For the first time in its 50 years, Abercrombie & Kent, a brand that has become synonymous with uber-luxurious travel, is introducing a lower-priced product line intended to help the company grab market share beyond just well-heeled travelers.
The new product line, Connections by A&K, will launch in early September for departures starting in March.
“The reality is that with the slow growth in the U.S. economy, [people are] thinking about spending their money in more careful ways,” said Keith Baron, senior vice president of strategic growth and development for A&K.
He added that while A&K is still enthusiastically committed to the luxury market, there are travelers who “are looking for authenticity over elegance.”
With A&K’s vast network of ground operators, he said, it has been able to build a line that is priced 30% less per diem than a typical A&K small-group journey while still offering authentic experiences.
A&K tested this market last year with lower-priced itineraries for Egypt and Morocco. They were not the same A&K product at reduced rates, but rather product with different features and alternative properties that enabled the company to offer the itineraries at lower price points.
“Based on that success both with travel agents and their clients, it caused us to look at how can we expand on this,” Baron said. “We looked at it in a very thematic way: What can we do that really is so much better than other companies?
“It’s all about authenticity. It’s about connecting people with that culture in a more specific way than other companies can. So our focus is there rather than the over-the-top luxury.”
Connections by A&K is a collection of 17 programs in 21 countries whereby costs are reduced primarily in three areas: accommodation, group size and exclusive experiences. Of the 17 itineraries, six are in Europe. The others include China, Southeast Asia, India, Australia, East Africa, Morocco, Egypt, Peru, Canada and the U.S.
With accommodations, some of the properties might be the same properties offered on a regular A&K itinerary but using a different room category.
Alternatively, for the Connections product line, A&K contracted with upscale hotels such as Fairmont, Hyatt Regency, Meridien and Sofitel that are perhaps not at the level of standard A&K properties.
As for group size, regular A&K small-group journeys range between 10 and 18 people. A&K was able to contract better rates for the Connections itineraries in part because each departure will have a maximum of between 24 and 28 passengers.
Lastly, A&K reduced costs in exclusive access experiences. Baron gave the example of closing a tomb to the public in Egypt for an exclusive small-group viewing with an expert, something A&K guests might experience on a regular small-group journey but that won’t be included on a Connections itinerary.
This is not to say that the Connections itineraries are void of these types of experiences. Rather, A&K has built in less costly encounters. For example, in Vienna, Connections guests might be treated to a private lecture from a member of the philharmonic orchestra, according to Baron.
A&K’s timing with this lower-priced product launch is interesting in that it comes just after the most difficult years the industry faced during the throes of the recession.
“Through all of the recession, we stayed dedicated to the luxury line, and our recovery on the luxury side has really been quite good,” Baron said. “And yet we also recognize that the market in a tier below has broader reach. In terms of timing, I don’t know that we were late in coming to it, but we did realize that there is a customer base out there that has been wanting to travel with A&K but hasn’t been because of the price.”
Follow Michelle Baran on Twitter@mbtravelweekly.