THE 2004 VIRTUOSO LUXEREPORT

The Virtuoso LuxeReport is an annual poll of the more than 6,000 Virtuoso travel specialists in the Americas, the Caribbean, and Australia. The report recaps luxury travel trends of the previous year and forecasts trends for the current year. From the most popular destinations and activities to technology trends and shopping habits, the Virtuoso LuxeReport offers insight to the lifestyles of the world’s wealthiest travelers. Virtuoso is an exclusive network of 285 independent upscale travel agencies. Leveraging more than $3 billion in annual buying power, Virtuoso holds exclusive agreements with the world’s leading hotels, resorts, spas, cruise lines, tour companies, rail lines, airlines and ground operators. Utilizing Virtuoso specialists to arrange upscale leisure travel automatically entitles clients to complimentary upgrades, amenities, privileged access opportunities, and private events at many top international and domestic destinations. For more information, please call (800) 401-4274 or visit www.virtuoso.com.

The 2004 Virtuoso LuxeReport questions and the top answers follow:

Affluent Traveler Profile

What is now the average vacation length for younger affluents (34 - 52)? How many days? (pick one)

9 days

What is now the average vacation length for older affluents (53+)? How many days? (pick one)_

13 days

What percentage of younger affluents (34 - 52) often combine work and vacation on the same trip?

24%

What percentage of older affluents (53+) often combine work and vacation on the same trip?

19%

What is the most unusual booking request your clients made over the past year?

The hundreds of unusual requests included:

· F our-month tour of Vietnam , Australia , New Zealand , and Hawaii for a grandmother and her four-year-old grand daughter

· A vacation using dog sleds as the transportation and a suite at a hotel made of ice as the accommodations

· S pace training in Russia

· T est flying a MIG fighter jet

· H aving the Parisian hotel sprinkle cut outs of Eiffel towers on the floor of the hotel room from the front door to the window so the client’s niece could follow the trail to the veranda to see the actual tower

· B odyguards for every stop on a European itinerary

· H aving a private basketball court constructed at a luxury boutique Caribbean resort

· A rranging for a wedding under/behind a waterfall

What is the hottest travel trend among younger affluent travelers (34-52)?

24% Active/Adventure trips

9% Family travel

8% Seclusion/Privacy

7% Educational trips

7% Spas/Total Relaxation

What is the hottest travel trend among older affluent travelers (53+)?

44% Luxury Cruises

8% Family/Multigenerational trips

7% Educational trips

6 % Private/guided trips

5% More frequent vacations

What travel practice is declining in popularity the most among younger affluent travelers (34-52)?

19% Escorted/Group Tours

11% Beach Trips

9% All-inclusive vacations

8% Cookie-cutter packages

7% Amusement park trips

What travel practice is declining in popularity the most among older affluent travelers (53+)?

14% Escorted/Group Tours

9% Booking Far In Advance

7% Adventure Travel

7% Self-Drive/Car Rentals Without A Driver

6% Destinations Catering To Children

What percentage of your clients now purchase trip insurance?

68%

What percentage of your clients have emergency medical care/evacuation insurance?

44%

Rank the top five activities/interest of your MALE clients while traveling (Using 1 as the highest)

1. Participate in sporting activity (i.e. golf/tennis)

2. Safety/security measures

3. Adventure/Nature Activity

4. Five-star dining experience

5. Fitness/working out

Rank the top five activities/interest of your FEMALE clients while traveling (Using 1 as the highest)

1. Shopping during trip

2. Five-star dining experience

3. Shopping prior to trip

4. Visiting private homes/meeting locals

5. Visiting cultural sites/museums

To prepare for a vacation, what retailer is the most popular with your clients for pre-trip shopping?

24% Neiman Marcus

9% Travelsmith

8% Chico ’s

7% Nordstroms

6% Saks Fifth Avenue

Compared to the past five years, how do you predict that 2004 will be for premium and luxury travel? (pick one)

64% T he best year in several years

33% A bout the same as last year

3% W orse than last year

What percentage of your new customers, who have started working with you over the past year, have come to you as a result of being dissatisfied with online booking options/experiences?

23%

Regarding the booking window, how far out is the average booking date from the departure date now? (pick one)

34% 2-4 months

29% 4-6 months

20% 1-2 months

14% M ore than 6 months

3% L ess than a month

Active Travel

Questions

What percentage of affluent travelers are now seeking active and/or adventure vacations?

42%

What percentage of affluent travelers are now seeking active and/or adventure add-on components to a luxury vacation?

37%

What percentage of younger affluent travelers (34-52) are asking for nature/outdoor components in their vacations? 48% (87% said this is an increasing trend)

What percentage of older affluent travelers (53+) are asking for nature/outdoor components in their vacations? 30% (74% said this is an increasing trend)

What was the most-requested active/adventure vacation activity by younger affluent travelers (34-52) in 2003?

18% Biking

17% Hiking

12% Scuba Diving

11% Skiing/Snow Boarding

9% Golfing

What was the most-requested active/adventure vacation activity by older affluent travelers (53+) in 2003?

23% Golfing

19% Hiking/Walking

8% Safari

5% Skiing

4% Biking

Among all affluent travelers, what was the hottest adventure travel activity in 2003?

19% Safari/Africa

12% Hiking/Walking

11% Costa Rica/Multi- Sport

10% Multi-Sport Trips

7% Biking

What was the most-requested active/adventure vacation destination for families in 2003?

17% Costa Rica

9% Hawaii

8% Africa

7% Caribbean

6% Galapagos

What was the most unusual active/adventure trip you scheduled for clients in 2003?

Responses included:

· H iking/photograph y vacation in southern Chile into the Alerce Forest

· C limbing the fairy towers in Cappadocia/Turkey and ballooning over them

· A ll the men in a family on a Russian ice breaker to the North Pole

· A round-the-world trip including South Africa , Cambodia , China and New Zealand

· F ive-day hike for a dad and two daughters on the Inca Trail with night camping followed by an Amazon River cruise

· W eek-long exploration of Jordan and Syria by helicopter and camel

What was the most popular adventure/outdoor destination for younger affluent travelers (34-52) in 2003?

20% Costa Rica

13% Hawaii

10% Alaska

7% Africa

6% Italy

What will be the hottest active/adventure travel destination in 2004?

20% Costa Rica

13% Africa

12% Australia/New Zealand

10% South America

5% Vietnam

What was the most popular river for rafting, kayaking or canoeing in 2003?

35% Colorado River

17% Snake River

11% Rivers in Costa Rica

7% Salmon River

5% Rio Grande

What was the most popular destination for hiking and biking in 2003?

34% Italy

21% France

10% Western Continental U.S.

7% Canada

5% South America

What was the most popular destination/resort for skiing in 2003?

34% Vail, CO

18% Whistler, B.C.

15% Aspen , CO

8% Park City , UT

6% St. Moritz , Switzerland

What was the most popular adventure trip for observing marine life in 2003?

25% Galapagos

12% Sea of Cortez

10% Hawaii

8% Alaska

7% Great Barrier Reef


Events & Activities

Questions

What was the hottest domestic restaurant in 2003?

19% French Laundry, Napa

9% Nobu, NYC

7% Picasso, Las Vegas

What was the hottest international restaurant in 2003?

11% Jules Verne, Paris

8% Boyer Les Crayeres, Reims , France

8% Gordon Ramsay, Claridges, London

What was the best-attended American event by affluent travelers in 2003?

39% Super Bowl

27% U.S. Open

15% The Masters

6% Indy 500

5% World Series

What will be the American event best attended by affluent travelers in 2004?

52% Super Bowl

10% The Masters

10% U.S. Open

9% Indy 500

6% Pro-Am Pebble Beach

What international event was best attended by affluent travelers in 2003?

39% Wimbledon

9% Cannes Film Festival

9% World Cup Soccer

7% Tour d’ France

6% Grand Prix

What will be the international event best attended by affluent travelers in 2004?

75% Olympics, Athens

9% Wimbledon

6% Chelsea Flower Show

5% Grand Prix

3% New Year’s Eve, St. Petersburg


Technology, Media & Travel

Questions

What percentage of your clients are now using the Internet to access travel information?

66%

What percentage of your clients communicate with you via email?

61%

Where do your clients prefer to receive email communications from you? (pick one)

57% B oth home & office

23% H ome/personal email

20% W ork/office email

What online Internet travel resource is most popular with your clients now?

Search engines (to research a destination/travel product)

How often do your clients contact you to discuss a trip they discovered or researched on the Internet? (pick one)

38% V ery frequently

50% O ccasionally

12% R arely

Which source of influence has the biggest impact on your clients’ travel choices (pick one)?

55% R ecommendation of a friend/acquaintance

19% T ravel magazines

8% L ifestyle/culinary magazines with travel sections

8% W ebsites /Internet

5% N ewspaper travel sections

3% T elevision programs

2% T ravel guidebooks

What percentage of your clients stay in touch with the office or loved ones via email while traveling?

48%

What percentage of your clients travel domestically with mobile phones?

80%

What percentage of your clients use mobile/satellite phone while traveling internationally?

36%

What percentage of your clients are now using digital cameras while traveling?

63%

What percentage of your clients contact your agency while on their trip for assistance?

16%

What percentage of your clients have technology needs (high-speed Internet access/modems/etc.) that influence their property choices?

33% (94% believe this is an increasing trend)


Cruises

Questions

What is the most anticipated cruise ship launch of 2004?

93% Queen Mary 2

What is the most anticipated cruise ship launch of 2005?

50% Queen Victoria

25% New Princess ships

What was the most popular cruise itinerary (geographic area) in 2003?

28% Alaska

26% Caribbean

16% Mediterranean

15% Baltic

6% South America

What is the most requested port city now?

11% St. Petersburg

10% Venice

10% Rome

7% Miami

6% Barcelona

What will be the most popular cruise itinerary (geographic area) in 2004?

36% Mediterranean

18% Caribbean

12% Baltic

7% Alaska

6% South America

What was the preferred length of cruise in 2003? (pick one, number of days)

9 days

What is the preferred length of cruise by younger affluent travelers (34-52)? (pick one, number of days)

8 days

What is the preferred length of cruise by older affluent travelers (53+)? (pick one, number of Days)

13 days

What is the favorite cruise ship cabin/stateroom currently? (cruiseline/ship/type of cabin)

35% Radisson Seven Seas Balcony Suite

32% Crystal Balcony/Verandah Suite

19% Silversea Verandah Suite

6% Celebrity Concierge Class Cabins

4% Seabourn Outside Cabins

What is the ship size preferred by younger affluent travelers (34-52)? (pick one)

41% M id-size

30% S mall ships

29% L arge ships

What ship size is preferred by older affluent travelers (53+)? (pick one)

55% S mall

41% M id-Size

4% L arge ships

What level of formality (i.e. black tie dinners) is preferred by younger affluent travelers (34-52)? (pick one)

95% L ess formal

5% M ore formal

What level of formality (i.e. black tie dinners) is preferred by older affluent travelers (53+)? (pick one)

63% L ess formal

37% M ore formal

Are older travelers (53+) taking cruises with their adult children more or less frequently? (pick one)

83% M ore frequently

17% L ess frequently

Are younger travelers (34-52) taking cruises with their children more or less frequently? (pick one)

89% M ore frequently

11% L ess frequently

What is the most requested new amenity/service/facility on cruise ships?

36% Spas/Fitness Facilitie s

23% Dining Options/Alternatives

14% Children’s/Teens Programs

10% Internet Access

5% Butlers

What was the most popular river cruise in 2003 among affluent travelers?

21% Rhone

15% Danube

9% Seine

5% Russian waterways

4% Yangtze

What is the most technologically advanced cruise ship now for guests?

49% Queen Mary 2

23% Crystal Serenity

13% Radisson Seven Seas Voyager

5% Disney Magic

3% The World /Residensea

Is chartering private yachts an increasing or decreasing trend among affluent travelers? (pick one)

67% I ncreasing trend

33% D ecreasing trend

Land Vacations & Tours

Questions

What was the most popular private tour destination/itinerary of 2003 based upon bookings?

42% Italy

9% Africa

8% Australia/New Zealand

7% South America

6% Spain

What was the most popular group tour destination/itinerary of 2003 based upon bookings?

24% Italy

7% Alaska

6% Russia

5% Hawaii

4% Australia/New Zealand

What will be the most popular private or group tour destination/itinerary (geographic area) in 2004?

28% Italy

9% South America

7% Alaska

6% Africa

5% Australia/New Zealand

What was the preferred length of guided tour vacations in 2003? (pick one/# of days)

11 days

What is the preferred length of guided tour vacations by younger affluent travelers (34-52)? (pick one/# of days) 9 days

What is the preferred length of guided tour vacations by older affluent travelers (53+)? (pick one/# of days) 13 days

What percentage of your cruise clients are combining multiple-day guided land tours to their cruise trips?

40% (81% stated that this is an increasing trend)

What percentage of your cruise clients are requesting/booking customized single-day guided land tours/shore excursions as part of their cruises?

38%

What was the best new service/amenity offer by a tour company in 2003?

37% Home luggage pickup and return

32% New Virtuoso Voyager Club shore excursions

9% Better insurance terms

8% Bell b oy who travels with you

7% Day rooms at luxury hotels during tour

For those clients willing to take tours as part of a group, what is the ideal group size?

12 people

What was the most impressive new mode of transportation launched by a tour company in 2003?

26% Private jets

21% Yachts

13% Segway human transporters

9% Hummer SUVs

6% Upgraded train cars

Take It or Buy It There

Questions

What is the hottest travel accessory that no one should leave home without?

27% International cell phone

22% Digital camera

14% PDA/PDA phone (Blackberry, Palm Pilot)

11% DVD/CD/MP3 player

5% Ambien sleeping pills

What is the most popular rental vehicle for affluent travelers on vacation?

41% Sports Utility Vehicle/4WD

18% Full-Size Luxury Car

16% Limousine with driver

11% Mid-Size Car

8% Convertible

5% Minivan

What is the most popular American destination for shopping?

78% New York City

7% Las Vegas

6% Los Angeles

4% San Francisco

3% Miami

What is the most popular foreign destination for shopping? (city)

32% Paris

12% Florence

11% Milan

10% London

9% Hong Kong

What is the hottest museum in the world now among affluent travelers?

45% Guggenheim/Bilbao

23% Louvre

7% Hermitage

6% Musee D’Orsay

5% Vatican

What percentage of your clients collect certain items when they travel?

44%

What is the most popular item collected by your clients when traveling?

23% Art/Antiques

10% Ceramics/China/Pottery

9% Jewelry

8% Crystal

7% Wine

What percentage of your clients exchange dollars for foreign currency before leaving on their international trips?

37%

What percentage of your clients take international trips specifically to personally select and buy a big-ticket item, such as a car, piece of art, jewelry or couture fashion?

28%

Hot Properties

Questions

What was the most popular golf resort in 2003?

14% Gleneagles , Scotland

10% Pebble Beach , CA

7% St. Andrews , Scotland

6% The Cloister, GA