Marketing for Senior Travellers:

Transcription

1 1 Marketing for Senior Travellers: segmentation, travel behaviour and marketing mix Dr. Aija van der Steina Researcher and Head of Scientific Institute of Economics and Management University of Latvia 3 rd Annual Conference «Aged tourism - challenge or opportunity for the modern tourism market?», 13th May 2014, Rzeszów, Poland

2 2 Main trends in tourism and consumption Growth of number of seniors («baby boomers» and lifespan) will have big influence on tourism (products, seasonality, etc.) (1,2 billion 60 + people in the world in 2025) Seniors income level in developed countries (Western Europe security for next years, but future isn`t clear) «Young seniors» (in age 55-64) most attractive for tourism and hospitality industry Growth of single person households Importance of healthy lifestyle (food, sport activities) (80% in age 50-70, 86% in age 70+) Demand for medical and wellness products Cities and wellness sector will have the biggest benefits More popular travel to foreign tourist destinations and less in own country (25 % of 55+ Europeans travelled outside Europe in 2012) Eastern Europe attractive destination in Europe (price level, wellness offer, distance and temperate climate zone)

3 3 Senior segments in marketing Oldies Goldies or Gold market Selpies (Second life people) Woopies (Well of older people) Yollies (Young old leisured people) Wollies (Well income old leisure people) Grampies (Growing retired active moneyed people in an excellent state) Mature consumers Grey wave Busy Fit oldies Mid ager Master consumer u.c.

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5 Source: Institute Infratest Sozialforschung 5 Types of seniors Hardworking and home oriented (31%) self-satisfied, sceptical and they don`t like new things. Personal security is very important. Very often they are isolating them self from others. Security and togetherness oriented (29%).Critical attitude. They do all activities very serious and disciplined. They are not spontaneous. Resigned and reserved. (15%). They like gardening and housework. They are pessimistic that`s why very often lonely and resigned. Security is very important. Active and youthful seniors (25%). Active leisure time. They are interested in culture and they like to discover new things. They take responsibility. They enjoy life and they are seeking for knowledge.

6 6 55+ life styles in 2020 Silverpreneure professionals, active, new projects, new technologies. They like new and innovative products. They don`t believe in advertising. Super Grannys self-confident, social and culture oriented ladies (55 +) taking care of family and them self. They like fashion, travel and shopping. Important is value for money they spend. Greyhopper real changes in life style and new activities. They keep them self in good mental and physical health. They like sport activities of young people. Very important is healthy and eco food.

7 The reaction of tourism and hospitality industry

8 Are seniors satisfied with tourism offer and destinations? Source: EC, Attitudes of Europeans Towards Tourism, Accessible facilities for people with special needs (e.g. disabled, elderly, families)

9 Do all seniors have the same travel behaviour? 9 Differencies: - Geographical - Economical - Cultural - Life style - Other Much unknown Market research

10 10 The senior tourist. Age is not a leading factor... Four phases: Phase I: No children on holiday («empty nest») Phase II: Retiring (more free time) Phase III: Sickness and ill health become a limiting factor Phase IV: Loss of partner (changes in travel behaviour)

11 A model of senior travel motivations 11 External impact factors Free time Health Financial situation Social status Family support and responsibility Internal/ personal factors Wellbeing Socializing Escaping Routines Knowledge Personal reward Nostalgia Pride and patriotism Source: Hsu, Cai, Wong, 2006

12 Marketing mix: Product Trust and relationship Empathetic understanding (listen ask questions use the story) How you and your product or service make the customer feel 2. Be a senior-friendly place to do business Make it comfortable adequate lighting, comfortable seating, midtemperature, and low level of office noise. Before - during after the service Your message and communication Your product design (intergeneration trend= good for young and old) Your office, staff (educate) and surrounding 3. Quality of information, services and goods is very important (experienced, wealthy tourists)

13 Marketing mix: Product Most popular tourism products: Health and wellness offers («Medical Wellness» un «Medical Beauty») Cruise (wealthy seniors) Cultural trips (traditions and local life style) Roundtrips Cities Hiking 2. Travel more often and eventually longer stay in the destination 3. Accommodation Depends of reason of travel, income and company Most popular: friends and relatives; 4* and 5 *hotels 4. Transport Depends of reason of travel, destination and the distance Importance of private car Bus as popular travel mode by older seniors

14 14 Office 1. Clear directions to your office on your web site and over the phone. 2. Parking that is close to the entry of your building. 3. Make sure signage is ideally placed. 4. Audit the path from the parking lot to your office and customer areas within your office for potential causes of accidents. Check for: Appropriate lighting on steps or walkways. Handrails on stairs No ragged edges or holes in carpeting or sidewalks No sharp edges on furniture Enough space in hallways and offices for walkers and wheelchairs. 5. Make it comfortable adequate lighting, comfortable seating, midtemperature, and low level of office noise. 6. Ensure that privacy needs are met and time for breaks is allowed. Seniors appreciate that their business is not easily overheard or shared with others. A closed door to the meeting area allows a senior to relax and open up.

15 Quality and visitor experience in the tourist destination Attractions Accommodation Food Environment Local people Other Visitor experience Satisfaction and loyalty

16 Marketing mix: Price 16 Wealthy seniors of developed countries (income, single households) Growing segment from Asia Important: value for money and in the same time in search for attractive offers Price policy for single travellers Price differentiation by age Myth: When people reach a certain age, they stop buying.

17 Marketing mix: Communication Don`t say to seniors «Seniors»! Use the same communication style as for younger customers All communication materials structured, clear and logic. Use facts or stories Pictures functional and use vital persons Do not use bright/ garish color (red, etc.)

18 Seniors do not want to be seen as old and different to younger tourists 18

19 19 Printed materials 1. Create high-contrast documents black type on white or light-colored paper DO NOT reverse the type - which is using white letters on a black background Think about reflection 2. Use easy-to-read text At least 12 to 14-point type Styles: Times New Roman, Lucida, Bright, Palatino, and Verdana. 3. Don t crowd the page. Use white space on the page generously to separate content. Short paragraphs of 4-5 sentences each are best Use headings, sub-headings and bullet points to compartmentalize and highlight the material. This group trust more the printed materials than TV

20 20 Website Online marketing will be an increasingly more important approach for engaging prospects. 1. The name of homepage 2. Fashion a readable environment (fonts, black lettering on white background. Utilize headings, subheadings and bullet points to highlight and separate content) 3. Create and post content that: Answers your client s frequently asked questions. Solves client s problems. Provides new information in your industry, news about your company, and any upcoming events that visitors might be interested in attending. Testimonials from other senior clients. 4. Social networks are becoming more popular

21 Presentation style Before you begin your presentation, assess the needs of the senior: Do they need help sitting down, a glass of water, a place to put their cane or walker? If the senior is hearing impaired, reduce background noises, face the listener directly, lower the pitch of your tone, don t talk too fast. When speaking, use basic, down-to-earth language. Avoid using jargon and industry buzz-words. Consider providing written materials or brochures during the meeting and/or writing out notes from client meetings and mailing them to the client afterwards. Seniors like to communicate with young people

22 Most important information sources 22

23 23 Marketing mix: Distribution Online distribution channels Senior clubs and associations Senior fairs Tourism agencies (relationship)

24 Where seniors buy the tourism services? n= Tourism services purchased separately Internetā, in Internet pats sakombinēju 60,0 50,0 Other Cits 40,0 30,0 20,0 10,0 0,0 Internetā, jau All gatavu inclusive komplekso package in ceļojumu Internet Tūrisma aģentūrā In travel ar izdevīgāko agency with piedāvājumu best price offer Tūrisma aģentūrā, ar In travel kuru parasti agency I use sadarbojos for years Source: Survey in Latvia, Travel fair «Baltour 2013»

25 25 Thank you!