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© Tourism Intelligence International

Tourism Intelligence International Tourism Intelligence International is a leading research and consultancy company with offices in Germany and Trinidad. This report — Old but not Out – How to Win and Woo the Over 50s Market — is another in a series of tourism market analyses. Tourism Intelligence International is the publisher of Tourism Industry Intelligence, a monthly newsletter that provides analyses of and tracks the key trends and developments in the international travel and tourism industry, that is also available in Spanish. Other reports from Tourism Intelligence International include: Travel & Tourism’s Top Ten Emerging Markets !1,499.00 How Americans will Travel 2015 ! 1,299.00 How Germans will Travel 2015 !1,299.00 Everything you Need to Know about Internet Marketing !1,299.00 (forthcoming)

Sustainable Tourism Development – A Practical Guide for Decision-Makers Successful Hotels and Resorts – Lessons from the Leaders Successful Tourism Destinations – Lessons from the Leaders The Impact of the Global Recession on Traven and Tourism How the British will Travel 2010 How the Japanese will Travel 2007 Impact of Terrorism on World Tourism Tourism Intelligence International: German Office An der Wolfskuhle 48 33619 Bielefeld Germany Tel: (49) 521 16 38 83 Fax: (49) 521 16 38 84 E-mail: apoon@tourism-intelligence.com E-mail: info@tourism-intelligence.com © 2010 Tourism Intelligence International.

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Old but not Out – How to Win and Woo the Over 50s Market


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© Tourism Intelligence International

Terms of Use and Copyright Conditions The material contained in this report has been derived from statistical, trade, company and other sources, including Tourism Intelligence International estimates. All information is verified to the best of the authors’ and publisher’s ability. While every effort has been made to ensure the accuracy of the information contained in this publication, Tourism Intelligence International cannot accept liability for any data herein, any interpretation made there-from, or for any loss arising from reliance thereon. Tourism Intelligence International reserves all copyright under international copyright law. Old but not Out – How to Win and Woo the Over 50s Market may not be copied, stored, reproduced or published in any format, in whole or in part, by any means — electronic, mechanical, photocopying, recording or otherwise — or disseminated to any third party without prior written permission of Tourism Intelligence International. Published November 2010

iii

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Old but not Out – How to Win and Woo the Over 50s Market


Š Tourism Intelligence International

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Preface One of the consumer trends that will not escape the travel and tourism industry is the ageing population in most developed societies. This means that travellers will be older and, although healthier and fitter, will require special attention by travel suppliers to woo, win and keep them happy. The tourism industry, more than almost any other industry, is linked to its social and natural contexts. The advancing ageing of society will result in farreaching changes, particularly on the demand side. There is a continuing rapid increase in the number of outbound travellers aged 50 years and over. What does this population-aging phenomenon mean for the travel and tourism industry? Travel and tourism suppliers will need to respond creatively to the needs of this market and provide the exact services required to meet and exceed clients’ expectations. It also means that the aged population that is more mature, experienced, sophisticated and demanding, will have a greater awareness of how their activities will impact on others. They are more aware, active, Internet savvy and environmentally conscious and are also adventurous (soft, medium and hard) and willing to learn and experience new things unlike the senior citizens of the past. Consider that: ! The Senior Segment is one of the largest segments in the US; ! There is a higher rate of seniors than young people in most developed countries as well as some of the top emerging markets such as India and China; ! Seniors are demanding, experienced and sophisticated travellers with a number of special interests, for example adventure, cruise and culture; ! (to add more here) Tourist destinations and businesses the world over, have an interest in targeting the Over 50s market. At the same time, this market is not homogenous. This report is written for all tourism destinations and businesses that are interested in targeting the Over 50s Market: ! Airlines

Old but not Out – How to Win and Woo the Over 50s Market

!!!"


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! Hotels and resorts ! Cruise lines ! Incoming agencies ! Auto rental companies ! Theme parks ! Travel agencies ! Tour operators ! Consultants ! Credit card companies ! Corporate travel and tourism research offices worldwide ! National Tourism Offices ! Government ministries and planning authorities The Old but not Out – How to Win and Woo the Over 50s Market report analyses the travel behaviour of travellers over 50 years old and investigates some market niches that will be of interest to those seeking to target this type of traveller. This insightful and down-to-earth report on the Over 50s market provides an analysis of different sub-segments within this market – the hippies, the yuppies and the Bourgeoisie Bohemian (the bobos), swofties, DINKS and Baby Boomers. Understanding the Over 50s market is key to success in today’s market place. Old but not Out – How to Win and Woo the Over 50s Market report provides key insights and strategies for understanding, targeting, wooing and winning the over 50s market. Old but not Out – How to Win and Woo the Over 50s Market report: ! Examines major demographic trends in the key travel markets of the US, UK, Europe and China; ! Shows why the Over 50s market is important; ! Analyses the spending habits and trends of the Over 50s market; ! Reviews the different segments of the Over 50 market including: • Hippies • Yuppies • Bobos !#

Old but not Out – How to Win and Woo the Over 50s Market"


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• Boomers • Swofties • DINKS ! Explores the different characteristics of the Over 50s market; ! Studies the different travel patterns, motives, interests and habits of the Over 50s market; and ! Provides over 10 winning strategies to woo and wow the Over 50s market. Old but not Out – How to Win and Woo the Over 50s Market report is compulsory reading for all those who are interested in targeting the lucrative Over 50s market. Bielefeld, Germany January 2010

Old but not Out – How to Win and Woo the Over 50s Market

#"


© Tourism Intelligence International

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About the Authors Dr. Auliana Poon heads Tourism Intelligence International Ltd., a leading international consulting company that provides innovative solutions for the travel and tourism industry. Innovation, sustainability and competitiveness are the hallmarks of this consultancy. Auliana Poon led the teams that developed the tourism policy and strategy for the new South Africa in 1996; developed strategies for trend-setting companies such Sandals International (Jamaica) and Conservation Corporation (Africa); and developed the “tourism begins at home” programme that sparked the turn around in the Bahamas tourism industry in the early 1990s. Auliana Poon also led Tourism Intelligence International’s technical support teams in implementing the Euro 6 million Eco-Tourism Development Programme (2003-2007) in the Commonwealth of Dominica and in St. Vincent and the Grenadines (2007-2009). In 2005, she undertook the competitive assessment of the Barbados Tourism Industry; developed the framework for the management and promotion of the Abu Dhabi tourism industry (2004); the Singapore Tourism Board (2003-2004); developed the Marketing and Human resource development strategies for Mozambique (2004-2005). She has provided critical support to the development of a UniVisa System (along the lines of Schengen) in the Southern African Region in preparation for World Cup 2010 and is responsible for the development of one of the Caribbean’s leading resort brands in Africa. Auliana Poon is analyst, co-author and editor of many of Tourism Intelligence International Publications including ‘How Americans will Travel 2015’, ‘How Germany will Travel 2015’; ‘How the British will Travel 2010’ and Travel and Tourism’s Top Ten Emerging Markets as well as the company’s monthly newsletter (since 1994), ‘Tourism Industry Intelligence’ that is also available in Spanish and French. Auliana Poon is credited with: • Inventing the concepts of ‘Old Tourism’ and ‘New Tourism’ to describe the rapid and radical transformation of the travel and tourism industry. • Developed the concept of ‘Responsible Tourism’ as a fundamental

Old but Not Out – How to Win and Woo the Over 50s Market

!"


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premise of the South Africa tourism policy and growth strategy in the early 1990s. • Producing one of the most referenced works on travel and tourism ‘Tourism, • Technology and Competitive Strategies’ that one review claims ”should certainly be on the compulsory reading list of all those seeking to advise and direct strategic plan for both old and new tourism destinations”. • Advising Abu Dhabi to ‘stay different’ from Dubai; to focus on its culture, heritage and traditions and to assume its role as a true capital of the Emirates, with an appropriate icon – The Pearl – a pearl-like glass structure on 11 floors, out at sea, that would celebrate the life and times of its late Ruler Sheik Zayed bin Sultan Al Nahyan (1971-2004). • Developed the concept of ‘Compassionate Tourism’ for Malawi. Auliana regularly addresses travel and tourism conferences around the world including Aruba, Barcelona, Barbados, Benin, Brazil, Denmark, Geneva, Greece, Iceland, Hong Kong, Minnesota, Norway, Sweden, Finland, Germany, London, Mozambique, Singapore, South Africa, Washington and many others. An economist by training, Auliana Poon (apoon@tourism-intelligence.com) graduated with a B.A (hons) and and M.Sc (Economics) from the University of the West Indies, Trinidad. She attended one of the leading European Schools, the Science Policy Research Unit at Sussex University (England), where she graduated with a D. Phil (Tourism & Technology) in 1988. Eric Adams, a national of Trinidad and Tobago, graduated with First Class Honours (Mathematics and Economics) from the University of the West Indies (Trinidad). He holds a M.Sc. in Actuarial Science from the University of Iowa (USA) and an MBA (Finance and Investments) from George Washington University (USA). He specialises in tourism and financial forecasting. He was a lead consultant in the development of a Tourism Marketing Plan and Tourism Human Resources Development Plan for the government of Mozambique. Eric assisted the Regional Tourism Organisation of Southern Africa (RETOSA) in building the North American market to Southern Africa. He developed sampling frames and conducted extensive market research in the USA and Canada, as well as detailed statistical analyses of !#"

Old but Not Out – How to Win and Woo the Over 50s Market"


Š Tourism Intelligence International

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actual performance in North America. The exercise culminated with a private sector mission to the USA and Canada. Eric Adams is a Business Consultant specialising in areas of travel, tourism and financial forecasting. He has eight more than 10 years of relevant commercial experience. He is a member of the Associate of the Society of Actuaries and the American Academy of Actuaries. Eric Adams regularly prepares forecasts for the global travel and tourism industry. He prepared Tourism Intelligence International's forecasts - How Germans will Travel 2015 and How the British will Travel 2010, How the American will Travel 2015, How the Japanese will Travel 2007, Impact of Terrorism on World Tourism and Successful Tourism Destinations - Lessons from the Leaders. Kevon Wilson graduated with Upper Second Class Honours from the University of the West Indies (St. Augustine, Trinidad) in 2000, after reading a Bachelor of Science degree in Management and Finance. Kevon Wilson is a Research Analyst at Tourism Intelligence International. Prior to joining Tourism Intelligence International, Kevon Wilson spent two years in London where, apart from pursuing his studies, he worked as a manager at one of the largest UK-based restaurant chains, JD Wetherspoon.

Old but Not Out – How to Win and Woo the Over 50s Market

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TABLE OF CONTENTS

Page No.

Preface

1

iii

About the Authors

v

Grey is the New Gold

2

1.1.

Size of the Over 50’s Market

3

1.2.

An Aging Population

4

1.2.1.

Age Structure of World Population

1.2.2.

Gender Structure of the Over 50s Market

1.3.

Most Lucrative Markets

7 10 13

1.3.1.

Travel Criteria

14

1.3.2.

Over 50’s Market Size

18

1.3.3.

Economic Criteria

20

1.3.4.

Workforce Participation

24

1.3.5.

The Top Lucrative Markets

27

2

Travel Patterns of the Over 50s Market

32

2.1.

Leisure Interests of People Over 50

33

2.2.

Accommodation

35

2.3.

Seasonality

36

2.4.

Length of Stay

37

2.5.

Party Type

38

2.6.

Over 50s Travellers are Internet Savvy

39

2.7.

Trends Shaping the Over 50s Travel Market

41

2.7.1.

Increased Health Consciousness

42

2.7.2.

The Cost of Health Care Provision

44

2.7.3.

Lack of Insurance Coverage

46

2.7.4.

Long Waiting Lists

47

2.7.5.

Stressed Out Lifestyles

47

2.7.6.

Higher Traveller Sophistication

48


3

Understanding the Over 50s Market

49

3.1.

Changes in Income & Expenditure

50

3.2.

Changing Social Roles and Lifestyles

53

3.2.1.

Social Issues

53

3.2.2.

Shifting Lifestyles

54

Health and Wellness

55

3.3. 3.3.1.

Diminishing Physical Abilities

55

3.3.2.

Living Healthier and Longer

58

3.4.

Mental / Emotional State

60

3.5.

Key Lessons for Travel & Tourism Providers

61

3.5.1.

Lesson 1 – Understand Your Customer

61

3.5.2.

Lesson 2 – To Capture the Mature Market, Take Baby Steps First

62

3.5.3.

Lesson 3 – Research, Research, Research!

63

3.5.4.

Lesson 4 – Training is Essential

64

Ages & Stages of the Over 50s Market

66

4 4.1.

Who are the Hippies?

68

4.2.

Who are the Yuppies

69

4.3.

Who are the Bobos?

72

4.4.

Attitude to Wealth

74

4.5.

Attitude to the Environment

74

4.6.

Attitude to Sex and Drugs

75

4.7.

Attitude to Work and Leisure Time

77

4.8.

Who are the Swofties?

78

5 5.1.

Winning Strategies to Wow and Woo the 50+ Consumer How to Attract the Bobos

81 81

5.1.1.

Exclusivity and Individuality

81

5.1.2.

Education mixed with a dash of Excitement

82

5.1.3.

Existentialism

82

5.1.4.

Create the Montana Experience

82

5.1.5.

Social Responsibility

83

5.1.6.

Extravagance with a Conscience

84


5.1.7.

No Effort? No Support!

84

5.1.8.

Be patient!

85

5.1.9.

Emotional Resonance

85

How to Attract the Yuppies

86

5.2. 5.2.1.

Ego-tourism

86

5.2.2.

Stay away from the ‘Same Old’

87

5.2.3.

Spending Opportunities

87

5.3.

How to Attract Swofties

88

5.3.1.

Offer Social Activities

88

5.3.2.

Sensuality

89

5.3.3.

Satisfaction

89

5.3.4.

Safety

90

5.3.5.

Self-sufficiency

90

5.3.6.

Sun, sand, sea and sex

90

Other Winning Strategies

91

5.4. 5.4.1.

Orchestrate Exceptional Experiences

91

5.4.2.

Offer Culture and Content

92

5.4.3.

Cater to Mind, Body and Soul

93

5.4.4.

Create Youthful Imagery

93

5.4.5.

Keep them Active

94

5.4.6.

Comfort is Critical

94

5.4.7.

Senior but not Same

95

5.4.8.

Catch Them Early

95

6

The Saga Strategy to Attracting Seniors

97

6.1.

History & Profile

97

6.1.

Mission & Vision

97

6.2.

Saga Holidays

98

6.1.

Saga Cruises

98

6.2.

Saga Online

99

6.3.

Saga Marketing Strategy

100

6.4.

Key Success Factors

102

6.4.1.

First Mover Advantage

102


6.4.2.

Wide knowledge of the Over 50s Market

103

6.4.3.

Wide Range of Products and Destinations

103

6.4.4.

Focus Strategy

103

6.4.5.

Affordable Prices & Value for Money

104

6.5.

Key Lessons

104

6.5.1.

Lesson 5 – Understand and Anticipate the Needs of your Customer

104

6.5.2.

Lesson 6 – Don’t be Afraid of Technology

105

6.5.3.

Lesson 7 – Solidify Brand Image & Awareness

105

6.5.4.

Lesson 8 – Stick to Your Core Competencies

106

6.5.5.

Lesson 9 – Be Innovative

106

7

The Cruise Industry – Catering to the Over 50s Market

107

7.1.

Growth of the Cruise Industry

107

7.2.

Cruise Growth by Length of Stay

109

7.3.

Cruises are Popular Among Over 50s

111

7.4.

No more same old

114

7.5.

Retirement at Sea?

116

7.6.

Implications for your business

118


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