Analysis of the Best Ager market for the tourism industry
Which markets are your primary source of visitors today? Do your top markets vary by season? Using tourism analysis to identify your top visitor origin markets allows you to concentrate your media buying in the markets that are likely to yield the best results. You may already work with local visitor destinations to identify admissions volumes, but do you know which combinations of attractions your tourists most commonly visit? Understanding the top combinations of visitor attractions is important because it helps to identify opportunities to bundle offers in your marketing promotion.
Using mobile device data to conduct a destination analysis allows you to present multi-destination packages designed to appeal to your visitors and encourage longer visits. Eating Local, Experiential Dining and Delivery. Tourism Analysis Can Identify Your Top Combinations of Visitor Attractions You may already work with local visitor destinations to identify admissions volumes, but do you know which combinations of attractions your tourists most commonly visit? Interested in retail recruitment and retention strategies? Buxton can help you with that.
The Internet use will increase in the future Best Ager market because the younger generations are used to computer and the Internet and have a lot of experiences by using it. The course was designed to meet the individual needs of the students within their studies. Every student has to choose a topic related to Marketing, any field of Business Administration or Economics and will write a report about this topic after discussing it with his provided tutor for this course.
This report has been written during this course. It first describes the several segmentation methods which could be useful to segment the Best Ager market for the tourism industry. After the theoretical part, proposals for a segmentation of the Best Ager market are given and this market is analysed concerning its potential for the tourism industry. The research methods used in this report consist of several literatures of marketing and tourism, internet sources and studies of research agencies as well as statistics of national agencies. I heeded his advice carefully and could hardly wait until I reached 50 to start again.
This statement by Hugo Lafayette Black is quite old but fits very well in the mindset of the Best Agers today. They do not feel old and want to enjoy their rest of the life. In the past they were seen as financially unsure, personally isolated and in bad health condition but this stereotype of the Best Agers is not valid anymore and is changing in these times. The Best Agers today are mainly dynamic, adventurous and like to spend their money instead of saving it for their relatives or worse times. This changing lifestyles and better health condition of the Best Agers and the demographic development of the German society makes this segment very interesting for the economy.
Concerning their changing interests and lifestyles this group could be also interesting for the tourism industry but not only the changing behaviour makes this segment interesting , their high disposable income and their potential to spend the money for traveling will change the travel sector in the future. This report will analyse the current market situation in the tourism industry and will work out the chances and perspectives for the tourism industry. However it first has to be defined what a Best Ager is and how these group of people can be differentiated from the rest of the society.
Why Allied Market Research
Therefore the heterogeneity of this market segment will be described and different methods how to segment this market will be discussed. An Analysis of the Best Ager market in Germany will be carried out to describe the demographic situation in Germany as well as the financial situation of the Best Agers in these times. Only a big enough segment and people with spending power are interesting to deal with further. After that the free-time activities of the Best Agers will be analysed. The focus lies here in the traveling behaviour of this group of people.
First the general travel behaviour of the German population is mentioned and then the travel behaviour in every category for the Best Ager will be analysed. The kind of traveling, the holiday destination, the preferences for accommodation, the frequency of traveling, the transport mode for traveling , the motives for traveling and finally the use of the internet for tourism web pages or booking behaviour will be analysed. This report deals with the main question: Do the today's and future Best Ager generations in Germany represent an attractive potential for the tourism industry and how can this market be segmented, and gives a conclusion to the analysis and possible segmentation methods in the end.
This chapter describes the content and main problems with which the report will deal further. Concerning the fact that many markets are saturated, it is very important for companies nowadays to gain advantages against their competitors. In order to reach a turnover growth, it is essential to attract new unsaturated market segments.
So far a frequently neglected target group is that of the seniors. Since the seniors become in the future in many industries the most important market segment, a purposeful treatment of this group of consumers opens new market chances especially in the market for travels. The age structure of the population changed in the last decades heavily. The population growth took place mainly with older humans. A historically new situation develops, in which ever older humans face an even smaller number of younger humans. Main causes of this demographic aging process are on the one hand due to individualizing and emancipation trends and a decline in the birth rate, on the other hand a rising life expectancy due to improved environmental conditions.
The quantitive volume increase of older travellers and the fact that they have enormous disposal income and buying power will change the conditions in the travel industry. Furthermore, the trend of the reinforced utilization of low-price-flight-offers and the rising internet-utilization for trip-bookings lead to drastic changes in the tourism-sector. At present older people, already use the internet for acquisition or information about trips and vacations.
3 Reasons to Consider a Tourism Analysis
This comfortable information and booking-behaviour will possibly turn into the normality with the future generation of the older people. Some companies have already started to develop successful marketing programs for Best Agers; nevertheless the offering is not very wide. This may lie in the difficult assessment of this new target group on the one hand. No other consumer group is so heterogeneous in itself like the one of the older people. In the course of their life, they collected all life-experience, that their consumption-behaviour essentially shapes and shows consequently individual behaviours.
On the other hand, lacking knowledge about the wishes and benefit expectations of the older people put a remarkable hurdle for usually young Marketing managers. Therefore this report will show up several segmentation methods and will propose the one most suitable for segmenting the Best Ager market.
Tourism Analysis Can Reveal Your Top Visitor Origin Markets
Additionally it will analyse the different behaviours and lifestyles of the German Best Agers with focus on the tourism market. The report will deal with the main question of: Do the today and future Best Ager generations in Germany represent an attractive potential for the tourism industry and how can this market be segmented? This chapter gives a definition of the term Best Ager and why it will be used in this report. In the literature there are numerous expressions of the different age groups starting from 40 years on.
Schlaffer uses terms like Selpies" second life people , "Woopies" wave off more older people , "Wollies" wave income old leisure people or "Grampies" growing retired active moneyed people in excellent state as well as "eagle owl" Under hundred years olds and "master consumers" without mentioning the concrete age allocation Schlaffer H. Many of these expressions take into account the financial situation of these groups.
For this one must know that the term "seniors" has a rather negative touch in Germany. For this reason this expression should not be used in Marketing as long as possible. The word senior does not reflect the interests and lifestyles of the older generation nowadays. In the past one spokes of seniors at the age of about 60 years. Nowadays this expression is used for year olds Verheugen E. Concerning the changing lifestyles and interests of the older people, the expression Best Ager will be used further in this report.
This definition is already used in Marketing and suits best to the age group of people over 50 years old, although there are distinctions in the age range of this expression in the literature. This chapter describes methods for market segmentation and will give proposals how to segment the Best Ager market for the tourism industry.
In the previous chapter the Best Agers were already classified by age and distinguished from other population groups.
Analysis of the Best Ager market for the tourism industry
In the course of consumer research the providers will however recognize that a distinction only by age is not very useful. Artho pointed out that the behaviours, interests, personality structures and health conditions differ more in the age range from years than in the age range of the years old Artho S. For the development of offers suited to specific target groups like a travelling offer, the differentiation of Best Agers only by age range is unsuitable.
A more fine tuned segmentation of the Best Ager market is recommended. Concerning the different ageing processes of the individuals the differentiation by psychological age would be more suitable than by chronological age. In the following the theoretical background for the segmentation of the Best Ager market for a tourism product will be given. The different methods for segmenting a market will be shown and finally a method will be recommended to segment the market for the tourism industry.
It has to be mentioned that none of the methods will be perfect but the segmenting suggestions will provide a better structuring of the increasing market of the Best Agers. Market segmentation is the dividing of a total market into its different parts by some method Cahill D. A market segment consists of a group of consumers who share the same set of needs and wants.