Older Adults and Travel - US - July 2004

SUMMARY

This report examines the travel market for people aged 55 and older; a group currently made up of World War II, Swing and the oldest members of the Baby Boomer generation. Older adults represent a strong potential market for travel suppliers. The growth of vacation travel since 2002, particularly in higher-end travel, points to the ability of older travelers to return to leisure travel. Travelers 55 and older are more likely to have secure financial futures and are less dependent on employment, as many have partially or fully retired. Having raised their children and fulfilled commitments such as mortgages, they can spend more money on travel, and they have the time to do so. Unlike younger travelers, who tend to take shorter trips to conserve both time and money, older adults can plan their travel according to their interests and needs.

Despite these positive factors, this age group also provides unique challenges that differentiate them from their younger counterparts. Many older adults are reticent about traveling alone, and seek additional amenities when they do travel. Some women become more interested in travel when widowed, but if they do not have a ready traveling companion, they may limit travel to visiting friends and relatives.

However, this is a group in transition. The Baby Boomers are approaching the 55 and older segment, and compared to their predecessors, Boomers have traveled more, reached higher levels of education and become accustomed to handling their own travel arrangements using the Internet. This experience will lend them a confidence that could encourage them to travel more as they age. They are also likely to seek out intergenerational travel options, bringing grandchildren with them on trips and taking trips of all lengths, by plane and by car.

TABLE OF CONTENTS

INTRODUCTION AND ABBREVIATIONS

• Introduction
• Other Relevant Reports
• Definition
• Abbreviations Terms
• Abbreviations
• Terms

EXECUTIVE SUMMARY

• Long and Short Trips
• Large Group of Older Americans
• Shifting Demographics
• High Discretionary Income
• Changing Perceptions of What is Old
• Health Concerns
• Computer-savvy
• Interest in Memorable Travel Experiences

TRAVEL MARKET-BACKGROUND

• Figure 1: Travel expenditures in the U.S., at current and constant prices, 1998-2003
• Graph 1: Travel expenditures in the U.S., at current and constant prices, 1998-2003

DEMOGRAPHICS OF OLDER ADULTS

• Introduction
• Figure 2: Profile of adults aged 55 and older, 2003
• Age
• Figure 3: U.S. population by generations, 2003
• Gender
• Figure 4: U.S. population, total and by age and gender, 2003
• Race/Ethnicity
• Figure 5: U.S. population, by age, race and Hispanic origin, 2003
• Figure 6: U.S. population, percentage share by age, race and Hispanic origin, 2003
• Education
• Figure 7: Educational attainment, by age, 2002
• Household income
• Figure 8: Median and per capita household income by age of householder, 2002
• Graph 2: Median and per capita household income by age of householder, 2002
• Figure 9: Households with discretionary income, by age of householder, 2000
• Graph 3: Average amount of discretionary income by age of householder, 2000
• Marital statu
• Figure 10: Age and marital status, 2002
• Figure 11: Age and marital status, percentage of total, 2002

MARKET FACTORS

• Introduction
• Shifting demographics
• Figure 12: U.S. population projections, by age, 2000-2010
• Definitions and perceptions of aging
• Discretionary income
• Figure 13: Households with discretionary income, 2000
• Visits to friends and relatives
• Increased mobility and migration rates
• Empty nest syndrome
• Figure 14: Presence of children in households, by age of householder, 2003
• Travel with grandchildren
• Changes in attitudes about retirement
• Figure 15: What retirement means to older adults, 2001
• Figure 16: Pre-retiree hopes and expectations for retirement, 2001
• Figure 17: Factors in the decision to work in retirement*, adults aged 45 and older, 2003
• Older adults' views on the future
• Health concerns
• Figure 18: Incidence of major ailments among adults 55 and older, January-September 2003
• Convenience of online travel booking
• Figure 19: Incidence of Internet usage and PC ownership among older adults, January-September 2003
• Figure 20: Total U.S. retail sales of Internet travel, at current and constant prices, 1998-2003
• Graph 4: Total U.S. retail sales of Internet travel, at current and constant prices, 1998-2003
• Figure 21: Travel booking on the Internet, by age, August 2003

TRAVEL HABITS AND ATTITUDES

• Introduction

INCIDENCE OF AND REASONS FOR TRAVEL

• Incidence of domestic and foreign travel
• Figure 22: Domestic and foreign travel, January-September 2003
• Figure 23: Domestic and foreign travel, by age, January-September 2003
• Reasons for any domestic travel
• Figure 24: Reason for any domestic trip in last 12 months, January-September 2003

ASPECTS OF LAST DOMESTIC TRIP

• Figure 25: Aspects of last domestic trip, January-September 2003
• Reasons for last domestic trip
• Figure 26: Reasons for travel for last domestic trip, by age, January-September 2003
• Type of transportation
• Figure 27: Mode of transportation for last domestic trip by adults 55 and older, January-September 2003
• Figure 28: Mode of transportation for last domestic trip by adults 55 and over, by race/ethnicity, January-September 2003
• Figure 29: Mode of transportation for last domestic trip by adults 55 and older, by household income, January-September 2003
• Figure 30: Mode of transportation for last domestic trip by adults aged 55 and older, by educational attainment, January-September 2003
• Type of accommodation for last domestic trip
• Figure 31: Type of accommodation on last domestic trip by adults 55 and older, January-September 2003
• Figure 32: Type of accommodation on last domestic trip by adults 55 and older, by race/ethnicity, January-September 2003
• Figure 33: Type of accommodation on last domestic trip by adults aged 55 and older, by household income, January-September 2003
• Number of nights away for last domestic trip
• Figure 34: Nights away on last domestic trip, January-September 2003
• Figure 35: Nights away on last domestic trip by adults 55 and older, by household income, January-September 2003
• Figure 36: Nights away on last domestic trip by adults aged 55 and older, by race/ethnicity, January-September 2003
• States visited
• Figure 37: Most visited states, all vs adults aged 55 and older, January-September 2003

DRIVING

• Distance willing to drive
• Figure 38: Acceptable time to drive for leisure trips, May 2004

LAST MINUTE TRAVEL

• Willingness for last-minute travel
• Figure 39: Last-minute travel, May 2004
• Figure 40: Last-minute travel, all vs adults aged 55 and older, by marital status, May 2004
• Figure 41: Last-minute travel, all vs adults aged 55 and older, by household income, May 2004
• Incidence of and reasons for last-minute travel
• Figure 42: Reasons for last-minute travel, May 2004
• Figure 43: Factors in last-minute travel, all vs adults aged 55 and older, by household income, May 2004
• Figure 44: Factors in last-minute travel, all vs adults aged 55 and older, by marital status, May 2004

OTHER ASPECTS OF TRAVEL

• Traveling companions
• Figure 45: Traveling companions, May 2004
• Figure 46: Traveling companions, all vs adults aged 55 and older, by marital status, May 2004
• Two key attitudes toward travel
• Figure 47: Attitudes toward travel, May 2004
• Figure 48: Attitudes toward travel, all vs adults aged 55 and older, by household income, May 2004

SUMMARY

• Introduction
• Duration of trips
• Arrangements for domestic travel
• Last-minute travel
• Travel companions
• Family-oriented flights, low fare factors

APPENDIX: TRADE ASSOCIATIONS

APPENDIX: RESEARCH METHODOLOGY

• Consumer Research
• Sampling Weighting
• Presentation Definition
• Further Analysis
• Trade Research
• Informal trade research
• Formal trade research
• Desk Internet Research
• Sources
• Definitions
• Forecasts

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