that luxury travel marketers
must be extremely creative to reach the right audience and ensure their messages are seen, shared, and loved.
Going small is key to succeeding in the important domains of digital content and personalisation. “Small is the new big” means short, mobile-friendly, image-rich posts. Personalising digital communications to each customer’s preferences.
Focusing on being best at 3-5 buzzworthy elements. Spotting small disrupters like Airbnb that will eventually change the travel landscape. We elaborate on each of these trends below and in the pages that follow.
CONTAGIOUS CONTENT: BE BRIEF, BE BRIGHT, BE REMEMBERED
The consumer’s attention span continues to shorten as sites like Buzzfeed, Upworthy, and The Huffington Post reinvent internet content with sensational headlines (ManTries to Hug a Wild Lion, You Won’t Believe What Happens Next), nostalgic quizzes (Which “Friends” Character Should Be Your Roommate?), and animated GIFs (33 Places In Ireland You Won’t Believe Are Real).
While some argue that these sites’ formula is simply a ploy for clicks, results show their micro-messages are connecting with Millennials. Furthermore, studies show the ideal length of a tweet is 100 characters while the optimal length of a Facebook post is just 40 characters1.
So what does contagious content look like for luxury travel brands? Our research shows it’s drawing from the creativity and clarity of Buzzfeed’s approach, keeping messages as concise as possible, but avoiding the hyperbole and irreverent tone that is inconsistent with luxury.
Start by visualising your brand’s message with a beautiful image or video in your customers’ Facebook newsfeed. Staying true to your brand’s voice while exploring the new content model is a formula for success.
IN LATIN AMERICA, SMARTPHONES QUALIFY AFFLUENCE
Mobile is transforming Latin America, with more than 414 million people having a mobile phone at the end of 2013 (nearly 70% of the population). But most mobile devices remain feature phones (i.e. nonsmartphones), making smartphones a qualifier of affluence in key markets.
Highincome households accounted for 16.4% of the smartphone audience in Chile, 45% of the smartphone audience in Mexico, and 53.9% of the smartphone audience in Peru2. While smartphone adoption will inevitably go mass in the coming years, there’s a short-term opportunity to target today’s smartphone users in Latin America with luxury offers.
MICRO-TARGET FOR MASSIVE RETURNS
The advertising and posting platforms of Facebook and Twitter now allow marketers to target their messages to specific individuals. Micro-targeting technology improves every year andhas enormous implications for brands wanting to personalise messages in a social context.
Facebook’s platform features Custom Audiences " enabling brands to match their customer database with Facebook’s users and present them with a specific offer or ad. Early results amongst luxury travel brands have been promising, with ROIs reaching 50:1.
INSTAGRAM AND TRIPADVISOR FEATURE THE LITTLE THINGS
In last year’s report, we highlighted the importance of “instagram-mable” experiences. The one-of-a-kind little things at a luxury hotel get shared most in social media. Instagram’s growth remains staggering with over 200 million monthly active users sharing 60 million photos a day as of March 2014.
In the hotel review space, TripAdvisor still accounts for just under half of all luxury hotel reviews worldwide at 46.2%. Although losing some of its global share to online travel agencies like Booking.com and ctrip globally, its reign in the Americas continues as well, accounting for 50.8% of all luxury reviews.
As arguably the most important social sites for luxury travel brands in the Americas, ensuring a hotel has several instagram-mable experiences (think views, jaw-dropping lobby design, latte art, personalized amenities, etc.) remains key to a luxury brand’s success on Instagram and TripAdvisor and their respective audiences.
HOW DO LUXURY TRAVEL ADVISORS SUCCEED IN DIGITAL? ONE CUSTOMER AT A TIME
Social media continues to hold huge opportunities for luxury travel advisors. The key to success is winning new customers one by one.
For many travel advisors, their brand is their own name rather than that of their agency, so adding current and future clients as Facebook friends and sharing one’s own luxury travel lifestyle on Facebook is a credible and creative way to win new business. The TripAdvisor forums also present a largely untapped opportunity for travel advisors to showcase their expertise and meet new prospects.
By becoming community leaders in forums on virtually any destination or travel topic, travel advisors will interact virtually with an active community of travellers seeking advice on where to stay, where to dine, and what to do.
LUXURY TRAVEL HOTSPOTS GROW IN LATIN AMERICA, DECLINE IN NORTH AMERICA
Latin America holds a relatively small portion of all luxury travel hotspots based on our social media data. However, the region increased its appeal in 2013 to luxury travellers, generating 5% more
luxury travel reviews than in 2012.
Destinations like Puerto Rico and Rio de Janeiro have the highest draw but La Romana in the Dominican Republic and São Paulo in Brazil are seeing strong increases each year.
On the other hand, North America comprises nearly one third of all luxury reviews globally but high-end hotels saw a 3% decrease in chatter between 2012 and 2013. New York City and Las Vegas remain among the top 10 luxury destinations globally, but as the world gets smaller, luxury travel brands across Canada, Mexico and the US will need to be creative in 2014 to stay competitive in the luxury travel market.
DIFFERENCES IN NORTH AMERICAN VS. LATIN AMERICAN TRAVELLER PREFERENCES
Since last year’s report, the similarities and differences between North American and Latin American travellers have evolved. In terms of commonalities, luxury travellers in both North America and Latin America most often prefer to post reviews on TripAdvisor and Facebook and to write on Monday. Key differences remain, however.
Latin American luxury travellers care most about bedrooms and breakfasts while North American luxury travellers concentrate on service concepts like attitude and cleanliness. Moreover, more
luxury travellers in Latin America post reviews in May versus in North America, who write the most reviews in April.
Notes:
- buffersocial, The Ideal Length of Everything Online, Backed by Research, 2014
- eMarketer, The Global Media Intelligence Report: Latin America, 2013
Full report
