The summer holiday season is upon us, brace yourselves for endless promotions in your inbox, promising last minute deals in the sun at discounted prices, and lots of pictures of 20-somethings sunning themselves on beaches around the world.
Online travel search volumes have hit new highs this summer, with Experian Hitwise data recording some 920million visits to travel sites in May alone. However, these images of young pretenders sizzling in the sun aren’t necessarily presenting an accurate picture when it comes to the people driving this online activity, as some recent audience-based research has revealed that it is actually the older generation driving this interest. According to the latest Experian audience data, cash-rich older groups are 10 times more likely to book their holiday at the last minute.
Indeed, the over 65s now spend £1.3bn more on travel per year than they did ten years ago, whilst the under 35s spend around £920m less than they did a decade ago. And there’s a very good reason for this shift, the power of the older consumers groups has never been more relevant. Having paid off their mortgages and downsized their homes, many over 65s are taking advantage of the added freedom they have found and are enjoying a very active retirement – including plenty of overseas travel.
Understanding the patterns of behaviour for factors such as when people are looking to book their holidays is essential insight for businesses and other large organisations, helping them to connect with the right people, using the right messages at the right time.
Insights like these will allow anyone involved in the travel industry to plan external communications more purposefully and the audiences themselves will also benefit through being provided with relevant information that best fits their needs.
Spending on travel and tourism by those aged 65-74 has increased by 51% in the ten years between 2002 and 2012, compared with just 17% for all UK households. The over 50s now account for the majority of the nation’s spending on travel and tourism.
According to a recent report by Barclays Corporate, the industry received about £37bn from the ‘grey pound’ last year, but the industry missed out on a further £16bn because it failed to properly target older customers. There has to be some real lessons learned here.
Travel brands need to recognise the shift in spending power and make sure they are tailoring their offers and messages to suit the audience that is driving interest. The majority of travel companies still go after business in the 30-44 age group, when, on this evidence, really they should be looking to meet the needs of the older generation, as they have all the spending power. Travel companies need to evolve to meet changing consumer demand.
By Giles Longhurst, General Manager, Consumer Insights at Experian Marketing Services UK.
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