Dreaming of Traveling

An AARP national telephone survey of 29,000 older adults recently asked people to describe their “top dream.”

Surprisingly, it was to travel. Two out of  five older adults said that vacation and travel was their top dream, ranked above hobbies and interests (15%); kids, grandkids, family and friends (13%); faith and spirituality (6%); good health (6%); and career, job and work (5%). So it comes as of little surprise that a 2007 survey of 30,000 consumers age 42+ by the New York-based Focalyst—found more than 81 million older adults who were planning to travel in the next year planned to spend a total of $126 billion. This economic potential does not go unnoticed by the travel industry.

More than 100 million Americans today are age 45 or older, their households accounting for 91% of the America’s net worth. This group represents the largest, fastest growing, richest consumer market on the planet, accounting for half of earth’s consumer spending.

However, do not think that Club Med might refer to Medication rather than Mediterranean, as these older traveling consumers enjoy both health and wealth. Research of older adults has resulted in the shattering of some stereotypes. Boomers are the wealthiest generation in history, and even though only 9 percent are truly affluent—defined as having pre-tax incomes of $150,000 or more if working, or $100,000 or more if retired—this 9 percent will transform travel as we know it.

It seems there is no limit to what American adventure travel will entail.  Travel brochures promote Everest treks, tours to Galapagos turtle breeding grounds, retreats at monasteries, and romps in exotic naughty places. Although France is the top tourist destination in the world with 75 million visitors in 2009, America makes the most money from tourism—more than $87 billion. In addition, Americans have become the top international tourists abroad. In around half of all international travelling, Americans end up in Western Europe and of these, one in five go to Britain, and equally to France and Germany (combined). Asia is the second destination for a quarter of all Americans’ international trips.

This resurgence of travel among older Americans may reflect not only affluence, but could be a backlash to years of work in careers that offered little opportunity for travel while working. On average, Americans have half as many holidays as workers in other developed countries. Workers in Italy—which surpasses all countries—have more than two-month annual holidays. American workers, at the bottom of the vacation list, average just over two weeks holiday a year. Retirement becomes an opportunity to make up for lost time.

In such a highly dynamic environment, airlines need to develop specific marketing strategies to cater to the needs of older travelers. In terms of representing the needs of boomers and the aging population, cruise ships are currently doing a better job than airlines. And there is no loyalty, more than half of all Boomers agree that in today’s marketplace, it doesn’t pay to be loyal to one brand or one method of travel. We are in for some radical changes.