BABY BOOMERS: AN INSIGHT IN TO HOSPITALITY INDUSTRY
Trends and future
AJAY THAMPI THARAYIL JAYADEEP
The post world war era was a time of peace and opportunities. The safety level of life drastically increased and people started to look forward to the future for safer better and more productive conditions. The generation of people who were born immediately after the World War II (1946) and before 1964 were generally referred to as Baby Boomers. (Clayton W. Barrows 2012)
According to Clayton Barrows the year 2006 marked the onsite of the early boomers turning to their 60s. This was considered as the opening of a new niche in the market that demands fairly new ideas such as flexibility of employment, additional services and updated policies. The year of 2011 was even more stressed upon as boomer age group is going to get a jump start with 81 million or one-fourth of the entire US demographic turning to their 65. The sSheer size of this cohort is enough to obliterate any company that does not appeal to their specific needs.
The most important cohort in the history of the modern world is turning to its retiring years. This can only mean one thing, the hospitality industry worldwide is looking at exceptionally good business years. The main factor for this phenomenon being the availability of funds and leisure time with this particular cohort (Dennis 2005) People tend to satisfy the materialistic needs in their initial earning years. The thought of travelling and visiting new places only occurs after the mid-life, when they actually have enough free time to complement the spending power. This will shoot up the hospitality charts with the 55-74 year age group being the major boosting factor.(Francese 2005). Full stops go after the reference rather than before.
The senior age groups are growing at a rate that no other group ever did. After 2010 the growth of this group will sky rocket to 5% from the current 1.5% per annum for the next four years making them the largest single demographic in the US. You have already said this Moschis in his book pointed out an interesting fact. Approximately 53% of the boomers were willing to join companies offering various airfare packages. This showed a significant difference from their previous generation. This was in fact a marketing eye opener, the boomers were not the same as their generation before. (Moschis 2000)
Bureau of Labor Statistics (BLS) 2000 Consumer Expenditure Survey (as cited by Paxson) findings throw light into spending insight of the boomers in hospitality sector. An astounding 17 billion dollars where spend every year by the boomers on hospitality related sectors, including $8.5 billion spent only on the hospitality services.(as cited by Paxson) you are beginning to repeat yourself!
This does not mean every household have the same degree of expenses. Currently an average of $1200 is being spent per house hold per annum. This is not the exciting part yet, The high income section with $100,000 per annum spends a whopping try not to use words like this $6000 per annum on family holidays. The education of the boomers in this particular section also impacts the decisions, they generally tend to spend more for themselves and their grand children. This segment is growing rapidly along with the rest of the boomers and will have the maximum impact on hospitality industry just because of their spending power and their urge to keep moving forward .
The main distinguishing factor of the boomers is their inherent call for uniqueness, their inquisitiveness for adventure and their iron clad will to embrace the unknown. This being said, you have to keep in mind the fact that they still need comfortable stay, good food and well defined safety procedures along with their version of "adventure". (Paxson 2009). Good -- now make this information link to the question...
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