Embracing the Experience Economy
When Abel Zhao thinks about the future of travel and live experience, he begins with a memory. As a high school student during the 1998 FIFA World Cup, Zhao was too young to enter the stadium. Instead, he stood outside with friends, listening to the roar of the crowd and absorbing the energy of thousands of people gathered from around the world. “We could only stand outside and hear the cheering,…
CSTS Enterprises, a Hong Kong-based travel agency, is undergoing a transformation to focus on luxury experiences and live events within the experience economy. This shift is led by Group CEO and executive director Abel Zhao, who believes the future of travel lies in the experiences one can have rather than the destinations they visit.
The pivot began after the COVID-19 pandemic severely impacted the travel industry, leading to the closure of more than half of Hong Kong's travel agencies. Zhao explains that customers now seek access, rarity, meaning, and memorable experiences, moving beyond traditional notions of luxury such as premium flights and expensive dining.
CSTS leveraged its existing B2B foundation, which includes strong relationships with multinational corporate clients and travel infrastructure, to expand into global sports, entertainment, and exclusive live events. The company aims to become an "experience company" rather than a mere travel intermediary, offering a comprehensive journey from departure to return, with multi-location teams managing logistics, hospitality, and customized service.
Zhao emphasizes that luxury isn't solely about spending, as demonstrated by their handling of ultra-high-spending clients while also catering to budget-conscious travelers. CSTS's strategy involves partnering with major sports and entertainment organizations to gain access, expertise, and create barriers to entry for competitors.
Technology plays a pivotal role in enhancing corporate travel, analyzing customer behavior, and streamlining daily services. However, Zhao emphasizes that technology cannot replace the human element of experiences like concerts, sporting events, and cultural gatherings. The company's international operating structure, with core teams in New York, Hong Kong, and Shanghai, allows for global consistency while adapting to local needs.
Additionally, CSTS is developing intellectual property, such as the Generation C sports initiative and PremierX, a premium entertainment platform, to further differentiate itself in the market.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.