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Columbus Day 2013
The changing face of the over 55 cruise customer
Nathan PhilpotSales & Marketing Director
In 2012, the cruise industry’s average age may be 56 but two-thirds of all cruisers are aged 55+
• There are 18m over 55s in the UK – one-third of the adult population – and will rise to 21m by 2020.
• The biggest single age group in cruise is 65+
• 40% of the over 55 market is single, separated, divorced or widowed (rising to 60% of over 75s)
• A third of all babies born last year will live to over 100.
Some Age Old Facts
Mori/Mintel Research Feb 2012
14% had been on a cruise
62% will not consider a cruise
But 24% would consider a cruise
Love it or hate it?
So 17.5m adults in the UK or a massive 10x the current size of the UK cruise market are considering cruising.
Are we too focused on the those who will not consider?
Are we promoting to those that will consider in the right way?
Today’s over-55s feel relatively sheltered from the economic turmoil as high income and asset ownership as well as absence of dependents afford more financial freedom. The over-55 consumers don’t mind paying a premium price for products of genuine quality.
However, brands’ marketing strategies need to be more inclusive of this demographic, as 2.3 million adults aged 55+ feel that companies and stores don’t cater to the tastes of their age group.
•Ina Mitskavates, Consumer & Lifestyles Analyst, Mintel April 2012
The good news and the bad news?
How we view the market vs how they view themselves
Illusory Superiority
Our View of Cruisers
Are we ageist?
The Majority of cruisers (64%) are over 65
Source: PSA Cruise Review, March 2013
Only 11% are aged 26-44
Source: PSA Cruise Review, March 2013
Biggest Barrier to Selling Cruises was ‘Old Age’
Barriers to selling Fred Olsen Cruise Lines
1%
1%
1%
1%
1%
1%
2%
8%
14%
70%
Booking direct
Wants more commission
System issues
Training requirements
Brochure supplies
Ships need updating
Previous off-sale issues
More advertising needed
Older age range perception
No barriers
Survey of 878 Multiple and Independent High Street Stores
• Average age 67 (from 50 on short cruises to 69 on long cruises)
• Read Telegraph and Daily Mail
• High standards of dress and decorum
• Interests: gardening, reading, classical music, food & wine
• Well-funded pensions and no real financial worries • Prefer tailored communications that recognise their status
• Internet for research but travel agent to book
Current Fred. customer
• Private pensions are worth 30% of what they were and retirement will not be possible as it is known today
• One in 10 people aged 65-75 have chosen to stay in work
• The new generation are GlamMas and SWOFTIES
• Mail online report after gardening and dining, sex is the most popular pastime of the over 55s
• This is a generation that grew up to soft rock (Elton John & David Bowie and the rise of Disco)
• They want to dance, have fun and do yoga
The Future customer
Make love, make war, make money
War Babies
1929-1938
Cash Kids
1949-1958Love Childs
1939-1948
War Babies (aged 75-84)• There are 3.6m which will grow to 3.9m by 2012
• 20% have been on a cruise and 5% still haven’t and are considering
• They feel wealthier than other group and are far less cost-conscious
• They feel invisible in the market place – no one is selling to them
• Daily Internet Usage 15% / Mobile Phone use 77%
• A market here of nearly 1m that are being neglected
Love Childs (aged 65-74)• There are 5.8m rising to 6.4m by 2017
• 70-74 will grow by 23% to 3m
• Biggest opportunity: Companies don't cater to tastes of people in my age group
• 32% have been on a cruise and 39% are considering a cruise.
• Daily Internet usage 37% / Mobile Phone use 80%
• 1.9m existing cruisers and still 800k considering
Cash Kids (aged 55-64)• 7.2m people growing slightly to 7.4m by 2017
• Represent 27% of cruises and remaining static
• Planning holidays is more important (67%) than spending time with family (65%),
• Triple Pension whammy coming
• Daily Internet usage 67% / Mobile Phone use 92%
• 1.5m have cruised and 1.2m would consider
Don’t forget the Swofties?• Smash stereo-types of the ‘old spinster’
• Independent & open to new experiences
• May look and feel younger due to advances in medicine and surgery
• Want to learn and meet new people
• Projected to grow by 27% by 2033 with the biggest growth being in over 55s.
• 18% have cruised and 27% are considering cruise. That’s a market of 2.6m existing and potential cruisers
Fred. Olsen Research
Getting underneath the stats
Focus Groups 1.Newcastle: Cruise Rejecters, 65-752.Newcastle: Cruise Convertibles, 65-753.Newcastle: FOCL: working/retired 55+4.Sutton Coldfield: Competitors: working, 65-755.Sutton Coldfield: Rejecters: working 50-656.Southampton: FOCL, retired7.Southampton: Competitors, 50-658.Southampton: Convertibles, 50-65
What they want?
The key driver remains the destination not brand or ship
They want more time in port to discover destinations
They want to return enriched with stories and experiences (not just a sun tan)
Authenticity
Meeting people and sociability
Local cruises, sampler cruises & cruise & stay
All inclusive
What they do not want?
Cramped public spaces
Ports of no interest
Being ripped off by big bills and high onboard costs
There are polarised views on enforced dress codes with a fear of ‘penguins’
Sell the Destination“Destination, destination, destinationItinerary needs to be at the heart of the cruise marketing message. Almost three quarters of those who have been on a cruise over the past five years and two thirds of potential first timers agree that ‘they are a good way of visiting and exploring destinations”.MINTEL, Cruises, UK April 2012
Reason for choosing to take a cruise holiday
No.1 Itinerary/Destination 70%
PSA Cruise Review, March 2013
What most influenced you to book?
No.1 Itinerary 27%
Travelzoo Cruise Survey 2011
“Destination is THE prime and universal driver of cruise”
Fred Olsen Focus Group Research 2012
What’s important when booking a cruiseNo. 1 Destination (79%)Mail Newspapers ‘Cruise Diaries’ Research
The Experiences is the new Destination
“Who has got the best experience: it’s like who’s got the best tan”
Film Stars & Fast Cars
D-Day Anniversary
Baltic Festivals
Northern Lights
Soft Adventure
Easter Chocolates
In SummaryFish where the big fish are:
The 65-74 age group is the biggest and fastest growing in cruise with 2.7m potential cruises.
Mintel’s advice is to target the over 75s for Cruise – no one is actively doing so and there are 1m potential cruisers.
Sell the sausage not the sizzle: Destination is the driver of cruise bookings not ships
All the single ladies, all the single ladiesThere’s a potential cruise market of2.6m singles, mostly female
who want to meet people and have fun
Question ourselves and be honestAre we promoting the image of cruise that we feel comfortable
with or the image that is the most relevant to the audience?
How to sell the wrong product to the right audience
(or not)
The Hi-fi Store