Étiquette : seniors @en

Catégories
Customer segments Facts and figures

Enough of Gen-X, Y and the Boomers; here comes the senior market

Consumer society has not always been responsive to the needs of travellers aged 60 and up. And yet, this customer segment is flourishing as the world’s ageing population creates a major demographic shift. When they are healthy and free of time constraints and financial obligations, older consumers are an ideal clientele. Now is the time to examine the characteristics and preferred leisure activities of seniors, an emerging consumer market.

At what age does one become a “senior”?

There are numerous terms to describe individuals of a “certain age”: seniors, senior citizens, Golden Agers, pensioners, retirees, the elderly. The age at which one assumes the title of “senior” varies from 55 to 65, depending on the study or statistic. To distinguish seniors from Baby Boomers (those born between 1947 and 1966), who are currently 41 to 60 years old and have already been examined by the Tourism Intelligence Network, this article will focus on drawing a portrait of those aged 60 and up. Naturally, any predictions, even short-term ones, will inevitably include some Baby Boomers as they are slowly entering this market segment, creating what some have called the “senior boom” or “senior surge.” However, the seniors of tomorrow will definitely be very different from those of today.

The silent generation

At the present time, the 60+ market segment is populated by members of the “silent generation.” Marked by the war and thus, in many respects, less spoiled than later generations, this generation can be characterized as follows:

  • instilled with a sense of duty
  • respectful of authority
  • looking for stability
  • thrifty and cautious
  • often neophytes when it comes to information and communications technologies

These are, of course, generalizations, and they apply in varying degrees, depending on the age of the individual in this cohort. For example, many 60-year-olds are familiar with or even experienced in information technology, unlike those aged 75 and up.

Quebec seniors

In Quebec alone, there were 1.5 million people aged 60 and over in 2006, or 20% of the entire population. According to the Institut de la Statistique du Québec, this number will grow to 2.27 million by 2026 to represent 28% of all Quebeckers. The Print Measurement Bureau (PMB) estimates that 621,000 Quebeckers aged 60 and up have taken an overnight vacation trip within Canada in the past 12 months, with 475,000 of these trips taken in Quebec. During the same period, 356,000 Quebec seniors travelled outside the country.

Figure 1
Percentage of Quebeckers aged 60 and up
who took at least one overnight trip in the past 12 months

Visiting friends and relatives

The preferred type of accommodation for seniors travelling in Canada is the home of friends and relatives (44%), followed by a hotel (25%); amongst the general population, the favourite accommodation is a hotel.

Figure 2

The primary activities of these travellers are visiting friends and relatives (54%) – which is higher than the percentage recorded for the entire population –, sightseeing (38%) and shopping (25%). Furthermore, the percentage of golfers is higher among seniors (7%) than it is among the overall travelling population (4%).

Figure 3

Walking, cultural activities and golf

Generally speaking, those aged 60 and up also engage in a number of leisure activities that can be easily practised when travelling: walking and biking, live theatre, classical music concerts, museum visits and golf, for example (Figure 4).

Figure 4
Percentage of Quebec seniors participating in leisure and sports activities

Destinations

The foreign destinations most often visited by Quebec seniors are listed in the following table. When compared to Quebeckers of all ages, a higher percentage of seniors have gone to Florida and Italy.

Table 1
Top destinations of Quebec seniors who have travelled outside the country in the past 3 years

The senior market also represents:
• one-third (32.5%) of all Quebec coach travellers (for trips within Canada)
• 30% of travellers who have taken a cruise in the past 3 years
• 57% of those who use travellers’ cheques
• 25% of the clientele of Quebec travel wholesalers (65 and over)

Products adapted to seniors

Some companies are targeting this booming market. At Boston travel agency Vantage Deluxe World Travel, the median customer age is 71 and trips and travel components are selected to meet the needs and desires of this clientele. For example:

  • trips are longer than average
  • itineraries are less full, meaning that sites can be visited at a leisurely pace
  • cruise ships are smaller, with spacious cabins
  • customers can travel alone or be paired with a travel companion

As the AG2R Group notes, to accommodate travelling seniors, one must provide secondary services:

  • transfers to and from airports
  • baggage transportation or even shipping bags in advance
  • especially attentive and warm receptions in hotels

Some Quebec ski resorts offer lifetime passes to those aged 70 and up. These seniors must first purchase a regular season pass, which is then automatically renewed the following year. Older skiers practise the sport with friends, who are sometimes younger, or with family members, so they bring “paying” skiers with them. They also tend to visit resorts during less busy periods.

Seniors around the world

Thanks to scientific progress, human beings are living longer, healthier lives. The age pyramid is slowly becoming inverted in most developed countries. In conclusion, here are a few facts and figures about the senior phenomenon around the world:

  • By the year 2050, more than one person out of five, or 22% of the world’s population, will be aged 60 and up, compared to only 10% today. The number of people over the age of 60 was 602 million in 2000; this number will rise to nearly 2 billion by 2050.
  • In the United States, some 37 million people are aged 65 and over, and 9.2 million of them are aged 80 and up.
  • The Americas are home to 75 million seniors (those born before 1945).
  • France was home to 200 centenarians in 1950, 3760 in 1990 and 18,962 as of January 2007. According to the Institut National de la Statistique et des Études Économiques (INSEE), this number will rise to 150,000 by 2050. France now keeps a list of “supercentenarians,” that is, those over the age of 110.
  • In the United Kingdom, recreation accounts for the largest share of household spending among seniors, more than lodging and food.
  • In the very near future, seniors will represent the largest customer segment for the travel industry.

Sources:
– Durand, Amandine. “Seniors: les agences de voyage spécialisées,” L’Internaute. [www.linternaute.com] Last accessed December 14, 2007.
– Hunter-Jones, Philippa and Adele Blackburn. “Understanding the Relationship between Holiday Taking and Self-Assessed Health: An Exploratory Study of Senior Tourism,” International Journal of Consumer Studies, Vol. 31, No. 5, September 2007.
– Institut de la statistique du Québec, 2006.
– Institut de la statistique du Québec, Si la tendance se maintient… Perspectives démographiques, Québec et régions, 2001-2051, November 2004.
– Mesmer, Philippe. “Bienvenue dans un monde senior,” Vivre en 2020, Le Monde, hors série, October 2007.
– Pak, Cabrini and Ajit Kambil. “Over 50 and Ready To Shop: Serving the Aging Consumer,” Journal of Business Strategy, 2006, Vol. 27, No. 6.
– Print Measurement Bureau, 2007.
– Seniorjournal.com. “Travel Agencies that Target Senior Citizens May Best Meet Special Travel Needs,” Senior Citizen Travel & Vacation, September 10, 2007.

Catégories
Ailleurs dans le monde @en

Are senior travellers really so different?

The tourism industry has been watching closely as aging baby-boomers gradually shift into the seniors category. And with good reason because, for all that it requires special treatment, this category has undeniable appeal. However, an informed approach to the senior market must be rooted in an understanding of its behaviours. Research shows this market is not a homogenous one; certain segments are more profitable than others.

Why target the senior market?

Demographics is one of the few fields capable of generating fairly reliable forecasts. Here are a few interesting statistics concerning the senior (50 +) market:

  • In the United States, a baby-boomer becomes a senior every 8.4 seconds;
  • People born in 1950 live 20 years longer than those born in 1900;
  • In 2025, there will be 63 million Americans over 65 years old;
  • Florida currently has the highest concentration of people over 65, and will continue to do so until 2025;
  • In 2025, 30% of the French population (over 16 million people) will be over 60 years old;
  • Given current demographic trends, there will soon be more grandparents than there are young people;
  • On average, seniors spend more than any other population segment on a variety of consumer goods, one of which is travel;
  • In 2001, more than 50% of Americans between the ages of 50 and 64 were using the Internet.

William S. Reece (West Virginia University) studied the senior market by isolating specific sociodemographic variables likely to have a positive or negative impact on senior demand for travel. He based his findings on two sample groups: one consisting of senior American leisure travellers (average age: 69) and another one of non-senior travellers (average age: 40).

Certain variables can have a greater or lesser impact on seniors’ demand for travel. Study findings revealed that propensity to travel varied between groups of individuals that were defined by a specific variable. Thus, 40-year-olds with an annual household income between $75,000 and $100,000 are more likely to travel than seniors in the same income category.

The accompanying figure shows the extent of each factor’s influence. The orange arrow (1.96+) marks the point beyond which the variables become significant. Only two criteria reach that threshold: the distance from residence to destination, and the type of residence (house). Based on these variables, seniors show a markedly greater demand for travel than people in their 40s. One possible explanation for this is that older consumers generally have fewer financial obligations: 80% of Americans over 65 are home-owners, and 80% of that group are no longer paying off a mortgage. As for the other criteria, the differences are not great enough to be deemed significant.

The study’s author rejects the idea that senior travellers behave the same as other travellers, although the differences are not as marked as one might have expected. However, the results do show that older people travel further than the average.

The term « baby-boomers » refers to people in the 40- to 60-year age bracket. Within that group, those over 50 are called « young seniors. » Even though their demand for travel may – by and large – be the same as that of their older counterparts, their reasons for travelling are significantly different. According to Lalia Rach of the Tisch Center for Hospitality, understanding the new reality for seniors is key to grasping their influence on the tourism industry.

The new generation of 50+ seniors was born in the 1950s and lived through the dramatic social changes of the 60s. As a result, people in this consumer segment no longer conform to the stereotype of an elderly stay-at-home. Inaccurate assumptions about seniors abound:

  • They are brand loyal;

  • They are not comfortable with technology;

  • They prefer organized travel (such as senior tours);

  • They prefer activities geared towards older people;

  • They retire at 65;

  • They live a slow-paced lifestyle.

The 50-year-old senior is much more likely to be:

  • highly educated;

  • completely independent;

  • experiencing a sort of personal awakening;

  • living a fast-paced lifestyle;

  • able to enjoy life on their own terms;

  • eager to make choices;excited to learn.

Strategic Approaches

These days, tourists in the over-50 set are more adventurous than ever. According to a survey of UK residents conducted by NOP World, seniors are now choosing far-flung destinations over the traditional beach holiday, with roughly 65% expressing the desire to go on a safari. The survey also showed that fully two-thirds of individuals over 50 find they are still able to enjoy all aspects of life. Tourism products and marketing strategies need to reflect that reality.

Certain industries are ahead of the game in this area, offering innovative equipment that allows older people to keep practicing their chosen sport for longer. Skiers can wear the much more comfortable soft boot (see illustration), and golfers can use the «Big Bertha» club (see illustration), enabling them to hit a long, straight shot with less effort.

Senior_travellers_image1

Advertising campaigns have not adapted to certain aspects of the aging boomers’ sociodemographic profile (for example, 31% of this group are single). Destinations should make a point of showing photos of radiant older people in their advertising material. Seniors have never felt so youthful ? roughly 63% say they feel younger than their actual age, and they want to see that perception acknowledged when they purchase a product. To win over this market segment, be prepared to do the following:offer them a product that is simple, yet original;

  • provide an activity that others are unwilling or unable to offer;
  • don’t try pigeonhole them;
  • encourage them to get involved;
  • offer an experience, not a product;
  • guide but do not manage them;
  • build in frequent breaks and rest stops.

Advertising messages aimed at seniors must be pitched in such a way that they target them without pandering to blatant stereotypes. Seniors do not want to be thought of as ?old,? or consumer automatons. Merchants take note: the following terms are to be avoided when speaking of seniors: golden agers, the elderly, senior citizens, retirees, the grey rinse set, etc.

Companies will have to adapt their approach to the new reality. Golden age discounts can stay, but they should be renamed ?specials for 60+ customers,? in order not to stigmatize those who use them. Finally, managers should be constantly evaluating their products or services for signs that they are no longer relevant to an aging clientele.

Sources:

– Direction du Tourisme de France – Département de la Stratégie, de la Prospective, de l’Évaluation et des Statistiques. «Les pratiques touristiques des seniors en 2003», octobre 2004.
– Littrell, Mary A., Rosalind C. Paige et Kun Song. «Senior travellers: Tourism activities and shopping behaviours», Journal of Vacation Marketing, vol. 10, no 4, 12 mai 2004.
– Outburst Advertising/Marketing News. «Why Target the Senior Market?», octobre 2004.
– Rach, Lalia. «The Aging Society: Realities and Perspectives Impacting the Travel Industry», 18th Annual Governors Conference on Travel & Tourism, 29-30 mars 2005.
– Reece, William S. «Are Senior Leisure Traveler Different?», Journal of Travel Research, vol. 43, août 2004.

Catégories
Customer segments Transportation Trends

Group Tourism takes on a youthful look

When we speak of package tours by coach, it usually means the traditional « tour and travel ». We think at once of customers who are pensioners or persons taking early retirement. Today, we notice a wave of rejuvenation: the average age of the passengers is closer to 55 years than the age of the pensioner (65 years). Thanks to the increase in thematic tours and new destinations, the chartered tours in motorcoach get a second breath and interest a more diversified customer basis.

An important sector

The study on the Québec chartered bus industry, realized in 2001 by the Chair in Tourism of the UQAM, showed the importance of this sector for the tourism and the economy of Québec. We found that some 14% of all the tourist revenue in Québec comes from chartered transport.

Let us clarify that chartered transport defines itself as an occasional service reserved for the exclusive transport of groups of persons, as opposed to the tourist transport which offers a service of tourist visits to the general public. City visits belong to the tourist transport, while the tourist tours, over one or several days, and organized by professional or voluntary tour operators are associated with the chartered transport.

To each its job

Contrary to what we find in Europe, the bus operators in Québec do not usually organize the journeys. This is the job of the tour operators, such as DMC, Transat, who set up the tours and find the customers. Some people act as receptive agencies and work with tour operators. Most of Québec bus carriers limit themselves to the transport portion of the business, by offering a fleet of buses and qualified drivers.

In Europe, the structure of the market differs appreciably. Numerous bus operators do both, producing and distributing tours. These « buses-operators » act as complete travel professionals. In France, the market of group travel represents 3 billions Euro annually.

Baby-boomers at the rendez-vous

We distinguish two main categories within the group travel market, individuals assembled in groups by travel professionals and the groups set up from the start. These last ones often come from clubs, associations, company committees, etc.

The arrival of the baby-boomers (a third of the Canadian population), with more money and free time than any other segment of the population, changes the picture of group tourism. They already have a good experience in travel, mostly acquired as F.I.T. The current boomers (40 – 59 years) are looking for something different from the traditional group travel. Those who opt for traveling in group expect a high comfort, as well as a pleasant group atmosphere.

Tightly packed schedule trips are no longer the rule. Baby-boomers are looking for different ways to be tourists: they want to experience thematic tours, to live a cultural immersion, they want time on their own, and time to relax. In Europe, for example, tour operators count on special events to diversify the offer. They sell the Seville Feria, the Christmas markets in Innsbruck, the Carnival of Nice, etc.

The groups made up of individuals sharing a common interest also constitute an interesting customer basis. These people assemble around a theme, such as gastronomy, museology, ornithology, oenology, sports, etc. There are so many passions which can be the object of thematic outings for targeted customers. A survey by the Direction of Tourism in France confirms that the activities practiced by the groups are more and more diversified, while the themes of culture, nature and gastronomy are the most popular (fig 1).

Fig. 1
Activities practiced by French group tourists in 2003

More than ever, the companies/firms/organisations in the travel industry will have to be very professional. People will expect to see a detailed schedule before departing and that it will be respected. The guide, with the group from the start, plays an important center role, as does the driver, from whom one expects versatility, courtesy and patience.

This can mean significant costs in personnel formation for the bus carriers. In a survey by the Florida International University over 70 carriers in North America, 64% declare investing in staff formation for a better customer service. Many understand the importance of well formed drivers, their main ambassadors with their customers.

Expectations are growing, but value is growing as well. While all included group tours were essentially at the mid and lower range, a luxury window of opportunity is slowly opening. In 2004, Transat has successfully launched high end products in the CAN$4,000 – CAN$5,000 range.

Competition is growing, with new destinations coming of age. For instance, in Europe, Eastern countries like Hungary, Bulgaria and Romania are beginning to be significant destinations with a growing customer basis.

In Québec, group travel will go on, but the offer must evolve if it wants to keep its power of attraction. More diverse formulas will have to be created to attract people not previously interested in group travel. Integrating exclusive elements into the package, unavailable for individual travelers, may become a pole of attraction for these new customers. Finally, developping theme outings may be a winning formula. Among the themes susceptible to have a high level of attraction in Québec, let us mention:

  • Festive events
  • The Saint-Lawrence River and its attributes
  • The wine trail and the country's flavors
  • Québec: the history of a nation and its patrimony
  • The willd life and Nature's great expanse

Furthermore, a renewal of the offered tours will help develop customer loyalty, enticing them to come back for more. Offering segmented tours could also attract the individual Québec tourists, traditionally less inclined to bus travel in group.

Sources
– Filliâtre, Pascale. «Le Tourisme de groupe a encore de beaux jours». L'Écho Touristique, 7 mai 2004
– Carter M., Cheryl et Jinlin Zhao. «A survey of customer service training for motorcoach drivers in United States and Canada», e-Review of Tourism Research (eRTR) , vol1, n04, 2003
– Desvignes, Claudine. «L'enjeu du tourisme en autocar, conquérir de nouvelles clientèles». Espaces, vol 209, nov. 2003
– Désiront, André. «Les baby-boomers se convertissent aux circuits en autocar». La Presse, Vacances Voyages, 10 mars 2004-10-25
– Direction du Tourisme de France et C.O.C. Conseil/Daniel Picon. «Le tourisme de groupe, synthèse des enquêtes réalisées en 2003 auprès des prescripteurs et des professionnels», déc. 2003
– Chaspoul, Claudine. «Fram redessine sa gamme tout autocar», Espaces. Vol. 09, nov. 2003
– Chaire de Tourisme de l'UQAM. «Étude sur l'industrie québécoise du transport par autocar nolisé», 7 septembre 2001.