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The growth in numbers of our older generation is one of the most significant shifts in society in recent years and these changing dynamics are altering the face of travel around the world. This new ‘Third Age’ market segment, their opinions and huge spending power, can not be overlooked – they herald a golden opportunity for the travel industry, for agents, operators and facility providers alike.
The over 50’s form an increasingly complex and diverse group with enormous influence and spending power. In the UK, approximately 42% of all adults are 50 plus, that is around 20 million people and the over 60s now account for 20% of the population. It is claimed that the over 50’s (according to Older, Richer, Wiser Conference 2006) now control approximately 80% of the country’s personal wealth, and account for 40% of consumer spending.
In the US this ‘Third Age’ is set to exhibit the strongest growth of all demographic segments in the next five years, generating a group representing over one-quarter of the total population. As of Spring 2006, nearly 68 million people in the US were 55+ and various estimates show the 50+ crowd control over 70% of disposable income, and to wield $1.6 trillion in spending power.
“Senior travellers are one of the most interesting sectors in Sweden right now,” says Johan F Lundberg, ITTFA President and Exhibition Manager for TUR. “In a few years there will be more than 3 million people over 55 years, which represents 30% of the total population in Sweden.”
Lundberg continues, “As well as an increase in numbers, there are also notable changes in the behaviour and demands of this market segment. These days Seniors now spend more money on themselves than before, not just on their own trips but also together with their families and grandchildren. They are also very experienced travellers, most of them having travelled for many years. “
“Recognising this new market, the Swedish Exhibition Centre started a specialist senior exhibition two years ago, where travel is the biggest product sector at the fair. “
There is no doubt that people are living longer and enjoying a much more active, better quality of life – the swinging 60 year olds are the new 40’s. These consumers are relatively rich in travel experience, blessed with free time and often savings, to spend on holidays and regular or extensive travel.
In order to target the over 50’s as a consumer group, travel companies need to gain a closer understanding of this age group, their lifestyles, their histories and interests and adapt marketing plans accordingly.
Largely liberated from their children this group have unprecedented freedom, but it would be ineffective to assume that once the threshold of 50 has been passed, this consumer group should all be treated the same. True, this mature market is racially and culturally less diverse than younger generations, but it spans 40 or so years and embraces generations of socio-cultural, political, and technological revolutions, not to mention a vast array of lifestyles, financial situations, health concerns, career choices, education levels, and family dynamics. In the mature market, parents and children suddenly become peers; some are retired, others still in full time employment; some run marathons, others are frail and need special care.
However, whilst the needs of a 55-year-old can be very different from those of an 85-year-old, there is almost certainly a common bond in the desire for independence, mobility, and new experiences. In this respect, travel and leisure activities offer endless opportunities for this segment, who, like many of the younger generations, are more interested in doing than acquiring and are looking at rewarding themselves for years of hard work.
Do not be misled into thinking that this generation are sitting ducks waiting for operators to sell them any old package. The 65+ segment may be somewhat less open than younger generations to Web surfing or text messaging, but mature adults are now well versed in new technology and are becoming experienced in self packaging, as well as research and booking online. In 2002 a fifth of UK internet surfers were over 50; now that share is over a quarter*. Creating 50+-friendly communications channels is important and wireless communications, larger print capabilities and technologies that assist hearing or sight impaired consumers, all help marketers to reach their target audiences.
For many, the worries of heavy mortgages are in the past and there is income available for purchasing property abroad and time enough to spend enjoying it. Home ownership overseas, as well as the ever increasing geographical dispersion of children and grand children, is another factor that has led to an increase in the desire and need for travel.
Finally, the importance of encouraging healthy lifestyles is just as important in this age group as in any other and the growth in health and fitness related travel applies here too as more seniors take up healthy pastimes. As well as spas and wellness centres, preventative treatments, private health care abroad and even cosmetic surgery are all motivating factors for the over 50’s.
In order to succeed, it is therefore essential that holiday companies adapt to provide the over 50s market with opportunities that are appealing, accessible and original. Trips that reflect their wanderlust, capture their imagination but also meet their specific needs in a mature and uncomplicated manner. This Third Age of travellers can only get bigger and more powerful. In order not to miss the boat, train or plane, companies need to get on board now and embrace a whole new generation.
ITTFA, International Tourism Trade Fairs Association, represents some of the best travel trade events worldwide.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
