Priority Club Connect: Newyorker's Blog: Pitching to the The Senior Market; 65 is the new 50

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Pitching to the The Senior Market; 65 is the new 50

Posted by Contessa Vanessa on Oct 13, 2009 11:07:04 AM

Not all senior are resting in rocking chairs, or barely surviving on Food Stamps.

Many older folks are healthy, wealthy and possibly wise.

They have discretionary funds, (maybe not as much as they had before the recesion and Madoff), but they have finished paying tuition (their own or their childrens'), orthodontics, summer camp, their daughters' weddings

The 65+ group travels,. buys hotel, rooms, cruises, airline ticket and inclusive packages. Why isn't ICG marketing to them?

The retired 65+ person can travel off peak, and fill hotel rooms during the slowest periods. They can book far in advance or last minute. Many prefer the convenience of having meals in the hotel, another plus for the hotel. Seniors tend to be good guests, quiet, neat, follow rules, etc.

They like a good deal for their money, so they have to given somehing a special "extra" (breakfast , small welcome packet, etc.). Senior rates are available at all hotel chains, so IHG's offering is not unique.

I wonder if there has been market research on this poplulation segment, rapidly expanding with Baby Boomers, no longer baby or booming.

Comments?

570 Views Tags: senior, baby, boomers

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Comments (13)

Oct 13, 2009 12:11 PM

Ronald Chadwick says:

I would like to buy the senior rate and breakfast as an option.

I am in this age group and go to the gym twice a week and take a country walk of 5/6 miles at least once a week. UK life expectancy for a 65 YO is now 21 years, so we will be around , enjoying life for some time yet.

Oct 13, 2009 12:20 PM

Contessa Vanessa says in response to Ronald Chadwick:

Ron, I, too am in that age group, and you and I are thousands of other 'older folk' are healthy, curious and travel all the time.

I wonder why IHG doesn't actively pursue this market.

Oct 14, 2009 11:03 AM

JBa says:

Why don't you approach IHG directly? I am not sure if a blog helps you with this. It would be more interesting for you to find out who else has the same feelings here within our group and then present this to IHG. I am not in that age group yet but you have my support.

Oct 14, 2009 2:01 PM

Ronald Chadwick says in response to JBa:

Amongst other things this forum is a vehicle to enable issues, suggestions etc to be brought before IHG managers and Executives.

My recent blog " what is our forum all about" I hope reported on how much these aforementioned IHG people did in fact take notice of our comments, and suggestions.

Oct 15, 2009 3:49 AM

Amanda Kehoe says:

I agree completely. The senior market demographics consist of retirees with discretionary income and tend to be considered leisure travelers. The over 50 age travelers are candidates for additional discounts, but I have not seen anything unique yet.

Packages, tour groups, educational trips have proved to be popular among the senior crowd. Research is needed to learn more about services that seniors desire but without creating any negative age related stereotypes. Safety and health concerns still remain a challenge in studying this group. The demand for travel from the 50 and up age group will continue to remain strong. I hope the hotel industry will keep up..

Read IHG's, "Making World Travel Easy For Seniors."

Respectfully,

Amanda Kehoe

Oct 15, 2009 7:32 AM

JBa says in response to Ronald Chadwick:

Ronald, you might have first hand experience on how IHG says how they react to our comments here, but I haven't seen any proof of it as of now. Responses that came from IHG here were not that impressive, like Mr. Sickels "responds" to our questions was so outdated that it would had been better not to post that video. Once I see a quicker response from IHG I might get impressed

Oct 18, 2009 2:59 PM

Ronald Chadwick says in response to JBa:

Although IHG take notice there needs to be a feasibility study and if practical , for matters relating to hotels, take legal advice if contracts and terms are being varied as well as observing different trading rules in different countries. However were the issue is training of staff then this is always ongoing.

Oct 18, 2009 3:44 PM

Contessa Vanessa says in response to Ronald Chadwick:

You are right Ron, Nothing's easy. and nothing can be done without a feasibility study by a competant outside company. And then it would take a couple of years to untangle legal issues, and other things.

Still, there are a lot of those baby boomers out there, who are beginning to be seniors.

Oct 19, 2009 8:32 AM

Dan K says:

Dear Contessa,

I am a believer that IHG has assessed a marketing and sales strategy aiming at the "Senior Demographic". They apparently decided the business model is not profitable, or else IHG would be doing it (this is my personal opinion, of course).

I concur with your comments about many people frequently and extensively traveling during retirement. And I'm sure retirees and seniors would genuinely appreciate accessing a special overall discount. This is indeed a good question for the IHG visionaries and if you ever get a reply, I would appreciate understanding more about it. Does Marriott and Hilton provide discounted rates for seniors? (I have no idea).

Always appreciate your blog, Contessa!

-Dan

Oct 19, 2009 10:24 AM

Contessa Vanessa says in response to Dan K:

Thank you Dan for the kind comments.

Re seniors: I am sure that IHG and others in the hospitality business have researched the feasibility of the senior market. And yet, with milliions of baby boomers coming up, I question why the older population is not profitable.

In repsonse to competiive hotels givning senior discounts: Yes, they all do, though it varies according to availability at each hotel at the time.They are always flexible rates, so the cancellation policy is generous. At peak times, discounts are not unavailable..

AARP membership begins at 50years, and rarely, if ever, do front desk clerks ask for senior ID.

On average, the discount is similiar to what AAA offers. I always check the AAA and senior (or AARP), rate. At Mariott, the AAA rate is often better than their senior rate.

Livig in the middle of Manhattan, I don't own a car, but belong to AAA because of discounts and membership has always provided me with more bottom line $$$ than the cost of the membership fee.

Discounts have not been given to me in Europe, but possibly because I am a US citizen.

We 65+ deptression babies also go half price on public transportation , including commuter trains and Amtrak, and often tourist attractions, museums, boat rides, etc

As with most other promotions, if you don't ask, you don't get, so it is wise to always ask for what you want.

Nov 1, 2009 9:48 AM

TennesseeTraveler says:

I must agree with Contessa Vanessa's previous post - I think IHG has done some marketing and I think they have responded by giving discounts to seniors via AARP. As a member of both AAA and AARP, I have never failed to receive a discount on rooms at Holiday Inn properties throughout the US (and in a few foreign properties). I have also found that these discounts more than pay for my membership in both organizations, as I average 100+ nights per year in motel rooms. Also, I think that it is appropriate for AARP (and other senior discounts) to start at age 50, since there are many of us baby boomers out there who have made the 50 milestone but are not yet 65. The 50+ segment of society is large and getting larger, and I think any business that doesn't market to them is missing the mark.

Dec 16, 2009 11:33 AM

Ronald Chadwick says:

I was just sent this quote that I felt I should Share

Maybe it's true that life begins at fifty. But everything else starts to wear out, fall out, or spread out.""

Dec 16, 2009 12:05 PM

Contessa Vanessa says in response to Ronald Chadwick:

Ron, You made me giggle., But d-a-m-n it, ain't it the truth.

They tell me that age is only important if you are a cheese or a wine.

It's s a lie, but we do the best we can. and today is as young as I will ever be..

that's a lie,