The luxury market has been a slowly growing one with customers buying luxuriously. There have been certain things which deviated the luxury travelers to new places and moreover, decreased their number. Although it is about spending a lot of money for travelers, the way they spend it have had changes from the beginning. Here are some of the occurences which created adverse impacts on the global luxury market.
Paris terrorist attack dragged down the safety concerned travelers to stay at home
The global luxury market is under the suspicion of loss in momentum following the Paris terror attack. Paris being one of the most visited spots by luxury travelers, the terror attack is surely set to bring negative impacts to all other luxury cities around the world. Paris being among the top ten fashion capitals has a good percentage of the global luxury sales. This incident must drop down the sale about 30 percent by the end of the year.
Nationality of the travelers matters
With the Paris terror attack, there are other issues which could lead the luxury markets of several countries to go down. The nationality of the travelers is something to be seriously considered. Chinese travelers are well-known for luxury traveling, Around 30 percent of the total luxury travelers last year was the Chinese. So, today most markets focus on the Chinese travelers.
The Hong Kong protests made Chinese travelers fly away
The pre-democracy protests raised in Hong Kong had great impacts on the global luxury markets as it affected many top luxury companies. The mainland Chinese tourists had a big role in this impact, because Hong kong was the place most preferred by Chinese tourists before.
Malaysian Airlines tragedy affected Singapore and Malaysian markets
As the Malaysian Airlines flight went missing, the travelers coming to Malaysia never saw such a huge decrease before. Even Singapore has had the impact of the missing flight on their market. But the agents are still growing hopes as the Hong Kong protests had brought tourists back.
Economic breakdowns in several countries decreased the number of travelers
As the economic breakdown happened in various countries around the world, this made a bad impact on the luxury market. Since the majority of luxury travelers are from China and Brazil, the economic breakdown in this country forced the travelers to choose cheaper alternatives.
The weight of dollar made US market dull
For the global luxury travelers, exchange rate means a lot. Currently, the Asian travelers have Europe as the favorite destination outside Asia. At the same time, the US market, which was for a long time a growing market, had gone down. Exchange rate is the root cause of this change as binmen have better exchange rate with euro rather than dollar.
Global climatic change conference security concerns made a decrease in number of travelers
The conferences on the global climatic change warning alarmed many countries and made them increase their security measures. This created a negative impact on the tourist flow. It came up with other incidents like the Paris terrorist attack which aggravated the condition.
The booming of local and online market became the travelers’ safety option
Since the safety concern prevents most travelers from planning their next trip soon, the local market and online market is slowly getting pace. This might also affect the growth in global markets.
- There have been a lot of things which affected the luxury market.
- Terror attack in Paris decreased the number of luxury travelers.
- Chinese travelers left Hong Kong market.
- The Chinese travelers are the main focus on the global luxury market.
- Singapore and Malaysian market saw a decrease in customers.
- The economic drop decreased the number of travelers.
- Exchange rate changed travelers’ preferences.
- Increased security for global climate change conferences made things worse.
- The online and local market is slowly rising.
- A hike is expected within the local markets.
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