Marketing expert describes new consumer market
November 8, 2013
At the Park City Chamber/Bureau’s Annual Tourism Fall Forum on Oct. 30, Pamela Danziger, the keynote speaker and affluent market expert, spoke about a new market the travel industry in Park City needs to appeal to: the young and affluent.
"I don’t ski, and there are plenty of affluent consumers who are not skiers either," Danziger said. "You guys have skiing down, but now you need to take it to the next level and create new attractions for new customers."
She discussed the three "demographics of affluence," all of which make at least $100,000 a year and are part of 24.5 million households total.
The "High Earner, Not Rich Yet" is better known as the HENRY, Danziger said. HENRYs make between $100,000 and $249,000 a year and are usually between the ages of 25-34. She said the middle class is losing spending power, making HENRYs the new mass market.
The "Ultra-Affluent" make between $250,000 and about $431,000 a year, while "The Rich" have a high net worth and possess $1 million or more in assets. According to Danziger, "The Rich" start out as HENRYs.
"You have to appeal to them, because they are important to your future," Danziger said. "You must invest in the younger generation, because they are the marketers and consumers of the future."
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Given consumers’ now experiential nature, she said, there are certain travel experiences desired that the tourism industry must improve upon to garner visitors.
The first on the list was relaxation. While Danziger said travelers still like to go out and participate in different activities, their number one priority is to find a place they can relax. The second and third priorities are sight-seeing and fine dining, which Danziger noted Park City has plenty of.
"The key now is to help guests create special memories, appeal to their emotions," Danziger said. "The perfect Park City combination to appeal to that would be ‘snow + ski + spa + sights.’"
Danziger said the affluent consumer is a smart consumer who does not leave their business smarts at the office. They look for value, and they are selective about how they spend their money.
She proposed that Park City position itself as a value-proposition by providing five-star service at a four-star price and provide discounts off future booking to attract return customers.
Danziger said there five different types of consumers who frequent luxury areas, and Park City can become one of their favorite destinations if the tourism industry learns about them and how to appeal to them.
There are the "X-Affluents," the most indulgent of the five personalities. They are distinguishable by expensive cars and high-quality clothes. They are not to be confused with the "Aspirers," the kind of consumers who are extravagant and not subtle in their expenditures. They will make sure everyone can see the expensive brands they are wearing.
Both of these personalities will be more interested in the service they receive wherever they choose to stay. That is the area in which resorts and restaurants must improve in to appeal to these consumers, she said.
On the other end of the spectrum are the "Cocooners," who Danziger said wear "mom jeans," baggy tops and sneakers. Their emphasis on luxury is in their homes, so they will pay more attention to the ambience and décor wherever they are staying, dining or relaxing.
The "Butterflies" are a growing population, she said. They enjoy the privileges their affluence can afford, but they are very "democratic" in their approach. They are not condescending toward their servers and believe the luxury is in the experience.
The "Temperate Pragmatist" is every tourism industry employee’s "worst nightmare," according to Danziger. They have a "take it or leave it" attitude about the business they receive, and they prefer environmentally conscious products at the places they stay at.
Given the different demographics and personalities of affluence, Danziger said Park City needs to adjust and invest in new marketing strategies to appeal to a new market: the young and upcoming affluent who want to create memorable experiences.
"You need to focus on value and return of investment," Danziger said. "Make sure you provide high-quality products, superior materials and expert workmanship."
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