Europe

Concierge travel services in Europe are currently targeted at wealthy travellers, offering a value-added service by organising holidays customised to their personal tastes. Concierge travel services provide advice and support before, during and after the trip. This personalised concierge service is on the verge of going mainstream providing the means to boost customer satisfaction and loyalty, as well as margins.

Traditionally concierge travel services were limited to luxury travellers, but this is now set to change with travel operators exploring the mass market. This move is being driven by consumer preferences, a fastmoving competitive environment and new technology. Mass tourists are demanding more personalised services as they become accustomed to finding more travel options online and need guidance on how to build a tailored trip.

European travel demand goes beyond sun, sea and city to encompass rewarding and authentic experiences giving rise to experiential travel. A harsh competitive environment, falling demand, capacity cuts, trading down, and rife discounting have all led to an increasingly important role for internet bookings. The offer of concierge services to the mid market allows travel industry players to differentiate their products by adding value. Technology enables travel players to provide personalised concierge services to mass tourists at affordable costs through faster communication along the supply chain.

Kuoni (www.kuoni-group.com) holds a 1% share of Western Europe’s travel retail market and offers customised services through its Kuoni Concierge Service. Kuoni Concierge customers enjoy a tailor-made holiday including the reservation of events, shows, restaurants and a personal shopper service at their destination. The local contacts provided help consumers enjoy a more authentic travel experience. These include experts in theatre, arts, yoga, sports, local history, etc at destination. Kuoni Concierge customers are currently in the high income bracket but also encompass average earners with a high budget for a special occasion, especially honeymooners. The company is about to offer its services to all its customers by end 2010 for a fee estimated to be EUR 20-25 per person.

The roll out of concierge travel services to the masses is driven by the need to add value for the mid market, bolstering competitiveness and gaining cost efficiencies. According to Kuoni Italia, of concierge travel services requested by customers, 74% was for advice on the destination, 12% for tickets, 9% for restaurant bookings and 5% for event bookings.

“Today people are overwhelmed by information on travel and tourism services and need more guidance from someone they can trust. Concierge travel services will play an increasingly important role in helping them make intelligent choices based on their individual needs”
Andrea Mueller, Communications Manager, Kuoni Switzerland

It is expected that concierge travel services in Europe will expand in the next five years to embrace a much larger customer group, including the mass-market. Such expansion of concierge travel services to the masses is already taking place in UK. Virgin Holidays (www.virginholidays.co.uk) targets customers beyond luxury travellers via its Virgin, Holidays Concierge Service. Such services offered free to all is an industry first. Operators in Continental Europe are on the cusp of following suit such as Kuoni.

Concierge services are useful in creating flexible travel services, complemented with services according to customer preferences. They offer all travel retailers the chance to generate higher volumes and improve margins. Online travel agents such as lastminute.com already offer lifestyle bookings (tickets, restaurants etc). Concierge services would allow them to enhance their online offer with personal contact for insight.

Future Outlook

Concierge Travel Services are expected to reach a significant dimension within the mainstream travel retail offer, going beyond affluent travellers. Personalised advice to build the trip according to customer preferences will be offered on the phone by travel consultants based either in the company head office or at the destination. Growth will be inextricably linked to that of experiential travel in the quest for an authentic experience. New technology will offer a wider audience via mobile internet devices and m-commerce.

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