In what seems like an endless progression of intriguing disruptions in the luxury market, global vehicle brand Hyundai announced in the beginning of November that, after years of consideration, it would officially launch a luxury subbrand separate from the mainstream Hyundai line.
Dubbed Genesis, the brand will target young, upscale and progressive buyers with luxury designs and, perhaps more importantly, luxury service.
A luxury subbrand has been in the works for Hyundai for some time. Meanwhile, the mainstream brand continued to perfect its models and ascend up the luxury scale. As a result, Hyundai’s brand strategy for Genesis is a bit different than that of other mass-market manufacturers who have branched out into luxury models.
It has become de rigeur for luxury subbrands to be marked by technological wizardry, with features like built-in GPS navigation, infotainment systems and other “smart” features that enhance the driving experience with constant technological connectivity. It’s not that we don’t enjoy the luxury tech integration of say, a Tesla S, but even the best of these luxury vehicles run into problems like system hacking or a neglect of exterior design appeal.
What’s more, we’re of the opinion that luxury design means nothing without luxury service. Our own fleet includes some of the finest vehicles on the market, backed by consistent maintenance and detailing, but our calling card has always been a patently comfortable, safe and elegant driving experience combined with impeccable, five-star levels of customer service.
Hyundai, clearly, is of a similar view. As a means of distinguishing Genesis from other luxury subbrands, Hyundai has transferred the focus from technological advancement to the more old-fashioned values of attention, support and service.
Genesis buyers will be treated to a heightened level of customer service from their first showroom visit onward. Dealerships licensed to sell the Genesis line will be under agreement to offer heightened levels of support for buyers. Owners of Genesis models will also enjoy perks like the “Your Time, Your Place” concierge service, a valet service that picks up and drops off vehicles from and to owner’s homes for service.
Hyundai plans to launch the line’s sedan and full-size car—named the G80 and G90—for the model year 2017. This gives us plenty of time to think about whether we’d like to add something similar to our fleet. But first we’d like to ask your thoughts. Do you think Hyundai can succeed as a luxury brand? Is it something you’d like to see in the EmpireCLS fleet? Let us know at sales@empirecls.com.
Photo Credit: loubeat via flickr
In October, Forbes reported some surprising (and fascinating) news: in the luxury European car market, Tesla Model S sales surpassed those of two major luxury brands, and by a significant margin.
The Tesla S sold twice as well as the Audi A8 limo and a whopping four times more than the BMW 7 model, especially in countries that subsidize electric vehicle purchases (but even in those that don’t, like Switzerland and Germany).
We think that this trend might be representative of larger changes happening within the luxury industry as a whole. Tesla is a relatively new name in the market, but skyrocketing sales suggests it’s met some very pressing needs for luxury consumers that have, up until this point, gone untapped.
At first glance, the Tesla Model S is not your typical luxury car. Traditionally, luxury vehicles are marketed for their style or exoticism. Company reputation, too, has been a major factor at play in terms of how consumers choose their luxury vehicles. As a relatively new brand, Tesla doesn’t have the historic legacy of an Audi, BMW or Ferrari, and its design, while sleek and attractive, bespeaks more function than fashion.
However, the Tesla Model S does have some features common across the board with luxury cars, namely its speed and “instant” acceleration. It also does them one better with impeccable safety ratings and a Consumer Reports review that famously “broke” the ratings system and set a new standard for quality. Plus, Tesla owner satisfaction is incredibly high—97% of Tesla S owners say that they would purchase their cars again.
The standout features of the Tesla Model S is, of course, its all-electric, zero-emissions engine, which might be the key to why the Model S has surpassed sales of other, gas-powered cars. These days, the concept of luxury is increasingly tied to the consumer’s role as a responsible global citizen, as evinced by trends like the widespread embrace of handcrafted, bespoke and responsibly-sourced goods. Since the Tesla Model S is the most environmentally-friendly car on the market, its rise to prominence in the luxury vehicle market may indicate that luxury consumers are shifting their assets towards responsible vehicles, as well.
As always, we’d like to hear your thoughts on this trend. What do you think constitutes luxury? Does the Tesla S meet your standards? Is it something you’d want to see in our fleet? Drop us a line at sales@empirecls.com and let us know.
If we had to predict what the most prevalent luxury market trend of the decade will be, our money is on how technology has disrupted the way that buyers perceive and interact with luxury goods and services. The prevalence of digital media in the everyday lives of consumers has given luxury brands good reason to rapidly rethink their marketing distribution channels and how much research their potential buyers do before making purchases.
Take, for example, Tesla, the tech start-up that’s been a subject of interest to us for a while. Tesla’s Model S has revolutionized the luxury vehicle concept with a high-performing, mold-breaking car that runs entirely on electricity and produces zero emissions. Now, after getting the highest rating ever recorded by Consumer Reports, plus consistent consumer satisfaction and other accolades, the Model S surpasses sales of traditional luxury players Audi and BMW in Europe. Sales also continue to climb elsewhere. This should give luxury automakers pause to consider how technology factors into their manufacturing, distribution and marketing.
Tech has disrupted the luxury sphere outside the purview of vehicle marketing, as well. In a recent Luxury Daily article, Sarah Jones highlighted the brand Dymant as another fascinating example of how some luxury retailers are adapting to the new digital sphere with incredible success.
Dymant is an online luxury goods retailer that crafts unique luxury lifestyle items for discerning clients. Founded just two years ago, Dymant already has a seven-figure revenue, with 8,000 member clients and 50 business-to-business clients. Employing over three hundred artisan craftsmen in luxury fields, Dymant crafts luxury objects meant to embody understated opulence for clients who may already seem to “have it all.” In addition to crafting unexpected items like mother-of-pearl decision coins and bespoke gold-plated jars for its member clients, Dymant also works with luxury houses like Chanel.
While Dymant crafts items with the traditionally refined quality of luxury objects, their process is anything but traditional. As Jones reports, digital technology is integrated into every part of the production process at Dymant. Their marketing model is also unusual. Like other successful luxury platforms, such as Gilt, Dymant started out as an invitation-only retailer. The brand has just opened its site to the public, but maintains exclusivity by refraining from doing any marketing whatsoever and opting out of showing up in Google search results. Given Dymant’s continuing success despite its lack of a marketing campaign, we can speculate that the kind of rarefied product Dymant offers and the word-of-mouth brand awareness it depends upon might be the key to success for luxury brands in the future.
Photo Credit: James Jordan
With over three decades of experience in the industry and worldwide clientele, it’s safe to say that we live and breathe all things luxury and travel-related. As an industry leader, nothing makes us prouder than to join other affiliated businesses in bringing exciting, innovative solutions to the ground transportation industry landscape. Over the past several years, we’ve earned ourselves a reputation as a forward-thinking travel provider that offers the best of both luxury and transportation.
Recently, at the Chauffeur Driven Trade Show and Conference, EmpireCLS gave a presentation alongside another ground transportation provider with whom we are proudly affiliated and introduced a brand-new, game-changing service to those in attendance. The affiliate meeting took place in South Beach, Miami, at one of the industry’s biggest trade shows. Operators of all sizes convened at the Loews Miami Beach Hotel, from October 11 to October 14, to take in networking opportunities, educational workshops and a little bit of Miami nightlife.
During the affiliate meeting, EmpireCLS Chairman and CEO David Seelinger hosted a panel discussion with one of our affiliates. This event introduced attendees to Deem Car Service, a recently-launched technology designed to benefit both operators and clients in the age of the transportation network company.
As transportation network companies have become increasingly popular—and increasingly problematic for users, who experience uneven fares, inconsistent service and safety issues—the ground transportation industry has seen a significant need to incorporate TNC technology into its operations. An on-demand service that enhances the customer experience while retaining the safety and service standards put forth by the National Limousine Association Duty of Care is long overdue.
Deem Car Service is the leading-edge technology that the ground transportation industry and its customers deserve. This flexible application will allow travel buyers to find the best ground transportation providers for their budgets, selected only from National Limousine Association members, all of whom have pledged to uphold excellent standards of safety and service. Like TNC apps, Deem Car Service will allow both advanced reservations and real-time ride hailing for customers.
We are proud to have represented EmpireCLS and our fellow industry innovators this past October at Chauffeur Driven. For more industry news and updates, visit empirecls.com.
No matter what beautiful, unique souvenirs you brought back from your last vacation, the most cherished are undoubtedly the memories that you formed. As a luxury travel provider, it’s common wisdom to us that, despite the well-deserved appeal of luxury goods, nothing comes close to a one-of-a-kind travel experience.
And travelers seem to agree: according to a recent report on affluent travelers by Martini Media, the overwhelming majority of the nearly 900 respondents surveyed said that they would rather put their assets towards travel than material goods. Let’s look closer at the survey and what it means for the travel industry.
The Numbers
Martini Media (a division of Evolve Media) conducted the survey this past spring, surveying 875 respondents on their attitudes towards travels pending. Respondents were those with household incomes of at least $100,000, and included “hyper affluent” respondents who comprise the top 3% of American incomes.
According to the report, not only were 80% of respondents willing to spend on travel before they spent on goods, but half were more willing to spend on travel and vacations than last year, and 20% of respondents have travel plans within the next year.
Experience is a Luxury Investment
While the affluent overwhelmingly prioritize spending on experiences over goods, the luxury quality of each experience still counts, which is a key piece of information for travel providers and hoteliers.
75% of respondents said they preferred to stay in a hotel over a home-share, like those available on AirBnB, due to the levels of service and amenities that they’ve come to expect. The reputation of the hotelier is also a major factor, and 63% of respondents affirmed that a stay in a luxury hotel is worth the price tag. 50% of respondents were also willing to pay extra to travel on their favorite airline, confirming that travelers are most likely to put their assets towards travel experiences that they feel will give them memories of a luxurious, unique and enjoyable trip.
Business or Pleasure? In This Case, Both
Another interesting insight that the martini report offers is the fact that many affluent travelers routinely combine business travel with leisure vacations. Since most respondents have a say in where they stay for business trips, hoteliers do well to have packages or programs that draw in business travelers and make business trips as efficient and productive as they are luxurious and relaxing. Many of our Partner hotels offer packages tailored to the needs of business travelers.
Direct Booking
In keeping with the desire to make experiences as enjoyable as possible, affluent travelers do a significant amount of research—about twelve hours per trip, starting about six months before the vacation starts. While millennial travelers prefer to book through third-party apps, most travelers in the “hyper affluent” income bracket still prefer direct booking with hotels, airlines and ground transportation providers.
At EmpireCLS, we strive to create a memorable travel experience each time, no matter how brief the trip. Learn more at www.empirecls.com.
Photo credit: Roderik Elme
Recently, we shared a few interesting statistics from this year’s Deloitte report on the changing landscape of luxury retail. One of the most salient points of the report was that luxury marketers must keep up with the shifting nature of luxury marketing channels, as well-informed buyers increasingly make purchases through flexible, technologically-rich channels.
According to a recent Luxury Daily article, luxury brands and retailers are particularly seeing the need to meet this challenge during the holiday shopping season. The article focuses on the results of research by Shullman Research Center and Kantar Media on what shoppers plan to buy during the 2015 holiday season. The research also examined data on where shoppers plan to buy from and what advertisements they remembered to help inform their decisions, as well as data collected from luxury brand and retailer budgets.
The data shows a significant discrepancy between where brands and retailers invest their advertising money and the channels through which buyers make their purchasing decisions. Out of 52 million luxury buyers included in the Shullman and Kantar research, the majority recalled advertisements from television and web spots, with recall of ads in magazines and newspapers lagging behind significantly. This was proportionate to rates of advertisement recall for all holiday shoppers.
However, both luxury retailers and brands continue to spend most of their holiday advertising on magazine and newspaper ads—nearly three-quarters of it, and the total expenditure on holiday season advertising makes up over one-quarter of marketing budgets on average. This trend is probably due both to the fact that print media is the traditional channel for holiday luxury advertising as well as the fact that print ads are less expensive than television spots.
While Luxury Daily assures that there is “no need for alarm” on the behalf of luxury goods marketers, the numbers show a distinct trend of consumers recalling ads from non-print sources and suggests that luxury marketers adjust their budgets accordingly. If anything, luxury brands and retailers must catch up on digital advertising. As Luxury Daily points out, luxury shoppers don’t necessarily buy online more than they do in stores, but they do a significant amount of research online, whether reading style blogs or browsing brand and retailers’ websites. They are also shopping earlier in the holiday season, which means that luxury brands need to think fast to stay relevant.
Set your sights on an Outback adventure this year: the growing luxury travel industry in Australia is going to get a boost thanks to luxury travel network Virtuoso and Tourism Australia, the continent’s official agency for attracting global visitors.
Virtuoso, a luxury travel network with 370 agencies and 9,800 advisors across the world, announced its partnership with Tourism Australia this past August, at Virtuoso Travel Week, a high-end travel products expo that took place at the Bellagio Resort & Casino. The partnership, through 2016, will include a marketing campaign and focus on both trade engagement and travel agent training.
Over the past few years, luxury travel to Australia has been growing steadily, especially in the US market. This year, Americans spent AU $2.95 billion on travel to Australia, up 14 percent from the previous year. The American market, which boasts more high net worth individuals than any other in the world, has yet-untapped potential for Tourism Australia.
To grow the connection between Australia and the US luxury market, Tourism Australia will enlist the help of Virtuoso, which generates sales of more than US $14 billion per year. Virtuoso’s travel advisors are experts in what makes Australia an incredibly beautiful and exciting destination, from its exotic wildlife to its no-worries attitude. In conjunction with the partnership, Virtuoso is re-launching its Aussie Specialist Program. This in-depth educational program will equip Virtuoso’s advisors with the expertise that they need to help clients create the perfect Australian luxury travel itinerary.
It’s no surprise to us that Australia is quickly becoming a hotspot for global luxury travel. The reasons for visiting Australia are many, and as varied as the landscape of the continent itself, as it offers the best of both luxurious sophistication and breathtaking, untamed wilderness.
Explore the booming restaurant scene in Sydney, which doesn’t shy away from gastronomic experimentation in some of the country’s finest dining establishments, relax in one of the coastline’s many luxury hotels, like the InterContinental Melbourne the Rialto, and get away from it all in the lap of luxury at one of Queensland’s island resorts. For rugged adventures, there’s no place better than Australia, from the wild mountainous region of Kimberley to sacred desert sites like the red sandstone monolith of Ulura.
If you plan to travel through Australia in the near future, don’t forget to book luxury chauffeur service with EmpireCLS.
This past September, consumers and auto dealers were disturbed to learn that Volkswagen intentionally lied about emissions and mileage in vehicles sold since 2009. On September 19th, a notice of violation was issued by the EPA, revealing that Volkswagen had deliberately outfitted 11 million diesel engine vehicles with a “defeat device,” a software code designed to trick laboratory testing into reading vehicle emissions as much lower than they actually are. In fact, it was found that the vehicles in question emit up to 40x more nitrogen oxide than the law permits.
The effects of the scandal have been far-reaching. Since “Dieselgate” broke, Volkswagen stock prices have plunged, the company’s CEO has resigned and 8.5 million vehicles have been recalled in Europe. The company faces potential class-action lawsuits accusing it of fraud and breached contracts.
In addition, the company has been lambasted by a public that feels justifiably insulted by the deception. Vehicle emissions are an increasing concern due to their significant contribution to air pollution and resulting problems. The revelation that Volkswagen knowingly manipulated their emissions testing results feels especially insidious when we consider that the Volkswagen Jetta won the Green Car of the Year award in 2009 (the award has since been rescinded) and Volkswagen deliberately advertised its cars as having low emissions. Not only that, but Volkswagen’s false laboratory results also garnered them Green Car subsidies and tax exemptions.
Even China, a country notorious for its decidedly lax air pollution policy, has expressed concern over Volkswagen’s dishonesty about its vehicle emissions, which is certainly saying something.
As Volkswagen struggles to regain consumer trust—a task that seems Sisyphean at this point—vehicle buyers will undoubtedly turn to auto manufacturers with better reputations. We are interested to see how other manufacturers might benefit from the scandal, as well as how consumers might approach them with higher levels of trepidation.
At EmpireCLS, we prioritize customer trust, and we take vehicle reputation into consideration when selecting our fleet, alongside luxury appointments, performance and safety ratings. Thankfully, all of the vehicles in our fleet have upheld an excellent reputation in everything from safety to emissions—no scandals here. And should that change, we’ll take action immediately to ensure that our fleet remains top-performing and forward-thinking.
Photo Credit: Automobile Italia
The pressure on the ground transportation industry to compete with transportation network companies (or TNCs), at least technologically, has been on for some time. Lately, solutions have been appearing on the landscape.
We recently covered one such solution, Deem, which EmpireCLS also partnered with, along with other high-profile National Limousine Association members. Deem was designed to provide the same kind of real-time ride hailing and advanced reservations that TNC technology makes possible, with the added advantage of using only operators that meet the NLA’s rigorous standards for safety and service.
Deem, while unique in several other ways, is not the only platform set to compete with TNC apps at a high level. iCars, a San Francisco-based application, has already seen success in its hometown (with 300-400 runs per day), and major cities across the nation can now look forward to its widespread launch this year.
iCars was found by Gary Bauer, owners of Bauer’s Intelligent Transportation, as a response to the kinds of security and service gaps that cause problems for many TNC clients and the indsutry at large. iCars, like Deem, offers high-quality ground transportation both on-demand and in advance.
Unlike the TNC model, which uses contractors who don’t undergo extensive background checks or require insurance, iCars enlists only operators that meet limousine industry regulations like minimum driver and vehicle insurance, driver background checks and screening, vehicle maintenance standards and safety codes.
One of the most important differences between TNC apps and apps like iCars is an adherence to the Duty of Care outlined by the National Limousine Association. Whereas TNCs have only vague guidelines and minimal standards for customer care, the National Limousine Association requires that ground transportation operators invest significant time, energy and capital into ensuring the safety of their passengers.
This includes stringent standards for hiring chauffeurs, including a preliminary background check, substance abuse testing, driver training, a medical examination, consistent supervision and appropriate discipline. The Duty of Care also requires that operators secure commercial insurance and proper licensing, as well as adhere to regular inspections and vehicle maintenance.
In addition to the provisions of the Duty of Care, iCars offers conveniences like on-demand and advance reservations, third-party bookings for concierge and business travel managers, group bookings, private networks for existing clients of each operator, route optimization and automated dispatch.
For more information on the latest advancements in the ground transportation industry, follow EmpireCLS on Facebook and Twitter.
In the past several years, groundbreaking vehicle maker, Tesla, has made a name for itself as a company to watch for the future of vehicle technology. From fully electric engines to innovative on-board interfaces, Tesla continues to generate some of the most exciting headlines in the automotive industry.
Recently, Tesla made another one that astonished quite a few of us—not just those in the ground transportation industry, but automobile consumers in general.
Consumer Reports, the historically trusted publication acting as a neutral authority on product quality, turned heads this summer when it announced that Tesla’s latest, the 2015 Tesla Model S P85D, not only got a perfect score during the review process, but actually broke the ratings system, scoring an unprecedented 103 out of a 100-point rating scale—a first in Consumer Reports history. The publication has since adjusted its rating scale to accommodate the groundbreaking score.
Obviously, Consumer Reports had little but praise for the Model S P85D. Reviewers raved about the car’s impressive stats, which include an acceleration rate of zero to sixty in 3.5 seconds and an efficiency rate equivalent to 87 miles per gallon. Reviewers confirmed that the Model S P85D is the fastest car they have ever tested, and praised the smooth, powerful driving experience, delivered by 686 pound-feet of thrust and two motors—one front, one rear—with a combined horsepower of 691. The vehicle’s streamlined, aerodynamic design contributes to powerful performance as well as sleek, stylish travel.
There are several other reasons to love the Model S P85D. The vehicle’s fully electric engine is just one of a suite of attributes that makes the Model S P85D a perfect fusion of efficiency and luxury. The car holds a five-star safety rating from the NHTSA , and boasts steel-reinforced aluminum pillars for extra structural integrity, plus eight strategically placed airbags.
In addition to impeccable safety features, the Model S P85D is equipped with driver-friendly features, like a 17-inch touchscreen that puts all the conveniences of a tablet computer at the driver’s fingertips, including navigation, entertainment and Bluetooth phone calls. Drivers can also enjoy autopilot lane changing and parking, automated climate control, and remote start, which we think are likely to raise the bar for driver experiences across the board.
As always, we welcome your thoughts on the Model S P85D. Do you think it delivers a luxury experience? Is it something you’d like to see in EmpireCLS’s luxury fleet? Drop us a line at sales@empirecls.com.
