California Leads U.S. Destinations in Marketing to The Middle East

In the effort to attract high-spending tourists, states often look overseas. That’s a good idea — international visitors typically spend more than domestic travelers. But certain international markets present a more complicated consumer landscape than others. That’s what Visit California has discovered as it starts wooing more travelers from the Middle East.

This article originally appeared in Skift New Luxury, for which I am the editor.

While international tensions simmer, Visit California is extending an olive branch to the Middle East. The action is part of Visit California’s initiative to drive ultra-luxury travel to the state.

The Middle East is one of the fastest growing outbound tourism regions in the world, according to UNWTO’s Tourism Towards 2030. Outbound travel from the region has quadrupled during the past 20 years. The region also delivers big spenders. Per capita outbound tourism spending from the countries of the Gulf Cooperation Council (United Arab Emirates, Saudi Arabia, Kuwait, Oman, Bahrain and Qatar) is 6.5 times higher than the global average.

People living in GCC countries are also responsible for 60 percent of Middle Eastern travel to the United States. That’s why, when it comes to high-end product, this is a logical market for American luxury marketers to approach.

Beachside in Santa Barbara

"A few years ago, we launched a super-affluent initiative. This market is very attractive since it falls squarely within the nexus of the KPIs we are trying to develop,” said Caroline Beteta, CEO of Visit California.

In 2018, California welcomed approximately 259,000 Middle East visitors. In 2019, 264,000 Middle Eastern travelers are forecast to visit the state and by 2022, growth in travel from the Middle East is projected to approach 300,000 visitors. Last year, GCC visitors stayed in California an average of 13.5 nights with a mean spend of $2,422 per visitor. That compares with the Chinese at $1,968 and the British at $1,360.

However, California’s net growth from the region has been down the past two years. According to Beteta, the state started experiencing “a significant drop-off from GCC after the Trump travel ban went into effect.” James Bermingham, chairman of Visit California’s Board of Commissioners and executive vice president of operations for luxury hotel and resort management company Montage International, says that fact helped spur the state to action.

“Travel bans and equally some of the rhetoric coming from the U.S. was off-putting for many travelers from the region,” he said. “So we decided as Visit California that we wanted to correct the declines, to send out a message to the GCC that California is an extraordinary destination and that all are welcome here.”

UNDERSTANDING THE MARKET

While Visit California has been attending the Arabian Travel Market, the region’s premier travel trade show, for the past four years, it decided it needed to take another step to increase the state’s visibility in the market.

In April, Visit California embarked on its first diplomatic mission in the region to explore the potential for business. Beteta, Bermingham and the chief executives of ten of the state’s destination marketing organizations took part in meetings and networking events in Abu Dhabi and Dubai, designed to help the group understand the GCC’s nuances.

The first lesson learned is that the market is very complicated. The regional population includes both nationals and expatriates. In the United Arab Emirates, 81 percent of the population is expat, while Saudi Arabia is more reflective of the region writ large, with a little more than a third of the population being expat.

“These are two very different markets, with different styles of traveling,” said Leona Reed, associate vice president global marketing for Visit California.

For example, expats are more likely to opt for less-expensive luxury accommodations (no, that’s not an oxymoron), while the nationals prefer five-star all the way. The expat will be more likely to do a self-drive holiday, while nationals prefer their vacation cars equipped with drivers. Nationals may take religious practices into account while traveling, while the expat is less likely to deal with such matters.

These differences mean dual strategies will run concurrently in each market, one aimed at expats and one at natives. But there are other things to consider as well.

Our challenge is figuring out how to market to region holistically when each country has nuance in terms of destination and experience preference,” Reed said.

For example, Visit California research found that Kuwaitis are more well-traveled than other Middle Eastern nationals. Qatar nationals and those from the United Arab Emirates are more conservative travelers. Saudi nationals get education abroad and are more sophisticated travelers. Generally, nationals from Gulf countries tend to opt for a more classic, hands-on style of luxury. And they are bigger spenders than expats.

Aside from their tendency to spend, the market presents other factors that make it extremely lucrative. GCC travelers go on long vacations, in part to escape hot Arabian summers. Trips to the United States average 28 days, according to the U.S. Department of Commerce. The family-market segment dominates GCC leisure travel and most Arab families are large. Three-quarters of GCC nationals belong to households of five or more. Moreover, many family groups bring along extended members of the clan, and also their staff.

UNVEILING THE STRATEGY

After doing the research, Visit California is unveiling a two-year market strategy aimed at creating strong relationships with strategic trade, media and airline partners in the GCC, and at educating California destinations about the nuances of travelers from this area.

“Establishing representation in the market is the biggest objective for this year,” said Beteta.

At the moment, Visit California has on-the-ground representation in 13 foreign countries and this baker’s dozen account for 87 percent of the inbound international traffic.

After that, it’s a matter of getting the product right for the market. According to Visit California’s research, travelers from the Middle East are looking at destinations which are safe for Muslims, as both real and perceived safety have become a high priority at destinations with high levels of services. They also opt for places which consider their unique needs.

Poolside at Ritz-Carlton Bacara 

The provision of Halal food is by far the most important service that a Muslim traveler requires, Reed said. At the very least, she added, food outlets trying to appeal to this market will have to ensure all ingredients are clearly labeled.

There’s also the matter of prayer. According to the Pew Research Centre report, 63 percent of Muslims perform the five daily prayers. To cater, facilities frequented by Muslim travelers need to be equipped with prayer rooms.

It’s also about providing the right kind of luxury. “Luxury for this market is about being treated with a lot of deference. Exclusivity and pampering are key. This market is all about old luxury – it’s less about experience and more about luxury product,” Reed said.

Bermingham added, “There’s a maturity to their affluence, and with that comes a higher level of understanding and a much higher expectation of service.”

Providing both the appropriate products and service levels for this market will take significant training and implementation. That’s why Visit California is focused on taking the steps needed to reduce the gulf between existing product and the demands and needs of travelers from the GCC.

The Story Behind the Color Choices of Luxury Hotel Logos

What is the color of luxury? If you assess the answer by looking at the logos of luxury fashion houses, the answer is literally black and white. Chanel and Prada and Dolce & Gabbana and nearly all the others sport black type against a white background.

thebrandpool.com

“Black is a symbol of power. With its diametric partner in crime, white, black stands for sophistication, weight, and seriousness. Black is timeless and effortlessly stylish. Think the little black dress,” said Brian Lischer, founder and CEO of branding agency Ignyte,

However, when you look into the world of luxury hotel brands, the color palette broadens just a tad. High-end hotels that venture into the spectrum frequently use gold or blue either as an accent or as a primary color. The reason for these choices becomes apparent when one digs into the world of color analysis

Pantone Chart
codingsolutions.net

“A fundamental aspect of neurobiology is that there’s a sequence of cognition – how the brain processes information,” said Dr. Bevil Conway, a scientist at the National Eye Institute, part of the National Institutes of Health.

“Color is a primitive form of information. It’s an emotive cue, so it’s an important differentiator for brands. It signals identity; it tells people what team you are on.”

Because so many brands employ wordmarks rather than shapes and symbols, color ends up becoming the visual component people remember most about a logo.

According to countless color psychology studies, blue is frequently the most common favorite color among the world’s population, especially with men.

homespage.neiu.edu

“This global preference and environmental omnipresence makes blue non-threatening, conservative, and traditional. Brands are not taking any risks when they call on a shade of blue for their identity,” said Lischer, “as it is seen as a sign of stability and reliability.” Hence why so many airlines and banks use it in logos.

The same goes for hospitality. “Blue has long been associated with reliability and trustworthiness. For example, blue chips are stocks you can depend on. What do we want from hotels? In part, you are trusting them with your safety,” said Conway.

Gold and silver are other colors regularly incorporated in luxury hotel brand logos.

“Hospitality brands often opt for classic colors like black, gold, and blue to create a mature, trustworthy and sophisticated impression on potential customers. Gold and silver, as the colors of precious metals, create an impression of wealth, prosperity and success that resonates well with audiences targeted by luxury brands,” said Pam Webber, chief operating officer of global creative platform 99designs.

kisspng.com

Taking a look at luxury brand logos, one discovers that Capella and Kempinski use blue. Jumeirah uses blue and gold. Gold is a component of the logos of Conrad, Viceroy, Langham, St. Regis, Mandarin Oriental and InterContinental. Silver/Gray pops up from time to time, often when logos are replicated in monochromatic ways.

It seems this type of color clustering is common among various industries. “It’s convention, doing what everyone else is doing,” said Conway. “Logos of similar industries tend to cluster. It’s not because it’s hard-wired, but we have established a convention (the use of particular colors) imbued with social meaning.”

Interestingly, there are a few outliers among the bunch. Virgin Hotels, a brand that always dares to be different, uses bright red, a color of power, passion and energy. According to digital marketing firm WebFX, “A red logo shows that your brand is powerful and high-energy.”

worldvectorlogo.com

“Virgin, with its unique and immediately identifiable shade of red, is a perfect example of this: it reflects passion, playfulness and energetic modernity – all elements that encapsulate Virgin’s brand personality,” Webber said

Another outlier is wellness hospitality brand Six Senses. A company spokesperson said the logo contains purple, but the Pantone chart indicates that the color used is deep magenta. Either way, the color interpretation works.

“Magenta is a color of emotional balance and physical harmony. Magenta is redolent of compassion, support, and kindness, and is associated with feelings of self-respect and contentment. It’s a color of transformation, suggesting the sloughing off of old ideas and the embrace of new ones,” said Lischer. Perfect for a wellness resort, right?

seekvectorlogo.com

Meantime, if the eye perceives the Six Senses logo as purple, that works, too. “Purple is among the rarest colors in nature,” said Lischer. “It’s imbued with spirituality, contemplation, and mediation, suggesting creativity and imagination.”

One other big outlier in luxury logos is Andaz. The brand opts to use a different color for each letter of its name. Lischer calls it “a childish logo. It’s criticized in the design world as looking dating and childish, like building blocks. The logo does not represent luxury…it looks like a logo for a preschool.”

Ouch. Interestingly enough, Hyatt is “revisiting the color palette,” according to a spokesperson, while clarifying that “no work is being done to change the brand logo or colors for now.”

This story originally appeared in Skift, where I am the publication's luxury correspondent.

Bright, Shiny Objects: The Man Who Puts the Sparkle in the Baccarat Hotel

When your brand is all about high-quality, custom-crafted crystal, you’d better be sure that the message shines throughout any product extensions. To uphold and safeguard Baccarat’s identity, enter the glass attendant.

When famed crystal company Baccarat decided to lend its name to the hotel business in 2015, it had to ensure that its primary product was the star of the show. And that is why one of the most important positions at the Baccarat Hotel New York is glass attendant.

First, a little history. Baccarat was established in 1764, during the reign of King Louis XV of France. Since that time, artisans have been crafting glassware, decorative objects, and lighting fixtures purchased by many of the world’s most discriminating connoisseurs. Baccarat chandeliers and decorative objects adorn many a palace, and Baccarat crystal stemware graces the tables of royalty and heads of state.

According to Hermann W. Elger, managing director at Baccarat Hotel New York and chief operating officer of Baccarat Hotels and Resorts, when there was “an opportunity to bring [the] 250-year-old brand to life in the form of the hotel, we had to make sure perfection of craftsmanship was incorporated in all aspects of the hotel. It’s brought to life throughout the hotel through decorative items, lighting, and the glassware.”  Seventeen custom chandeliers dot the property, while items like caviar sets, candle holders, and decorative pieces are also made of crystal. And there are hundreds of pieces of stemware.

MAINTAINING A TEMPLE TO GLASS

That’s a lot of glass. Hence the need for a glass attendant, a person charged full-time with making sure that every piece of crystal, from the barware to the chandeliers, is looking good.

The hotel employs three attendants. Anthony Benitez, a 31-year-old first-generation New Yorker whose family hails from the Dominican Republic and Puerto Rico, has been on the job for two years. Prior to coming to the hotel, he had never worked in hospitality. Instead, for 10 years, he had worked in moving and storage, which, he says, was perfect training for the glass attendant job. “In the moving business, it’s about taking care of things, making sure they get to where they need to go in one piece.”

A few years back, Benitez was poking around the internet looking for “something different, something a bit more grounded,” since he was starting a family. He first applied for a position when the hotel opened, but nothing came through.  However, a couple of years later, the food and beverage director called and suggested that the glass attendant role was “a position I would shine in.”

When asked to describe the job, Benitez said, “It’s hard to say. You could compare it to a dishwasher, you could…but you are washing God’s glasses,” along with immense vases, decorative pieces, and small chandeliers. Basically, he notes, “Anything that shines.”

UTMOST RESPECT AND ATTENTION

Cleaning the stemware from the bar, restaurant, and rooms is the principal part of Benitez’ mission, since, he says, between 10,000 to 12,000 glasses may get washed on a typical day. “When I arrive at 9 a.m.,” he says, “the first thing I do is look for chipped glasses. I log in the glasses that are chipped and then they are sent to a special place to be resurfaced.” When glasses can’t be salvaged, the hotel has been known to re-purpose them by creating broken art pieces sometimes displayed in the lobby.

After chips are noted, Benitez polishes silver and then gets to work on the glassware collected overnight from in-room dining and from breakfast service. Caring for the crystal requires a high-alkaline liquid detergent, and a dishwasher set at 138 degrees for washing and 183 degrees for rinsing. After that the attendant has to polish each piece by hand with a 100-percent cotton cloth specially made for Baccarat.

According to Elger, “The glass attendant is one of the most unique jobs there is. It requires patience and a passion for caring for something truly special. The crystal must be respected, as it is the unique identifier of the hotel. It must be cared for, washed by hand, and treated with great respect.”

When Benitez got the gig, he knew that it was one “not to be taken lightly. I did extensive research to understand what I was getting into. After all, I am responsible for the thing that draws everyone here. The crystal is what this place is built on, so the training is extensive. I had to learn every name of every type of glass — there are nearly 40 different types of stemware alone — how it’s made, the colors, and all of the ins and outs.” He spent two intensive days training in Baccarat’s Manhattan store, learning about the art of crystal-making and the care that is required to maintain each piece. Further education was provided by the hotel’s existing glass attendants.

CRYSTAL CULTURE

After two years, “Crystal is part of me now,” says Benitez. “I have an intimate relationship with the glass — I appreciate the glasses more.” Not only that, but he feels a certain ownership of the crystal. “The biggest challenge I face here is not having full control of the crystal. I wish I could make the drink, serve the drink to the customer, eat with the person using it, and then take it back to clean.”

In trying to maintain control, he does attempt “to keep everyone in line with the crystal.” That’s why, when a fellow employee brings him a chipped glass, he says (only half-kiddingly), “They get very nervous. They know I will ask who, what, where, and why?”

That’s because he has grown to fully appreciate the craftwork that graces his hands every day. “I knew nothing about Baccarat crystal before I got here,” Benitez says, “and I feel like I’ve learned so much. I learned the history and the work that goes into it and how the crystal ties everything together…literally, the hotel is a crystal palace. There is beauty everywhere you look, and I am responsible for keeping it beautiful. I love that, and makes me feel good every day I come here.”

Elger calls the job “a stepping stone to other positions.” That said, Benitez is “quite comfortable” with his current role. But at some point, he says “I would love to become a Baccarat ambassador of crystal or go somewhere else when they open another hotel and teach new attendants how to care for the glass."

Cincinnati Courts Luxury Travelers Through Tennis

Most major sporting events take place in cities that already attract large numbers of high-end tourists. But for one small Midwestern city, hosting a professional tennis tournament is a way to attract luxury travelers who might otherwise not consider a visit.

Monte Carlo, Rome, Miami, Paris, Shanghai, Cincinnati. Which of these is not like the others?

Tennis is a sport of glamour and luxury, attracting jet-setting spectators who travel the world’s sumptuous cities for Grand Slam events — the Australian Open, The French Open, Wimbledon, and the U.S. Open — and other tournaments considered mandatory for top-tier players. Particularly attractive for fans are the rare events outside of the Grand Slams that feature both men’s and women’s draws.

Center Court by Vince Kincer

The Western & Southern Open brings the world’s top male and female players to the Cincinnati, Ohio, area every August. Held at the Lindner Family Tennis Center, 20 miles north of Cincinnati in Mason, the W & S Open is the largest annual summer sporting event in the Midwest. On the Association for Tennis Professionals (ATP) men’s tour, it’s a Masters 1000 event, ranked just below the Grand Slams and ATP Finals. For the Women’s Tennis Association (WTA), it’s a Premier 5 event.

Because of the prestige, the prize money, and the fact that it’s the last major tournament before the U.S. Open (and played on the same surface), the tournament is a big draw for the world’s top players. That means the likes of Roger Federer, Rafael Nadal, Serena Williams, and Naomi Osaka are courting tennis fans from around the world who are willing and able to spend top dollar to see these aces in action.

Another reason this tournament is a big attraction for fans is that it’s the only major tennis tournament held in the Midwest. And, as Shawn Leibold, director of business development for the Western & Southern Open points out, “It’s easily accessible from a distance perspective, and it’s really the U.S. Open at Midwest prices.”

Mind you, even though both admission and items like lodging and food are less pricey in Ohio than in New York, the Western & Southern Open is still not a cheap ticket. But judging from recent event sellouts, the cost doesn’t appear to be a problem. Perhaps that’s because tennis fans, in general, are big spenders. That W & S Open fans are well-heeled is borne out by the statistics that the average ticket holder has a household income of $150,000.

“Tennis historically, looking at the data from high-level professional tournaments — first of all, fans travel from all over to go. They tend to travel greater distances [than spectators for most other events]. Two, they spend more than most sports fans do at any other kind of sporting event. They stay at the nicer hotels, they eat at the fine restaurants. They typically would spend more than someone who might be coming [to Cincinnati] for a Reds games,” said Gordon Smith, CEO and executive director of the U.S. Tennis Association (USTA).

Novak Djokovic by Ben Solomon

Naturally, the tournament is a vast economic contributor to the Greater Cincinnati region. According to a 2017 tournament economic impact study, tournament operations and non-local visitor spending generated a total economic impact of $46.3 million that year. The greatest impact was spending by non-local attendees. Sixty-seven percent of the nearly 200,000 fans were non-local, coming from 4,000 US ZIP codes and 25 countries.

On average, each non-local spent three days at the event, spending approximately $200 per day on hotel stays, food, and retail goods; spending figures do not include tournament tickets. That compares with the $108 daily spend rate for the average leisure visitor to Cincinnati. Aside from revenue earned by local vendors, state sales tax accumulated during the event totaled more than $545,000.

It’s expected that the spend will only increase this year, thanks to the new $25 million South Building, which sits smack dab in the middle of the tournament’s two largest courts. The five-story structure adds more luxury seating, including suites, outside boxes, and 252 indoor, air-conditioned box seats, along with upscale restaurants and concession areas.

ADVANTAGE, CINCINNATI

The tournament’s impact, however, extends far beyond the money it brings in during its run. The Western & Southern Open envelops Cincinnati in an aura of luxury, which can go a long way in place-making efforts.

cincyusa.com

“The build of an annual event of this caliber has a range of incredible value not just as an event, but it also helps hype the value of the place as a destination,” said Candy Lee, a professor of sports marketing at Northwestern University.

For example, event sponsors this year include Emirates, Porsche and Rolex. These companies help spread word about the tournament and the city to their clients throughout the year and bring high-spending guests to the tournament.

“When sponsors bring in their clients from around the world, using it as a hospitality event, it furthers the area of Cincinnati as a destination,” Lee said.

Randie Adam, vice president, marketing and visitor services for Cincinnati USA, the region’s convention and visitors bureau, agrees.

“Professional sports are a top driver for leisure visitation. This is a tent pole event for our region, an event to hang our hat on. The exposure is reputation-driving. It’s a perception issue that we overcome through these events — we can live up to the luxury expectation,” she said.

cincyusa.com

Said Mike Laatsch, former chief operating officer of Cincinnati USA, as quoted in the economic impact study. “You know, when Serena Williams is walking around Cincinnati, it gets people’s attention. It helps underscore the power of the event, but also…one of the key things the Western & Southern Open has done is build credibility, nationally and internationally, that Cincinnati is a major world-class city.”

Susan Lomax is executive director of Source Cincinnati, the city’s marketing arm. She believes the event is crucial in helping to build the region’s reputation.

“The tournament is a very unique forum for the Cincinnati region, drawing thousands of business executives who zero in on high-end sports tourism experiences, global tennis fans who might not otherwise have this part of the Midwest on their radar,” she said.

“For a city of Cincinnati’s size to have a sporting event of this magnitude immediately creates a sense of curiosity around what other surprises this city might have in store. It really opens eyes to the quality of life and experiences offered here to new potential talent, business investors, and visitors.”

This story originally appeared on Skift, for which I am the luxury correspondent.