Luxury of Time: A Generational Perspective Money is fungible; almost anyone can get more of it if they work longer, harder, smarter. Time, on the other hand, is fixed. No one, no matter how much money he or she has, can get one second more of it. That's why how one spends his or her money is far more important than how one spends his or her time. Time is the ultimate luxury because it is the only truly limited resource one has. While time is the ultimate luxury for everyone, how people perceive time is relative. For a luxury marketer, the number one variable in how the target customer perceives time is age. Young people have a much different time perspective than those who are older. In today's luxury market, an examination of the three adult generations -- Millennials, GenXers, and Baby Boomers -- provides marketers with insight into how to use time to reach the target audience.

1. Unity Marketing Luxury White Paper
By
Pam Danziger

2.  Money is fungible; almost anyone can work longer,
harder, smarter and make more of it. So money isn’t so
much a luxury after all, simply a reward.
 Time, on the other hand, is fixed. No one, no matter
Ti h h h d i fi d N
how much money he or she has, can get one second
more of it.
it
 That’s why how one spends his or her time is far more
important than how one spends his or her money. Time
p p y
is the ultimate luxury because it is the only truly limited
resource one has.
© Unity Marketing, 2012 5/19/2012 2

3. • Puts the emphasis of marketing luxury
brands toward the experience, rather
than the material thing.
• Raises the importance of service in the
luxury business. For example, the
business example
internet is such an important means to
service affluent luxury consumers
because it is respectful their time.
• Changes the whole marketing equation
for travel and hospitality marketers who
essentially sell services that enhance the
individual’s personal experience of
time.
© Unity Marketing, 2012 5/19/2012 3

4.  These heads of luxury businesses find the ultimate expression of luxury
in the quality of how they spend their time, not in material goods.
◦ "It's doing what I want when I want. Luxury is not material,“ says Jean-Marc
Jacot, the chief executive of Swiss luxury watchmaker Parmigiani Fleurier.
◦ "For sanity's sake, people should not give up their vacations ... I think that
psychologically, it is a nice little reset button for everyone, says Jennifer
everyone,"
Hyman, co-founder and CEO of designer gown rental service Rent the Runway.
◦ "(Luxury is) products that are special, that are differentiated, that make me feel
taken care of and pampered. To me, luxury is time,” says Steve Sadove, CEO of
Saks Inc .
◦ "For me, luxury is a good hamburger and time with my family. I would describe
luxury as something that puts a little spring in your step and something that
makes you feel just a little bit better about yourself," says Shawn Kravetz,
president of Esplanade Capital.
◦ "E
"Everything i much f t W are connected 24 h
thi is h faster. We t d hours a d I thi k th t ti
day. think that time
really is a big luxury, especially for people like me," says Federico Marchetti ,
CEO of Yoox online fashion retailer.
© Unity Marketing, 2012 5/19/2012 4

5. While time is the ultimate luxury for everyone,
how people perceive time is relative. For a luxury
marketer, the number one variable in how the
target customer perceives time is age – Young
people have a much different time perspective
than those who are older.
older
In today’s market, an examination of the three
adult generations – Millennials, GenXers and Baby
Boomers – provides marketers with insight into
how to use time to reach the target audience.
© Unity Marketing, 2012 5/19/2012 5

6.  Three adult Size of Generations
generations are In Millions
in the luxury
consumer market 80 71
76
today. Each 70
generation values 60
45
50
the l
th luxury off 40
time, but each in 30
a unique and
q 20
10
special way.
0
Millennials (1980- GenXer (1965- Baby Boomer
2000) 1979) (1946-1964)
© Unity Marketing, 2012 5/19/2012 6

7.  Boomers aged 48-66
years
 Senior executives and
S d
managers, the “Old
Guard”
 Highly d
Hi hl educated, more
t d
spare time, fewer
family obligations
 76 million strong —
largest generation
 Boomers totally unlike
any generation before
◦ "50 is the new 30"
◦ "60 is the new 40"
© Unity Marketing, 2012 5/19/2012 7

8.  GenXers aged 33-47
years
 Middle managers and
Middl d
fast-tracking high
performers
 Even more highly
educated than boomers,
but challenged by
demands of a growing
family
 Last mass-media
generation
 GenXers will never fill the
void left by boomers in
workplace and consumer
culture
© Unity Marketing, 2012 5/19/2012 8

9.  Millennials aged 12-32
years
◦ Almost as large as
Boomers – They are the
babies of Baby Boomers
 Entry level managers,
professionals
 Even more highly
educated than GenXers
& Boomers but
Boomers,
financially burdened
with education debt
 First truly internet-
internet
connected, niche media
generation
© Unity Marketing, 2012 5/19/2012 9

10.  Baby Boomers look at time in terms of an 80 year lifespan
◦ “What do I want to do with the 20 or 30 years left of my life?
What life?”
◦ Day-to-day time pressures take back seat
◦ Health challenges, Quality of Life challenges
 Ge e s ve
GenXers live a highly pressured 24/7
g y p essu ed /7
◦ “How can I make the most of my 7 day a week, 24 hour day, when I
need 8 days, 36 hours each to do it all?”
◦ GenXers feel family pressures, responsibilities
 Millennials have got plenty of time, but value seeing how the
Mill i l h t l t f ti b t l i h th
‘other half’ lives
◦ Most millennials grew up in middle-class homes, with middle-
class amenities.
◦ Value the taste of a luxury lifestyle that many have never seen
or experienced. Makes them feel ‘grown-up.’
p g p
© Unity Marketing, 2012 5/19/2012 10

11.  When it comes to travel, they are looking to explore new
worlds, meet new people, make meaningful and lasting
connections. That often includes extended family
vacations for their children and grand children.
 They have ‘been there and done that’ when it comes to
five-star resort destinations. They want to go off track,
to surprising new destinations offering new
p g g
experiences. They have a bucket list and want to empty
it with quality experiences that will give added meaning
and value in their lives.
 Experiences for boomers need to take their priorities and
interests into account. For example, they don’t see
p , y
themselves as old in the way their parents were old.
Boomers have a sense of youth and interest in doing
young things. For Boomers, luxury marketers need to
take ordinary experiences and make them extraordinary
by offering up something new, different and special.
© Unity Marketing, 2012 5/19/2012 11

12.  Affluent GenXers are two-earner couples juggling
the challenges of a growing family and very
demanding careers. They really feel the stress from
their busy, demanding lives. They have extreme
24/7 time pressure. They want to be good at their
jobs, good parents, good partners, good citizens –
but all of that takes time, which they have little to
spare.
 When they travel, they want peace, relaxation, time
to reflect, reconnect with themselves and their loved
ones. Most of all they want to go off the grid. They
crave five star resort type services, where they can
sit by the pool and lay on the beach. When they
it b th l dl th b h Wh th
aren’t spending quality time with the kids doing fun
activities, they would like the freedom to have their
children’s needs met by on-site childcare staff.
 While they are willing to spend for this kind of five-
star l
t luxury, th also h
they l have h heavy fifinancial d
i l demands
d
in their lives, so they tend to be rigorous in planning
their travels, finding deals where they can trade on
points for services, upgrades, etc.
© Unity Marketing, 2012 5/19/2012 12

13.  Millennials, have plenty of time and a whole lot
of energy. They are new to the luxury lifestyle,
f Th h l lif l
so they enjoy sampling a little bit of this and a
little bit of that. And when the sun goes down,
they are ready for more.
 They want active vacation experiences where
every minute is enjoyed to the max. For
millennials social experiences are key, offering
cocktail hours and chances to meet and greet.
 But like the GenXers, they’re finances are
somewhat tight, especially with the debt-load
h i h i ll i h h d b l d
they are carrying from college. They are looking
to maximize their fun for the least amount of
dollars. That is one reason all-inclusive vacation
experiences are in demand – they can plan in
p y p
advance for all expenses, no surprises at the
end.
© Unity Marketing, 2012 5/19/2012 13

14.  If you want to learn more about
opportunities for luxury travel marketers,
marketers
you can order a copy of Unity Marketing’s
Luxury Trend Report:
Luxury Consumers and Their Luxury
Travel Plans 2012
l l
 If you’d like to learn more about the luxury
consumer generations, you can reach out
to Pam Danziger at Unity Marketing.
 Visit www.unitymarketingonline.com
 Call Pam Danziger at 717.336.1600 or
 Email: pam@unitymarketingonline.com
© Unity Marketing, 2012 5/19/2012 14