With a long professional career in the tourism sector, where he was head of the Information Technology department at the Instituto Tecnológico Hotelero, founder of The Digital Band consultancy, PhocusWright analyst and adviser of the investment fund LUAFund, Fabián González is also the founder of Forward_Mad, one of the most important events on luxury tourism, which this year celebrates its second edition in Madrid from October 5 to 7. “We want it to be the most relevant annual meeting for those
With a long professional career in the tourism sector, where he was head of the Information Technology department at the Instituto Tecnológico Hotelero, founder of The Digital Band consultancy, PhocusWright analyst and adviser of the investment fund LUAFund, Fabián González is also the founder of Forward_Mad, one of the most important events on luxury tourism, which this year celebrates its second edition in Madrid from October 5 to 7. “We want it to be the most relevant annual meeting for those professionals in the industry who want to develop their businesses in the luxury segment,” he emphasizes in an interview with Cinco Días. The choice of Madrid is not accidental due to the cascading arrival of major international hotel brands (Four Seasons, Marriott, Hyatt, Hilton, Mandarin or Rosewood) and all the complementary offerings that have been developed around them. “Barcelona, Malaga or Seville also have everything to play in the league that is now led by London, Paris or Milan”.
The event he founded tries to make visible the benefits of luxury tourism in one of the most visited countries in the world, in which a large part of the trips come from tour operators and a large majority of tourists are Europeans, with a much lower cost to that of Asians or Americans. Is it his job to preach in the desert?
For some time now, many of the actors involved in tourism have been calling for a change of model in Spain. We must end the dependency on tour operation. It is estimated that 75% of tourist arrivals have as their main reason to travel to sun and beach destinations and a high percentage is tour operator. It is a very efficient model, but very extractive with the destination. The clearest example is Mallorca, which after ten years of consecutive success in the arrival of travellers, has a per capita income similar to Lleida. It does not generate wealth in the destination. A very high proportion of spending by British tourists, the first source market, stays at the origin, but generates a large amount of spending at the destination to provide them with a service. This does not mean that the tourist model of tour operation should be reviled, but that it should be compensated and luxury tourism is a good way.
Almost two thirds of foreign travelers come from the United Kingdom, Germany, France or Italy, countries with much lower purchasing power than luxury travelers. How can you begin to change those percentages?
Building a new model on four pillars. The first is to generate knowledge and for this we have created an observatory with Mastercard, ReviewPro, Mabrian and Savills to analyze data and offer it to the industry. The second is to create an ecosystem for that luxury traveler and for this hotels, travel agencies, airports, buses, stores or shopping centers have to start collaborating. You cannot offer a tourist package to a client of 1,000 euros per night. And if you want to extend your stay, you have to offer all kinds of services. The third is marketing and we have invited the main travel agencies in the US and Latin America to get to know Madrid and get in touch with their suppliers. And the fourth is brand promotion to create a destination.
“There are clear parallels between luxury urban destinations and the main fashion catwalks”
But it will also be necessary to offer them unique or exclusive services or products that they cannot find in another destination.
This high-impact customer profile was not in Madrid and thanks to the arrival of these international brands it has appeared. And now Madrid and the rest of the Spanish destinations that want to attract them have to aspire to have a traveler profile that is interested in something of ours that cannot be replicated in another destination. In my opinion, the cultural commitment must be the cornerstone of the exclusive promotion of the destination.
Could it also be an extra help to have lower prices than other destinations?
The demand of luxury tourism that spends 1,000 euros per room per night is inelastic. Faced with a variation in prices, demand will remain stable. This is one of the benefits of luxury tourism and causes paradoxes such as Paris attracting many more travelers than Madrid despite being more expensive. They are insensitive to variations in price.
The Executive tried to expedite the return of VAT on purchases as an incentive to attract travelers. Do you think it is a correct measure?
A sheikh who buys four Rolexes does not ask the price or if they refund VAT. This measure may be an opportunity for the strata with less purchasing power, but not for the truly rich.
“The cultural commitment has to be the cornerstone for an exclusive promotion of the destination”
Paris, London and Milan are the great destinations for luxury tourism in Europe. Is it possible that one day Madrid or Barcelona will play in the same league?
Madrid has to play in the same league as Milan, London and Paris. There are clear parallels between luxury urban destinations and major fashion catwalks. A common effort should be made to position Mercedes Fashion Week at an international level and thus consolidate Madrid as a European luxury fashion destination. The world’s top 5 is New York, Tokyo, Paris, Milan and London, where the most important fashion catwalks in the world are held. Fashion is an aspirational topic and generates, on the one hand, direct traffic from people with high purchasing power and, on the other, a very important indirect effect from the point of view of reputation, since the catwalk covers all the covers and televisions and exerts a tractor paper.
It seems that Madrid could be that great Spanish destination that competes for luxury tourists in Spain. Are there others who can enter that select club in the short term?
Barcelona is in a better international position than Madrid because they have worked very hard in the luxury sector. I think that Malaga is doing very well because of this cultural commitment beyond Marbella. You just have to see the museums that have been open for five years. That is no accident. The Madrid-Barcelona axis and Seville or Malaga would be the three fundamental poles to attract luxury travelers in the coming years.