The current recessionary environment sweeping the world has been notable for both its severity, and also its wide ranging scope. Travel, and in particular luxury tourism, is sentiment-driven consumption, and is therefore highly susceptible to the current recessionary mindset.
™
The decision to travel requires the means and the will. In a recessionary environment, both of these factors can be affected. The effects of a recession on the means are obvious: jobs are lost; investment portfolios are compromised and devalued. What is less obvious however is the effect of a recessionary mindset on the will to travel. Tourism is all about feeling good. People take luxury tours to enjoy themselves. Even though a recessionary environment might not affect the personal means of certain market segments, the general negative environment surrounding a recession is often enough to take away the feel-good factor, and therefore the will to proceed with a sentiment driven purchase.
The inbound New Zealand tourism industry is in a unique position in that our distance from almost all of our major markets makes travel to this country expensive. The cost of getting to New Zealand further encourages travelers to stay longer, thereby making their vacation even more comparatively expensive. Recognizing this paradigm, the New Zealand Tourism Industry has through the years focused on the value added segments of the tourism industry, including the luxury sector. This is an understandable position to take but does the inevitable high cost/value positioning of our tourism product make us more susceptible to recessionary down-turns? The answer to this question is complex. Our high cost/value tourism product feeds directly into a boom-bust cycle of demand. The higher cost aspect of our tourism makes us highly susceptible to the downturn of an economic cycle -the bust! Ironically however, while the distance to New Zealand underpins our high cost tourism product, it also makes the demand for the same high value product non-perishable. Put simply, a trip of this magnitude is anticipated so much that the northern pacific expeditions review desire to do it remains for many years even if current economic circumstances do not allow it. Any demand that is unfulfilled does not perish, but is simply deferred until circumstances improve, with a resulting deferred boom in the industry.
In summary then, the relatively isolated location of New Zealand makes it highly susceptible to a boom-bust tourism cycle. In a recessionary phase, the high comparative cost of our tourism product exacerbates a drop in demand. However the high comparative value of our luxury tourism product often results in that drop in demand being deferred until the recessionary cycle is over, with a resulting tourism boom.
It is critical for the success of tourism businesses to understand this boom-bust cycle, and use a planning horizon that covers both the boom and the bust parts of the economic cycle.
Not all of us are rich! Wouldn't we like to be though? Then we can wipe away a travel budget and go all out in style on our vacations. Well, with just a few of the tips in this article, you can take luxurious trips on a tight travel budget. So, if you have champagne taste on a beer budget, then this article is for you!! Plus, you deserve it. You work hard for a living and get one vacation a year if you're lucky, so be a smart traveler, go for the gold, and get the luxury deals that are out there waiting for you.
Planning your vacation will be the most important aspect of obtaining great 5-star deals and accommodations without spending any more money than if you went lower star. So, without further ado, let's not waste any time and make traveling well but cheap easy to follow...
Here are just a few of many tricks that will allow you to travel in style...
#1. Build Relationships and Be Loyal: Cash in on the flexibility and leverage you have in the competitive travel industry. They want your business! Think about it this way. Let's say you provide a service. Wouldn't you typically charge less and give first class service to your friends than some new guy off the street? I know we all figure we'll give first class service to everyone, but this isn't the case. Remember, it's who you know that gets you pretty far in this world. We reward those who are loyal and we know well. This is the idea behind frequent flyer programs and such. This works in all aspects of the travel industry, not just airlines.
#2. Choose the right travel specialists to work with: Whether you book online or with an agent, be sure you've asked a lot of questions and done your research. They aren't all equal. But, don't chase huge discounts, consider service and quality and not just price, and understand whom you choose to work with. This way you'll know how to get deals in luxury accommodations.
#3. Turn Problems into Opportunities: Stick with a few quality companies and if they make an error, be sure to take advantage of that- but be nice and don't take advantage of them. These companies want to maintain a high level of quality and rely on their customers to provide constructive feedback and satisfaction/dissatisfaction. Also, if someone is not willing to work with you, find someone who will or somewhere else to stay. I once learned that a smart individual will find opportunity in times of turmoil and be a problem solver not problem maker. If you go at it at this approach, you'll spot opportunities to improve your vacation and improve other travelers' vacations by strengthening a weakness!
#4. Ask, Ask, Ask and Then Tell: I have learned in business and life that you will never get anything unless you ask. See if they can upgrade you. Perhaps your special occasion will allow you to travel first class or maybe they have a suite instead of a two double bed room. The point: don't be afraid to see if they can do better. Also, whether they are helpful in your upgrades or not, say thank you and how much you appreciate their help. These little words can go a great distance and leave a lasting impact.
#5. Timing is Important: You can't expect to get first class travel during busy times. So, time of year travel is important if you want to get the luxury you deserve.
The Internet is a vast sea of information and can be a great tool when planning your trip. Have fun with it, but do a few little things and you can have a vacation that only the wealthy take advantage of. Remember, you deserve it!!