IE Premium and Prestige Business Observatory Newsletter

  1. Home
  2. Blog
  3. IE Premium and Prestige Business Observatory Newsletter

IE Premium and Prestige Business Observatory Newsletter

December 2015
“key drivers behind high value city travel” research presentation @ ie business school
City travel worldwide has grown by 60% over the last 5 years, a far faster pace than sun and beach tourism, according the findings of the report on Key Drivers Behind High Value City Travel drafted by the IE and MasterCard Observatory on Premium Markets and Prestige Products. The report reveals pivotal factors for premium urban tourism, and finds that two out of three people who travel for business organize their trip so that they can enjoy their destination as a tourist. Bleisure, namely the act of combining business travel and leisure pursuits, is more widespread than expected. Some 58% of frequent business travelers add a day or several days to their business trips in order to explore the city in their own time. Due to time limits or incentives to visit the city in question, which may include guided visits, the most preferred amount of time spent on such visits tends to vary. Making purchases is very popular among bleisure tourists, for example, with shopping in the city being far more popular than buying at the airport or duty-free shops.The report on High-Value City Tourism is based on 1,500 interviews conducted in selected countries of traveler origin, namely the US, the UK, Russia, Latin America and Spain. The research project was extensive, and included the opinions of a panel of experts from the hotel, gastronomy, culture, and luxury product sectors, and media organizations focused on the travel sector. They concurred that high-value city tourism is an excellent opportunity for Spain’s two main cities: Madrid and Barcelona.

“Tourism makes up 9% of the world’s GDP and jobs,” says María Eugenia Girón, director of the IE Business School and MasterCard Observatory on the Premium Market and Prestige Products. “The number of travelers is expected to almost double by the year 2030.  The Report on High-Value City Tourism reveals changes that are taking place in the preferences of premium travelers, and how the growth of urban tourism brings enormous opportunities for Spain. Madrid and Barcelona can improve their competitive advantages, particularly for travelers that bring the greatest levels of added value.”The findings of the report point to pre-booking activities and services being an interesting option for travelers, and that this is changing the rules of the game in the travel sector. Booking flights and hotels from home has long been standard practice, and now the same is starting to apply to leisure activities in the city of destination, thanks to changes that are breaking with traditional practices. Three out of four travelers say that they occasionally book activities and services before leaving home. “Of those who don’t,  some 40% would prefer to book in advance if they knew they could find good offers for city experiences, which is a source of information just asking to be tapped by local operators,” says tourism consultant Jörn Gieschen, who headed IE’s report.Fifty percent of travelers currently use their smartphone in the streets of the cities they visit, thanks to better coverage and falling prices. Moreover, websites for mobile phones have improved greatly and innovative travel apps have entered the market. Fifty percent of travelers often use their mobile phones to guide them around cities when abroad. Among Russians the figure reaches 65%. The younger the segment, the greater the level of smartphone use, but even among travelers aged between 36 and 55 years of age, the average level of use stands at  40%.Purchases, sports events, culture and entertainment are key for the city of Madrid, while Barcelona stands out for its natural environment and tourist locations, night life and excursions, according to the findings of the report. Both Madrid and Barcelona enjoy a good brand image. Barcelona is considered the fourth most attractive city in Europe, after Rome, Paris and London. Madrid comes in seventh place behind Prague and Vienna, but ahead of cities like Amsterdam, Milan, Berlin, Budapest and Istanbul. The ranking of Spain’s two major cities is very similar within the markets studied – they only start to look a little weaker when ranked against cities in the US. Both cities are seen as having the wow factor, which means that they receive even better qualifications from people who have already visited them. The architecture and monuments, local gastronomy and culture, and museums and art galleries, are the most valued categories.During the event, which took place on November 11th, Jörn Gieschen presented the results followed by a discussion including José María Palencia, ex CEO World Duty Free Group, Luis Martín Izquierdo, partner at EY, and Carlos Gómez, Chief Operations and Marketing Officer at Carat. The discussion was moderated by Maria Eugenia Girón, Executive Director of IE Premium and Prestige Business Observatory.Read report
ie loewe case gets mention of honor

IE Professor Joaquín Garralda and the IE Case on Loewe have obtained the mention of honor in the 12th Annual IE Case Contest. 

The «Loewe Case Study: Sustainability and Long-lasting Luxury» was presented in IE Shigeru Ban Paper Pavilion on June 16th by Professors Joaquín Garralda and Miguel Ángel Gardetti from the Center of Studies for Sustainable Luxury. The event also included the participation of Manuel Serrano, Loewe’s Finance and Operations Vice-president, and José Luis Velasco, Loewe’s Responsible for Quality, Sustainability and Customer Service.

south summit 2015 fashion tech awards by glamour
It was moderated by Alicia Parro (Glamour Magazine) and it featured Javier Goyeneche (ECOALF), María Benjumea (Spain Startup), David Delfín (Fashion designer), Laura Sánchez (Bloomers&Bikini), Laura Longo (Glamour), Natalia Gamero (Condé Nast), Javier González-Soria y Moreno de la Santa (Top Seeds Lab), and Maria Eugenia Girón.Watch video
does (not) glasses’ logo matter?

by María Eugenia Girón

Today, glasses are more than just a functional accessory. And the rising of Instagram has provoked an appetite for designs that are interesting, different… and not so much for visible logos.Read article
millennials lowest spenders, but most common luxury shoppers
Despite making up less than a third of all active consumers during the holidays, millennials comprise the majority of luxury holiday shoppers, according to a new report from Shullman Research Center.Read article
smartwatches redefine the battlefield for watch companies

by María Eugenia Girón

The good news for the watch industry is that we start to see how millennials shyly adopt the old habit of putting something on their wrists.Read article @ Forbes Mexico
paris headwinds and the top 25 luxury cities

Luca Solca, expert of the IE Premium and Prestige Business Observatory’s Luxury Barometer and Head of Exane BNP Paribas presents a new research series done to explore major global luxury cities in depth, and keep a finger on their pulses in terms of trading momentum. It is time to take a step further and leverage our proprietary data to fine-tune a “hit parade» of the most important global luxury cities in the world.

Read article

the cfda/vogue fashion fund coming to amazon

The third season of Condé Nast Entertainment’s competition series will air on the Internet retailer’s streaming service, alongside a dedicated retail experience.

Read article

«the true cost»: who pays the price for our clothing?

Please watch this trailer and then download the entire documentary from Netflix to see the entire story. It will help you consider how we can take action to make the biggest impact on this appalling industry.

Watch video

ContactMaría de Molina 6, 1st floor
28006 Madrid