The Gay and Lesbian Demographic

The visibility of gay and lesbian consumers along with accurate research on their households and economic behavior, have grown dramatically in the past few years. Increased competition among companies for this market has also transformed a cultural trend into solid marketing and partnering opportunities. Without question, the gay and lesbian market offers brand loyalty and a consumer demographic whose value makes this segment too promising to overlook or mishandle. The gay market has more disposable income, and has a propensity for travel. There is a trend toward more diversified travel experiences, and this combined with discretionary income and a greater variety of options, puts the "gay market" in a league of its own.
Based on national population figures, the American gay and lesbian community represents a US $47.3 billion travel market, or about 10% of the U.S. travel industry. But it represents an even larger percentage of the overall travel market in terms of actual gay and lesbian dollars invested in travel.

The CVBs of Miami Beach, Key West, West Hollywood and San Francisco are reaching out to the gay market for groups and conventions. Perhaps this could be expected, but so are Philadelphia, Washington, D.C. and Minneapolis. The British Tourist Authority and the Australia Tourism Commission have participated in the advertising efforts of gay tour operators. The government tourism boards of France, Germany, Holland, Belgium, Canada, Puerto Rico and California exhibit at the International Gay & Lesbian World Travel Expo.

Tourism Québec has stepped forth to sponsor an ongoing "Visit Gay-Friendly Quebec" campaign to increase gay and lesbian arrivals to the province. This comprehensive promotion also involves the sponsorship of Air Canada and VIA Rail, as well as the participation of the tourist offices of Montréal and Québec City.

Why would all of these destinations encourage gay tourism? Because of the economically strong demographic profile of the gay community, but also because these governments want to encourage the rising popularity of their destinations among gay travelers recognizing the potential of increasing gay tourism market share through the implementation of effective promotional efforts. A recent focus group of leading travel agents serving the gay community agreed that the involvement of government tourism entities definitely helps support their sales efforts to reach the gay market, and makes a difference when a client is considering destination options.

When considering whether to market to the gay community, some mainstream tour operators have said "but we don't have a gay tour product..." However, gay and lesbian travel represents every 'shade of gray,' in terms of preference. Indeed, many gay travelers do prefer to travel only in large gay groups, or on gay-chartered cruise ships. Others prefer smaller group travel, identifying a desired destination and class of service first, and then seeking out a group tour operator. But the vast majority is traveling alone or with a partner or friends, looking for a "gay-friendly" environment and gay-friendly carriers, operators and accommodations. This is where mainstream suppliers will identify the greatest opportunity.

Many businesses serving the gay and lesbian market have ongoing community involvement programs. These businesses almost universally report that "being involved" leads to bigger profits and better morale among employees. Ultimately, profit comes from increased business. But business grows through increased customer loyalty and new clients, both of which result from an effective Community Involvement Program.

How to Position a Luxury Brand

Patek Philippe has it right, according to Allen Adamson, managing director of the New York office of Landor Associates. This maker of high-end timepieces (don’t call them watches!) knows exactly how to position a luxury brand. In its long-running series of ads, the headline asserts: "You never actually own a Patek Philippe. You merely take care of it for the next generation." Although this campaign began long before this recession, its philosophy couldn't be more relevant to companies marketing a luxury brand in today's belt-tightening economy. That is, they should not be trying to get consumers to make a purchase but, rather, to make an investment. And, to succeed at this, they must treat their clientele (dare we say customers?) precisely like they are making an investment. An investment is made with a raise of the hand that a consumer trusts in the long-term value of an entity, be it a financial entity or that of a material nature. It is also trust that, as a result of this vote of confidence, the consumer will receive a return on this investment, be it in monetary performance or, in the case of goods and services, product performance and longevity. What's more, in making an investment in a brand unattainable by most mortals is the unspoken agreement that everything associated with this brand will be top-notch. Looking at Forbes' list of the the best and brightest purveyors of luxury products, it's clear that there is genuine awareness of what it takes to be, and stay, an "investment brand." These companies, among them Louis Vuitton, Hermes, Chanel, Porsche, BMW and Mercedes Benz, know that keeping consumers of their goods happy and loyal means providing a brand experience befitting ownership. They also appreciate that, requisite to their marketing, is word of mouth. And to fuel positive word of mouth among the well-heeled, especially in these competitive times, means the highest bar for quality and customer care must be raised even higher. Success as a luxury brand today means maintaining tighter control over every element of the brand experience than ever before, from the design and manufacturing process, to the distribution policies (no outlet stores, please) to the ambiance of the retail environment. Equally important, surprising and delighting the customer should not be considered an extra, but a must have. Hermes sales associates, for example, will not only take the time to show women as many gorgeous silk scarves as they'd like to see, but take the time to patiently demonstrate the many different techniques for tying these scarves. Ritz-Carlton, the luxury hotel group, has what it refers to as "wow stories," shared with all personnel, in which hotel staff members explain how they were able to, yes, "wow" a guest with particularly distinctive service. Another example is Hartman luggage: people swear by this brand not just for its fine detailing, but for its exemplary customer care. Whenever a handle comes loose or a zipper needs replacing, one sends it back and it's returned, beautifully refurbished, good as new. How else do you manage an investment brand, be it jewelry, automobile, scarf, or handbag in these challenging economic times? You appeal to those most committed to your brand and you concentrate on products and services that will yield your greatest return on investment. In the fashion category, this means ensuring your merchandise is both forward-thinking and classic. Coco Chanel recognized, as do her present-day designers, that timelessness cannot be underestimated when it comes to clothing and accessories. If, on the other hand, you have the enviable role of marketing the automobiles that inspire envy, you ensure that the expectations of your most exacting customers are exceeded from engineering to showroom to after-care. And, in all cases and categories, keep in mind that there are plenty of blogs and review sites out there for the well-off to sound off on their luxury brand experiences. If you have something expensive to sell, make it worthy of its price. The fact that we're living in what some call "new normal" times, does, however, up the ante. Those with the ability to spend big are going to think a bit more than they did before when pulling out their platinum or titanium cards. If you're marketing a luxury brand, you've got to be able to justify the investment being made by these folks to the nth degree. Attentive personal service is simply a cost of entry, as is attention to quality in manufacturing and retail. The action we recommend is that you treat your "clientele" as though they were making an investment in your brand, and not just purchasing it. Make it something they can care for and enjoy until they're ready to pass it along to the next generation.