U.S. Travel Trends + Opportunity for Mexico TourismBrought to you by Ruthanne Terrero, VP/Editorial Director:

Rodrigo Esponda, Acting Regional Director for North America, MTB

Hope Smith, Owner, Born to Travel

Hope Smith

Hope operates her Virtuoso-affiliated travel agency, Born to Travel, out of her Sierra Madre, CA home, focusing on leisure vacations and adventure travel.

She is a native of Monterey, Mexico and has been recognized as a Top Travel Specialist for Mexico by both Condé Nast Traveler magazine (each year since 2012) and National Geographic Traveler magazine.

She also volunteers her time to serve on the advisory boards of Saveur and Ski magazines.

Matteo Luthi, General Manager Journey Mexico

Matteo Luthi

Matteo has lived in Mexico for more than 20 years, serving as a tour manager for exclusive clients throughout country. In this role, he has developed creative and unique programs for luxury travelers, and has managed operations for many of Mexico’s best known tourism companies.

The Big Picture: Travel is Up!

Demand for travel is the highest it’s been since 2004.

16 million trips are taken a year and that number is growing

8 out of 10 affluent consumers said they will take an international trip in the near future.

As demand grows, rates will go up as suppliers get more buying power. They will have more leverage when negotiating rates for FITs.

THE PORTRAIT OF AMERICAN TRAVELERS®

A national survey conducted in 2013 by MMGY Global.

2,511 active leisure travelers who reside in households with an annual income of $50,000 or more (including an “affluent traveler” subset of households with an annual income over $125,000).

They had taken at least one leisure trip of 75 miles or more from home during the previous 12 months requiring overnight accommodations.

How Mexico Fared Last Year

12% of U.S. leisure travelers who took an international trip visited Mexico

19% visited the Caribbean

29% visited Europe

Desire to Travel In Next 2 Years

24% of US leisure travelers are interested in visiting Mexico on vacation during the next two years

47% are interested in visiting the Caribbean

61% are interested in visiting Europe

Most Interested in Going To Mexico

Millennials (31 percent) showed the strongest interest in visiting Mexico in the next 2 years.

What is a Millennial?

They are 18-35 years of age

Recognize the size of the market: There are 95 million Millennials out there.

That’s compared to 78 million baby boomers.

They spend $200 billion a year on travel.

They comprise 22 percent of the traveling public and while they’re leaning toward budget travel now, they’re growing up and will soon be able to spend more. They are the future.

They take on average eight to nine trips a year; that’s business + pleasure, but they’re extending work trips into leisure breaks.

Activities of greatest interest to Millennials while on vacation include:

81% - having enough time to relax and unwind 79% - a destination I have never visited before 78% - safety of the destination 76% - an opportunity to try new and unusual cuisine 72% - a beach experience 66% - visiting architectural sites 61% - shopping 59% - visiting an amenity spa 57% - nightlife and entertainment 53% - hiking/climbing/biking 48% - participation in water sports 46% - gambling 45% - playing golf

More Millennial Traits

They want authenticity and do not want to feel like a tourist, ever.

They are more likely to try new things while on vacation.

They, more than any other group, want to connect with people on vacation.

They want to share what they are experiencing as they are experiencing it via social networks.

How to Appeal to Millennials

Millennials like to champion brands they love. Be sure your brand is something they want to be a part of.

Let the culture of your business show through online, Facebook, Instagram and other social media. Create a vibe people want to be a part of.

Don’t do a hard sell on Facebook. Posting deal after deal will make Millennials walk away. Instead, speak of the your own travel experiences. Talk software, not hardware.

YOLO!! The Luxury Millennial

Combine with this the younger generation’s new buzzword, YOLO. (You Only Live Once.)

Using this as an excuse, Millennials are spending their money NOW to go to iconic hotels or the newest destination.

They’ll worry about the rest later.

-- Paul James, Starwood Hotels & Resorts

Latest Luxury Travel Trends

For the past year, Luxury Travel Advisor has hosted at least one roundtable a month across the globe, bringing together suppliers and travel advisors to share consumer trends.

The following insights are culled from 12 meetings with an average of eight to 12 participants each and from the Ultra Luxury Summit held March 25-27, 2014 in Chicago + from MMGY Global.

Luxury is Back With a Vengeance.

Affluent Spending Their Wealth Now

The recession saw a holding back on spending. That trend is gone.

The 55+ affluent travelers have decided they are not taking it with them nor are they leaving it behind.

And they’re spending it on travel.

Today, We’re All A-Listers

Consumers want hotel staff to remember their names and what they did on their last trip.

Everyone at a luxury hotel these days considers themselves a VIP and expects to be treated accordingly. Everyone.

Personalization, customization and authenticity are the buzz words for today.

Even the Wealthy Want Value

People do not care how much things cost as long as they feel something is being returned for their money. 

Jonas Schuermann, Mandarin Oriental, Hong Kong

For the past three years, we’ve not sold a hotel that doesn’t come with some value add. Fifteen years ago, I never asked for breakfast or Internet. Now it’s the norm and it’s totally expected.

Peter Carideo, CRC Travel

Advance Bookings Are Back

High season and festive season have moved back to a more advanced booking time. Certain hot properties have to be reserved very far in advance or it’s difficult to clear space.

Dan Beschloss, Valerie Wilson Travel

Authenticity is in Demand

People want to have a sense of where they are. We encourage our hotels to come up with experiences that are always changing. In Paris, our chef takes guests to the market where they buy white asparagus when it’s in season. They go back and they cook it and everyone is touched by that.

Darren Gearing, Shangri-La Hotels & Resorts

Radical Personalization

It’s not always about the marquee, super-expensive experiences, it might be just a simple visit to learn paddle-boarding or something like that. We are cultivating relationships with local suppliers to get their guests insider access to experiences.

Christopher Gould, The Atlantic Hotel, Fort Lauderdale

The New “Bleisure”

The leisure guest and the corporate guest seem to be merging into each other. A business traveler can bring a spouse and kids or they can tag on a couple of days to enjoy a destination.

Multi-Generational Travel Gets Bigger

Family trips have expanded to group size over the past few years. Now the groups are getting larger with up to 40 traveling at once as family members join in.

Guaranteed adjoining rooms, villas and rental homes are vital to them.

The World As Classroom

We’ve got so many more families with the next generation coming along; they take the kids out of school saying, “This is a better experience than school.”

Amanda Hyndman, Mandarin Oriental Bangkok

I’m Turning 30, 40, 50, 60, 75!

Celebration travel is also strong. People are traveling in groups to enjoy their 30th, 40th or 50th birthdays and they’rebringing their friends along.

Thank you!

Email me with questions at

Ruthanne TerreroVP/Editorial Director, Travel Agent and Luxury Travel Advisor

rterrero@questex.com

Twitter.com/ruthanneterrero