50+ TRAVEL UPDATE

I went to a breakfast presentation the other morning all about the analysis of the travel habits of the over 50’s given by the Silver Travel Advisor, “the voice of the Mature Travellers”. There we were advised, whilst marketing to this group not to position them as “old”. “People are often no longer willing to accept traditional “old people” stereotypes” we were told to credit their intelligence and move away from the “Big, Beige and Boring” design model to a mores ageless design. I agree with all of that, but why then do those in charge of advising us insist on calling us “The Silver Traveller” or refer to “The Grey Pound?” DON’T CALL US SILVER OR GREY. WE HAVE HAIR DYE. IT’S THE BEST INVENTION OF OUR GENERATION, ALONG WITH IMPROVED HEALTH CARE. CHANGE THE RECORD…I MEAN CHANGE THE CD…I MEAN CHANGE THE IPOD…CHANGE SPOTIFY….OR APPLE MUSIC.

The over 50’s, or the Baby Boomers or the SWOFTY’s (Single Women Over 50) or the MOCA’s (Men of a Certain Age) or the MOFTY’s (Married’s of a Certain Age) are an incredibly diverse group of people, defined far more by self-perception and life style choice than by age alone and they don’t like to be pigeon holed. They are also still young (ish) and healthy (ish), even if they’ve started to creak a little here and there.

It seems that the future is bright for the “Silver Travellers” – more health and more wealth means that this is a golden window of largely untapped potential in the travel industry. The Baby Boomers are mostly in pretty good shape. Getting ready to retire, with a home of their own and quite possible a final salary pension and still feeling young, fit and healthy.

It’s the perfect storm for a travel frenzy that that seems to have bypassed austerity measures and the economic downturn. The over 50’s age-group, reportedly possess 80% of the wealth in Britain. For this group of travellers life is altogether different.

A key influence is the fact that the Conservative government’s introduced a recent policy which allows pension-holders to withdraw money from their pension funds – so spending their savings they are!

WHO ARE THE SILVER MARKET?

50+ market
17K people turn 50 every week in the UK
Make up 35% of the UK’s ageing population
By 2020 there will be more people over 50 than under 50
There will be more pensioners than teenagers by 2050
New and powerful consumer class
Fastest growing adopters of technology and social media
Expected 65% rise in over 65’s by 2033
The number of people aged 75 and over has increased by 89% since 1974
Over 75’s currently make up 8% of the population
The over 85’s are the fastest growing age group in the UK
1 in 3 babies born today will live past 100
19th century death rate = current 21st century divorce rate
THEY HAVE TIME AND MONEY
Over 50’s (22.8m UK consumers) hold 80% of the nation’s wealth (approx £9 trillion)
The spending power of the boomer generation will reach $15 trillion gobally by 2020
Highest disposable income of any age group
Outspend younger adults on line 2:1 per capita
1 in 10 pensioners have a total wealth of £1m or more
Consumer spending by the over-50’s accounts for about 50% of the UK total with a significantly higher percentage being for luxury goods
75% fully own their property and many are willing to release some of these assets to fund their adventures
66% of 50-65 y/o’s are SKIERS (spending the kids inheritance), rising to 71% for parents aged 60-65
THE WORKPLACE
1.8m of over 50’s in the UK are self-employed
70% of over 50’s start-ups last more than 5 years – national average is around 20%
Tend towards a desire to give back through volunteering, donating and creating a legacy
1.2m over 50’s are unemployed and willing to work – potential economy boost of £50bn
76% of over 50s believe the UK fails to make good use of the skills and talents of older people
TRAVEL
1/3 of the pension pot money pensioners are now allowed to draw out as and when they want has so far been spent on holidays
The “grey pound” now accounts for the majority of the UK’s spending on travel and tourism
80% spend at least £1k on holidays each year, 39% spend up to £3k and 23% spend over £5k
68% travel at least twice a year
They take longer holidays
25% are thinking about their first gap year
Over 25% travel with their children
Alliance & Leicester found that 26% of over 50’s were planning a trip half way across the world to Australia or New Zealand and 3% were even contemplating Antarctica

DEMOGRAPHICS

50’s and 60’s don’t feel middle aged or old – feel in their prime as only half way through their lives “middle adulthood”
“Club Sandwich Generation” – responsible for the care of both children and parents and possibly great-grandparents and grandchildren too!
Boomerang children – 33m 20-34 y/o’s have returned to live with their parents
Baby boomers consider themselves trailblazers and non-conformists for whom anything is possible
Love extreme sports and adventure
Digitally savvy
Enjoy holidays where they can also pursue a hobby such as writing, yoga, crafting or sport
Concerned with authenticity
82% don’t care what others think of them
Average age of a sports car driver is 55
See holidays as an essential part of their lives
Timing and budget of a holiday are crucial – can generally travel in low season or mid-week
Will pay to have quality experiences and memories
More likely to book big “bucket list” trips
13% are solo travellers, the rest travel with a partner, spouse or friend (s)
10% travel with the wider family or group
35% would consider travelling alone, although haven’t yet done it
76% prefer to plan all elements themselves
62% use the internet for inspiration and 60% book online, 23% book by phone, 13% visit an agent

TRAVEL WISH LIST

Northern lights
Venice
Australia and New Zealand
Safari
The Scottish Highlands
Round the world cruise
The Amazon
Las Vegas
The Pyramids
The rainforest
A nudist holiday (REALLY?)