Executive Summaries - The Mature Traveler, 2000 Edition

This report offers a comprehensive view of the unique travel characteristics of mature travelers. Travel is measure in terms of household trips. Age groups are classified by names to identify each segment (i.e., Generations X and Y—aged 18 to 34, Baby Boomers—aged 35 to 54, and Matures—aged 55 and older). The Mature age group is further segmented into Junior Matures aged 55 to 64 and Senior Matures aged 65 and older. These names are used as generation classifiers only and are not intended to define the psychographic mindset of each group.

U.S. MATURE MARKET

One of the most important demographic trends affecting the travel industry today is the aging of the U.S. population. In the year 2001, the first members of the huge Baby Boom generation (78 million) will turn 55 years old and enter their "mature" years. Travel and tourism marketers need to be prepared for the explosive growth of the mature consumer market.

When it comes to annual household income, mature Americans are just as financially sound as other Americans. Yet, they have the highest net worth of all age groups. Their discretionary income is also very high since they no longer incur the cost of setting up a household or raising children. They also have lower consumer debt than other population segments. The financial power of mature consumers, along with their tendency to have more leisure time available for travel, make this segment one of particular interest to the U.S. travel industry.

The Mature market is already quite large, accounting for nearly one-third of all domestic travel in the U.S. Furthermore, this market will grow significantly in size over the next two decades. To reach this important market in the coming years, marketing messages will likely shift from a youth-oriented focus to a greater concern for the needs, problems, and dreams of middle-aged and older adults. Just looking at projected growth of this market, the future for mature travel is very positive as the Baby Boom generation moves into the mature age group.

MATURE TRAVEL TRENDS AND OUTLOOK

Since 1994, there have been few changes in the characteristics of trips taken by Mature travelers. For example, most trips taken by Mature travelers continue to be pleasure trips by auto. Also, Mature travelers have yet to change their lodging habits dramatically. Currently, half of trips by Matures include lodging in hotels, motels, or bed and breakfast establishments and four in ten trips include lodging in homes of friends or relatives.

On the other hand, the demographic profile of Mature travelers has shifted dramatically over the past five years. Many more trips are taken by Mature travelers who have completed college and have an annual household income of $75,000 or more. Today, Mature travelers are also more technologically savvy than they were five years ago.

COMPARISON OF MATURE TRAVELERS TO YOUNGER TRAVELERS

While the highest share (45%) of trips in the U.S. is generated by Baby Boomers, Mature travelers account for three in ten (31%) of all domestic trips. Generations X and Y generate 24 percent of all trips. Comparing trips taken by all age groups, those taken by Matures are the most likely to be for pleasure and to include a car or truck.

Trips by Mature travelers are slightly less likely than those taken by other age segments to involve an overnight stay, but when they do, the average trip lasts about a day longer than trips by younger travelers. Trips by Matures and Generations X and Y are more likely than those taken by Baby Boomers to include lodging in homes of friends or relatives, while trips taken by Baby Boomers are the most apt to include lodging in hotels, motels, or bed and breakfast establishments. On average, Matures spend more than Generations X and Y on trips, but less than Baby Boomers.

Shopping is the favorite activity on trips by Matures; in fact, three in ten Mature trips include shopping. Other preferred trip activities involve visiting historical places or museums, attending cultural events or festivals, gambling, and outdoor activities. Trips by Matures are more likely than trips by younger age groups to involve cultural events or festivals, visits to historical places, gambling, and group tours.

COMPARISON OF MATURE TRAVELERS: JUNIOR VS. SENIOR MATURES

Senior Matures, those aged 65 or older, generate 16 percent (92.6 million) of all U.S. domestic trips. Junior Matures, those aged 55-64, take 15 percent (86.2 million) of all U.S. domestic trips. A domestic trip is defined as a trip taken by U.S. residents within the U.S. Because Senior Matures tend to be retired and have more leisure time available, their trips are more likely than Junior Mature trips to be for pleasure. On the other hand, many Junior Matures are still in the work force; thus, their trips are more likely than those by Senior Matures to be for business, to be by air, and to include a rental car as a secondary-mode of transportation.

Trips by Junior Matures are also more likely than those taken by Senior Matures to involve an overnight stay and lodging at a hotel, motel, or bed and breakfast establishment. However, trips by Senior Matures are more apt than those by Junior Matures to be of seven nights or more and include lodging in homes of friends or relatives. On average, trip spending by Junior Matures is higher than that of Senior Matures.

Junior Mature trips are more apt than Senior Mature trips to include shopping, outdoor activities, nightlife activities, and visits to theme or amusement parks. But, Senior Mature trips are more likely to involve visiting historical places or museums, attending cultural events or festivals, and group tours.

MATURE TRAVEL BY TRIP CHARACTERISTIC SEGMENTS:

Pleasure vs. Business Trips

Pleasure travel is the most common reason for travel by Matures, generating 66 percent of all Mature trips. As over half of Matures are retired, business trips account for just one in five (20%) of Mature trips. These pleasure trips are more likely than Mature business trips to include transportation by car or truck. Business trips among Matures are much more likely than pleasure trips to be by air and to include a rental car as a secondary mode of transportation.

Pleasure trips last longer for Matures, on average, than do business trips. The majority (52%) of Mature pleasure trips include stays at homes of friends or relatives, with 43 percent including stays at hotels, motels, or bed and breakfast establishments. Mature business trips are about twice as likely as pleasure trips to include stays at hotels, motels, and bed and breakfast establishments. Pleasure trips among Matures are much more likely than business trips to include leisure activities such as shopping, outdoor activities, and gambling. As expected, group tours are more common on trips by Mature pleasure travelers, rather than on trips by business travelers.

Overnight Trips vs. Day Trips

Four in five Mature trips include an overnight stay (79%); the remainder are day trips. Overnight trips are more likely than day trips to include visits to friends or relatives. Not surprisingly, spending by Matures on overnight trips is higher than spending on day trips. Mature overnight trips are more likely to include shopping and visiting historical places or museums. Interestingly, group tours are twice as popular on day trips than overnight trips. Day trips are just as likely as overnight trips to include gambling and attending sports events.

MATURE TRAVEL BY DEMOGRAPHIC SEGMENTS:*

Marital Status

About two-thirds of all trips by Mature travelers are taken by those who are married (64%). The rest of the trips are taken by those who are never married (6%) or divorced, widowed, or separated (30%). Trips by single Mature travelers are more likely than those taken by married travelers to be for pleasure and involve bus travel. On the contrary, trips by married Matures are more apt to be for business and include travel by car, truck, or recreational vehicle.

Trips by married and single Mature segments have similar average durations, of about four nights. Yet, single Mature trips have a greater propensity than married Mature trips to be just for the day and involve a group tour. This suggests that single Matures are more likely to enjoy the companionship offered by group tours. Single Mature trips also tend to include lodging in homes of friends or relatives. Married Mature trips are more likely to involve an overnight stay and lodging in hotels, motels, and bed and breakfast establishments. On average, trip spending by married Matures is higher than trip spending by single Matures.

Employment

Over half (53%) of trips by Matures are by retired travelers; just under half (45%) are by employed travelers. Trips by retired Matures are more likely than those taken by employed Matures to be by car or truck, bus, or recreational vehicle. Trips by employed Matures are more likely to be for business, which tend to involve travel by air and rental car as a secondary mode of transportation.

Retired Mature trips are somewhat longer in duration, on average, than those taken by employed Mature travelers. This is not surprising, since this group likely has more time available for leisure activities. Retired Matures are also more likely to lodge in homes of friends or relatives. Trips by employed Matures are more apt to involve lodging in hotels, motels, and bed and breakfast establishments. Trip spending by employed Matures is higher, on average, than trip spending by retired Matures.

Gambling as a trip activity is more popular on trips taken by retired Matures versus those who are still working. Group tours are nearly three times as popular on trips by retired Matures than on those by employed Matures.

Personal Computer Ownership

Today, many mature travelers are quite technologically savvy. In fact, about half (48%) of Mature traveling households own a personal computer. Not surprisingly, most Mature PC owners are Junior Matures aged 55-64. Trips by Mature travelers who own PCs are more likely than those taken by non-owners to be for business and consequently, to include air transportation and a rental car as a secondary mode of transportation. Conversely, trips by Matures who do not own a PC are more often for pleasure.

Moreover, trips by PC owners are more apt than those by non-owners to involve an overnight stay, be somewhat longer in duration, and include lodging in hotels, motels, and bed and breakfast establishments. Trips by Matures who do not own PCs are more apt to be by bus, just for the day, and include lodging in homes of friends or relatives. On average, Mature PC Owners spend more than non-owners on their trips. PC owner trips are more likely than non-owner trips to include outdoor activities and golf, tennis, or skiing. However, non-owner trips are more apt to involve gambling and group tours.

*Data are based on demographics of household or household head.

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