From free-flowing Moet and barista-made coffee at the VIP bar to interactive features, and a stylish fit-out, Luxury Escapes’ Chadstone store is quite a departure from typical travel agencies, instead taking inspiration from immersive retail behemoths like Apple, LVMH and Hermes.
Next up? An upcoming Sydney store debut – then the rest of the globe, according to co-founder and CEO Adam Schwab.
“Sydney is the obvious place for expansion; we want to open stores in every capital city and then have stores overseas,” he said in an interview with travelBulletin.
Word-on-the-street is the next Luxury Escapes space will land in Bondi Westfield, although he is hesitant to confirm the store’s location, while still finalising details on the space. It is also likely another store will be unveiled in Melbourne soon.
Further investment in physical stores makes sense for the business, as the operator’s Chadstone store is as profitable as it is beautiful, exceeding expectations and growing more than 50% year-on-year.
“It’s probably one of the highest grossing travel stores in Australia, probably the world,” said Schwab.
A new way of thinking about travel retail
Immersion and experience are the key features of the Luxury Escapes store experience, where transactions take a backseat.
Instead, the space is designed to inspire customers, wherever they are at in their travel planning journey – and however they wish to eventually pay for their holiday, on- or offline.
“People often do end up transacting, but it’s not about that. If they get a great idea, buy online or come back back in, they’ll just buy how they want to buy,” said Schwab.
“It’s very different to every other travel store within the world and we want it to be that way. How do we create a vibe where people want to stay and spend time, whether you’re buying or just ideating your next trip?”
With an entrepreneurial background in law and e-commerce, Schwab does not have a traditional travel pedigree, which has played to his advantage as he and the team have worked to build a unique proposition for the luxury travel industry.
“We’ll never be a Helloworld or Flight Centre, which have incredible breadth, but what we’re doing are luxurious concept stores that turn over significant amounts and we can get scale in a smaller amount of stores,” explained Schwab, adding that if Luxury Escapes attempted to copy a similar model, “we’d be crushed because they have massive scale and competitive advantage”.
Luxury Escapes may have started as an online business but Schwab is a big believer in the future of the physical store experience for the sector.
“We wanted to create an experience where people love coming in, it’s welcoming and inviting. That’s not to take away from other travel stores who do a good job,” he said. “We wanted to do something different.”
The concept of most people only buying their holidays online just isn’t true, he pointed out, as more than half the customers at Chadstone are new to the business.
“There’s a big cohort of people who want to speak to someone and have that reassurance,” Schwab said. “Whilst the majority [of our sales] is online, we see a strong number come from the store.”
Retail theatre in travel
Experiential stores like Luxury Escapes’ Chadstone space are alive and well in the retail sector, which are focused on interactivity and creating retail theatre to inspire customers to purchase. Think bookstores with author talks at Dymocks, make-up masterclasses at Mecca, barbecue demonstrations at Weber or fishing workshops at BCF.
It’s an opportunity that more physical travel businesses should consider tapping into, according to retail expert Danny Lattouf, Partner and Chief Strategy Officer at creative agency The General Store.
“If you’re selling dreams, your store should feel like one. The physical space should transport you before the plane ticket does,” he emphasised.
“Travel is likely a top three biggest life purchase, but walk into most agencies and it feels like booking a dentist appointment. We need to elevate the ritual, not just the itinerary.”
Virgin Holidays is an example of another travel operator that invested in experiential stores to transport customers into another world.
In 2019, the brand opened its largest and most experiential store in Milton Keynes in the UK, featuring a bar, spa booths, lounge areas, a virtual reality rollercoaster experience and a taste bar, where customers could enjoy cuisine from different destinations around the globe.
Meanwhile, store staff dressed in cabin crew uniforms and guests had the chance to experience different passenger classes on a Virgin flight, where they could talk with a consultant while sipping on a glass of bubbly. There was also a space for guests to book a complimentary manicure and a kids’ mini-travel play area.
“Retail travel needs a reset. It should shift with the seasons, adapt to emerging destinations, and above all – feel alive,” said Lattouf. “The experience should be as dynamic as the world it’s selling.”
