Luxury Escapes has plans to open an Auckland store during the next two years after the successful launch of bricks and mortar in Australian locations.
The company also praised the New Zealand travel trade, where it has been operating its Agent Hub for around two years. Kiwi agents have embraced the concept and propelled annual growth of 200%.
Co-founder and ceo Adam Schwab (pictured) says Luxury Escapes’ third Australian store would open later this year in Brisbane, following Melbourne and Sydney. While other Australian cities were on the radar, Auckland is a bigger market. It would be a matter of finding the right site in Auckland to open a store here. ”I’m thinking that in the next two years we can have something.”
. . . Embraced By Trade
Schwab says ‘rightly or wrongly’ the trade had been wary of Luxury Escapes when it first launched, but that it had been embraced in New Zealand, even faster than it had across the Tasman.
Before the agent hub was launched, some consultants bought product off its website like other customers and then put a mark-up on it. And he says the hub offers exclusive deals and generous incentives and commissions for agents.
With mark-ups, agents can make between 25% and 30% on some land packages, adds Schwab.
Luxury Escapes is selling more in New Zealand because it can now tap into the strong relationships agents have with their loyal customers, he adds.
The company also has strong on ground representation, with local bdm Elaine Patton and he says it has enjoyed ‘a good run’ with some
of the retail travel groups.
Schwab points out that the business through agents has created extra revenue in New Zealand, rather than cannibalised direct sales.
Founded in 2103, the firm has nine million subscribers worldwide and he says it’s on track for sales of AUD1.3 billion this year. Between 5% and 10% of that revenue comes from New Zealand.
Schwab says conflict in the Middle East had disrupted tours to countries in that region, but demand would return quickly after peace
looked like lasting.
The South Pacific, Australia and Asia are Luxury Escape’s top three sellers from this market.
