An article in today’s New York Times details how magazines are suffering as a result of a collapse in luxury spending.
- While the year started out well, the bottom fell out in October. According to MasterCard’s SpendingPulse, luxury spending dropped 20.1 percent in October alone.
- More than half of affluent consumers have cut their spending on luxury products compared with a year ago, according to a study by Unity Marketing.
- Ad pages at the top luxury magazines fell 22 percent year over year for the December issues, according to Media Industry Newsletter.
As an owner of a small luxury hotel what can you take away from the article?
- You already know it is rough out there.
- While not placing large ad budgets in Conde Nast Traveler you should know most media will offer steep discounts – if you are a good negotiator.
- While magazines rates will certainly drop, concentrate your marketing in media that will produce the greatest ROI. Focus on your best customers and prospects. Expand email and direct marketing relationship building programs. Keep your web site current and optimized and your database in good shape.
We specialize in customer relationship marketing, so if you have a question, contact me (see About Us). Safe Travels – Madigan Pratt