Written By: Scott Koepf, Vice President of Strategic Development – Cruise Planners
As I noted last month, knowledge of the affluent/luxury customer may be even more important than knowledge about the luxury products, so review the below information about your potential customers. If you want to sell high end travel (yes, that means travel products who pay commissions with commas in them) you must start by knowing who they are and where to find them. Once you find them then the work begins to qualify them while also establishing trust, which is especially key for these clients. The sales process that I have outlined in detail through these articles does not change for affluent customers, it simply requires more time and effort spent on each step of the process. The below information is not provided to pigeonhole consumers but to provide some information on who they are and where to find them. From there it is up to you to truly get to know your customer and what they are looking for.
Categories of Affluent Customers:
Source – Bruce Tepper
Source – Larry Pimentel
Demographics of Affluent Customers:
“The acquisition of wealth is progressing at an unprecedented pace, with increasingly more consumers gearing up to luxury purchasing. In the U.S. alone, the number of people with over $1 million in liquid assets (excluding home/retirement funds) is approaching nine million, equating 3% of the population. This segment of the population is growing seven times faster than any other segment.”
-Forrester Research
56% of the affluent are women and 63% are first generation wealthy.
The Affluent spend 12% of after-tax income on travel.
The next generation is set to inherit over $5 trillion.
“A generation of savers are transferring their wealth to a generation of spenders.”
-Kathy Sudeikis – Past ASTA President
The wealthiest 10% of Americans is comprised of eleven million households who represent 50% of consumer income and spending and 33% of the US economy.
Psychographics/Behaviors of Affluent Customers:
“Luxury travelers are brand loyal; once they find a brand they like, they tend to remain loyal as long as the brand offers high quality and good value. Luxury travelers appreciate value (quality and excellence) more than price. Luxury travelers believe strongly in the third-party endorsement. Luxury travelers have a remarkable capacity for separating informed opinion from hype. It is one thing to capture a customer’s pocketbook, but the real goal is to capture their heart.”
– Larry Pimentel
-Amex Platinum survey
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