Senior tourism: Demographic analysis and case studies

Senior Photographer was originally uploaded by Antoine K on Flickr and is reused here under the terms and conditions of the Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0) Creative Commons license

Characteristics of senior tourists

i) Demographic data

a) Age

There are differing opinions in international literature about the minimum age limit, according to which, a tourist can be defined as senior. When it comes to official documents issued with regard to tourism-related subsidies, such as the circular referring to the "Tourism for all" program, the Greek government strictly defines senior tourists as those tourists whose age is over 60 years old. Thus, it is obvious that the Greek Government does not want to leave any room for misinterpretation and conflict of views to arise with regard to the categorization and classification of this category of tourists.

According to the programs run by the Road Scholar organization, the age limit that distinguished senior tourists from other tourists was 60 years old until 1995. After 1995, the age limit was reduced to 55 years.

Moreover, regarding activities that can be classified as ecotourism, senior tourists are those tourists whose age is over 55 years old.

Within the context of tourism marketing that is targeted to senior tourists, it can be noticed that these tourists do not only have a minimum age limit, but a maximum age limit, as well. More specifically, the age limit of people who are part of the post-war generation (baby boomers) is about 70 years old. In addition, there is also the generation of the parents of baby boomers, whose age is over 70 years old. Therefore, there is a further distinction that applies to the market of senior tourists, based on its division into two subcategories according to age: a) under 70 years old and b) over 70 years old.

It should be clearly understood that becoming an elderly person is a transition process that takes time and does not happen instantly. The changes that individuals go through during this transition process take place with time, and as a result, there is room for individuals to realize, understand, and manage those changes.

This means that age limits can only have a symbolic meaning, and although they are key milestones in a person's life, they may not be actually characterized by dramatic changes that take place overnight.

In addition to psychological and other differences that can be identified to a greater or lesser extent during the transition to third age, there is another important factor that should be taken into account in designing a marketing approach that can successfully meet the consumer needs of senior tourists. This factor is travel propensity.

The travel propensity of the elderly is quite high, compared to the corresponding travel propensity of tourists of other age groups; however, the older the age of senior tourists, the lower their travel propensity.

Thus, those tourists who have just joined the elderly population and are in the first stage, i.e. their age is between 55-60 years old, demonstrate a higher travel propensity than elderly persons in older age groups.

The fact that retirement age limits have risen and are expected to rise even more in the future, will result in a lower mean travel propensity for senior tourists.

This decline in mean travel propensity is offset to some extent by the fact that life expectancy has risen, currently reaching the age of 80 years old. Therefore, although senior tourists who belong to the category of over 65 years old are characterized by a lower relative propensity to travel, the increase in the absolute number of individuals in this group results in increased demand for tourism services that are aimed at them. As an effect, the loss is balanced, which results from the decreased travel propensity that is shown by the early elderly (55-60 years old) due to an older retirement age.

The increase in retirement age limits is going to play a critical role in answering the question whether senior tourism flows will rise, remain constant, or decline. This will happen because, although life expectancy has increased significantly, late elderly tourists are characterized by lower tourist mobility. This point should be specifically highlighted, in order to avoid an overestimation of the potential of incoming tourism flows that refer to the tourism market under investigation.

b) Gender

It is generally perceived that gender plays an important role in the elderly, when it comes to purchase decisions made by couples, and this can be extended to also include tourism products and services. In other words, the opinion of females becomes increasingly important and prevails over that of their male partners, as they grow older and become elderly.

This observation, however, cannot be generalized to the entire population, nor can it considered as a phenomenon that lasts in time, since it is increasingly difficult to keep pace with changing lifestyle trends.

The "Tourism for all" program for the Elderly has taken into account the tourism needs of main beneficiaries, as well as the corresponding needs of their spouses. This decision, i.e., to also include spouses, is not only natural but has also played a key role in the success of the program, since, as it has been shown above, females tend to play a bigger role than their male spouses, when it comes to choosing a tourist destination and accommodation, as well as other factors that are either directly or indirectly associated with the tourism product, such as whether it is subsidized by the government, or not.

Actually, considering the fact that the tourist consumer behavior of senior citizens is part of their broader consumer behavior, which is also manifested in choosing other products and services, it would be worth investigating whether gender plays a role in these preferences, or not. The findings of surveys tend to challenge and disprove views and opinions that were previously accepted about the consumer behavior of the elderly, especially when it comes to gender. Within the context of these research findings, a differentiation can be observed, as opposed to uniformity of views, regardless of gender, which was advocated in earlier research literature.

More specifically, female seniors seem to adopt a more optimistic outlook than males, when it comes to their financial situation.

Furthermore, females appear to have a better knowledge of the market, looking for bargains, and asking for price discounts and other benefits. On the contrary, there is no evidence of males showing a similar behavior.

Moreover, females comprise the majority of the elderly population, as a result of the fact that they live longer than males. Thus, elderly females play a decisive role in the consumer decisions of the elderly overall.

It would not be an overstatement to draw the conclusion that elderly females have more influence on consumer decisions made on a personal, family, and social level, than their male spouses and males in general.

According to the same researchers, the general trend of middle-aged persons and the elderly to identify themselves with younger persons is largely demonstrated by elderly females; however, this does not apply to males to the same extent. This trend has an effect on the various forms and manifestations of a person's general behavior, part of which is consumer behavior, and more specifically, regarding tourism products and services.

In addition, elderly females are more sociable compared to males, and treat the shopping experience as an enjoyable social activity that does not necessarily depend on wealth.

The consumption experience itself, and not the wealth that may be associated with it, results in a state of well-being (a concept that is identical to "living well", and which refers to the quality of tourism products and services).

On the other hand, elderly male consumers do not share this view.

ii) Income criteria

In terms of the "Tourism for all" program for the Elderly, Stage B, 2013-2014, there is no distinction among the senior tourists who are beneficiaries of the program, based on income criteria. Therefore, the income of beneficiaries is not always a factor that determines their selection or exclusion.

Besides, according to Exarchos and Karagiannis, senior tourists, compared to tourists of other age groups, are characterized by their stable income that comes from various sources, as well as the fact that they save a larger portion of their income than tourists of other age groups.

This means that the income they receive is not only stable but keeps growing, depending on how much they save. Hence, their discretionary income to consume tourism products and services is characterized by similar stability and growth, which should be emphasized when estimating their spending potential as tourist consumers.

Baby boomers are generally characterized by a high income level, which was estimated at $75,000, according to the Domestic Market Travel Report. This high income level is combined with the preference of those individuals for entertainment, recreation, and leisure services, and also the fact that they have plenty of free time available.

Therefore, it is clear that three conditions are met, which refer to the purchase and consumption of tourism products and services:

1) High discretionary income

2) Plenty of free time available

3) Showing a preference for entertainment and recreation products and services that also include tourism products and services.

In terms of the income level of senior tourists, there is agreement in both international and Greek literature, although significant time has passed since when the relevant citation was published in Greek literature (1993).

Therefore, it is commonly accepted that tourists in this category are characterized by a high discretionary income, and in the case of foreign tourists, this translates to equally high foreign exchange inflows. This fact should be taken into account as a key driving force for the improvement of the tourism products and services that are offered by Greece to senior tourists in general, and foreign tourists, in more specific.

Of course, this classification of senior tourists based on the income criterion is not only limited to wealthy individuals, but it is extended to also include categories of senior tourists with a low income level.

Thus, programs were implemented in the past, and continue to be implemented ("Tourism for all" Stage B, 2013-2014), especially for domestic senior tourists, and within the general context of Social Tourism. These programs are aimed at this particular segment of the tourism market, taking into account the differentiation that exists, depending on the high or low income of tourists, respectively.

Lytras highlights the following distinction that correlates the disposable income of elderly tourists with subsidized Social Tourism programs:

"programs for late elderly people with a low income", and

"programs for late elderly people with a high income".

In spite of the fact that this income differentiation may seem to be insignificant, it is, however, extremely important, in terms of its value for marketing research that can be conducted on tourists of this age group.

What is more, it can shed light on various aspects of the consumer behavior of this category of tourists, according to the income criterion.

In terms of European senior tourists, their annual income - as it was estimated in average for 2012 - is equally high to the income of American senior tourists, and exceeds €33,000 for persons over 55 years old.

In this case, as well, the combination of a high income, sufficient free time, and a corresponding willingness to consume tourism products and services, and when it comes to European tourists, in specific, Greece's proximity as a tourist destination (which does not apply to American tourists), contributes to an increased consumption of the Greek tourism product.

Overall, the rising tourism consumption of the elderly was expressed as a general increase on a global level, irrespective of the destination country, and amounted to 14% in 2012.

iii) Other criteria

Marital/family status

As it reported in relevant literature, marital/family status is not a determinant of the consumer behavior of the elderly.

However, the fact is pointed out in the same source that there is a big differentiation in the specific family model that is adopted by elderly people, and this differentiation has increased in past decades. This observation can prove to be valuable, if a further segmentation of the tourism demand of the elderly is attempted, as well as identification of any niche markets that may exist.

For example, both segmentation and identification of the tourism needs of the elderly may be attempted, according to various factors, such the existence of a spouse, children, grandchildren, etc.

On top of identifying the tourism needs of senior tourists, this broader segmentation can result in the identification of the corresponding needs of persons from their close family environment that are closely related to those tourists, as well as the development of corresponding tourism products and services to meet these needs.

Socioeconomic status

The differentiation that is observed in the socioeconomic status of senior citizens serves as an important determinant of the consumer behavior of these persons, in general, and consumption of tourism products and services, in particular.

As it is cited in the same source, Gunter argues that "individuals of higher socioeconomic status are influenced by branded products and print media more than individuals of lower socioeconomic status, who are influenced more by TV, when it comes to their purchasing power and behavior...".

Moreover, although there is a tendency to treat senior tourism within the narrow context of the so-called "social tourism", as a result of its social dimension, a differentiation of senior tourists according to their personal characteristics and views would be well-grounded, and mostly based on their personal understanding and acceptance of the transition process of growing older and ageing.

Therefore, expanding this differentiation in the personal views and opinions and consumer behavior of senior tourists as the latter is expressed through the purchase of tourism products and services can result in a distinct form of tourism that will be characterized by its own unique features.

This approach that refers to senior tourism as an independent category of tourism activity can spark a more thorough analysis of tourism needs and deviate from the traditional view, according to which, senior tourists consist solely of persons who only use tourism programs that are aimed exclusively at them.

In addition to the benefit that may be yielded towards an improvement of the marketing approach that is applied to the market of senior tourists, it is also possible to enable tourism enterprises adopt an alternative approach to the social tourism model.

Although social tourism programs can literally save several tourism providers from going bankrupt, they can actually hold back any efforts to develop innovative, specialized, and customized tourism products and services that are targeted exclusively to senior tourists and their families and dependents.

Nevertheless, the implementation of social tourism programs should be carried on, since, as it has been shown above, they can meet the tourism needs of elderly tourists with a lower income. At the same time, they create demand for tourism products and services that would not otherwise exist, even though state-subsidized. In this way, not only the relevant companies, but also the government is benefited, since taxes are collected as a result of the tourism activity that is developed. As it is also reported by Lytras, senior tourism: "... brings in foreign exchange, since it refers to age groups that are known to have a high income level...". Tourism providers should target these foreign exchange inflows and high-income pensioners, in order for them to be able to boost their profits and improve their medium- and long-term sustainability.

It is true that it is important to determine and set age limits, according to which, it is possible to identify senior tourists and how they differ from other tourists in terms of age, in order to be able to better study, identify, and meet their tourism needs.

However, on many occasions, these limits can have exactly the opposite effect from what is expected, in terms of implementing proper market segmentation and identifying correctly the tourism needs of those individuals, since they can become obstacles, if they fail to also take other factors into account.

Two of these factors are cognitive age and activities age.

Cognitive age is the age that a person better identifies himself or herself with, and which is not always the same with the person's numerical age. Therefore, although a person may officially be 60 years old, his or her cognitive age may be equal to that of another person who is, e.g., 20 years younger.

This parameter is sometimes ignored by tourism providers during the development and supply of relevant products and services; although these products and services may correspond to the numerical and official age of senior tourists, they may fail to meet the needs that result from the cognitive age of those tourists, which can be different, as it has already been reported.

Examples and case studies of senior tourism services in Greece and internationally

i) Senior tourism programs subsidized by the Greek government

"Tourism for all" for the Elderly, Stage C, 2013-2014

According to a circular issued by the Ministry of Culture and Tourism, the "Tourism for all" program for the Elderly, Stage B, was implemented during the 2013-2014 period. The purpose of this program was to subsidize tourist accommodation across the country, so that senior citizens could find and book holiday accommodation and buy tourism products and services at discount prices.

In brief, the program was designed for pensioners of various pension funds, provided that they did not receive any subsidy from any other similar program. Beneficiaries should be over 60 years old.

Furthermore, the program also provided for cases of dependents (spouses, underage children, or disabled children), disabled beneficiaries, and relevant benefits to companions/carers, as well as the case of special discounts offered to individuals traveling alone.

The number of discount vouchers amounted to 5,000, which could be collected by beneficiaries from Citizens' Service Centers (KEP). The subsidized amount was paid by the Greek National Tourism Organisation (GNTO) to tourism providers, and was set at 19 euro per person per night, provided that the participating companies would collect a minimum amount of 1.00 euro per person per night. The total amount of the contribution that the beneficiary would pay was determined by each company.

Moreover, it should be noted that, in addition to providing basic accommodation and board services, provision was made for extra services, such as free use of spas that were located and operated in the wider vicinity of each accommodation.

Positive points-Observations

Considering the nature and particular characteristics of senior tourism, these minor improvements-additions, such as the combination with other relevant forms of tourism that was implemented, for example, within the context of the "Tourism for all" program, have multiplied the value and benefits enjoyed by senior tourists, while they have also increased the effectiveness of such state-subsidized actions.

Of course, these measures are only the beginning of similar initiatives. They provide an incentive and help in making senior tourists aware of the potential and the actual product that can be offered by Greek tourism providers.

The number of 5,000 discount vouchers is significant, taking into account the government's limited ability to provide subsidies amid the economic crisis. However, these vouchers are definitely welcomed by the majority of low-income pensioners who would otherwise not be able to book holiday accommodation.

ii) Private initiative and enterprise in the Greek senior tourism industry

a) Case study of a Greek tour operator specializing exclusively in senior tourists

On top of the theoretical analysis of the context, within which, the tourism needs of senior citizens are shaped, it would be worth studying the case of a tour operator based in Greece that specializes in meeting the needs of domestic senior tourists.

Panos Holidays is a tour operator, the operation of which is focused exclusively on elderly tourists, and by studying its case, useful conclusions can be drawn about the sustainability of its business model, as well as the broader growth outlook of companies focused exclusively on meeting the needs of elderly tourists.

Panos Holidays is based in Athens and has followed its own business approach right from its foundation in 2000. This approach is the opposite of what is followed by the overwhelming majority of tour operators in Greece, which are general tour operators, in order for the latter to have a greater scope of activities and meet the needs of a bigger number of customers, and increase their customer base, as a result.

The bulk of the customers of this tour operator come from Open Care Centres for the Elderly (KAPI) that are based not only in Athens, but all over Greece, and according to the owner, Mr. Panos Kourkountis, he has served 584 Open Care Centres for the Elderly (KAPI) and more than 50,000 elderly tourists throughout the years (newmoney.gr, 9/6/2014). These figures show that senior tourism has the potential to become a great source of income for tour operators, especially if the latter decide to specialize exclusively in this particular age group.

However, it should not be mistakenly believed that serving the needs of senior tourists is a simple task that can be automatically incorporated in a large number of services offered by general tour operators.

For Panos Holidays, this has been a "strategic decision" and the result of "love and respect for the elderly". On this basis, the main objective of this tour operator is to provide quality services targeted to the market of elderly tourists, taking low cost into account within the financial limits of this category of tourists, through the selection of quality accommodation and other services, and without compromising quality.

Therefore, it is noticed that the market orientation of Panos Holidays is in line with the categorization that has been proposed by Lytras, focusing on low-income senior tourists, and providing low-cost tourism products and services, as a result.

Along with the development of special packages that are composed of products and services that fall within the institutional framework of Social Tourism, and within the context of a broader cooperation with local Open Care Centres for the Elderly (KAPI), it can be safely argued that Panos Holidays has managed to coordinate the activities and products and services provided by various businesses and organizations that operate in the private and the public sector, which has been achieved by only a few tour operators in Greece.

This has resulted in a steadily growing business, meeting the tourism needs of elderly tourists, and even creating demand that would not exist, if a harmonious match of seemingly contradictory elements was not achieved, such as low cost and high quality services. This approach is also the foundation of business success of Panos Holidays, in a market where most companies find it difficult to go beyond the first stage, i.e. identify the tourism needs of senior tourists.

b) Case study of the Evexia Rehabilitation Center/Hotel in Kallikrateia, Halkidiki, Greece

The traditional model of the Greek tourism product, which is mostly based on the advantage that results from the combination of sun and sea, has had a steamroller effect, since it has not left much room for the development of a different approach, when it comes to meeting the needs of tourists visiting the country.

In case of senior citizens, there is a tendency to ignore any individual differences that may exist among tourists who belong to this category, since other than a few exceptions, no special tourism services and products have been developed to take into account the specific needs of these persons. This happens despite statements by government organizations, that: "... Only 29% of citizens over 55 years old choose a "sea and sun" holiday...".

In addition to the preferences of senior tourists for specific forms of tourism, it should be highlighted that, when it comes to the various levels of activity and mobility of those tourists, a high percentage, about 35%, of them have disability problems. Therefore, their tourism needs should be evaluated according to the ease of access that should be ensured for those persons during their holidays, through special services and facilities.

One of the few companies that have realized so far the great potential that is represented by a high number of senior tourists with disability problems who want to have access and consume special tourism products and services is the Evexia Rehabilitation Center in New Kallikrateia, Halkidiki, Greece.

The Evexia Rehabilitation Center mostly offers rehabilitation services to patients, and within this context, it also operates in the medical tourism industry. The fact, however, that the services and facilities provided by this center are ideal for senior tourists with limited mobility combined with its location make it attractive to senior tourists who cannot find similar services in other types of holiday accommodation.

Through this innovative business model, i.e. the development of a modern medical rehabilitation center that also provides tourist accommodation services, patients can improve their health, enjoying their holiday by the sea, at the same time. In this way, their health improves even more.

The development of the Evexia Rehabilitation Center, which has 165 beds in single and double rooms, is a small but vital step made by the local accommodation industry, in an attempt to fill in an existing market gap that refers to meeting the special tourism needs of a large part of senior tourists who face disability and mobility problems.

It should also serve as an example for other tourist accommodation providers to follow, since there is high growth potential. There is room in the market for a large number of similar tourist accommodation providers, as well as the establishment of partnerships; for example, the Evexia Rehabilitation Center has established a partnership with Mouzenidis Travel Group.

Accommodation for patients at the Evexia Rehabilitation Center is not limited to the provision of state-of-the-art medical services, but also extends to organizing recreational events on a regular basis, as well as local sightseeing tours, offering Mediterranean diet plans and access to an outdoor pool and the sea, etc.

iii) International experience-Examples

a) Senior tourism case study, Benidorm, Spain

Learning from competitors

In the case of Benidorm, Spain, package tours are available to senior citizens from Northern and Western Europe all year round. This is an excellent example of how successful the senior tourism model can be, since senior tourists flock to Benidorm even in the winter. It would not be an overstatement to say that, without these tourists, Benidorm would be empty during the winter.

As an effect, pensioners from wealthy countries, and mostly from Europe, support financially and provide a solution to the problem of seasonality that affects most tourism enterprises in Spain. The geographic proximity of Benidorm as a tourist destination can explain this trend, due to the fact that tourists of this age group find it difficult or inconvenient to travel long distances to arrive at a holiday destination.

Therefore, other countries that are interested in developing all-year-round tourism should study the Spanish approach and attempt to follow it, adapting it to local conditions. In this way, it will be possible for them to reap the benefits derived from senior tourism, in terms of increased tourism receipts and dealing successfully with the problem of seasonality.

b) Case study of the Road Scholar non-profit organization offering educational travel programs for senior tourists

Road Scholar is a non-profit organization that was founded in 1975, which specializes in the provision of educational programs to the elderly, in the form of lifelong learning. The key feature that differentiates these programs from other lifelong learning programs that are aimed at the elderly is the fact that they are combined with the travel experience of traveling to destinations that are not as popular, which offer, however, an "educational adventure".

It should be noted that the name of this organization, Road Scholar, emphasizes the element of learning that takes place in the context of a travel adventure, and goes beyond age limits

Bibliography

“Tourism, The business of travel”, Roy A. Cook, Laura J. Yale, Joseph J. Marque, Prentice Hall, 1999,

“Ecotourism, a practical guide for rural communities”, Sue Beclan, Lanlinks Press, 1998, p. 15,

“Travel and tourism marketing”, Dotty Boen Oelkers, Thomson South-Western, 2007, pp. 83-85,

“The professional guide, Dynamics of tour guiding”, Kathleen Lingle Pond, Van Nostrand Reindhold, 1993, pp. 54, 114-115,

Circular for beneficiaries of the “Tourism for all” program for the Elderly, Stage B, 2013-2014,

“Tourism for the elderly”, Georgios C. Katsos,

“New opportunities for the tourism market: Senior tourism and accessible tourism”, The Minister of Tourism at the event “Tourism for the Elderly” hosted by the Hellenic Chamber of Hotels,

“Agrotourism as a leverage of rural development”, Dr. Georgios S. Exarchos, Dr. Stefanos G. Karagiannis, p. 248, Center for Technological Research of Crete, Thessaloniki, 2004,

“Special and alternative forms of tourism. Demand and supply of new tourism products”, Paris Tsartas, Eleftheria Grimpa, Kritiki Publications, 2011,

“Tourism psychology”, Periklis N. Lytras, Interbooks Publications, Athens, 1993, pp. 374-376.

Further reading:

Extending tourism marketing: Implications for targeting the senior tourists’ segment

Segmenting the senior travel market by means of travel motivation insights from a mature market - Switzerland

Tourism-Related Needs in the Context of Seniors’ Living and Social Conditions

Destination Satisfaction in Senior Tourism: A Case Study

Attributes of Senior-Friendly Tourism Destinations for Current and Future Senior Tourists: An Importance-Performance Analysis Approach

Impact of tourist trips on seniors’ migrations – case study from Poland