Timing is key when it comes to harnessing the full potential of Virtuoso’s ultra-high-net-worth (UNHW) clients, and industry data suggests that now is the right time to act, says Shelby Donley,Global General Manager of the luxury network’s UHNW Division.
Virtuoso confirmed in January it would elevate its commitment to the UHNW market with the launch of a dedicated global business unit, under Donley, aimed at integrating luxury travel with broader lifestyle sector like fashion and finance. Designed as a “concept shop within Virtuoso,” this new division will specialise in UHNW lifestyle experiences.
“Knight Frank’s 2024 Wealth Report predicts the number of UHNW individuals will grow more than 28 percent globally over the next three years,” she told LATTE. “The UBS Global Wealth Report estimates Australia will see 398,000 new millionaires by 2028. That presents an enormous opportunity for the luxury sector.”
Donley explained that the goal of the new business arm isn’t simply to offer extravagance, but rather to create experiences that resonate on a deeper level.
“We can craft rarified experiences that are not necessarily regarded as the most expensive or luxurious,” she said. “Rather, they will be meaningful and speak to fulfilling passion points of the UHNW mindset.”
It’s a time of great energy across the global luxury landscape, with vast numbers of luxury hotels in development and other high-end experiences fast coming on board. This is another reason why Virtuoso has chosen now to heighten its focus on this promising market segment, according to Donley.
“When you look at the pipeline hotel and residential developments across the globe, there is an incredible amount of new inventory in familiar destinations as well as emerging ones,” she said. “By harnessing the power of Virtuoso advisors with like-minded brands outside of travel, we can innovate together.”
Still, challenges remain. One major hurdle will be effective global communication. “Curating relevant messaging across multiple mediums, languages and cultures will be something we need to do well. We don’t want to apply a North American lens to our global regions,” Donley stressed.
“It’s imperative that we localise lifestyle preferences as well. We can’t assume that what is trending in Sydney will also be hot in London, Dubai or Dallas. UHNW travellers can be some of the most diverse, best educated and savviest consumers, and that needs to be the lens through which this is viewed.”
Virtuoso advisors stand to benefit greatly from the initiative, she promised. “They can expect to see deliverables based on addressable market research in the UHNW segment.”
Yet, this opportunity won’t apply across the board, with strict criteria in place for advisors to qualify. “It requires a different skillset and a deeper commitment to serve UHNW clients and guests,” Donley pointed out.
But longer term, Virtuoso aims to support “aspirational advisors” keen to enter this space. “We are cautious and deliberate as we move forward to ensure we create elevated, business development opportunities for advisors,” Donley explained. “Not all Virtuoso advisors are in a position to take on new clients based on the current demand from UHNW consumers. Looking forward, though, we want to have an “on-deck circle” for when they do have an opening to engage with a new client.”
The new unit will also collaborate closely with other company divisions as it evolves, with Donley keen to point out that it will not follow a “one-size-fits-all’ approach.
“We will adapt as necessary to accommodate these extremely high-end consumers,” she concluded.
