42 The Mature Tourist Market

THE MATURE TOURIST MARKET! ‘silver tourism’ by Dimitri Laspas

Across Europe and indeed the world, the 50+ generation is growing. The demographics of Europe however are in particular clear; the population is ageing. This therefore means there is an ever larger market for ‘silver tourism’.

Socio-demographic changes in Europe present a major challenge as well as offering huge opportunities. The mature traveller market is, on average; better educated, more affluent and has greater expectations than the generation before them and forms a large and influential market sector. The tourism industry can expect to face a change in demand, needs and opportunities as the population continues to age.

SILVER TOURISM MARKET IN FIGURES: - 12 % of the world population will be over 65 by 2030. - 1 billion people in the world will be over 65 by 2030. - The life expectancy to be reached by 2030 is 72 years old.

Globally, more over 65’s are travelling than ever before. They are booking their holidays themelves and travelling to new places.

For the past decade Europe has been the most visited region of the world. However Europe's share of world tourism is on a steady downward trend, mainly due to the diversification of world tourism, the emergence of other economic centres, and the advent of new tourism destinations, especially in Asia, the Pacific, Latin America and the Middle East regions.

What is important is the size of the ‘senior’ market and its implications for the tourism and travel industry. There is already a substantial flow of retired people from the North European countries to Southern Europe during the winter months, many to 2nd homes they own or for long rentals through the winter months.

More British people aged 65 and over are travelling around the world than ever before. During the past 20 years (1998 –2018), the figure jumped from just over 990,000 to nearly 1,336,000 –a rise of 35%, more than the increase in the over 65 population during this time (30%). In 2018, UK mature travellers outnumbered younger holidaymakers by around 100,000, with just over 4.54 million (almost 60%) of them booking their time abroad independently.

Looking across Europe, silver tourists differ in their destination choices with tourists from Greece, Spain, Italy, Portugal, tending to spend their holidays in their own country. More than 95% of holidays taken by Greeks are in Greece itself, and the equivalent for Spain at around 90%, (this is due to these countries providing tourists with all they require within their own country) while northern European tourists tend to travel abroad.

Senior tourism in China is also seeing huge growth. Due to an ageing population and increasing standards of living, travel is among Chinese seniors desire both to travel and discover China and the rest of the world.

Younger generations of Chinese seniors are more and more educated and independent as well as wealthier. They also increasingly tend to choose tourism packages specifically designed for seniors.

CHINESE SILVER TOURISM IN FIGURES - 241 million senior citizens (aged over 60) in

China in 2018. - 130 million outbound trips of Chinese people in 2017. - 7% is the annual growth rate of outbound trips of

Chinese citizens between 2016 and 2017.

Mature age travellers already make up a large part of the travel market. Following the recent pandemic crisis, this age group were considered the most vulnerable group of society and therefore requested to stay in their homes.

Once these restrictions are lifted, it is this age group of travellers who are going to wish to travel more, plus and most importantly; they are the age group who will have the money to travel!

Asia is adapting and catering well for the mature traveller and is building on its products and services to expand this sector. In addition, South America also has huge potential for attracting this mature age group, however a lack of flights from Europe are restricting progress.

The majority of mature travellers prefer to have ‘experiences’ instead of owning even more possessions. Unless they have real medical ailments, many are ready for anything and want adventure! They demand and expect quality in all aspects of their travel. Many also have more free time and are more flexible with their time, thereby contributing to a longer tourism season as they can travel during ‘off-peak’ periods. They also tend to stay longer as they may not have any work commitments to return to compared to younger tourist age groups.

It is estimated that by 2050 the number of people over 60 will more than double to make up 22% of the world’s population. The tourist industry needs to recognise the relevant trends and allow for them in good time. The tourist industry is, more than almost any other industry, linked to its social and natural contexts, specifically the ageing of society. This will result in far reachi ng changes, particularly on the demand side. At a global level, the world’s population continues to grow; this growth will be primarily in developing countries, but by contrast, in the industrialised nations the demographic shift is taking a different form. The de cline in the birth rate and simultaneous increase in life expectancy is leading to a clear change in the age structure.

There is a growing divide between ‘money’ and ‘time’. As a result, a clear structural change is emerging: a growing division of the population into two groups; people with high incomes or wealth and little leisure time on the one hand; and people with little money and a relatively large amount of leisure time on the other hand.

The change in the number of vacation days also offers an opportunity for greater domestic tourism. As fewer days are available for additional holidays, people tend to pick destinations closer to home. The time and money available for annual holidays is consumed by the main foreign vacation and therefore closer destinations are the option for second and third trips.

One reason that senior citizens will remain the primary source of growth for tourism in the foreseeable future is that much of this market segment is still currently financially secure; they still have substantial purchasing power resources available for tourism. After retirement, the time available also increases substantially. Senior citizens appreciate travel as a way to keep physically and mentally fit and participate in social life.

To keep a hold of this desirable market, many countries of Europe and the world need to reconsider their marketing approach as well as their services to accommodate this mature traveller. At present, only a few countries in Europe are able to cover this fast growing market trend.

Tourists aged 65 or over accounted for nearly 1 in 4 tourism nights for private purposes by EU residents in 2018, while people aged 55+ accounted for 41%. More than half of European residents aged 65+ (51%) did not participate in tourism in 2018, compared with 32% of people aged 15-64.

As far as holiday preferences are concerned, the over 50’s are increasingly moving away from the clichés associated with traditional travel by senior citizens. While beach holidays exceed any other type of vacation in Europe, city tours, cruises and excursions have experienced a significant boost among the over 55’s, as have more wellbeing and spa vacations.

Age comes to us all - by successfully catering for it now we can all benefit from it later on, when it’s our turn!