Étiquette : families

Catégories
Customer segments

Family travel and Generation X parents

In the last few decades, family realities have changed dramatically. While amenities popular with children (like a hotel pool) are still very important when planning a family vacation, the demand for family travel has been affected by the fact that parents from Generation X now head young families. Having had their children much later in life, this new generation of parents has different values and concerns than their predecessors.

Families look for interesting activities and appropriate services

According to recent findings from Shell Hospitality, owner and operator of a dozen or so resort hotels in the United States and Canada, the top three decision factors in planning a family vacation are the following:
According to recent findings from Shell Hospitality, owner and operator of a dozen or so resort hotels in the United States and Canada, the top three decision factors in planning a family vacation are the following:

  • Location: the destination must offer fast, easy access to a variety of family and recreational activities (amusement parks, visitor attractions, beaches, ski hills, etc.) or be located near the homes of friends and family.
  • Room size: rooms must be spacious enough to allow multiple family members to relax. Families increasingly appreciate amenities like kitchenettes, video games and internet access.
  • Hotel services: naturally, a pool is still the most popular attraction. However, game rooms and fitness facilities are also desirable features. Finally, when the group involves more than one family, teens want their own room; if grandparents are also part of the group, it is vital to be able to reserve neighbouring rooms.

A Travel Industry Association of America (TIA) study confirms that programs for children are very popular with families. Special children’s menus (41%) and hotel discounts for families (30%) are the most popular features, while the availability of toys and video games (22%), supervised activities (13%) and babysitting services (6%) are also well liked by families.

Although an average 60% of families take advantage of these types of services when they travel, Generation X parents are more likely to do so, with 71% of those aged 35 44 using children’s programs. This is the highest proportion among all individuals who travel with children.

Who are Generation X parents?

Generation X covers individuals born from 1965 to 1980. Even though the oldest of these are already in their 40s, many are parents of young children.

In Canada, it is estimated only 17% of Gen Xers have had a first child by the age of 25, while this percentage jumps to 29% among Baby Boomers. In 2002, four out of 10 children (40%) were born to parents aged 30 to 39, compared to 34% in 1991 and 24% in 1981.

Looking for work life balance in a race against time

For Generation X, happiness depends primarily on successfully balancing one?s personal and professional responsibilities. To this end, 80% of parents in this generation would like to spend more time with their families even though, on average, they already spend more time with their children than their parents did.

Shorter, more frequent trips

According to a Spring 2005 survey conducted by the US website thefamilytravelfiles.com, family travel is following the trend towards shorter, more frequent trips. In fact, 35% of those surveyed reported having taken two family vacations during the year, while another 35% reported having taken three or more trips. This frequency had an effect on the duration of family vacations: 75% of them were for a week or less, with 35% of all trips lasting only 2 to 5 days.

Torn between their personal needs, their desire for time with their spouse and the importance attached to family time, Generation X parents are creating a new demand for family travel. Although both leisure and business travel afford opportunities for personal relaxation and rejuvenating time for couples, they are also becoming ideal occasions to spend quality time with the children.

Family responsive vs. family friendly

Family travel was long defined as travel for children, while today it is defined as travel with children. The nuance is important for companies who must become responsive to the needs of both parents and children; traditional family friendly outfits, like theme parks and zoos, must now think about the type of experience available to parents so that visits are enjoyable for every member of the family.

At the same time, to respond to these various needs, some tourism based companies with primarily adult clientele are starting to experiment with new services to show that their facilities can offer everyone, children included, a fun vacation. Last December, Air Transat launched its Kids Club (ages 2 to 11), which provides a number of services and privileges (priority boarding, games, special meals, etc.) to make a family vacation more fun and enjoyable for everyone. Currently, children represent 6% of all Transat Holidays customers.

Resort complexes in southern destinations were among the first to develop mini club services to offer parents a family vacation experience that cleverly combines time with the children with time alone. Club Med remains a leader in this type of approach, breaking down its various children?s programs according to age: Baby Club (4 to 23 months), Petit Club (2 to 3 years), Mini Club (4 to 10 years) and the new Junior Club for teens (11 to 17 years).

Major cruise ship companies quickly adopted this model to attract families. By offering adapted facilities (family staterooms) and appropriate services (organized activities for kids, a water park, arcade, etc.), cruise ships are positioning themselves as the holiday solution that promises something for everyone. And the approach seems to be working: 525,000 of the 3.3 million passengers travelling with Carnival Cruise in 2005 were children.

In Quebec, family friendly initiatives have sprung up recently at spas, country inns and business hotels. These include activities aimed directly at children, babysitting services, supervised game areas for both younger children and older children and family suites furnished specifically for the comfort of children and parents.

In conclusion, in the era of Generation X parents, family travel is no longer defined solely by the preferences of children; parents want to have fun too!

Sources:

– « Cruises: All in the Family, Oceans of Fun for Families, » Family Travel Files Ezine [www.thefamilytravelfiles.com], September 2005.
– Désiront, André. « Partir avec les enfants, » La Presse, February 13, 2006.
– « Kids Want Goodies, Teens Want Adventure: Resort, Airlines and Cruises Cater to All Ages, » Calgary Herald, February 25, 2006.
– « Press Release Family Vacation Survey 2005, » Family Travel Files Ezine [www.thefamilytravelfiles.com], June 2005.
– « Shell Hospitality Reports Trends in Holiday and Family Travel, » Travel 2006 [www.travel2006.org], December 9, 2005.
– Vailles, Francis. « Société : Famille X (2), » La Presse, May 8, 2004.

Catégories
Customer segments Trends

More and more grandparents are travelling with their grandchildren

A 2003 survey by Yesawich, Pepperdine, Brown & Russell (YPB&R) found that one-third of grandparents have travelled with their grandchildren in the last twelve months. In the United States, more than 15% of travel includes children with grandparents. About 21% of this intergenerational travel does not include the children’s parents.

Travelling with the family unit

During the last decade, and especially since 9/11, family values have assumed increasing importance. With spare time diminishing, time spent with family often becomes a priority. When we think of family, we sometimes limit ourselves to parents and children, but in reality, grandparents play an important role within the family unit. This feeling of closeness can translate into the older generation going on vacation with their grandchildren.

This socio-demographic development holds the promise of new opportunities, and at the same time means that we need to revise our traditional clientele segmentation. There are already promotional campaigns specifically addressing this pairing. At the Hilton chain, children under 18 can share their grandparents’ room free of charge. In Loews hotels, seniors accompanied by young people are offered discounts, surprises and special activities. Certain travel agencies even specialize in «grandtravel», organizing tours specifically designed for children and their grandparents.

Passing fad or serious trend?

Today’s parents are caught up in the hurly-burly of an active life and in demanding professional careers. The level of family consumption often requires two salaries. Grandparents, who are retired or semi-retired baby-boomers, are delighted to play a role in parenting. They want to take advantage of opportunities to connect with their grandchildren, and vacation activities can offer quality time.

Another phenomenon is the availability of the parties to go on holiday. In the United States, more than 60% of parents approve of their children taking holidays during the school year, and grandparents generally have a lot of spare time. To this availability, add the financial resources of the grandparents, which make it possible to go on holiday with or without the parents. Another factor is the difficulty spouses often have in arranging simultaneous vacation time.

A growing opportunity

The demand will continue to increase as more baby-boomers go into retirement or semi-retirement. In response to the perceived demand, the American Automobile Association (AAA) even published a book, entitled Travel with Your Grandkids, to help grandparents plan their holidays. The book covers several issues, including how to:

  • convince reluctant parents
  • involve grandchildren in planning the trip
  • strengthen the grandparent-grandchild relationship
  • set limits and establish rules

There is a wide range of activities of interest to this segment, from downhill skiing to science museums, golf, cruise-excursions, theme parks and hiking. The heritage or commemorative element could be exploited as it strikes a chord with grandparents who are eager to pass on their knowledge and to tell to their grandchildren about their personal history.

It is also important to consider what is of interest to the children, especially since they, too, have a say in travelling with their grandparents. The majority (56%) of children between 6 and 17 years old say that they would like to take a trip with their grandparents. The youngest (6 – 8) are the most enthusiastic (78%).

Companies that adopt a targeted promotional strategy during slower periods could also get results. Small details like surprise gifts for young children, or activities that capture their interest can act as triggers when the family is planning a vacation. For example, Mexico City offers a little paradise for kids (Ciudad de los Niños). In this theme park, children play the role of grown-ups, sitting in the pilot’s seat in a real American Airlines’ cockpit, making pizzas in a Domino pizzeria, or feeding a dummy baby inside a hospital. And to be totally consistent, children pay the full price of admission, parents pay half price and for grandparents… it’s free!

Sources:
– White Hutchinson Leisure & Learning Group. «Grandparent/Grandchild Market a Growing Opportunity», October 2003.
– The Philadelphia Inquirer. «Travel with ‘grands’ comes in all flavours», 16 May 2004, p. N02.
– Hugues Court, Paula. «Cruising with Grandchildren», LovinLife.com [www.wwseniors.com], 9 September 2003.
– Buhasz, Laszlo. «Marketing to the new senior», The Globe & Mail [www.globetechnology.com], 11 October 2003, p. T2.
– American City Business Journals. «New travel trend: ‘grandtravel’», 8 November 2001.
– Gardyn, Rebecca. «The New Family Vacation», American Demographics, 1 August 2001.

Commentary from Thomas P. Cullen

This is a topic which should be of interest to many aspects of the travel industry. I believe it is a symptom of a global change in the way markets are defined and in motivations to travel.

The « business market » has traditionally been differentiated from the « leisure market ». However, these boundaries are changing, and I believe that the industry can no longer assume the business trip is for business only. Children are not only traveling with grandparents, they are traveling with parents – blue suit moms and dads, who increasingly take kids along on a business or convention trip. Las Vegas entrepreneur Steve Wynn recognized this many years ago when almost single handedly he transformed the topless, sin city gambling mecca to a family friendly convention destination.

The other quantum change is related to the nature of demand drivers. A review of intergenerational travel packages offered by Elderhostle is indicative of this change. The traditional « architectural » tourism is being replaced by learning/educationally motivated travel, cultural travel, and health related travel.

Worldwide business travel probably accounts for 60% of all travel demand. Within 15 years, perhaps sooner, leisure oriented travel will account for 60%, and business only travel declines as a percentage of the total.  

Communications technologies will replace a lot of business travel as a younger, more technology saavy generation of business people grow into decision making positions in industry. The implications for packaging, pricing, positioning and distributions systems for the hotel, airline, and cruise industries are significant.

Thomas P. Cullen

Professor
School of Hotel Administration
Cornell University
SEE ALSO
Travel – It’s Not Just for Adults Anymore
An essay written by Mr. Cullen

Catégories
Trends

Travel – It’s Not Just for Adults Anymore

More and more children are traveling, with parents, grandparents, on vacations, cruises, study trips, sports excursions, and accompanying Mom or Dad on a business or convention trip.

According to the Travel Industry Association (TIA), more than 32 million business trips in 1998 included children, a 250 percent rise in 10 years. And that’s just in the United States. The trend is also apparent in Canada, Europe and the Far East.

Parents often cite compressed time schedules as the reason for talking the kids alone. Two working spouses, common in North America and Europe, and the increasingly common « blue-suit Mom, » battling the time pressure of being an executive and a parent, find it rewarding and economical to extend a business trip through the weekend, taking advantage of lower leisure travel oriented air fares and lower hotel rates.

Many parents and grandparents consider travel to be a positive educational experience for the kids. In a recent TIA survey, 22 percent of parents who took the family along on a business trip let their children miss school to travel with them – although in most cases (43 percent) the absence was just a single day.

Hotel, airlines, and rental car companies address the kid’s market with varying enthusiasm. Most, but not all, hotels feature a « kids stay free with parents (or grandparents) when sharing the room. » Disney and some other resort properties have specifically designed hotel rooms to accommodate mom, dad, the kids and grandma.

Family rooms or suites are increasingly found in urban hotels situated in major business and tourist destinations. Four Seasons sends a high chair, as well as a baby’s bed to the room of those traveling with infants. The Metropolis Hotel in downtown San Francisco offers a family suite with bunk beds, chalkboard and crayons, TV with kid’s cable channels and even a separate bathroom with splash toys.

Hyatt, Ritz-Carlton and Westin have activity programs for kids at various properties around the globe. While Mom or Dad are busy at work, brother and sister take classes, visit local sights or play sports – a short-term equivalent of packing the kids off to summer camp. No longer can a hotel easily differentiate between the business and leisure markets.

Some vehicle rental firms offer child car seats as a no-cost option, and airlines have become much more tolerant of parents’ lugging child safety seats and strollers into passenger cabins. American provides a complimentary amenity kit that features two diapers, a baby spoon and bib, and a coloring book, and most airlines now offer special meals for children. United Airlines, for instance, gives parents a choice of child, toddler or baby meals, as well as McDonald’s Friendly Skies (MFS) meals with burgers.

Singapore Airlines, a favorite of the Asia bound business traveler, has taken note of business travelers bringing the kids alone. They offer an interactive in-flight entertainment system in all classes. Nintendo games like Super Mario, F-Zero and Kirby’s Dream Course help keep the kids occupied on the long Pacific flights.

Cruises have long been a favorite for older travelers, many traditionally catering to a mature market interested in minimizing the hassle and planning associated with land based travel. Increasingly those mature travelers are taking their grandchildren along.

« Camp Carnival » is a feature of every Carnival Cruise Lines ship. Between a family breakfast and a family dinner, the younger set is kept busy with activities geared to their age group. These include competitions and classes for three age specific segments the « Junior Sailors » (ages 2 to 5), First Mates (ages 6 to 8), and Navigators (ages 9 to 12).

Royal Caribbean Cruise Line has special children’s menus and seatings for dinner, so the grandparents can dine together at a later seating and with a menu better crafted to their tastes. « Teen centers, » with video games, elaborate baby-sitting facilities, and playrooms for younger children, are common on many cruise lines.

Campus vacations, while not originally designed for families, have quickly adapted to take advantage of the trend of traveling with children. What began as Cornell Adult University, during the summer at central New York’s famous Ivy League institution, now offers adult and family learning vacations on campus as well as seminars, study tours, and cruises to destinations all around the world, not just for adults for also targeted at the family market. Some of the programs are parallel – education for parents and/or grandparents combined with sports camps for the kids.

Even conventions, exhibitions and trade shows are starting to cater to delegates’ families. There has been an increase in frequency of such events booked at the end of June, right after school lets out. Many now commonly offer day trips and other family activities as well as evening events for both delegates and their families.

Elderhostel offers a wide variety of modestly priced intergenerational programs and vacation trips targeted at grandparents and grandchildren. A Google search returned 94 intergenerational programs offered by Elderhostel. One focuses on developing the relationship between grandmothers and their granddaughters, while another offers an intergenerational opportunity to learn about dinosaurs in Utah. One program for grandparents and grandchildren redefines the image of the elderly and the young.

The flight training program is an intensive introduction to flying in ground laboratories, aircraft simulators, as well as actual pilot training in a Cessna 172 single-engine aircraft. Another program takes the two generations to British Columbia where in a safe harness and supportive environment they climb a rock bluff, rappel from a cliff, swing like Tarzan on a zip line, and solve problems cooperatively in a ropes course.

The traditional market segment boundaries are changing. With the aging of the baby boomers over the next decade, expect the grandparent – grandchild travel market to become a major target for the travel industry.

Thomas Cullen is Associate Professor at the School of Hotel Administration, Cornell University.

See also:

More and more grandparents are travelling with their grandchildren