Economic Impacts on Luxury Link?

[Mountie]

Community Members, especially those residing in the US, do you have opinions on how the general economic conditions and the weakness of the US Dollar is affecting luxury link and their auction destinations? There has to be a slow down in sales activities from US residents, even the wealthy folks are being impacted by the recent down turns in the US stock markets. Do you think luxury link will be giving more consideration to offering the affordable category I have mentioned before? Maybe luxury link will just be shifting their offerings to our European and Asianfriends.



Any thoughts?

[CMDAVILACLI]

Hi Mountie,



Yes, the economic down turn really is biting into my travel budget! What I do know is the weak dollar is limiting the amount of trips I can take... I'll still travel, but not as often as I have in the past (until the dollar strengthens). I am spending more time trying to find affordable vacations off the beaten path and looking more at all inclusive vacations to help defray the overall costs ie: cruises.



Speaking of cruises... I recently returned from a week's cruise to Alaska (the inside passage) on the Holland America Noordam. The ship was lovely - huge, but you really didn't feel the impact of the number of passengers (1800+). Food was dynamite! Lots of healthy, well prepared choices. We had one of the larger suites with a large balcony (approx 450 sq feet total- large bathroom w/two sinks) so we didn't feel too jammed in. I would recommend this line (my third time on Holland America), and if you like the great outdoors, the location is wonderful. The glaciers are truly amazing, and Juneau/Ketchikan offer some really fun activities such as dog sledding, whale watching etc.



Cathy

[bonniejoy03]

Hi Mountie: Good post. There are still bargains to be had in Central and South America. Even with the downturn in the economy, Latin America is still a bargain even for luxury travel. Airfares (from the East Coast) are relatively reasonable. For example, Costa Rica for the fall is approx $350. What a deal. My concern is that the properties in this area have gone up in price during the past few years. Typically, hotel prices were under $200 for the luxury category. Now, prices are upwards of $350. Countries such as Nicaragua, Guatemala, and El Salvador are still a bargain though!

[lhbrown]

Hi Mountie,
The weak dollar is definitely affecting prices at Luxury Link, especially for their European Offerings. However, from what I have seen, LL is passing the increases right along. For instance we had purchased a LL package for Rome this past January and by April the cost was a full $300 more for the same offering. The same is true for many other offerings. In order to keep prices down, often some of the lovely extras are being taken out, like massages, ballet tickets, museum passes, dinners, etc. Unless you are willing to go to places where the dollar is still strong, (but security sometimes compromised by terrorist history and bombings....) LL packages are approaching prices, that can be had through Luxury Hotel Memberships. We used to figure $300 a night, but now you have to invariably allow for $400 a night even on Luxury Link.....

[funtimes]

We've had luck in Canada. The dollar met - even exchange when we were there in May. It will be interesting to see how we fare on our upcoming Italian trip - Thank goodness we were the only bidders for a villa in Tuscany and we used frequent flier miles. This will definitely help. I agree that we should probably travel less and save more - but once you are a travel junkie and have a life is too short attitude - what else can you do but keep on keepin' on??? Travel in the US will be our fall and winter destinations, but we plan to "go for it" again and head to Europe next spring. happy travels hoping our dollars really stttrrrrettttcccchhhh! Enjoy! ...Funtimes

[curtiejoe]

Mountie wrote:

Community Members, especially those residing in the US, do you have opinions on how the general economic conditions and the weakness of the US Dollar is affecting luxury link and their auction destinations? There has to be a slow down in sales activities from US residents, even the wealthy folks are being impacted by the recent down turns in the US stock markets. Do you think luxury link will be giving more consideration to offering the affordable category I have mentioned before? Maybe luxury link will just be shifting their offerings to our European and Asianfriends.



Any thoughts?

Hi mountie



I really have not seen a marked increase in the price of travel offerings on LL in the past six months. This is particularly the case for the many different kinds of auctions available on this wonderful website. The minimum bid on most of the scores of auctions I have been monitoring and bidding on, seems to not have gone up at all in most cases. I've also kept an eye on the amount of the winning auction bids for LL properties throughout the world in the past nine months and again have not noticed a marked upswing in the prices paid to win those auctions.

I suppose my perspective on this issue may be somewhat skewed by being Canadian and the fact that over the past nine months or sothe Canadian dollar has gained value appreciably in relation to the U.S. dollar, so much that where it stood at about 85 cents at the beginning of 2007, it's now moved up to close to 95 cents. As a result, travel expenditures for us now look a bit less than before. Yet, I'm a bit puzzled by the drift of this whole discussion: after all Luxury Link is a travel website geared to folks who have the financial means to travel often and to travel well.LL is obviously not aimed at "bargain hunters" who're looking to score a cheap trip to an economy class destination. Given that basic premise, fluctuations in the value of the U.S. currency would likely not be a major factor in travel planning considerationsby LL's discriminating membership. For LL to offer properties in the "affordable category" would seem like a contradiction in terms (i.e. why call the site "Luxury Link" if the focus is no longer on luxury accomodation at high-end properties but on something less?).



Curt

[Mountie]

curt, thank you for posting your thoughts on this subject. I must respectfully question some of your remarks.



First of all, I think LL is a successful business venture based upon attracting potential buyers seeking bargain travel to luxury destination. I don't think LL is interested in catering exclusively to wealth travelers who totally have no regard for costs. If that were the case, then why would LL even offer auctions below the rack rated normally charge by the properties? Havingwealth does not exclude the interest of saving money or getting the best deal on a purchase.



Since LL demographics do not break out the geographic homes of LL purchases, I can only speculate the largest percentage of historic and present buyers are still residents of the US. If I am correct, the potential purchasers of LL productshave been adversely impacted by a weakening Dollar vs the Euro and even your Canadian Dollar. Even if your statement regarding the lack of increases in the prices being paid for recentauction itemswas correct, and I don't believe that is the case, LL must be feeling the effects of reduced volume of purchases. BTW, Curt, the starting prices of many auctions have increased during the brief period I have been visiting LL.



Affordable Luxury is not an alien concept. Why do you think business classwas startedon manylong haulinternational carriers, why do you think major hotel chains have acquired lesser tier names fortravelers, why do you think there are club floors in so many upscale hotels, why are there club facilities offered by airlines? The list of questions could become exhaustively long. My point is simple. There is room to accommodate needs and interests in the luxury travel marketand LL probably has the greatest capacity to understand this concept and address the various buyingmarket(s) rather then remainentrenched inan approach from past economic conditions.



I would bet when the next big changes occur in LL we will see categories which offer more affordable auction items.



BTW, Curt, I would expect you, of all community members,to embrace this idea and contribute suggestions. After all, you are one of the most vocal when it comes to seeking our low cost airlines.



Thank you

curtiejoe wrote:

Mountie wrote:

Community Members, especially those residing in the US, do you have opinions on how the general economic conditions and the weakness of the US Dollar is affecting luxury link and their auction destinations? There has to be a slow down in sales activities from US residents, even the wealthy folks are being impacted by the recent down turns in the US stock markets. Do you think luxury link will be giving more consideration to offering the affordable category I have mentioned before? Maybe luxury link will just be shifting their offerings to our European and Asianfriends.



Any thoughts?

Hi mountie



I really have not seen a marked increase in the price of travel offerings on LL in the past six months. This is particularly the case for the many different kinds of auctions available on this wonderful website. The minimum bid on most of the scores of auctions I have been monitoring and bidding on, seems to not have gone up at all in most cases. I've also kept an eye on the amount of the winning auction bids for LL properties throughout the world in the past nine months and again have not noticed a marked upswing in the prices paid to win those auctions.

I suppose my perspective on this issue may be somewhat skewed by being Canadian and the fact that over the past nine months or sothe Canadian dollar has gained value appreciably in relation to the U.S. dollar, so much that where it stood at about 85 cents at the beginning of 2007, it's now moved up to close to 95 cents. As a result, travel expenditures for us now look a bit less than before. Yet, I'm a bit puzzled by the drift of this whole discussion: after all Luxury Link is a travel website geared to folks who have the financial means to travel often and to travel well.LL is obviously not aimed at "bargain hunters" who're looking to score a cheap trip to an economy class destination. Given that basic premise, fluctuations in the value of the U.S. currency would likely not be a major factor in travel planning considerationsby LL's discriminating membership. For LL to offer properties in the "affordable category" would seem like a contradiction in terms (i.e. why call the site "Luxury Link" if the focus is no longer on luxury accomodation at high-end properties but on something less?).



Curt

[curtiejoe]

Hi mountie



You make a number of good points in your last post. I am indeed one who looks for low cost airlines because, as I said in an earlier post, I don't believe there's value in spending a lot of money on flights to get to luxury destinations when you can get there for a lot less. I'd much rather use my money to pay for luxury accomodation, sumptious amenities, exotic excursions, and fabulous food once I'm at my destination than on the means of transportation to get there. But, each to her/his own.

Yes indeed, "affordable luxury" is not an alien concept. However, the Oxford Dictionary defines luxury as: "costly surroundings" and "comfortable and expensive". Traditionally "luxury" has meant that it really has been affordable mainly to the rich and really well-off people among us. When such becomes more accessible to people of lesser means, by definition it ceases to be "expensive" or "costly". And, when that happens, it also loses some or all of its cachet as "luxurious". If that is the segment of the travel market that LL is or should be targetting as a business strategy, then I feel the name of this website may need to be changed to "Low CostLink". i don't think that's where LL is headed and feel that the reason they offer "Hot Travel Deals of the Day", "Mystery Auctions" (starting at $1), and "Hot Travel Auctions" is to entice prospective travellers into the site and to bid on auctions that initially have a relatively low starting bid, but often end up being sold to a winning bidder at a higher price. This strategy is a perfect example of very good operating practices by a business, in my view.

You're quite right that the starting bid on many LL auctions has gone up in the past several months. But, there have been hundreds of auctions held on LL in that time for properties in all corners of the world. Depending on which types of auctions any person has happened to look at and which parts of the world these have dealt with, I venture to say that many opening bids have not increased at all.

You are also right, no doubt, that the majority of LL's clients as well as theCommunityContributorsare Americans. however, a significant number, especially among the most active VIP Contributors are from outside the USA (e.g mary-j from Scotland; jashermd from England, two2go and myself from Canada). From a business perspective, taking a world-wide approach rather than a more narrow one focused mainly on the USA market would have a lot of merit, especially in this day and age of globaliziation.

Finally, I agree with you that "good value" offerings available on LL are a fantastic opportunity for more than just the really well-to-do (which I am not) to find excellent travel packages.I just don't like the trend towards "Wal-Marting" the world of business that is taking hold of this segment of the travel business.

While I enjoy a good debate and a free and spirited exchange of ideas and opinions,I don't likethe condescending tone of part of your last post wherein you repeat the term "why do you think?" several times. I see no need for that.



Curt

[Mountie]

curt, don't feel "condescended" upon by my repeating "Why do youthink?" I never deal with individualsface to faceor in writing with an "attitude."



I have noticed increased starting prices of selected auction destinations in which I have an interest andto which I hope to travel on upcoming holidays. My interests are narrow or focused, as far as potential travel, so I am not making this assumption regarding all of the offered auctions. Other members can speak to whether they have noticed recent increases in destination in which they may have an interest.



Personally, I am pleased to see many community members from outside of the US participating with their ideas. It is another way for me to develop perspective and some limited interaction.



However, I am almost certain the majority of the luxury link visitors and buyers are from the US as opposed to being from outside the US. For this reason, and I have no factual data to back me up, I think we will see some major changes in the near future in terms of offerings. Luxury has a good history of adjusting to market conditions.

[omegaet]

LL-Travelfan, Mountie & Curt.....we just reviewed the starting auction prices today for the same three night Venice offering we purchased last April and it now starts at $1,025 vs $899....slightly less than a15% bump! Add that to the continuing unfavorable Dollar vs Euro exchange ratefor the typical US resident andone would have to think there are impacts on the sales LL volume.Even at the higher price, the stay at Ca'Pisaniis a wonderful experience and worth the money.



Mountie is probably right regarding his hunch on upcoming innovations with the next evoluntion of the LL site.