Experiential Tour Trends Market Potential for Baby Boomers

26 Pages·2009·0.16 MB·English

1

Experiential Tour Trends  
Market Potential for Baby Boomers 

Prepared by eastwick marketing
www.eastwickmarketing.com

Copyright©2008 Eastwick Marketing, Conshohocken, PA
This report contains proprietary information and data and shall not be duplicated, used
or disclosed without express written permission from Kimberly Stever
2

Market Research prepared by eastwick marketing 
July 2008 

Table of Contents 

Executive Summary 

I.  Introduction       

II.  The birth and life‐path of the Baby Boomers 

III.  Travel Attitudes and Characteristics of Matures and Boomers 
A.  Similarities 
B.  Differences 
C.  Conclusion 

IV. Boomer Specific Characteristics that Impact Travel 

V.  National Visitation Trends of Matures and Boomers 
A.  Future Travel Plans 

VI. Experiential Tourism 
A.  The Foundation of Experiential Tourism  
B.  Levels of Experiential Tourism 
1. Behind the Scenes 
2. Hand‐on 
3. Immersion or Inclusion
3

C.  Key Components of Experiential Tours 
Experiential Tour Domestic Initiatives 
Product Overview 
Product Development 
  D.  Best Practices 
Product Development 
Product Mix 
Member Engagement 
Marketing Strategy 
Experiential Trends 

VII. Overview of PA Target Market Population 
1.  Core Markets 
2.  Secondary Markets 

Methodology 
Conclusions 
VII. Boomer wants of Experiential Tours 
Conclusion 

IX. Marketing Experiential to the Boomer 
Conclusions
4

Executive Summary
Experiential Tours will be a highly sought experience for Baby Boomer approaching or
in retirement, just as it was for their parents’ generation because educational travel in
many forms, answers the deep-seated urge of self actualization that all aging people have
who are lucky enough to have their basic needs of survival met.
For Boomers, the “style” and some other aspects of how the experiential travel product is
packaged and delivered will need to change.
Because many Boomers will continue to work at least part time past “normal” retirement
age and because financial security will be a greater concern for Boomers than it was for
their parents, travel must be shorter to fit into busy schedules and keep price points
affordable. For destinations and cultural venues this means focusing on drive markets
that can be reached in 1-2 days instead of 7+ day tours. Specifically PA located
destinations must market ET to the primary markets of Philadelphia, Pittsburgh,
Baltimore, DC and New York Metro regions. Already a popular day trip or 1 night
excursion, ET must be engaging enough to warrant overnights from popular drive
markets.
The challenge of the ET initiative will be working within the confines of the existing
group tour industry. Consumers will be the primary drivers of this market; tour operators
are reluctant to make changes in “tried and true” product that might require re-tooling and
training within their current operations. Many of tour operators are unfamiliar or ill-
prepared to deal with this transitioning market.
To fit the independent, anti-authoritarian, less group-oriented “style” of the Boomers
experiential travel, tours must meet the following specification.
(cid:131) Small group size (10-20 people).
(cid:131) Immersive experiences or Hands-on learning with behind the scenes access
(cid:131) “On theme” meals and accommodations
(cid:131) Plenty of free time built into the schedule
(cid:131) Options of activities
(cid:131) Lots of activity
5

Product development should focus on genuine and authentic ideals with high levels of
activity and interaction with experts or locals. Each entity must differentiate and
establish the region in this genre of tourism.
Other destinations offering ET programs have not developed a sell through strategy and
appear to be accepting member-driven programs to populate a category rather than
determine the strongest ET components as core program components.
Destinations have the opportunity to work closely with it’s membership to insure a
quality visitor experience; members must realize that these programs cannot be the
former offerings repositioned and must provide an experience visitors do not have access
to at home or by means of a public visit.
Reaching the Boomer market will also necessitate initiative and creativity These initiatives
could include:
(cid:131) Internet marketing
(cid:131) Focus groups
(cid:131) Blogging
(cid:131) Consumer Magazine Advertising
(cid:131) Familiarization tours for operators with a focus on what ET is and how to sell it
(cid:131) Co-op marketing with select tour operators
In conclusion, the timing is excellent to launch its ET initiative. The program should be
well timed with consumer internet, industry advertising and membership communication
to insure a cohesive marketing effort.
6

I. Introduction

The purpose of this paper is to assist clients in marketing to the emerging market of Baby
Boomers and specifically marketing Experiential Tours (ET) to this market segment
within the parameters of group travel.

To accomplish this, it is important to understand the roots of Baby Boomers, how they
differ from the traditional group tour market of Matures and finally, how to market ET in
a way that will build affinity for a culture, art and history of a specific region

II. The Birth and Life-path of the Baby Boomers

It began literally and figuratively with Matures, the generation born between 1928 and
1945. This generation experienced the intensity of World War II at an impressionable
age, enjoyed decades of a strong dollar and the advent of affordable air travel. Matures
redefined what it means to be old in our society. With these influencing factors and
opportunities, Matures branched out into new directions, traveling with groups of people
to experience an educational adventure, observing different cultures in the safety and
comfort of their peers.

It’s important to remember that the Matures, the parents of the Baby Boomers were the
generation that invented and defined group travel as we know it today. Matures are
hearty, curious and tenacious; often active into their seventies and eighties. This
generation introduced group travel to their children as a “must see, must do” component
of life.
Matures were the generation that created AARP and Elderhostel, organizations that cared
for, advocated for and educated a generation that wanted to age with benefits not
available to their parents. It is this environment of betterment and benefits that set the
stage for the next generation, the Baby Boomers
Baby Boomers are the largest and most self-aware generation in American history — the
78 million Baby Boomers born between 1946 and 1964 are approaching traditional
retirement age.1

1 US Labor Bureau of Labor Statistics 2005 Consumer Index
7

Baby Boomers, by magnitude of their sheer size are bound to make the next period of the
American social experience different in expected and unexpected ways; travel is very
much a part of this social experience and will also experience change. The United States

Census Bureau projects a dramatic increase in the number of resident Americans aged 65
and older in the coming decades; even the Bureau’s “moderate” scenario forecasts a
116% increase in the next 45 years.2

This more than doubling of the over-65 age group in the coming decades from 36.2
million in 2005 to 78.9 million in 2050 is a dramatic and significant occurrence beyond a
mere bulge in a population pyramid. The major force driving this increase is the aging of
the Baby Boomer generation; the first Baby Boomers turned 60 in 2006, and each day in
2006 another 7,918 Baby Boomers — 330 each hour — reached that milestone age.

For the next nineteen years, one Boomer will turn 60 about every 7.5 seconds. This
demographic tidal wave will impact the travel industry with greater impact than the aging
of any previous generation. Boomer values and trends will dominate marketplace
realities including health, retail and travel.3

Even as the Boomer travel patterns have been influenced by the Matures, today’s
boomers are dealing with a different set of opportunities and challenges. Boomers are
often caretakers to their parents and children, wrestle with a sometimes sputtering
economy and are part of a diverse cultural society.

Boomers also represent a significant revenue opportunity. This generation has a
propensity to outspend younger generations by $1 trillion per year on goods and services;
Boomers have $750 billion in annual discretionary income and a willingness to invest in
travel. 4

Given the enormity of the economic opportunities, plus shrinking of the market segment
including adults 18 to 34, today’s enlightened marketers are committed to reaching
Boomer customers.

2 ibid
3 ibid
4 “The Sky’s the Limit” AARP
8

III. Travel Attitudes and Characteristics of Matures and Boomers

Matures and Boomer
Travel is an important part of the lives of Boomers and Matures. According to the 2005
U.S Consumer Expenditure Survey, older Americans spent over $192 billion in travel5.

A group of 30,000 people between the ages of 42-87 (a mix of Matures & Boomers) was
recently surveyed by AARP, generating a comprehensive base of data that spans the two
generations.

When asked about their personal “big picture” of life, their goals and aspirations, about
half of Baby Boomers and one-in-three Matures expressed that they wish to travel and
explore the world. Travel is not a distant goal, it is part of their present life and they fully
expect to fulfill this desire.6

Similarities
Boomers and Matures are frequent travelers, with 62% of Boomers and 55% of Matures
traveling domestically at least two times per year. They took a total of 340 million
domestic trips in the last year (2006) and 110 million international trips in the past 3
years (2003-2006).7

5 2005 U.S Consumer Expenditure Survey
6 “The Sky’s the Limit” AARP 2007
7 “Mental Stimulation and Lifelong Learning” 2006 Elderhostel
9

Number of Times Traveled
Domestically in Last Year
100%
6% 5%
13% 12%
10 or more
80%
5 to 9
60% 43% 38%
2 to 4
40%
16%
1
17%
20%
29% None
21%
0%
Boomers Matures

AARP studies indicate that Boomers consider themselves more adventurous travelers
than their parents, but there are some strong similarities between their attitudes and those
of the Matures especially when it comes to safety. Over 90% of consumers 42+ are
concerned about travel safety; this attitude influences all components of leisure travel,
from where they go to how they get there.

Boomers while more adventurous, look for adventure within the context of the safety and
seek comfort and familiarity when vacationing. Two-thirds of AARP Matures and
Boomers respondents, regardless of age, like to return to familiar vacation spots, while
about half, 37 million consumers like to always vacation at different destination or
experience something new. According to AARP, 55% of Boomers consider themselves
adventurous and 77% consider themselves and their own travel experiences more
adventurous than their parents.

Boomers and Matures are committed to “self-actualization” through travel. For Matures,
the primary means of “self-actualization” is education often facilitated through group
travel and organizations like Elderhostel. Boomers often seek like-minded communities
for networking, validation, and peer support, destinations that provide “dialogue over
monologue.” Boomers-focused innovators address internally-directed values such as age
acceptance, achievement and emotional well-being8.

8 “Baby Boomers Envision Retirement” AARP 2004
10

Attitudes about Travel
Somewhere
43%
different 45%
Off the beaten
42%
path 48%
Matures
Familiar Boomer
68%
Locations 69%
Concerned
92%
about Safety 90%
0% 20% 40% 60% 80% 100%

Matures and Boomer Differences

Differences
Boomers and Matures, although frequent travelers, opt for different social dynamics.
Matures subscribe to the philosophy of “safety in numbers” and enjoy the learning
process with larger groups of their peers. Matures lifestyles were physically community
based; the advent of Assisted Living Communities are an extension of that lifestyle.
Boomers prefer smaller groups; they perceive motorcoach travel as “herding” and
consider traditional motorcoach travel something for old people, not themselves.
Boomers will travel with peers or like-minded or cause related communities.

Matures are one of the most financially sound categories in the travel industry. They
have the highest net worth and their discretionary income is also high since they no
longer incur the cost of setting up house or raising children. Matures have a lower
consumer debt than Boomers. Boomers, while the wealthiest generation in history,
account for about half of the nation’s 2004 net worth, yet the lowest 40% of this segment
have virtually no net worth outside of home equity.