10 Jul
Baby Boomers an Economic Force to be Reckoned With
In size and purchasing strength, Baby Boomers – those born between 1946 and 1964 – represent the largest group of consumers. And, according to Margo DeAngelo and Phyllis Schiller, recession or recovery, they’re still spending in the USA. In their article, DeAngelo and Schiller quote some facts about American Boomers from a number of authorities. These include:
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78 million American Boomers have an annual purchasing capacity of US$2 trillion despite the current recession;
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they comprise a quarter of the population and thus the biggest generational segments;
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14% are already over 65; over the next ten years, the growth of the 50+ age group will be 22%, compared to the growth of 18-to-49-year-olds, which is going to be 3%;
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33% have significant financial assets;
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Americans in their fifties, are less interested in “stuff” and more in experiences.
The influence of Boomers in the market place – including in tourism – is not confined to the USA. According to Audrey Kauffmann (Vancouver Sun), “from Japan to Germany, senior citizens make up a lucrative and fast-growing opportunity in the tourism industry, with deep pockets, disposable income and free time.” Older travellers have strong purchasing power, and have become common targets for marketers. For example, travel companies in Germany and Austria are launching new programs to attract Boomers, and one businessman created a “50plus Badge” to help seniors identify ranked hotels across Austria and Germany that are suitable to older folk. Amenities at these hotels include wider doors that are wheelchair accessible.
