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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

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esearch prepared by eastwick marketing Market RJuly 2008  Table of Contents 

ecu   Ex tive Summary I.  Introduction        II.  The birth and life‐path of the Baby Boomers  III.  s and Characteristics of Matures and Boomers Travel Attitude

  

A.  SimilaritiesB.  DifferencesC.  Conclusion 

 IV. Boomer Specific Characteristics that Impact Travel  .  Nat  of Matures and Boomers V ional Visitation Trends

ans A.  Future Travel Pl VI. Experiential Tourism 

A.   e erientialB.  Levels of Experiential Tourism 

Th  Foundation of Exp

 Tourism  

1. Behind the Scenes 2. Hand‐on 3. Immersion or Inclusion 

       

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C.  Key Components of Experiential Tours estic Initiatives Experiential Tour Dom

rview Product Ove

  D.  BesProduct Development 

 t Practices Product Development

t Product Mix Member EngagemenMarketing Strategy Experiential Trends 

 

get Market Population  VII. Overview of PA Tar.  Core Markets 

Markets 12.  Secondary  Methodology 

  wants of Experiential Tours 

ConclusionsII. BoomerVConclusion 

 Experiential to the Boomer  X. Marketingonclusions IC  

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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.

Small group size (10-20 people). Immersive experiences or Hands-on learning with behind the scenes access “On theme” meals and accommodations Plenty of free time built into the schedule Options of activities Lots of activity

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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:

Internet marketing Focus groups Blogging Consumer Magazine Advertising Familiarization tours for operators with a focus on what ET is and how to sell it 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.

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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

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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

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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

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Number of Times Traveled Domestically in Last Year

21% 29%

17%16%

43% 38%

13% 12%6% 5%

0%20%40%60%80%

100%

Boomers Matures

10 or more5 to 92 to 41None

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

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Attitudes about Travel

90%

69%

48%

45%

92%

42%

43%

68%

0% 20% 40% 60% 80% 100%

Concernedabout Safety

FamiliarLocations

Off the beatenpath

Somewheredifferent

MaturesBoomer

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.

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Matures and Boomers approach finances very differently. Matures consider travel to be a luxury that should be saved for and taken during the “Golden Years” of retirement. Boomers consider travel a necessity, 25% do not have any saving accounts or investments. Travel should be taken whenever time or opportunity allow. If they cannot afford it, they use a credit card.9 Finally, travel, and its role in self perception is also a major difference between these two groups. Matures who travel achieve self actualization by participating in activities that blend mental stimulation, social engagement, physical activity, and creative expression a more satisfying path to “successful aging” and possibly to long-term brain health. They want to be part of a larger picture; they seek commonality among peers. Boomers see themselves as forever young, it’s not about Age, it is about the life stage. Life stage has a huge impact on travel attitudes. Factors including working status, household composition and finances influence vacation planning. Boomers seek experiences that differentiate them from their peers; they seek “bragging rights.10 Conclusion Boomers and older generations represent a sizable and attractive market for travel products. Neither group is home bound and both look forward to traveling around the world. An estimated 81 million consumers 42+ will take a vacation next year. Boomer specific traveling is an area to target carefully as this groups needs and preferences are not homogenous and are different than the traditional tour market. Understanding that age is not the only difference in how older consumers make travel plans, but factoring in life stage and household composition are important when developing tour product. We will need to explore new marketing channels and alternative forms of information distribution to capture the traditional market as well as penetrate Boomers. Experiential Tours are the first step in this direction.

9 “Boomer Market” AARP 2007 10 Ageless Marketing, David Wolfe

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IV. Boomer Specific Characteristics that Impact Travel Having explored similarities and differences between Matures and Boomers, it is important to explore Boomer specific characteristics that will impact travel trends. Boomers are a savvy generation who have been in the workforce during the evolution of computers, email and Internet and were the first generation to truly leverage the value of technology. Many Boomers have the discretionary income and desire to purchase high tech products so it is not surprising that 82% of Boomers use the Internet; 4% have been on line for more than 6 years. Pew Internet & American Life finds that almost half of those 50+ visit video sharing sites like YouTube. Boomers are just as likely to click on internet ads that interest them as a younger generation. Boomers, although typically portrayed as the self-centered “Me Generation” are actually the “We Generation” caring for others and the world at large. They are increasingly “green consumers” with more than half (54%) seeking out environmentally friendly products and 48% preferring to buy locally produced goods. When it comes to family life, Boomers are far from being Empty Nesters. An estimated 37% have children under 18 in the home, making family travel a viable activity. On the other end of the spectrum, 5 million Boomers have had an adult child move back into the home in the past year combined with almost 4 million Boomers who have parents living in their home; it is clear that developing product for this generation is unlike product for Matures.11 Conclusions Product Development strategies to consider are Experiential Tours that can be sold through a tour operator (including thematic tours) and genuine lifestyle tours targeting couples, singles only vacation packages and multigenerational programs. Internet marketing and viral campaigns should also be explored to begin infiltrating this market on a non-traditional level.

11 “Boomers More” AARP 2007

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V. National Visitation Trends of Matures and Boomers Travel is an important part of the lives of Boomers and Matures. The 42+ population represents a significant market opportunity for the Travel industry and specifically for PA Dutch Country. According to the U.S. Consumer Expenditure Survey, in 2005 older Americans spent over $192 billion on travel.12

Boomers are in their peak earning years, and the oldest of them have reached the prime age for travel. Boomers, however, are significantly different travel consumers than their parents, and experts expect them to maintain those differences as they age. Travel industry organizations that fail to identify and heed the boomers' unique qualities could soon find themselves in serious trouble. Group travel seems especially vulnerable. Although Robert Whitley, president of the U. S. Tour Operators Association, said, "The escorted tour market is alive and well," National Tour Association research among boomers indicated potential problems. According to the NTA, "The overwhelming perception of tour packages by NTA's focus group participants was negative."13

Future Travel Plans

When discussing future travel plans, 53 million Boomers and 28 million Matures intend to take a leisure trip over the next 12 months; they intend to spend approximately $1,550 per person on this trip, totaling $126 billion. Their destinations? Surveys indicate that most Boomers and Matures 58% and 52% respectively will be traveling domestically; one in ten planning an international trip. AARP indicates Boomers took at least one trip last year.14

The declining dollar combined with increasing gas costs may in fact, impact these percentages significantly.

Most travelers will allocate 3 to 10 days for their trip. Boomers are time-deprived with demanding personal and professional schedules to maintain. Matures, with more discretionary time are almost twice as likely to be away for 11 or more days.

12 2006 U.S. Consumer Expenditure Survey 13 The Power of Travel, TIA 2000 14 The Boomer Elite, AARP 2006

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Road trips continue to be popular among consumers 42+; half (49%) plan to travel primarily by car during their next trip. A survey conducted by AARP in October 2005 found that 47% of 50+ consumers were limiting travel or vacations because of gasoline costs.15 AAA estimates are slightly higher. This signals an opportunity to tour operators who will package a destination that feature diversity and options.

The popularity of organized tours increases with the age of consumer. While Boomers like to plan their own trips and have control of their own time, Matures, especially those 70+ years of age like the structure and security of a vacation is taken care of for them16.

One in five Boomers like vacations where activities are organized for them, three-quarters would consider purchasing a vacation package.

Keep in mind that Boomers need instant gratification so the booking time for Boomer is much closer to their ideal travel date than Matures. Motivated and tech-savvy, Boomers often subscribe to travel organizations and airlines that alert them to a discount or promotion; they are ready to travel with short notice.

VI. Experiential Tourism The Foundation of Experiential Tourism Factoring the similarities and differences, it is easy to understand the genesis of Experiential Tourism. Experiential Tourism (ET) is the middle ground between Adventure tourism and Education Tourism; it bridges the gap between Elderhostel and Extreme vacations. It is a mindset and mechanism for visitors to immerse themselves in different ways and levels of adventure; to experience the core of life a culture, product, event or destination. By providing a genuine and authentic experience for Boomers, ET creates a deeper understanding, respect and affinity for a destination and its essence. Levels of Experiential Tourism There are several levels of ET to meet the needs, abilities and comfort zones of Boomers. These levels of ET can be positioned or titled differently depending on the destination but they are generally broken into 3 distinct levels of interaction and traveler experience. Behind the Scenes is the least physically demanding of ET. It is an opportunity for the Boomer who seeks education and understanding but with limited physical involvement. Behind the Scenes provides a program of a culture, event or site that is not available to the general public. This program provides the visitor with an understanding of how

15 ibid 16 “Mental Stimulation and Lifelong Learning” Elderhostel 2006

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things work from a combination of seeing the “back of the house” operations and dialog with locals or experts. Hands-on is the second tier of ET. It engages more of the senses providing the visitor with at tactile or sensory element to facilitate a deeper level of understanding or appreciation for the participant. A Hands-on program combines seeing + doing meeting the needs of participants through a moderate level of activity and interaction. Immersion or Inclusion is the third tier of ET. This type of tour provides the maximum level of interactivity for Boomers with a culture, event or site. An Emersion or Inclusion Experiential Tour engages people to a level of actually performing a task or activity; a roll-up-your-sleeves part of the action. This level of activity facilitates a sense of accomplishment and pride along with an appreciation and empathy through this experience. In developing ET within the context of group travel, it is important to remember that Boomers don’t want to follow. For this market segment, the tradition sizes of motorcoach groups, 40-50 people is akin to a herd; Boomers won’t tolerate herding. Key Components of Experiential Tours

Safety in context of environment or experience Smaller groups of 15-25 Interaction i.e.” dialogue not monologue” A sense of the genuine or authentic Access or inclusion in an exclusive experience Sense of achievement Interaction with a similar community or peer group Fun Learning through doing Unique experience not found at home

Experiential Tour Domestic Initiatives ET is slowly appearing on the domestic and international tour horizon but with significantly different messages and audiences. The driving force behind international ET is tour operators targeting Boomer and Gen X’s for international travel. International operators target small groups and FIT’s with opportunities to visit exotic locals with an emphasis on adventure activities and “safe danger” such as swimming with sharks or dolphins. About 50% of the tour offerings are

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activities that do not rely on groups’ numbers such as hiking, biking or culinary; these appeal to the Boomer and Gen X sense of independence. Domestically, the landscape is significantly different. In the past, many destinations have created a tailored program at a tour operator’s request never realizing the value of the program or application to Baby Boomers. Now, savvy destinations are driving ET by galvanizing and educating their membership to create programs that engage and educate visitors. Our research revealed only 3 Destination Marketing Organizations (also known as CVB’s) in the U.S.A that are marketing ET to the motorcoach market. These destinations are Columbus Convention and Visitors Bureau, Philadelphia Convention and Visitors Bureau and PA Dutch Convention and Visitors Bureau. Both destinations have developed product in partnerships with their membership. Best Practices One of the challenges of determining “best practices” in this newly emerging market is the lack of longevity or success to analyze. What we do know is that the 4 priorities in developing ET are:

1. Product Development Based on the data provided by AARP Studies, product development must provide a sense of achievement with an opportunity to learn through doing. Therefore, it is incumbent for Dmo’s to determine the diversity and type of experience to represent their area. Preliminary research indicates that a very small percentage of memberships are providing ET, this diminishes the diversity and intensity of experience. Other members are offering their public or student programs without changing content or adding exclusivity also diluting the ET concepts and sense of exclusivity.

2. Product Mix Ideally, tour product should be equally developed so a tour operator can split a tour into two or three groups who can participate in varying levels of ET; provide a reason for return visits. A destination should strive to develop a couple of “headline” ET’s that will draw attention and generate interest to build consumer awareness.

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3. Member Engagement To establish a strong foundation for ET, it is essential to work with members through the entire process and manage their expectations. This is especially important in the initial stages when there is a sense of risk in developing a new product that is outside their comfort level or expertise. Members, while enthusiastic may be hesitant to develop a new program or view ET as a new channel of distribution, opting to recycle a current program instead.

4. Marketing Strategy

Marketing is an organic process that needs to consider the magnitude of Boomers combined with the challenges of the tour operator market in transition. Destinations investing in ET will provide leadership for tour operators and group leaders as they transition from the Matures Market into Boomer Market.

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Experiential Tour Trends ET is in it’s infancy but many of the ET program offered internationally target FIT’s and small groups. It is incumbent on the destinations to provide guidance to tour operators on how to sell this to their Matures and older Boomers. There is a development of thematic ET. Several statewide initiatives are highlighting specific themes such as African American Heritage Trails, eco-tourism and culinary.

Average Number of Days Planned for Next Trip

8%

44%

33%

9%6%8%

34%29%

14% 14%

0%

10%

20%

30%

40%

50%

1 to 2 3 to 6 7 to 10 11 to 14 15 ormore

BoomersMatures

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VII. Overview of Target Market Population of Matures & Boomers

A. Core Markets / Population estimates - 2006

New York Metro Philadelphia Metro Washington-Baltimore Metro

Total Population: 21,976,224 5,981,565 8,215,19240 to 44 years 865,921 227,079 336,42645 to 49 years 848,836 232,186 324,32950 to 54 years 724,781 204,750 278,60055 to 59 years 633,873 176,558 249,57660 and 61 years 205,591 52,941 76,73440 to 44 years 905,952 237,202 351,80845 to 49 years 887,239 247,664 343,76350 to 54 years 785,059 220,580 305,30755 to 59 years 711,240 194,008 273,09160 and 61 years 237,103 58,438 84,389

TOTAL BOOMERS

6,805,595

1,851,406

2,624,023 62 to 64 years 263,895 76,742 99,69865 and 66 years 150,296 38,694 53,50967 to 69 years 195,868 57,481 69,65570 to 74 years 281,677 74,385 89,33175 to 79 years 224,285 61,491 64,60862 to 64 years 312,171 87,809 110,71265 and 66 years 185,553 47,300 58,54867 to 69 years 242,565 63,194 76,18070 to 74 years 358,092 100,031 113,85075 to 79 years 324,346 85,359 94,420

TOTAL MATURES

2,538,748

692,486

830,511

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B. Secondary markets

State Data17 Delaware* New Jersey* New York* Pennsylvania*Total Population 853,476 8,724,560 19,306,183 12,440,62140 to 44 years 63,751 720,745 1,496,488 935,98245 to 49 years 64,203 713,723 1,492,469 997,61150 to 54 years 57,801 611,668 1,331,307 920,43755 to 59 years 50,525 530,881 1,193,357 809,69860 and 61 years 16,785 174,002 384,324 244,940Total Boomers 253,065 2,751,019 5,897,945 3,908,668 62 to 64 years 27,351 239,573 510,517 359,13565 and 66 years 12,481 129,355 297,354 199,76767 to 69 years 20,723 175,313 391,703 272,57070 to 74 years 27,419 255,152 579,104 415,00575 to 79 years 23,366 219,205 500,247 396,544Total Matures 111,340 1,018,598 2,278,925 1,643,021

17 2000Decennial Census

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District of Columbia* Maryland* Ohio* Virginia*

Total Population 581,530 5,615,727 11,478,006 7,642,88440 to 44 years 41,743 460,962 848,226 620,51045 to 49 years 38,577 458,669 910,365 604,00550 to 54 years 36,583 402,070 828,428 537,32855 to 59 years 33,636 351,248 730,169 482,72160 and 61 years 10,956 110,044 214,373 149,039Total Boomers 161,495 1,782,993 3,531,561 2,393,603 62 to 64 years 15,257 149,379 318,333 203,47165 and 66 years 8,295 82,735 180,450 113,05267 to 69 years 11,710 104,984 235,274 153,08470 to 74 years 16,333 153,977 348,547 209,31575 to 79 years 13,119 122,848 316,240 172,839Total Matures 64,714 613,923 1,398,844 851,761

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North

Carolina South

Carolina Tennessee Total Population 8,856,505 4,321,249 6,038,80340 to 44 years 687,038 317,468 453,65945 to 49 years 662,058 320,415 458,96350 to 54 years 607,258 298,244 418,07555 to 59 years 551,992 275,411 385,39860 and 61 years 178,298 88,987 125,198Total Boomers 2,686,644 1,300,525 1,841,293 62 to 64 years 243,861 135,853 175,49065 and 66 years 136,900 73,247 103,70967 to 69 years 179,734 95,412 125,31570 to 74 years 259,642 132,839 185,39275 to 79 years 217,910 104,455 150,863Total Matures 1,038,047 541,806 740,769

Methodology: Two geographic areas were analyzed for both age groups. The first was PA’s core market area – the New York City, Philadelphia and Washington/Baltimore metropolitan areas. The second geographic area was the states of DE, NC, NJ, NY, MD, OH, PA, SC, TN, VA and the District of Columbia. Within the core market area of the 3 metropolitan areas, there are an estimated 11.3 million baby boomers and an estimated 4.1 million “matures”. Of that total, African-Americans account for approximately 1 million boomers and approximately 338,000 matures. The larger 10-state market contains approximately 26.5 million boomers and 10.3 million matures. Looking within these totals, African-American boomers accounted for approximately 4 million of the boomers and approximately 1.3 million of the Matures.

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Not surprisingly, African-American boomers and matures constitute a slightly larger percentage of each age group in the metro areas than they do in the states as a whole.

Source of data was Bureau of the Census, both the 2006 American Community Survey and the 2000 Decennial Census were used. For both age groups, metro data was based upon Combined Statistical Areas (see maps for boundaries). For Boomers, population range was aged 40-61 years of age (roughly comparable to all those born from 1945-1966), thus likely to slightly over-count actual population born 1946-1964. For black Boomers, same population ranges, however had to extrapolate due to the way the age data was presented for blacks. Extrapolation was based upon national percentage of black persons (by gender) who were within this age bracket (e.g. of all black males aged 55-64, 75% were aged 55-61). For Matures, used population that was aged 62-79. This age bracket was based upon AARP research. For black Matures, used similar extrapolation as above (e.g. of all black females aged 55-64, 26% were aged 62-64). Conclusions

The research indicates that PA has a strong market for Boomers and Matures in New York, Philadelphia and DC metro areas. Secondary Boomer markets (*) are the states located under 5 hours drive. The general economy combined with gas prices are other factors in PA’s favor. The challenge is creating engaging product at a value-based price point that will convince consumers in these markets to spend 2-3 nights in the PA region.

The markets identified as secondary markets, markets located more than 5 hours drive time (275 miles +) will be traditional tour markets unless ET and Boomer Markets are specifically cultivated by a tour operator.

This market has strong ET potential as it is generally a 3: 1 ration of Boomers to Matures allowing for a comfortable transition of the traditional tour offerings to ET.

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VIII. Boomer wants of Experiential Tours

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.

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 PA, this means focusing on drive markets that can be reached in 1-2 days instead of 7+ day tours.

Perhaps more importantly, experiential travel, to fit the independent, less group-oriented “style” of the Boomers tours must meet the following specification18.

Small group size (10-20 people) Immersive experiences or Hands-on learning with behind the scenes access “On theme” meals and accommodations Plenty of free time built into the schedule Options of activities Lots of activities to choose from

Conclusions PA is able to provide ET to meet the geographic and psychographic needs of Boomers. The challenge will be to guide tour operators into this newly defined travel mind-set of smaller groups of a specific age and message. Although many operators will be able to grasp the ideals of the market and transport them to PA region, facilitating multiple activities within one group will be a challenge. PA should take this into consideration and work with members to assist in dispersing the smaller groups to ET sites or combining ET to single locations with rotating groups.

18 “Mental Stimulation and Lifelong Learning” Elderhostel 2006

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IX. Marketing ET to the Boomer Boomers over the age of 50 represent a growing market. Today’s estimate of 92 million is expected to increase to 155 million by 2050. This is clearly a market worth pursuing. Research indicates that Boomers are willing to experiment with new products and new brands. Boomers are not brand-loyal and rely heavily on word of mouth, 61% of Boomers agree that “in today marketplace, it doesn’t pay to be loyal to one”. It is also noted that this demographic is responsive to sampling and are willing to pay a premium if they have a positive experience. A particular challenge of marketing to Boomers is reaching them with a targeted, positive message they consider attention worthy. Advertising Boomers are paying attention to advertising but they do not always like what they see. AARP’s 2007 Focalyst report indicates that 23% actually say they find ads geared toward their age group insulting. The images and message conflict with their self-concept of agelessness. They are often searching for more product information and are particularly receptive to print advertising. Print media are particularly effective with this group, as they are spending a lot of time with newspapers and magazines, an average of more than 30 minutes every day with each, and over 43% say they read the ads in magazines that they subscribe to. Internet The media landscape is fragmented with different and more types of media vying for Boomers attention. On average, Boomers use close to four ad supported media daily and engage with ad supported media more often than non-ad supported media. Boomers are also linked into internet media with 26% clicking on Internet ads that interest them and are just as likely or more likely as younger generations to buy a product or service based on an Internet ad.19 19 “Mental Stimulation and Lifelong Learning” 2006 Elderhostel AARP

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Conclusions Due to the fragmentation of the media landscape, PA has more opportunities to reach Boomers but must be strategic about Boomer-centric outlets. This includes lifestyle magazines, internet and blogging. Word-of-mouth and testimonials should be cultivated and used when ever appropriate. Although not brand loyal, we know that they will return to particular travel destinations based on a positive experience. Unlike Matures, they are willing to try new hotels, restaurants or activities; in fact, they don’t want a carbon copy of a past trip.

It is also important that the industry respond to these needs by not mixing age groups in the same tour and using younger images and words in their marketing materials. They should stress the flexibility and participative nature of the experience as well as hype the expertise of their staff and guides. Environmental and social awareness will strike a responsive note in some boomers, so they should be highlighted.

eastwick marketing provides dynamic marketing, customer service and management solutions for a broad range of clients in the tourism, economic development, non-profit and personal service industries. Our extensive marketing knowledge, coupled with an understanding of consumer behavior, helps clients cultivate meaningful experiences with targeted audiences to establish and build brand affinity.

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