INDIA: The 50+ Segment Holds Future of World Tourism

That the aging population will control the world economy and with it, tourism, is something the international community is only now coming to grips with. Bhisham Mansukhani examines the market profile that the World Travel & Tourism Council believes could literally make world tourism come of age NEW DELHI (Express TravelWorld), July 18, 2006: A demographic study commissioned by the WTTC and conducted by the Institute For International Economics released at its recent annual convention in Washington, stated that the graying of world population will lead to a change in the profile of travellers. A certain profile called 'baby boomer' will determine the future of tourism. Who, baby boomers? Maggie White, regional manager (South and South East Asia) at Tourism Australia, helps out. "Baby boomers are defined as those born between 1946 and 1964 who are predominantly between the age group of 40 to 60 today," she says. Why have they, of all the age groups, suddenly become so important to the future of world tourism. One of the most pressing questions that popular culture tends to impose with ageing is that of absolute social isolation. It's no epiphany that popular culture has little to do with economics and the prominence of baby boomers is a testament to this. The older people get, the more conspicuous they become on the radar of the retail economy and it is only good fortune that travel, and its many distinct forms, are top of their mind. According to Pacific Asia Travel Association (PATA), the baby boomer segment, in terms of expenditure, will continue to grow over the coming decades. The session revealed, among other facts, insights like: * Japan has the largest and most affluent baby boomer market * The over-40 segment in Hong Kong, Chinese Taipei and Korea (ROK) climbs fastest * 1% of China's 200 million baby boomers has 'reasonable sum of money and time' * India has the youngest market According to Roy Morgan Research International, high-yield Australian and New Zealand baby boomers spend AU $200 and AU $300 per person, per day, respectively. Though they mostly travel to English-speaking countries, tourists to Asia Pacific destinations are high, owing to their proximity to Australia and New Zealand. White adds, regarding Australia’s inbound baby boomer market, “In 2004 1.1 million mature-aged international visitors, 22 per cent of all international visitors. Case Study: American market Effectively, 77 per cent of the world's biggest travel market is dominated by people over the age of 55. They control US $7 trillion, or 70 per cent of all US wealth and bring in US $2 trillion in annual income that they want to and are willing to spend. Further, one baby boomer turns 50 every eight seconds. People finally get old and as they do, they want more and are willing to spend. Still to age India does not have anywhere near the critical mass of a baby boomer economy the way the US does. The biggest problem, they say, is that the industry itself seems caught by surprise and is still waking up to this tourist profile in terms of positioning and selling to them. Rajeev Duggal, CEO, India sub continent & South East Asia, Destinations Of The World says, "There aren't any brochures for baby boomers, let alone itineraries. Some counter staff aren't even familiar with the term so how can they be sensitive to their needs or know how to sell to them. Abroad, there are specialists for this niche." Ashwini Kakkar, president TAAI and chairman WTTC (India chapter) is more sanguine and says that from an inbound perspective, India emerges as a strong contender. "One need only examine the preferences of the international baby boomer to realise that India is far and away a compelling choice for travellers. India is a vast landscape, equivalent to all of Europe and is steeped in as much art and culture. It has a rural community and eco-system that are far from blemished by capitalism and all of this is what baby boomers want to experience. And since India is a long haul market for Westerners, they are likely to spend more time and money here. However, infrastructure snarls, credibility issues and a general inconsistency could wreck the opportunity for us, allowing the neighbours to pick up the pieces if we don't get our act together. Since it is the inbound agents abroad that are selling our destination, we simply have to convince them of the quality of our product," he proffers. Meher Bhandara, manager of TCI, says that older people who would qualify as baby boomers make it a point to travel abroad at least once a year, customise their itinerary through research and spend well. "This band of tourists is growing; we will see more of them in waves. Unlike their international counterparts, they travel a lot with family but in terms of preferences they aren't too dissimilar." Duggal says, “Baby boomers want to do things themselves but don’t want to fill the day with too much activity. They will not bustle through Paris in a day. Rather, they would do a lunch under the Eiffel Tower. Also, they prefer direct flights. They aren’t keen shoppers. Their sightseeing preferences are less typical and veer more towards the historic and at times, esoteric.” Bhandara adds, “Baby boomers like to travel in groups of friends and not necessarily strangers, even of the same age group. From an outbound perspective, Indian baby boomers are actually younger than their international counterparts and like to travel with their family. They research thoroughly and play an active role in planning itineraries. A lot of their trips are coupled with VFR and they are actually more adventurous in picking destinations than the younger ones. Baby boomers love cruises and not the Far East ones but the Mediterranean, Caribbean and Alaskan. This market is growing. They are travelling more often they want to go to places that are not so common. They want to go to Russia, Greece and China. They have the money, the time and not much responsibility.” Her view on the growth of this segment of Indian outbound has substance, again in the form of statistics provided by the NCAER - while India's urban population aged 15-34 years is expected to swell 30 per cent from 107 million in 2001 to 138 million in 2011, that aged 15-44 years is expected to soar 27 per cent from 146 million to 186 million during the same period. So the opportunity is in fact a two-way street for India. Eventually, it is not so much the statistics but plain truths that make the most sense. And here, simply two may suffice. That we are not getting any younger and, if taken on merit of the economy, we're certainly getting richer. What Baby Boomers Want? Baby boomers look for a good deal. They want to be recognised. They are tech-savvy, they want to talk about issues important to them. Baby boomers feel forever young and they will pay for convenience, shy away from organised tours, take their time on vacation. © Copyright 2001: Indian Express Newspapers (Mumbai) Limited (Mumbai, India).