Finding Your Niche in the Luxury Travel Market

Luxury travel … it conjures up images of a small gathering of friends sipping cocktails on a private yacht sailing the Mediterranean … or being among the few who spot all of the Big Five during a privately guided photo safari in Africa while also being pampered in a sumptuous outdoor tent with white-glove service and gourmet cuisine. Sounds like a dream, doesn’t it? That is luxury travel.

The scenarios and destinations for bespoke luxury travel are virtually endless – whatever a client can imagine, a travel advisor can deliver – and this niche continues to grow. In fact, the global luxury travel industry was estimated at just under two trillion U.S. dollars in 2022, according to Statista. And this niche offers advisors particularly enticing benefits, namely commissions with commas, loyal clientele, interesting and appreciative clients, and the perk of experiencing the luxury space first-hand.

What luxury travelers want
To begin with, it is important to understand just what luxury travelers want today. Margi Arnold, CTC, luxury travel advisor and owner, Creative Travel Adventures, says, “Luxury travelers are looking for convenience, stress-free travel, personalized attention to detail, concierge services, high-touch communication, one-of-a-kind experiences, and intimate accommodations.”

Diving further into some of the psychographics of this niche, Susan Green, owner and travel advisor, Susan’s Travel Services, describes: “Luxury travelers want people to take care of them from the moment they leave their house until the moment they get back. Waiting is not fun, and they want to know they are ‘elite,’ ‘special,’ ‘private.’ They want something that stands out. They are ok spending more money, but it has to be for something that is valuable. So showing them value (‘You will skip a line and get a private viewing area’) is very important. They like new destinations that are not as trendy, but will go back to the same place over and over again, as long as they are getting that VIP service.”

The expectations of luxury travelers are also evolving, as younger generations gather their discretionary income and move into this category. Overall, they still require top accommodations, first-class air, and the finest cuisine. But now, the elements of customization, experiential and meaningful adventures, and sustainability play an important role in the equation.

Arnold says this about one of the best luxury trips she has booked for a client, and how they reacted: “A client requested my assistance with a multi-generational trip to Africa as a high-school graduation gift for her granddaughter. Since her granddaughter had a passion for animals, I arranged a once-in-a-lifetime safari experience that brought absolute delight to the whole family.”

For Green, “My favorite trip is now a fantastic customer for me. Her honeymoon to Bora Bora and the Brando (private island) was about a $85K trip. Being authentic was important, and showing them what made this better, why they would want to go. She posted about me, about the trip, and has booked three trips since. What is amazing is I worked as hard for that trip as I did for my $5K trips, so it’s worth finding them.” 

Listen, listen, listen

One of the keys to serving luxury travelers is to “take the time to truly listen to your clients. From there, ask qualifying questions, customize their trip to their specifications, and build relationships that enable you to offer unique experiences in the destinations they are traveling to,” explains Arnold.

“Everything I do is completely customized to each individual client, rather than to any particular group segment. I listen to the specific requests and preferences of each client, and create an itinerary that fulfills their unique travel desires.”

Green concurs: “The biggest thing I do is listen. I just booked eight cabins for a multigen family. You have to listen to what they want. Grandma and grandpa wanted a more luxurious trip, but a Norwegian cruise fit them all. We talked through it. So then the grandma and grandpa booked their own Seabourn cruise for another time. Listen. Listen. Listen. And you gotta know what you are talking about. They are looking for an expert. If you don’t know, say ‘let me find out’ and get back to them.”

While focusing on recommending trips that fulfill the individual needs and desires of luxury travelers, some advisors also specialize in a niche-within-a-niche. They cater to a specific group within luxury (such as affluent young professionals, well-traveled retirees, aspirational luxury travelers, solo travelers, multi-generational families, or adventure travelers), for instance.And then build out and market journeys that appeal to multiple luxury travelers.

Where to find clients
Before engaging in any travel promotion, an undisputed cornerstone of successful marketing is to clearly identify your target customer. Consider their demographics (age, income, occupation, education, where they live, etc.) and psychographics (such as lifestyle, attitudes, interests, hobbies, what they read, websites they frequent, where they like to travel). Marketing experts suggest taking the time upfront to draw up a profile(s) of potential clients. That knowledge contributes to making better marketing decisions.

As for where to find and how to market to luxury clients, Arnold recounts: “Over the years, I have invested a great deal of time and attention into curating informative content for luxury travelers via blogs and e-newsletters. This has resulted in ongoing traffic to my website. I am also grateful for a significant amount of repeat business from loyal clientele, as well as from client referrals.”

Green explains: “I market myself a lot on social media. There are millions of people there, and I use local groups in the Phoenix Metro Area to post ads weekly. I have a schedule I follow. I make sure I post a few things when I do an ad: 1) What value do I personally bring to them, 2) Why do they want to work with me, 3) Why do they want to go there, 4) Why do they want to call me? I want people to think of me. I do it every week. I post about 10-20 posts in those groups and on my own social media every week. It shows that I am relevant and gets followers (I have about 15K followers now).”

More tips from luxury advisors
Green offers, “My best point of advice is to learn all you can about the areas you want to sell. Make yourself invaluable to someone. You love Italy? GREAT … find out all the ways you can sell it and the vendors, and how to make it even better. Maybe there is a romantic feature you can do? Do you contact all the hotels directly for your clients? I have sent them a client’s wedding photo and asked it to be in a frame for my clients. What about giving them private transfer to the airport in town? Could you do that? Make sure you know what you are doing. Take the time to learn and ask questions. We have so many resources.”

She also suggests: “Don’t try to be an expert in everything. You will make mistakes, and it will cost you money. I don’t know much about Asia, except for Thailand, and I have to reach out to others or pass the lead on, as I just can’t sell it. My top selling area is the South Pacific, and I really spend time learning everything, knowing all the hotels, and BDMs. So take on ONE to start.”

Arnold cautions: “Avoid cutting corners at all costs. Luxury travelers are discerning travelers and expect every component of their experience to be top notch.”

How to break into luxury

For those advisors who are now pondering how they might break into the luxury sector, Arnold explains how she did it: “As the demand for personalized experiences increased, I received an overwhelming number of requests for luxury travel reservations and my affinity for luxury, paired with my appreciation for the finer details that luxury clientele seek, meant that the luxury travel niche was an ideal fit for my business.”

For Green, “I got into the luxury niche as I started booking a few clients who asked about these products. Then I contacted those hotels and BDMs. I made a conscious choice in 2021 (after Covid) to change my business and to join Virtuoso. I asked those around me who sold only luxury who they learned from, and everyone was either with the Virtuoso or Signature consortia. Once I joined Virtuoso, I took it upon myself to do as much training as possible. I got in front of the leaders, and also attended and watched trainings on products I wanted to sell. While I have not been everywhere, I learn about those places. [As advisors, we must] be knowledgeable.”

She goes on to suggest: “Find a mentor in your agency that you can share and ask. I still spend time talking to other owners and agents who I respect or see doing something I admire, and I call them and spend 30 minutes with them, asking them about how they run their business. I send them a $10 Starbucks card to say thank you. Be known as someone with gratitude, it will go far!”

FROM THE SPONSOR:
For over 50 years, ALG Vacations® has been dedicated to supporting travel advisors and leading the way in travel innovation. Their ever-evolving technology and services are designed to make planning travel exceptional for clients and effortless for advisors. With the newly launched Luxe by ALG Vacations® portfolio, featuring over 450 of the world’s most prestigious hotels and resorts, with more than 100 properties offering luxe amenities, including a dedicated luxe concierge for travel advisors, ALG Vacations® caters to the most discerning clients. Advisors can Get Paid to Upgrade their clients to higher room categories at select properties, with an additional 2% commission on the entire hotel portion. Additionally, advisors can accumulate WAVES® points which can be converted into cash rewards on a virtual visa. The self-help library, ALGVPro education campus, and live or recorded webinars provide valuable resources to help advisors capitalize on the upscale travel trend. To learn more about programs and growth opportunities, reach out to your ALGV business development manager at www.algvacations.com/bdm.