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Wed, 10 Feb 2010 | 04:38 GMT
Wed, Feb 10, 2010, 04:38 GMT
 

Luxury luggage defies travel sector slowdown

 Emirates Business 24/7
 
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Emirates Business 24-7, 18 November 2009

The global business travel market might not be looking so good right now, but one luxury travel and lifestyle accessories maker has expressed its faith in the Middle East to see it through the tough times.

New York-based Tumi recently inaugurated its second UAE store at The Dubai Mall, making it its sixth outlet in the region in three years.

President and CEO Jerome Griffith told Emirates Business the UAE constitutes 57 per cent of the annual regional turnover.

"We're a bit of a victim of the current state of the global travel market," he said. "But travel in the Middle East is very business oriented and our products here reflect that need. At the same time, people in this region historically travel on a regular basis and the number is growing. We want to be able to cater to everyone."

A report by aviation body International Air Transport Association (Iata) stated earlier this year that the number of people flying business and first class had come down sharply, depressing fares and hitting airlines' revenues.

While the Asia-Pacific region and long-haul markets connected to it experienced the sharpest decline in premium travel, the Middle East was the only region where airlines saw any growth in overall passenger demand in March. Elsewhere around the world, passenger demand also fell sharply, it said.

Griffith, who joined the 34-year-old company earlier this year, said Tumi has had five years of year-on-year growth despite the financial slowdown. Annual turnover stands at $400 million (Dh1.46 billion), he said.

The executive also announced plans to increase product lines catering specifically to women business travellers.

"We want to introduce more feminine products for the business traveller to cater to increasing demand. Our lines have always focused on classic colours, durability and trendy designs. We want to continue that but also introduce more colours and designs that are seasonal as women tend to like change," he said.

"I am very conscious of fashion and seasonal products. While we do like to cater to a broader market, we do not want to be too seasonal since our focus is on durability. And we definitely don't want to go away from our travel roots."

Founded in 1975, Tumi quickly became popular, mostly in the US, for its practicality, ease of use and durability with the discerning traveller. And it was not long before celebrities caught on. Today it holds 25 design and engineering patents.

There are currently 125 Tumi boutiques around the world with products being sold at 2,000 points-of-sales, 47 of which are located in the Middle East.

Griffith said he wants to focus on expanding in European markets while at the same time being very cautious of new investments.

"Plans are being executed - we've opened three stores in Europe, which brings the total number of new stores this year to 12 and then we're opening six more in the US next year. So we're still going ahead," he said.

There's also going to be more focus on online shopping and marketing, said Griffith, who joined the company earlier this year.

"Online shopping is very popular in the US and European markets while not so much in Asia. We want to be able to develop that and carry it forward."

About 48 per cent of Tumi's product line is exclusively travel products while 30 per cent is of business cases and the rest a mixture of accessories for both men and women.

There is a small segment in the accessories line that Griffith wants to see become an intrinsic part of Tumi - that of travel gadgets.

"We have been doing gadgets for a while now only because it was a natural thing to do when manufacturing travel-related products," he said.

"We are no electronics experts so the core technology is outsourced. But we have found that people who buy our travel products are always looking at ways to make their journey better and easier.

"Gadgets constitute about two per cent of our total product portfolio and it will likely remain that way for now," added Griffith who has worked with fashion brands Gap, Tommy Hilfiger and Esprit in the past 30 years. Innovation on travel products will continue, he said. "Air travel is changing every day. For instance, with some airlines now charging according to weight, demand for lighter yet durable luggage is set to rise.

"We already have the technology, the engineering capability, the design and the products. And we want to be the gold standard for travel."

By David Tusing

© Emirates Business 24/7 2009

 
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