Leisure
50+
Consumer Marketing European Travel Amongst Aging American Consumers P. 1
A Booming Opportunity The world’s best businesses are consistently outperforming their competition due to their unparalleled ability to anticipate a changing marketplace. Firms that once held dominant market share in an industry can be swiftly dethroned by a failure to adapt and evolve their business model to meet the demands of their clientele. Examples include Kodak, Blockbuster Video, Borders, and Circuit City. Keeping an innovative and flexible corporate philosophy is paramount to the long-term success of any business. Never has this idea held greater importance than today as the sources of new economic growth may be found in select niches. Of particular significance is the Baby Boomer generation, which by 2014 will see the last of its 77 million members cross the fifty year threshold. This generation of American citizens is the largest in terms of size and percentage of the population according to a recent Census Brief (US Census, 2010). Furthermore, by 2015, this segment of the population (fifty-plus) will represent 45% of the United States population (AARP, 2013). And the data most pertinent to businesses is the fact that Baby Boomers control two-thirds (67%) of the country’s wealth, a value of $28 billion (U.S. Census, 2010). Businesses have traditionally treated older consumers as a homogeneous group of senile, sickly, incapable people who are not worth investing heavily in because of their relatively closer proximity to death (Stroud, 2005). This is a dangerously misguided perception, and a strategy aligned with these attitudes towards older consumers will result in missing out on a market opportunity never before seen in American history. An attractive opportunity within the travel and leisure market is European Travel specifically targeting affluent Americans. As previously stated, stereotypes of older consumers are incorrect. Baby Boomers are a vibrant and spirited group of collectively wealthy individuals who desire more out of retirement than nursing homes and shuffleboard. We argue that seniors are motivated by the desire to improve themselves as they age. They desire to expand their individual knowledge, maintain a healthy lifestyle and rejuvenate themselves in an attempt to emulate the age they feel. Collectively, we call this idea the “Mind, Body, and Spirit” experience. Through this paper we propose that affluent Baby Boomer travelers are best targeted with the promise of a “mind, body, and spirit” experience. We present support for this type of travel design by discussing the current state of the travel industry, the biological, psychological and social aspects of aging, and the impact this has on the 50-plus traveler. We explore the pros and cons of traditional and online travel planning and conclude by presenting a new business model and technologies that will appeal to Baby Boomers now and in the future.
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Who are the Baby Boomers? Picture an enormous group of consumers that love to travel and control the majority of the nation’s wealth. Does this sound like a segment worth targeting? Well, this lucrative segment belongs to the Baby Boomers. Fortunately for you, this gold mine of a market segment is not being adequately served. Furthermore, this generation has taken care of their health and still wants to be active (Williams & Page, 2010). Despite their chronological age, Boomers tend to feel much younger than they actually are (Cleaver & Muller, 2002).
Don’t be fooled by their grey hair, Baby Boomers tend to feel up to 11 years younger than their chronological age. (Cleaver & Muller, 2002) Boomers are not like their parents, the silent generation, who have been known as the “retired” demographic for years. Different marketing tactics must be employed to attract these consumers. When developing a travel package for Baby Boomers, we believe there are three characteristics they are seeking from the experience: mind, body and spirit (Hudson, 2010). Baby Boomers control 70 percent of the disposable income in the United States (Martin, 2012). In addition, the European Travel Commission ranks the United States as the number two country worldwide in travel spending (Market Intelligence Group, 2009). Based on information compiled from the Bureau of Labor Statistics, travelers aged 55 - 65 spend the most for several travel services (Travel, 2010). On average, these individuals spend the most per person on trips overall ($325), airfare ($450), alcoholic beverages ($50), and lodging ($450) as compared to all other age groups (Travel, 2010).
$2.3 trillion
The amount of disposable income seniors have. (Esri, 2012) Currently, there are two primary ways Boomers can book the vacation of their dreams. The first option is to go to a travel agent. Baby Boomers like to build relationships with those selling products to them (Leventhal, 1997). A travel
agency provides the human relationship that most Boomers are looking for. However, the travel agency business is one of the top ten middle-class job segments that are declining (Goudreau, 2011). The second option for booking a vacation is using the Internet. A simple search on Google for the word “travel” produces over 3 billion results and a myriad of advertisements for travel websites. How will a Boomer select the right booking website? Will they click on the first website Google selects for them and book their trip on Travelocity, or will they go with the website their fellow baby boomer William Shatner promotes on television, Priceline (n.d.)? There is also the option of booking through the AARP website, which utilizes Expedia and provides discounts to AARP members (AARP, 2013). The relaxation, discovery, and excitement of travel can be enjoyed in a multiple of ways. Consumers can travel by car, boat or plane, but when it comes down to that extra special experience, Europe is truly the place to be. There are cornucopias of activities that can be enjoyed in Europe. In 2009, the European Travel Commission forecasts that both the spa/wellnetss and river cruises segment will grow in popularity. The Commission is also advocating the creation of cultural-themed packages focusing on art and architecture (Market Intelligence Group, 2009). Other themes of activities include: spiritual, historical, rejuvenation and adventure. Some spiritual activities include visits to monasteries, churches and holy lands. Visiting castles, battlefields, museums and educational side trips are enjoyed by those seeking historical activities. Spas, cooking classes and wellness seminars can round off a trip focused on rejuvenation of the body and soul. For those looking for adventure, Alpine skiing, vineyard tours, river cruises and bicycling could lead to an amazing European adventure.
A Glimpse Into the Mind of the Aging Consumer In examining the psychological reasons that surround the aging consumer’s desire to travel, the location, duration and overall success of each vacation they experience must be evaluated. Understanding what makes a vacation a positive memory for this growing cohort is essential for the continued success of travel agencies and tourism all over the world (Ahn and Janke, 2011). As research starts to emerge detailing the specific ways one can create a memorable experience for the 50+ consumer, we discover how these individuals are more interested in meaningful and authentic experiences that occur over the duration of their travel (Ahn and Janke, 2011). As Boomers are not willing, and often financially unable to submit to the retirement culture that dominated the generation before them, many “seek satisfying second careers with flexible schedules” to keep them involved in society (Landau, 2010). This involvement allows these individuals to stay current with technology and social conventions, and thus demand to be treated like their younger counterparts while vacationing.
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Social Because of the declining amount of money in their pension plans and retirement support systems, Boomers also look to create experiences that add value to their lives and provide a reason to continue living an active lifestyle. As Boomers realize that they can expect to live another 30 years after leaving the workforce, they are forced to acknowledge that a life of pure leisure, with no challenge or stimulation, is both unaffordable and boring (Landau, 2010). Overall, many Boomers want to have an engaging and educational experience. They desire to stay young and maintain a healthy lifestyle while also continuing to learn late into adulthood (Ahn and Janke, 2011).
Biological Understanding this aspect of Boomer’s expectations is critical for future vacation planning. Companies must realize this generation is not the frail and quiet consumer they have previously stereotyped them as, and they need to provide excitement and unique experiences if they want to gain loyal customers. This current generation of consumers is healthier, wealthier and more educated. Also, there is a burgeoning interest in experiencing events that are meaningful and add to their life experiences. Many existing vacation agencies are unable to adjust to the demands of consumers causing problems to surface within the current structure such as stifling group travel packages and uncomfortable seating arrangements for long flights (Ahn and Janke, 2011).
Psychological Another important issue concerning the relationship between Baby Boomers and traveling is how vacations affect the cognitive age of those consumers. While in the past, many of our older citizens reported a subject age that was higher than their chronological one, the Baby Boomer generation has reversed that trend as around 70 percent of people over the age of 60 feel younger than their chronological age (Cleaver and Muller, 2002). P. 4
It is crucial that marketers of vacation travel services understand the growing divide between subjective and chronological age as it allows vacation planners to understand why certain individuals want to participate in activities typically reserved for people that are a decade younger than them. Also, it is found that through vacations, Baby Boomers undergo an even further dip in subjective age as they are able to feel engaged and excited through vacations, Boomers undergo an even further dip in the subjective age as they are able to feel engaged and excited through meeting new people, being exposed to new cultures, and doing things they have never tried before. As this cohort values excitement and fun, we realize that those are predictors of how an individual may feel younger than they really are and more connected to experiences that are usually associated with a younger segment (Cleaver and Muller, 2002). We qualified these findings by hosting a focus group to learn what Boomer’s reasons for traveling were and what they look for when designing their own vacations. All participants noted that they were concerned about comfort and safety, but they also placed great value in being able to explore and have learning experiences (Focus Group, 2013). Specifically, one of the male participants noted that he highly values the social experience found while traveling and enjoys the “sense of discovery and meeting the local people” which he states can only be found through freedom while traveling (Focus Group, 2013). Another interesting point that all participants shared was the desire to travel during the off-season. They would rather risk poor weather to enjoy a less crowded experience. Also, this is considered more enjoyable as they value the local culture rather than being inhibited by what they are ‘supposed’ to do while on vacation (Focus Group, 2013). Furthermore, we learned how they enjoy using technology to learn about and plan their vacations beforehand, and place a higher importance on individuality rather than leaving their experience to the hands of a professional planner. Overall, we found that the majority of Boomers do not wish to waste their remaining years and, as such, they continue to strive for personal growth and learning about other cultures. Additionally, we learned how Boomers are willing to pay a little extra for the added comfort in recognition of their changing biological state. To understand the needs of this generation and appreciate the high energy and spirit usually found in people over a decade younger, this industry limitations to reinvent the ways it advertises to this consumer base. To create a successful product for this cohort, firms need to find a way to merge the limitations of the inevitable aging process while also fulfilling the desires of the cognitive demands of these consumers.
The Current Travel Scene Consumers have two primary options when booking a trip; they can search for a travel agent, or search the web for an online booking service. With dozens of online booking websites, it can be difficult to select one that is dependable. Sticking with the most popular sites is a simple way to go. The top three online travel sites are: Expedia, Priceline and Orbitz. In the year 2012, Expedia was the top online travel agency (Mongano, 2013). Expedia’s portfolio also includes Hotwire. Expedia provides a full service travel operation which allows consumers to book airline tickets, reserve hotel rooms, rent cars, and more, all in one place. For consumers, the benefit is convenience, along with a price match guarantee (Expedia). From a Boomer perspective, Expedia is also the travel site utilized by AARP (AARP, 2013). Priceline is the second-largest online booking website (Mongano, 2013). Priceline utilizes Baby Boomer William Shatner as their celebrity endorser. Using a Boomer in an advertisement is an
customer is the Orbitz low fare promise (Orbitz, n.d.). In 2001, Chris Chiames of Orbitz predicted that traditional brick-andmortar travel agents would disappear in a decade (Jones, 2011). Though brick-and-mortar travel agents are in decline (Goudreau, 2011), they are not extinct. Needless to say that the online boom has hurt the brick-and-mortar travel agency market, they still have a loyal following. Forrester Research conducted a survey to find if people still believed in traditional brick-and-mortar travel agents. They concluded that 29% of leisure travelers would prefer to work with a travel agent if they were able to find a good one (Jones, 2011). Traditional travel agents provide a relationship with the customer, and Baby Boomers enjoy relationship-based marketing. Customer service is the key to retaining Boomers as your customers. They rely heavily on word-of-mouth. This can become tricky, because if an enjoyable vacation is experienced, they will tell three other people. Conversely, if the vacation goes poorly, they will be inclined to tell ten or more people (Leventhal, 1997).
Arthur Beach, 66, and his wife wanted to take a cruise during their trip to Europe. They ended up boarding the ill-fated Costa Concordia in Barcelona, Spain. The Costa Concordia ended up running aground off the coast of Italy. Once Beach escaped the sinking ship, he knew he wanted to head back home. Beach was dealing with the hassles of obtaining temporary passports, so dealing with airlines and hotels was the least of his worries. What Beach did was call his travel agent, Jackie Berube, in Albuquerque, NM. Berube was able to book a hotel close to the Barcelona airport and reschedule Beach’s return flight almost immediately. (Hetter, 2012) effective way to market towards that demographic (Stroud, 2005). The key benefit that Priceline provides to its customers is the “Name Your Own Price®” function which allows users to negotiate the price they ultimately pay (Priceline, 2013). Orbitz is another online travel agent whose key benefit to the
There are five considerations that must take place when creating a travel package for Baby Boomers: pace of tour, comfort, tour guides, coverage and medical concerns (Langton, 2008). Whereas a 20-year-old might enjoy visiting multiple destinations in one day, the aging traveler enjoys a slower pace. Comfort is a necessary consideration for Boomers. Young travelers might not P. 5
mind being packed into a hotel room and sleeping on the floor, but the Boomer may not enjoy that Boomers need to explore and experience the moment; therefore, the pace of tours may need to be adjusted. The tour guide must also understand Boomers. The pace of the tours needs to be considered. The amount of time in a certain destination is also essential with Boomers. A slower pace may not be due to medical reasons; the Boomer may have visited that destination before and wants to savor the memories. Finally, medical concerns must be considered by the travel agent. The agent should not schedule activities that would put the consumer at a medical risk. Also, the agent should communicate any prior medical concerns to anyone on the trip, such as tour guides or hotels, in order to make the necessary accommodations.
A True European Vacation Typical travel agencies provide tours that include ground transportation, accommodations, most meals, field trips, sightseeing, and tour guides. Smartertravel listed the top five senior-friendly tour operators (Feltner, 2006), which all provide good value to mature travelers who want to experience the most appealing attractions at a leisurely pace. Road Scholar (formerly known as Elderhostel) is a not-forprofit organization dedicated to providing extraordinary learning adventures for people 55 and over. These trips are often packed with seminars, lectures, field trips, and sightseeing, all led by academics or expert tour guides. Learning is at the heart of these trips. Trips range from one to four weeks. An example of such a vacation is a traditional two-week American tour to Italian cities which includes Rome, Venice, and Florence. Travelers to these cities will enjoy the experience of visiting famous sites such as the Pieta, the Sistine Chapel, the Coliseum and the Borghese Gallery, as well as art establishments such as the Uffizi, and gondola rides through the canals of Venice. In addition, travelers can also attend lectures on early Christian churches, the history of Roman architecture and the politics of ancient Rome (Merfeld, 2013). The price is high, $4,395 per person for the 14-day tour, but customer reviews are highly positive. From the reviews by consumers, we discover this vacation is “wonderful” and “outstanding”. It provides the best possible opportunity to understand and appreciate Italy’s rich history and extraordinary art and architecture. However, the intense physical requirements of the tour are at times underestimated by senior travelers. “Rome was the most physically strenuous city, with a lot of walking including hills & steps. Even the “close” sites required quite a bit of walking.” (Road Scholar, 2012) Grand Circle Travel offers land tours, river cruises and ocean cruises to older Americans, it was started by Ethel Andrus, the P. 6
founder of AARP. The company promised to offer affordable tour packages and unique cultural experiences to their travelers on every trip (Feltner, 2006). For instance, tours may include homehosted meals with local families, language lessons, or visits to neighborhood schools. Grand Circle Travel offers the 16-day river cruise trip that transports travelers through four different popular European countries, including Germany and Austria (Merfeld, 2013). Travelers tour the canals and visit the Rijksmuseum in Amsterdam, and they also witness glassblowers at work and visit with a local family in Wertheim City. While the price of this trip is very competitive, from $3,770 per person including international airfare, there are various complaints about room assignments, the quality of local meals and customer service. Also unpopular was a lack of specialized care for disabled travelers (Travelers’ Review, 2013a). Grand European Tours has provided guided tours and river cruises to mature Americans for over 30 years (Grand European Tours, 2013). The European and Mediterranean tours include plenty of built-in features which attract senior travelers in particular. All tours are designed to proceed leisurely. Travelers stay two or three nights in each city, which allows them to explore a city in-depth and still have time to relax. For a more leisurely option, travelers could stay four or more nights in one city. Portable headsets are provided by the company to help senior travelers hear the trip leader clearly, even in noisy environments (Feltner, 2006). Another example of a typical tour is one focused on Western Europe and offers sightseeing in London and Paris. Travelers can visit the House of Parliament and the Louvre (Grand European Tours, 2013). The company provides full days for you to explore the sights on your own as well as first-class accommodations with multilingual staff and Internet access. Complaints arise with this package as well. Travelers described that “a lot of included items are now “optional” at a very much higher price” and “if there was a complaint it was that we stopped at too many shopping marts” (Travelers’ Review, 2013b).
Putting the Pieces Together The travel market is still too structured toward catering to the needs of the Silent Generation, the parents of the Baby Boomers, but it must now evolve to suit the distinct wants of Baby Boomers. The Silent Generation enjoyed passive, sedate travel experiences, and Baby Boomers desire an active, engaging European vacation that allows for physical, mental, and spiritual enrichment (Lehto, Jang, Achana, & O’Leary, 2008). Baby Boomers are embarking on European vacations in the hopes of creating new self-identities (Hudson, 2010). They see travel as a way to engage in social activities and to maintain their bodies and minds (Nedelea, 2008), and they share similar socio-economic life events that define them as a cohort (Hudson, 2010). However, it is essential to not perceive Baby Boomers as a total homogeneous consumer segment (Lehto, Jan, Achana, & O’Leary, 2008). There are also multidimensional psychological aspects of aging that must be considered when designing travel experiences and activities for this coveted segment (Lehto, Jang, Achana, & O’Leary, 2008). Travel agencies and tour operators must create highly customizable European travel packages that are centered on experiences and activities that incorporate three separate themes: mind, body, and spirit. The mind theme is based on social interaction and continuing learning. The next theme, body, entails physical activities that are currently popular amongst Baby Boomers, which will provide them with a novel means to experience Europe destinations. Lastly, spirit is a broad theme of activities and experiences that is meant to inspire both religious and secular travelers. These three themes will provide a framework to construct European travel packages that appeal both to the cohort’s desire for personal enrichment and an individualized travel experience. Personal trip customization will be made online through a website or mobile app based trip planner, which may be guided and finalized by a dedicated travel concierge.
The Mind-BodySpirit Solution
Mind
Baby Boomers see retirement as a period of intellectual reinvigoration with 85 percent reporting a desire to continue learning while 51% wish to reinvent themselves (Hudson, 2010). The European vacation experience must include learning as a vital component. To satisfy this desire for continuing learning, hands-on or discussion courses could be scheduled at European universities or artisan workshops. Some of the course topics could cover art, cuisine, or history. Educational or learning experiences need to be engaging and interactive, and not just a typical passive museum tour. Socializing is also an important leisure activity for Baby Boomer (Lehto, Jang, Achana, & O’Leary, 2008). Therefore, a discussion class or hands-on workshop is a great opportunity for social interaction amongst Baby Boomers. CONTINUING LEARNING 85% of Baby Boomers have a desire to continue learning during retirement. (Hudson, 2010)
Body Chronological age does little to explain the preferences of Baby Boomers because they feel young for their age, but are still self-conscious about their health and wellbeing (Hudson, 2010). Consequently, travel is seen as an activity to promote personal health (Nedelea, 2008). Surveys indicate that Baby Boomers want outdoors/nature based experiences that are physically engaging (Lehto, Jang, Achana, & O’Leary, 2008). It is essential that European travel activities offer enjoyable physical exercise. These exercise actives need to have a health improvement aspect, which can be accomplished by providing biometric measuring devices such as pedometers or heart monitors. These measuring devices will enable travelers to evaluate the physical impact of their daily activities. A few travel experiences that Baby Boomers want are swimming in the ocean, downhill skiing, and recreation biking (Figure 1). These examples illustrate opportunities for European experiences that allow travelers to enjoy nature or city architecture that is distinctive to their location while being actively engaged. P. 7
FIGURE 1 Travel Activities Participated by Baby Boomers and the Silent Generation BABY SILENT BOOMERS
1) Kayaking of Canoeing 2) Working Out in a Fitness Setting 3) Hiking or backpacking 4) Horseback Riding 5) Downhill Skiing 6) Swimming in Oceans 7) Concerts (Rock & Roll, popular) 8) Amusement Parks 9) Camping 10) Professional Baseball Games (spectator) 11) Recreational Biking 12) Going on Picnics in Park Settings
GENERATION
14.7 20.2 25.5 15.3 13.2 49.1 23.2 39.9 30.4 26.3 18.6 46.5
9.1 15.3 15.0 8.6 7.8 40.4 16.8 29.1 19.1 22.6 14.3 38.9
Lehto, X. Y., Jang, S., Achana, F. T., & O’Leary, J. T. (2008). Exploring tourism experience sought: A cohort comparison of Baby Boomers and the Silent Generation. Journal of Vacation Marketing, 237-252.
HIKING & BACKPACKING
26% of Baby Boomers compared to 15% of the Silent Generation surveyed desired this travel experience. (Lehto, Jang, Achana, & O’Leary, 2008)
Spirit Baby Boomers seek authenticity and connections with the local resident of their host country (Hudson, 2010). This can be fulfilled by providing an authentic experience that inspires personal motivation by allowing them to connect with historical figures that have struggled with adversity. Unique experiences should be developed to target secular and religious travelers. A religious experience could entail learning about life and historical contribution of Martin Luther during a bible study course with a local monk. While a secular tourists can participate in a discussion about the work of Nicolas Copernicus at the University that Copernicus studied at as a student. These experiences must be unique to each specific country, and must incorporate interactions with local residents who are experts in their respective fields.
FAITH-BASED VACATIONS
Religious-based travel is a $18 billion industry. (Hudson, 2010)
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Virtual Trip Planner— Website and Mobile Apps The internet plays a pivotal role in the planning and booking of travel arrangements for Baby Boomers (Hudson, 2010). Airline ticket information search and booking to Europe is largely done over the internet through personal computers (Market Intelligence Group, 2009). As of December 2012, 77% of Americans 50-64 and 54% of Americans 65+ were regular internet users (Figure 2).
FIGURE 2 Demographics of Internet Users % of American adults within each group who use the Internet
Men Women Ethnicity White, Non-Hispanic Black, Non-Hispanic Hispanic Age Range 18-29 30-49 50-64 65+ Education No High School Diploma High School Graduate Some College College Degree Annual Income Less than $30,000 $30,000 - $49,999 $50,000 - $74,999 $75,000 +
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activities within the themes of Mind, Body, and Spirit. Visually and functionally, this can be accomplished by creating a three column layouts with drop down menus or clickable icons that are representative of an activity. At the end of the trip creation process, a travel concierge who works for the travel operator or travel agency will send a personalized confirmation email to the customer that details the trip’s itinerary. Also, using the virtual profiles, the travel concierge may, on request, match like-minded Baby Boomers for group activities. An example of a mobile application can be found in Figure 3.
FIGURE 3 Mobile Display
84 73 74 94 89 77 54 51 74 89 95 67 86 90 98
Pew Research Center’s Internet & American Life Project (2013). Demographics of Internet Users. Retrieved from Pew Internet & American Life Project
These statics indicate that Baby Boomers will likely plan and book their European vacations online through a computer or internet-enabled mobile apps. Tour operators need to develop websites and mobile apps that enable comprehensive trip planning and booking. These interactive mediums can be designed to create personal virtual profiles of each traveler, and allow the organization and selection of experiences and P. 9
Expand and Evolve: The Final Frontier Moving forward, we believe there is a tremendous opportunity for growth and expansion under the proposed business model. We recognize the lucrative target market that is the Baby Boomers (both in size and spending power), and with the final members of this generation crossing the fifty-year-old threshold in 2014, our window of opportunity extends at the very least for another twentyfive to thirty years. During this time, there are two key areas of growth to explore: expansion and digital evolution Expansion Europe was the natural choice as our destination because of its already-booming tourism industry, as well as the safety that comes with vacationing in developed nations. However, there exists a whole world to explore, and with the ease of accessing incredible photos from the most exotic destinations, demand will certainly shift towards trips across the globe. Safety will be a primary concern, which pushes Middle Eastern countries to the bottom of the list of potential destinations. However, South America, Australia, East Asia and developed areas of Africa are all viable locations. Digital Evolution Technological advancements are occurring more rapidly than ever before, and we must utilize those that best suit our clientele. Currently, mobile and tablet optimization are top priorities, but moving forward, any new technologies that lead to a better experience for consumers should be incorporated into our service offering. Technologies must be proven to work and reliable, otherwise we risk alienation. They also need to be simple enough to learn, (if Boomers are unfamiliar with it) and there must be a willingness to use the technology (either before or during their vacation). The Baby Boomer generation is a unique and lucrative market. The wealth and size of this group of consumers is unmatched in American history and appears to have no comparison in the near future. The opportunity at hand is remarkable, and firms that understand the needs and wants of Boomers will reap the rewards.
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Appendix A
Appendix B
Coney and David Krazewski are 61 and 62 year old retired businesses owners who live in Savage, an upper middleclass suburb of Minneapolis, Minnesota. They meet at Cornell University while studying for their undergraduate degrees. Coney and David are agnostic, but come from households that are devout Polish Catholics. Tennis and swimming are daily activities for the couple, as they are both physically healthy and enjoy fitness.
James and Linda Anderson are a recently retired couple who live in an affluent area of Burbank, California. James was a successful real estate agent and Linda spent her entire career in human resources. James and Linda decided to take a trip to Rome, Italy for their 40th anniversary. They did not know how they would go about booking their vacation until one day they saw a commercial featuring William Shatner as the Priceline negotiator. At that moment, they knew they would use the internet to book their trip. However, the couple did not own a computer.
A Delightful Little Vacation
For their 40th anniversary, Coney and David planned a two week trip to Europe. Since they are both of Polish ancestry, Poland was chosen as the destination country. They used a popular tour operator website to create virtual profiles of themselves. Next, they choose either independent or group experiences and activities that were under the themes of mind, body, and spirit that were separated into separate columns. A travel agent then matched Coney and David with three other likeminded couples. Their two week trip to Poland would include self-guided cycling tours of Warsaw and the countryside as well as group activities that included a mini-college course to study Nicolas Copernicus at the University of Collegium Maius. Four-star hotel accommodations and transportation were arranged by the tour operator and were included in their travel package. Flights to Poland were self-arranged.
A Trip Gone Horribly Wrong
Their neighbor’s son Scott was home from college one weekend, so Linda asked him to help book their vacation. Having never booked a trip online, Scott decided to search the word ‘travel’ on Bing, a search engine. The first result that came up was Bing’s own travel reservation website. Scott found a very inexpensive flight from LAX to Rome during November. He also booked a sightseeing tour, a trip to the Vatican and their hotel. It was now November and the time had come to depart for Rome. Upon arriving at LAX, they encountered their first inconvenience: the flight was not direct and they had to switch planes in Philadelphia. They did not see this as a major inconvenience at first, thinking it would be a good time to stretch their legs and eat some decent food. Upon boarding the flight in Philadelphia, there was a delay due to engine troubles. James and Linda where stranded at the airport until a replacement plane arrived 6 hours later. Once in Rome, James and Linda went to the hotel Scott had booked. Since their flight was delayed, they had arrived at an odd hour and the front desk was closed. After several hours spent napping in the lobby, the front desk finally opened up, but they were having issues finding their reservation. It was eventually found, but Scott accidentally booked the hotel in Palermo, Italy. The hotel offered to fix the error since there was still vacancy, but unfortunately the hotel in Rome was significantly more expensive. Already a day behind, James and Linda rushed to get ready for their 1 pm tour of Rome. However, due to their lack of sleep, neither James nor Linda was able to completely enjoy the tour. The next day they awoke rested and ready to enjoy their tour of the Vatican. Unfortunately, they were met with long lines, a tour guide who had difficulty speaking English, and an impeccablytimed afternoon rain shower. The trip was not turning out as the dream they envisioned.
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AUTHORS Ryan Dickey, MS Gerontology Robert Djakovic, MBA Rigoberto Gil, MBA Brandon Learish, MBA Ai-shuan Lee, MBA Jie Yang, MBA
Mihaylo College of Business and Economics
GRAPHIC DESIGN
800 N. State College Blvd.
Howard Tran, MBA
Fullerton, CA 92834
ACADEMIC SPONSOR & EDITOR Susan Cadwallader, Ph.D. Associate Professor Department of Marketing Mihaylo College of Business and Economics (657) 278-7565 scadwallader@fullerton.edu © 2013 California State University, Fullerton Publication date: June 2013 CSUF and the CSUF logo are registered trademarks of California State University, Fullerton, an entity of the California State University system.
50+
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About the Research In our journey to learn how to market travel services to the 50+ consumer, we used several research methods. The first step we took was to interview various family members and others in different age segments. By asking them questions about their perceptions concerning travel and the experiences they shared, we began to discern what needed to change and how that change could be achieved. Second we hosted a focus group with members of the Osher Lifelong Learning Institute (OLLI) associated with CSU, Fullerton. We learned that the ‘one-size fits all’ travel planning and experience models for seniors are obsolete. In addition to meeting members of the cohort, we sought the advice of Dr. Melanie Horn Mallers, Assistant Professor in the Department of Human Services and MS Gerontology Faculty (Mallers, 2013a; Mallers, 2013b). Dr. Mallers provided feedback on our research plans and recommended different techniques we could apply to create a successful paper. We also gained knowledge from business leaders in the local community that gave presentations to our class, such as Don DiCostanzo, the CEO and Co-Founder of Pegego Electric bikes (DiCostanzo, 2013). Finally, after gathering our firsthand accounts, we delved into the existing research pertaining to specific issues facing the aging traveler, and reviewed existing websites to compare and contrast the ways that trips are marketed and created online. Our goal through this extensive learning experience was to create a travel service that not only expands the current set of options for the 50+ consumer but delivers a holistic mind, body, spirit experience for them.
Consumer Marketing