Étiquette : travel behavior

Catégories
Facts and figures Geographic markets

American tourists: Where have they gone?

In 2004, Americans once again began travelling to foreign destinations in large numbers, but they seem to have ignored Canada. The number of U.S. international tourists ?all destinations combined ? reached a record high of 61.8 million that year, surpassing the previous record set in 2000. And yet, since the new millennium, Canada has noted a significant decline in the number of U.S. visitors. From 2000 to 2004, this figure fell 21.3% and preliminary data for the January to October 2005 period show a decrease of 8.7% compared to the same period in 2004.

Fewer U.S. visitors to Canada

The marked decline in the number of Americans travelling to Canada is of concern to the entire tourism industry, although the drop has not affected all the provinces in the same way. In fact, from 2000 to 2004, compared to the other Canadian provinces, Quebec appears to have been less affected by the Americans’ decision to desert Canada.

If we do a monthly comparison of U.S. arrivals to Canada in 2000 and 2004 (Graph 1), the slump is proportionally less significant during the summer months (June: -18.8%, July: -16.5% and August: 19%). However, in absolute numbers, losses are the highest during the months of the high season (July: 981,777 visitors and August: -1,079,657 visitors).

Major drop in same-day visitors

It is important to note that 98% of the decline in U.S. visitors to Canada is due to a sharp drop in same-day visitors, a situation that affects Ontario in particular since this province welcomed three-quarters (74.4%) of the total U.S. same-day visitors in 2000 (Table 2). From 2000 to 2004, the number of same-day visitors to Ontario fell by over 7.5 million.

Therefore, if we look solely at the number of tourists (Graph 2), the decline in the U.S. travel market is much lower, proportionally speaking. In fact, from 2000 to 2004, the number of Americans spending one night or more in the country dropped a mere 1.11%. During the same period, Quebec even recorded an increase of 3.38%.

2002: Base year or exception?

In 2002, Canada welcomed a record high of 16.17 million U.S. tourists. This increase of nearly 650,000 tourists compared to 2001 occurred at a time when the number of U.S. travellers to international destinations plummeted 1.3 million. Of course, this extraordinary performance can be explained, in part, by the public’s reaction to the events of 2001: travellers sought safety by staying close to home.

The 2002 increase was fuelled primarily by a jump in leisure travel since the number of business tourists in this record year only reached 1.96 million, a decrease compared to the 2.16 million recorded in 2000 (Graph 3). Furthermore, for the past several years, business travel has made up a proportionally smaller share of Canada’s U.S. travel market.

2005: The true decline begins

Preliminary data for the year 2005 (January to October) illustrate a trend of concern to the entire Canadian tourism industry, particularly that in Quebec.

This drop appears to be due to border markets, because in the first ten months of 2005, the number of American tourists arriving by car dropped 13.5%, while the number of those using other modes of transportation increased 6.4%.

Americans travelling to see the world

In 2004, Americans travelled abroad as never before, surpassing the record set in 2000 (61.8 million vs. 61.3 million). However, during this same period, Canada recorded a decrease of nearly 175,000 U.S. tourists. An analysis of the regions visited (Table 4) demonstrates a major shift in the international travel habits of Americans.

According to Table 4, non-traditional destinations are enjoying an upswing in interest on the part of American travellers. At the same time, traditional destinations (Canada, Mexico and Western Europe) saw their market shares drop sharply from 2000 to 2004 (Graph 4).

Preliminary data from the U.S. government for the period January 1 to September 1, 2005, show that U.S. air traffic to overseas destinations rose 5%. Once again, Central America (+14%), Asia (+10%), South America (+9%) and the Middle East (+8%) recorded increases superior to that of Europe (+3%).

The Canadian tourism industry, which still hopes to repeat the success of 2002, must accept that things will never get « back to normal » because American and global realities have been so profoundly altered.

The situation according to the Canadian Tourism Commission (CTC)

In the fall of 2005, the CTC formed a task force to examine the U.S. market. Its preliminary findings seem to confirm that Canada cannot blame factors like SARS, the war in Iraq, exchange rates or border-crossing issues for the country’s failure to attract U.S. tourists. The Americans interviewed by the CTC note that while they have no specific reasons for staying away from Canada, they are not motivated to come here either. This means that Canada is not successfully distinguishing itself from other destinations in an increasingly competitive field. The CTC’s final report is expected in late January 2006.

Sources:
– Canadian Tourism Commission. « US market taskforce expands mandate, » Tourism, Vol. 002, Issue 11, November-December 2005.
– Ontario Ministry of Tourism and Recreation. « Regional Tourism Profile – Provincial Markets Shares », www.tourism.gov.on.ca/english/tourdiv/research/rtp/2003/
ComparitiveReportsProvinces/index.html
– Statistics Canada. “International Travel Survey,” Catalogue No. 66-001-PIB, January 2000 to October 2005.
– U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries. “U.S. Citizen Air Traffic to Overseas Regions, Canada; Mexico 2005,” www.tinet.ita.doc.gov, 2005.
– U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries. « U.S. Resident Travel Abroad Historical Visitation – Outbound 1994-2004, » July 2005.

Catégories
Customer segments Trends

Tourism through the crystal ball

From time to time, tourism experts are asked to predict the major developments that will affect the industry in the near future. The following are some of the more significant trends they foresaw in world tourism, some of which are formative and practically inevitable while others are more in the realm of « possibility ».

Products and destinations

Online travel agencies will introduce service fees similar to those charged by conventional agencies.

  • The gap in terms of the services offered by regular and low-cost carriers will widen.
  • In addition to becoming more affordable, cruises will gradually turn into floating entertainment centres.
  • There will be a proliferation of low-cost, short-stay/long-haul travel, i.e., a weekend in Europe or a week in Australia.
  • Beach vacation destinations will be segmented according to specific consumer wishes: relaxation (no cell-phones), families only, celebrations or recreational activities.
  • New destinations will appear on the world tourism stage, with Qatar replacing the Canary Islands, Ljubljana, Slovenia ousting Prague, Slovakia taking over from New Zealand and Brazil set to become the next mass tourism destination.
  • Initially confined to adventure tourists, China’s Silk Road will become one of the world’s most popular destinations.

Clientele

  • A new kind of « hybrid consumer » will emerge who – for example – will combine a low-cost flight and a gourmet dinner, a stay at a 5-star hotel and a fast-food meal, all in the same trip.
  • As internet-users become more comfortable making online reservations, do-it-yourself travel and dynamic packaging will grow in popularity.
  • Low-cost carriers will make increasingly aggressive efforts to reach business travellers.
  • There will be a growing number of solo travellers making spontaneous travel decisions.
  • The industry will have to adapt to the reality of an over-50 set that still wants to act young.
  • Customers will want to go on a virtual tour of their vacation destination before they leave home.
  • Better-informed travellers will be more demanding with respect to product quality and services.
  • Travellers will become inured to crisis situations and will gradually become less affected by them.
  • Personalization features will enable travellers to design packages that reflect their individual preferences.

Sources :
– Thomson. «The Thomson Future Holiday Forum», [http://www.hospitalitynet.org/file/
152001280.pdf], 2004.
– Jarrett, Ian. «Travel Weekly’s hottest news predictions for 2004», février 2004.
– IPK International. «World Travel Trends 2003-2004», 10 novembre 2003.

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 Products and activities

The cultural travel market

American cultural travellers represent an especially lucrative market: nearly one-third spend over US$1,000 when they travel. By way of comparison, only 11% of all U.S. travellers spend this much. This news comes from Renee Mitchell, Research Director, Smithsonian Magazine, speaking at the most recent TIA Marketing Outlook Forum. Her presentation discussed the demand for cultural travel.

Characteristics of cultural travellers

Over 44 million American cultural tourists stay in commercial lodgings when they travel and generate an estimated US$29 billion per year in travel spending. Around 76% of them are leisure travellers, while 24% are business travellers. Some specific traits of cultural travellers are listed below:

  • Average age is 46 years old
  • Average household income is US$75,800
  • 62% are married
  • 87% have a college diploma or higher
  • 31% have children living at home
  • 37% travel during the summer

Interest in culture = interest in travel

According to Mitchell, Americans interested in history and culture, like the readers of Smithsonian Magazine, are especially interested in travel with an historic/cultural emphasis. A survey of the magazine’s readers showed:

  • 93% visit historic sites
  • 84% learn all they can about a destination before going there
  • 76% consider culture and heritage when selecting a destination
  • 71% explore towns off the beaten path

According to a TIA/Smithsonian survey, American cultural travellers can be characterized by the four « L’s »:

  • Learning – 82 million say, « Trips where I learn something new are more memorable. »
  • Leisure Activities – 67 million say, « My hobbies and interests influence my destination selection. »
  • Locals – 63 million say, « While on vacation, I like to find places that are popular with locals. »
  • Love it! – 34 million say, « Vacation/leisure trips including cultural activities are more important to me. »

Not the same as other travellers

Comparing cultural travellers with other travellers reveals some interesting differences. For example, cultural travellers spend a lot more than other travellers and tend to stay at destinations for much longer (see table). In addition, they are very active tourists: nearly half of those who stay in hotels participate in at least four activities. They are fond of shopping, nightlife and urban sightseeing.

Table 1: Comparison of American travel behaviours

All travellers Hotel travellers Cultural hotel travellers

  • Spent US$1,000+ on trip 11% 20% 30%
  • Primary travel by air 19% 30% 32%
  • Trip = 3+ nights 41% 52% 66%
  • Trip = 7+ nights 13% 23%
  • 3+ people in party 19% 26%
  • 2+ activities on trip 38% 45% 88%
  • 4+ activities on trip 7% 45%
  • Shopping 29% 29% 47%
  • Nightlife/dancing 7% 10% 16%
  • City/urban sightseeing 10% 15% 30%

Source: Roper Reports 2004

Promising outlook for 2005

In 2005, the demand for historic/cultural travel products will be high. According to a Roper survey, among Americans planning to travel in 2005:

  • 24% will visit an historical site
  • 17% will take a fishing trip
  • 16% will visit a casino
  • 16% will go hiking or camping
  • 10% will purchase a package tour

  • 9% will visit a health spa

Renee Mitchell emphasized that the travel behaviour of cultural hotel travellers makes them very profitable targets. She also stressed that hotels are ideal cultural partners for promoting special products, packages, events, etc.

However, one must remain realistic with regard to the overall tourism potential of US travellers. It is increasingly difficult to get them to cross any borders. For Americans, the most important factor in selecting a destination is safety (75%), which has now surpassed affordability (62%). Obviously, statistics such as these tend to favour domestic travel. Nonetheless, Canada does offer proximity and a reputation for safety, which certainly gives it an edge over other destinations.

Source:
– The Roper Center – TIA and Smithsonian Magazine. « The Historic/Cultural Traveler » [www.tia.org], 2003.

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
Customer segments

Baby boomers, the backbone of the tourism industry

When they were young, baby boomers sported peace signs. Today, they worry about the stock market and the chances of early retirement. Their travel curve will rise but will be difficult to profile.

General characteristics

  • Among industrialized countries, Canada experienced the biggest baby boom.
  • Mass retirement of boomers from 2010 to 2020; their median age will be 55 in 2010.
  • 9.8 million boomers in Canada, or 33% of the population (Foot and Stoffman, 1999).
  • 76 million boomers in the United States, or over 25% of the population (American Demographics, 2004).
  • By the year 2010, the countries of the European Union will be home to 140 million people aged 50 and over (Austrian Institute of Economic Research).

Nothing new in their profile

  • Enjoy high disposable income
  • Tend to be stressed workaholics
  • Demanding, quality-oriented
  • Active, healthy and intent on staying young
  • Interested in learning and new experiences
  • Adventurous

Beyond age and income

It is easy to divide the population into segments according to age and income, but reality is more complex. Lifestyles and attitudes towards ageing are becoming important factors. Some people are healthy and fit at age 70, while others feel old at age 50. In Canada, a 50+ Communication Marketing study defined four segments among those aged 40-plus:

  • the wealthy

    (21%) – satisfied with their financial situation, careful with money, thrifty, with a long-term attitude towards things, rather dissatisfied with their appearance and open to the idea of cosmetic surgery, see their health as an investment (good eating habits, exercising to stay fit);

  • the enthusiasts

    (27%) – are more or less concerned about their financial situation, eternally optimistic, enjoy life's pleasures, open to taking job-related courses and continuing to work past retirement age, sensitive to the time factor (prefer one-stop shopping), often eat in restaurants for fun and to save time, more or less concerned with the state of their health (good food habits and exercising for fun);

  • the careful

    (30%) – make independence a priority (living at home and driving one's car for as long as possible), interested in continuing to work post-retirement, worried about financial security and even more about their physical health, seeking durable products and discounts, with poor health habits (overweight, large proportion of smokers);

  • the worriers

    (21%) – pessimistic with regard to their finances and physical appearance, looking for products to help them regain their youth both mentally and physically, feel a loss of energy, seek a good quality-price ratio, think they should improve their eating habits.

A wired clientele

In the United States in the 50-58 age group:

  • 62% have access to the Internet. Of that number, 75% read the news online and 55% do information searches.
  • 76% use a computer on a regular basis (Pew Internet & American Life Project).

In Quebec, in the 45-54 age group:

  • 55.4% use the Internet on a weekly basis (Cefrio).

Baby boomers who travel

In the United States, boomers travel more and spend more than any other age category:

  • 44% of all trips, or 241 million trips in 2002.
  • US$491 per trip, excluding transportation (Travel Industry Association of America).

In France:

  • 48.7% of 50-somethings make travelling a spending priority versus only 40.3% of the national average (INsee and Notre Temps magazine).

Coveted tourism products

  • Growth of the high-end market.
  • Gradual decline in travel to the south and to resorts in favour of adventure and ecotourism products (observation of wildlife in Costa Rica, travel to Irkutsk on the Trans-Siberian Railway).
  • Increase in demand for cruises and diversification of this product with smaller craft offering quality trips to limited groups.
  • Demand for packages and personally tailored vacations.
  • Increase in passive activities (golf, walking, bird-watching, etc.) and cultural pursuits.
  • Popularity of safe destinations.
  • More frequent travel to nearby countries.
  • Popularity of bus trips for tourists who want to leave responsibility behind and be pampered – low-kilometre itineraries to enable travellers to get to know certain regions in depth or tours to little-known countries.

Look for uneven growth

Expectations about the rising boomer travel curve will have to be revised. Although this clientele will be very sought after, it will not behave uniformly. Some boomers will go into semi-retirement, or take progressive retirement. Others will retire later, or have less money upon retiring than anticipated, for the following reasons:

  • lower returns on pension funds, due to dropping share values and low interest rates;
  • a growing disproportion in the number of pensioners to workers – money is being withdrawn from retirement funds faster than it can be put in because there are fewer workers to make contributions;
  • recent corporate governance scandals have compromised employee pension plans;
  • the government will probably raise the official retirement age;
  • more and more workers will be asked to continue working because of their experience;
  • many people already receiving pension benefits will return to work.

With today's longer life spans, people must make their post-retirement revenues last longer, which reduces annual income. Many fear that their pension plan will expire before they do.Sources:
– 50+ Communication Marketing. « Une étude marketing sur le marché des baby-boomers et des personnes âgées, » press release, April 28, 2004.
– La Presse canadienne. « Les baby-boomers rêvent maintenant d'une retraite progressive, » February 16, 2004.
– Research ALERT. « Leading-Edge Boomers Approach Senior Status, Changing the Face of Aging, » vol. 22, no. 8, April 16, 2004.
– Sarrasin, Bruno and Guy-Joffroy Lord. « L'évolution du tourisme international : une analyse prospective à l'horizon 2010, » Téoros, fall 2003, p. 5-9.