This report aims to explain the situation of the grey market in chronological order. We have identified 5 major aspects deemed to have been the main areas in the hospitality industry for grey market, they are; Clubs, Catering, Casino, Hotel, and Resorts. Using these 5 areas, we could identify the investments that have already been made in the grey market by either the commercial or governmental sectors. Such includes, “the elders’ club age concern”, “The Carmarthenshire County Council”, and several investments made to the improvement of infrastructure for the sake of the elderly. We then ventured into the current challenges that are being faced in the grey market. As the elderly become more sophisticated, they seek a higher quality of life and are pickier when it comes to food and hospitality. Health has become a major concern of the elderly, yet on the contrary, many turned to become “pathological gamblers”. We also found that the current infrastrutures were not enough for the greying population, majority of the entertainment centres were also targetting a different crowd. In a nut shell, with the aging population, we find great potential for the hospitality industry in the grey market. However, much needs to be done to receive this big crowd of consumers in the near future. We recommend improving the current infrastructure to cater to immobility and wheel chair bound elderly. As a general policy, there should be an emphasis on eating more healthily; this can even prolong the life expectancy of the population. We propose a reduction in taxes, which will prove to be beneficial to the society in the long run, as facilities can be improved to keep the elderly entertained.
Gray Market is “Market comprising of consumer over the age of 60.” (Business Dictionary, 2009) As the growing trend of the grey market, this report invested on the how they affect the hospitality industry in different way. In this report, we used figures and information mostly around these years. For the information source, we have example from Macau (casino), Dublin (club), organizations as Carmarthenshire County Council (Catering) etc. We investigated the whole industry in a global and board way. For some background of the grey market, figure 1 and figure 2 explained the growing number of the ageing population. (Statistics Netherlands, 2009) Figure 1. Number of over 65s 2009-2050
Figure 2. United States, 1980-2006
More very old people without offspring will appear in 2050. The number of over-65s is expected to rise from 2.5 million in 2009 to 4.2 million in 2050. The number of over-80s will increase proportionally. The amounts of older people without offspring will also rise. (USA CDC, 2009)
With the better technology, people have better health so life age would be expanded longer and longer. Therefore, the age of population would be older. In addition, with the trend of having less child in everywhere from this world, it creates the low birth rate and low death rate. Hence, the future market would be the saturated aging people. In this report, we will point out what the hospitality industry has been invested, what the challenges they are facing, and what are our recommendation would be. We focused on the research of club, catering, casino, hotel and facilities aspects from the huge hospitality industry.
What investment has been made?
Several social clubs have been set up to provide a venue for the elderly to come together and mix around with people of the same age. Clubs such as the “Elders club age concern” is a centre of arts and entertainment, allowing elderly to socialize, and at the same time, enjoy arts and entertainment.
Another example of social club, is the “Greenwich Pensioners Forum”, it is a group organized by elderly, for the elderly. Elder people can simply drop by in a parlour style outlet, which is filled with music, games, refreshments, and social events in a comfortable atmosphere...