Target the Trillion Dollar LOHAS Market

How to engage green consumers with sustainable tourism products.

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 and their spend in the US market alone is now worth $355 billion pa still escalating at a phenomenal 10 percent a year.

This has been growing into a global phenomenon for some time now. Add Europe, Canada, Pacific Asia and indeed the rapidly growing BRIC markets (Brazil, Russia, India and China) and you have at least a trillion dollars of spend.

And another thing, as the developing world develops and grows, we can expect middle classes to grow from around 300m to an astonishing 2.1bn over the next 20 years.

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. Are they going to change their preferences when buying travel?

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 just how are YOU going to get this business?
 

Here are 5 simple steps:

1. Find out how sustainable tourism works and what opportunities it provides (yes, it’s not just a funny name!) a good start is to google it and then go to Global Sustainable Tourism Criteria
2. Browse around the marketplace for sustainable tourism products – you’ll find a lot of them from TUI to Thomas Cook to IHG to Travelocity.
3. Profile your own clients and understand them a bit better, do they shop at a Farmers Market, do they buy organic goods. Hey presto, you’ve got some LOHAS clients.
4. Join a few green networks to understand the language a bit better. See if you can get a bit greener yourself.
5. Put a green offer together and contact your clients by phone or email. Whatever you do don’t print ANYTHING!

Is that a start?

Valere Tjolle

Valere Tjolle is editor of the Sustainable Tourism Report Suite, special offer at: www.travelmole.com/stories/1142003.php