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LOOK AT BILLION DOLLAR LOHAS MARKET SAYS MARKETING GUIDE
Wednesday, 28 Feb, 2010
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It is said that the ranks of Cultural Creatives (the driving force behind the LOHAS movement) in the United States are growing at a rate of 1 percent a year. But the number of dollars annually going into the US market–now at $355 billion –is escalating at about 10 percent a year. This has been growing into a global phenomenon for some time now.
What difference does all this make for travel and tourism, you may ask. The fact is that the massive, burgeoning LOHAS market – those people who’ve chosen ‘Lifestyles Of Health And Sustainability’– is a blanket term for people who buy organic, fair trade, natural and ethically-sourced goods.
They also buy tourism in large quantities, PROVIDED IT FITS IN WITH THEIR SOCIAL AND LIFESTYLE AGENDA.
If you are delivering truly sustainable tourism, you are their friend, and you will be able to communicate fully with this market at its many touch points. Also:
- It is probable that we’re moving into a new era, an era in which tourist’s contributions to the destinations they visit will be measured and managed by both the destinations themselves and potential visitors. LOHAS clients will accord with these principles and will support them financially.
- A destination’s revenue depends on the number of visitors and the amount they each will spend. LOHAS clients have the money to spend and will spend it effectively.
- A destination’s environment depends on its appreciation and stewardship. LOHAS clients understand these principles and will assist in this by being caring tourists.
- Managing a destination, tour operator or destination attraction is much like giving a party – success depends largely on the mixture of guests. Get bad guests, you create a bad atmosphere. Get good guests, who respect what you’re doing and enjoy it your marketing is done for you. LOHAS clients are not only good guests but have good networks.
- Tour operator, destination, hotel, whatever your business is, you’ll make more money from clients who trust you and are not price sensitive. Once you have built up strong relationships with LOHAS clients, you’ll have their franchise.
- If you truly understand and are committed to the principles of sustainable tourism, you will be able to communicate with LOHAS clients very effectively.
- LOHAS is a demographic related to lifestyle choice, there are a myriad of niche markets within this segment that are also available.
How big is the LOHAS market? At a MINIMUM estimate LOHAS represents 20% of the developed countries markets – approximately 200m people and a smaller percentage of developing countries and less developed countries. In other words AT LEAST 300m potential clients globally.
And how much is this market worth annually for travel and tourism? It is estimated that LOHAS people spent some US$400bn in the US last year on goods and services.
It is probable that this relatively new marketplace is worth up to 20% of current total global tourism spend. That is a significant niche demographic market, to say the least.
How to effectively engage with this market is the next question we’ll address…
Excerpted from the Sustainable Tourism Marketing Guide
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