LGBTQ Travelers and the Luxury Market, Part 1

An increasing number of queer travelers are looking toward higher-end vacations and travel experiences, and this trend is expected to continue in the coming years. According to Ed Salvato, chief content officer HospitableMe, the LGBTQ travel segment is an important one to this market.

“It’s estimated (by OUT NOW Consulting) that in 2016 this segment was worth $211 billion globally,” he said. “A smaller proportion of that is in the luxury travel space. And while the queer segment accounts for a small percentage of overall luxury spending, there are important behaviors this segment exhibits that make it more valuable. Queer travelers tend to travel more often, and more spontaneously than non-queer travelers. They spend more time when they travel and spend more money per trip. They tend to be dual-income, no-kid travelers. They can travel during non-school periods, so they tend to fill hotels during need seasons.”

LGBTQ travelers come to Washington to learn more about and celebrate American history or to promote policy,” said David Walsh, Director of Sales and Marketing for the Mandarin Oriental, Washington D.C. “Then, like everyone else, they want to dine at an inventive restaurant or see a great concert, sporting event, or performance. We cater to the guest who wants and will pay for a highly refined hospitality experience—a well-furnished room, expert concierge, intuitive service that’s attentive but not obsequious—and that guest may or not be an LGBTQ traveler.”

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Alex Schloop, Creative Director at the Inns of Aurora, noted that LGBTQ couples who choose to partner together might be a bit older and more established in their careers.

“Therefore, they might be willing to spend more on travel, and they might have decided not to raise a family, so they would certainly have more discretionary income for things like travel,” he said. “That being said, LGBTQ is not a ‘persona.’ If travel companies pull out one particular element of a person and say they’re making travel decisions based on that one fact, companies can end up with a skewed product and perspective.”

Nick Gold, Public Relations Director for Eau Palm Beach Resort & Spa, agreed that these travelers are especially important to the luxury market for a variety of reasons.

“Often times, LGBTQ travelers have additional disposable income to spend on luxury travel, accommodations, etc. vs. the general population or average guest,” he said. “Respectively, LGBTQ travelers tend be overtly well-traveled or ‘worldly,’ and have acquired specific tastes and interests in fine dining, elevated accommodations, and luxe experiences.”

And this trend of growth has become obvious over the past 5-10 years. Frank Maduro, VP of Marketing, AIC Hotel Group explained that the LGBTQ traveler has been an important part of his company’s business mix dating back more than a decade.

“Our Hard Rock Hotel Vallarta property alone has been hosting an LGBTQ group buyout for over 10 years,” he said. “We have been doing same-sex weddings for over 10 years and all the properties within the AIC Hotel Group portfolio have succeeded in meeting the expectations of the LGBTQ traveler.”

Gold thinks that a key driver to this influx of travel is queer couples who share a double income-earning household, for the most part, without kids—thus having more disposable funds to utilize.

“Plus, nowadays, queer travelers are more widely accepted and marketed to than ever before—especially now that gay marriage is legal in all 50 states,” he said.

And Salvato also feels that same-sex marriage is a big driver here.

“More and more luxury travel providers are focusing on this important segment especially since marriage equality became the law of the land in the U.S. on June 16, 2015. With ‘gay marriage’ came ‘gay honeymoons.’ Same-sex marriages and honeymoons mean big business.”

Schloop added that as cultures become more accepting, it becomes easier for LGBTQ individuals to travel.

“That shift built a lot of momentum in our country in the last decade, so I would think that travel—and all industries—would benefit from being welcoming to LGBTQ couples. At the Inns of Aurora, we’ve invested time and resources in staff training and certifications like TAG (Travel Advisory Group), which is a resource that specifies your company or destination has announced itself as welcoming to the LGBTQ market. It’s important to us to have that accreditation,” he said.

A luxury advantage?

Given the great attention to detail that’s inherent in most luxury travel, one might argue that adapting to the specific needs and wants of queer travelers has been a somewhat easy road for these brands.

Deborah Briggs, VP of Arts, Culture & Community for The Betsy-South Beach agreed that “Yes, luxury providers owe it to every traveler to be aware of what they’re looking for, and to do their best to over deliver.”

And Walsh noted that one of the pillars of Mandarin Oriental is “We Listen to Everything You Say.”

“That means observing the guest as an individual and then ensuring that we deliver service to their unique expectations,” he explained. “But these are basic things, still instead of sparkling water, cappuccino after a meal, turning down the right instead of the left side of the bed, or just knowing that you’re on a diet and won’t want to be tempted by the dessert cart.”

Based on research, Gold said it doesn’t appear that the queer travelers’ needs are much different that the needs of the non-queer-traveler—especially in the luxury space.

“With attention to detail, I do know the queer traveler does appreciate it when a luxury property is aware during pre-arrival that a same-sex couple will be in the same room, and therefore two robes of the same gender are made available, slippers, etc.,” he said.

Sergio Serra, area director of sales and marketing for Banyan Tree Hotels & Resorts in the Americas specifically represents Banyan Tree Mayakoba and Banyan Tree Cabo Marques. He feels that communication and exceptional service is key for all guests regardless of their sexual orientation.

“We always ask them for details that are essential in making their trip as seamless and comfortable for them as possible. For example, when we see a same-sex couple is coming to one of our properties, we add personalized touches such as a set of female or male bathrobes or offer in-room amenities specifically catered to the sexes. We want every one of our guests remembering our unparalleled service, comfortable luxury, and the fond memories experienced on site for years to come,” he said.

At the end of the day, it is all about passion for service. We as Hoteliers do not differentiate the needs and services depending on your sexual orientation, but we customize it to what you are looking for. Attention to detail comes inherent for those looking for excellence in service,” said Gabriela Pérez Güitrón, sales manager, Melody Maker Cancun.

But there can be hiccups, for sure. Salvato said that luxury travel providers still don’t realize that you cannot provide personalized service to LGBTQ+ people if you do not understand them or feel comfortable engaging with them.

“So many hospitality providers are marketing to queer travelers (mostly gay white male travelers) but they don’t understand first of all the diversity of the segment (gender nonbinary, lesbian queer people of color) and the basics of how to interact with them once they arrive at their place of business. Due to a lack of training to authentically welcome LGBTQ travelers, the vast majority of customer-facing service providers retreat or simply freeze up unable to treat queer guests equally to others,” Salvato said.

Coming next month in Part 2: best practices for luxury brands looking to cater to queer travelers, the mistakes that some in the market are making, and a look at coming trends.