Seven Emerging Tourism Market Segments

Regardless of what aspect of the tourism (or any other leisure) industry you are interested in, consider your ability to appeal to the following seven rapidly expanding market segments:

• adventurous baby boomer
• adrenalin seekers
• low functioners
• inter-generational travelers
• gay travelers
• the new learner
• spiritual travellers - the new pilgrims.

Adventurous Baby Boomers

Market segmentation studies in various countries are all identifying adventurous baby boomers as a strong, growth market. Analysis shows that in each country studies the segment is composed of well educated, relatively affluent individuals with a strong concern for the environment; experiential hedonists, community minded and concerned about social issues. Their prime travel motivation is ‘discovery’.

• Canada’s ‘autonomous rebels’ – 25% of seniors, 2 million strong
• US ‘actualizers’ – 15%, 11.5 million
• Australia’s ‘socially aware’ – 18%, 720,000 individuals
• New Zealand’s ‘educated liberals’ – 18%, 180,00

A 2000 study by American Demographics magazine found that 40.3% of US citizens aged 40 and older now incorporate sporting activity into their holiday; most popular sports (in descending order) were hiking, tennis, running, biking, golfing and skiing.

Analysis of outbound UK travelers shows Canada attracts oldest average age (50.7 years), major attraction factors were family/friend togetherness and natural/historic environments, lowest participation rates in package tours (24.3%) (Shawn Jang and Liping Cai)leading edge of baby boom is taking early retirement now, regular retirement in 5 to 10 years – explosive growth in the mature tourism market just around the corner.

Adrenalin Seekers

Adventure sports have been with us for some time – a growth market in the US for a couple of decades, only recently recognized in Europe (15% increase per yr). This market is being driven by X-treme TV shows, marketing ploys, and specialized magazines, articles and videos focusing attention on the elite participant. The masses are about to follow:

• TAMS found that 47% of Canadian and US travelers were interested in ‘adventure and excitement’ over the next 2 years – compared to 40% over previous 2 years
• TAMS (Travel Activities and Motivations Survey) found that the most pronounced emerging outdoor interests were the more unusual or exotic – Arctic experience, whitewater rafting, hot air ballooning, snowmobiling, whale watching
• TAMS Mainstream Mature Singles: high levels of increased interest in key categories (% interested in next 2 years compared to previous 2 years): ‘adventure and excitement’ (16%), ‘experiencing unspoiled nature’ (12%).

Low Functioners

Consider that:

• the aging population will result in many couples where one has a special need and the other may have respite needs
• 21% of US residents live with a disability
• 1 in 6 Canadians live with a disability
• the percentage of the population living with disabilities in the community will likely double in the next couple of decades due to:
  - the aging population
  - the continuing success of the ‘consumers rights’ movement
  - site modifications to accommodate accessibility becoming commonplace
  - explosion of medical technologies, biotechnology, and bio-engineering capabilities increasing ‘survivor rates’ and facilitating community living
  - growing market has made commercialization of ‘aids’ economically viable
  - de-institutionalization, shorter hospital stays, growth in home-based care.

Inter-Generational Travelers

Relatively affluent and active/healthy seniors are sharing their wealth and experience with grandchildren (trips that the parents can’t afford, or can’t get time off to do). Note a new outdoor camp in Minnesota (Grandkids and Me), a new travel agency GrandTravel in Maryland that specializes in major trips (Pyramids, Safari).

Gay Travelers

The gay travel industry estimates gay travelers at 10% of total market. Some interesting indicators of the increasing visibility of this market and the willingness of destination markets to reach out to it:

• exponential expansion of ‘gay friendly’ resort areas in US – Fire Island, Provincetown, Key West; and ‘gay capitals’ – London, Amsterdam, San Francisco
• Gay Pride week – New York and San Francisco together attracted over 750,000 in 2000 with 85,000 at London’s Mardi Gras
• note recent expansion of special packages or events – cruises, soft adventures, themed tours, safaris
• exponential growth in Gay Games – 10,000 athletes in Sydney 2002
• the rapid growth and popularity of the annula gay ski week at Whistler - Altitude.

A Mintel study showed higher propensity of gay community to both travel (more holidays annually) and spending. The study also notes that only a small portion of take 'gay themed' holidays (4%).

Male participation is higher than female (income levels, need to be with group, diverse tastes, need to party) – fastest growth predicted in female market. The most popular holidays are ‘city breaks’ and ‘beach based’ – Mintel found that 23% of gay travelers had taken a ‘city break’ in the previous 12 months - upscale, demand for quality, interest in arts/culture as well as night life.

The New Learner

• TAMS found that 7.4% (11 million) of US travelers have had a ‘hands-on learning’ vacation in past 2 years and 8.3% (13 million) were interested in next two years
• TAMS found that 6.2% (1,095,000) of Canadian travelers have had a ‘hands-on learning’ vacation in past 2 years and 5.4% (995,000) were interested in next two years
• TAMS segment with highest levels of interest: Young Singles (11% in next 2, compared to 9% in previous 2 years)
• acceptance of need for ‘life long learning’ to stay current in profession & remain vital
• growing involvement of retired persons in learning programs
• shift to experiential and self-directed learning
• TAMS found that 13% of US and Canadian travelers were interested in a ‘hands-on learning’ vacation in the next 2 years – compared to 8% in previous 2 years
• Highest increases in interest in ‘hands-on learning’ found in Affluent Young Couples (8%), Young Mainstream Market (8%), Mainstream Young Families (8%) and Mainstream Mature Singles (7%)

Spiritual Travelers - the New Pilgrims

• growing interest in spirituality in the Western World accompanied by decline in traditional religious practice
• note a 1991 estimate by Milan-based Borsa Internazionale de Turismo (BIT) that 26% of total world tourism involved a visit to one or more religious sites
• estimate that between 2-5% of all trips are specifically motivated by religious purposes: 13-31 million in 1998 (Paul Russel, TTI, No.5, 1999)
• literature emerging on the New Age traveler – a seeker who travels to maximize his or her spiritual explorations – the New Age is both a period (1960 to 2012) and a timeless journey towards personal transformation
• many new health retreats have a spiritual focus or component – eg. Yoga, meditation
• note India’s socio-cultural compulsion in the fourth phase of a person’s life to take a pilgrimage to remote holy places – link with senior tourism
• new literature on the spirituality of natural landscapes as a motivator for travel to the outdoors – appreciation of the outdoors increasingly taking on spiritual, aesthetic and mystical dimensions
• growing interest in First Nations spirituality and its fundamental connections with nature
• ‘faith syncretism’ is increasingly common where congregations or individuals blend aspects from two or more religions – many examples of Aboriginal beliefs woven into traditional western services (e.g. United).