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Gen X and Gen Y to raise travel costs in 2009: Report |
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PhoCusWright`s Consumer Travel Report has indicated that in 2009, both Generation X and Generation Y are going to increase the expenditure on travel costs.
Indian travel industry has been for many years given importance to boomers. Companies are also targeting to tap into their sensationalised spending power have long been setting their focus and marketing in this line.
According to the report, the trailing-edge baby boomers (45-54 years old) actually spent the least of any age group per household on travel. They are also the most likely to cut their travel spending in 2009, with 27 per cent reductions in travel frequency and spending. Stuck in a middle-aged slump, trailing edge boomers with children in college, devalued homes and ravaged investment portfolios have been among the hardest hit by recent economic struggles.
The youngsters still represent a critically important consumer group, the permanence of their risk-taking and resulting financial scars will change the way this generation spends money for a long time. Marketers should again consider boomers` status as the golden target group, at least for the near term.
On the other hand, 18-24 years and 25-34 year old are more likely to increase their travel spending in 2009. In particular, 32 per cent of 25-34 year olds (the group that spent the most on travel in 2008) plan on spending more in 2009. This group includes some of both Generation X and Generation Y, but generally exhibits traits associated with Gen Y. Beyond their cultural branding as being free-spending or experiential, they (Gen Y) are likely to be burdened by high-fixed expenses or to have suffered significant investment loss.
They also have lots of time to save up for retirement. While for the industry, travel is high on their to-do list. It is also important to point out that while these two generational cohorts are showing significant intentions to change their travel spend in 2009, there is a substantial portion of travellers who intend to make no changes. A strong correlation exists between age and propensity to make no changes to travel plans. This suggests that as travellers grow older, some settle into a comfortable level of spend and fluctuations become less common.
(Posted on : 29/04/2009)
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| Gen X and Gen Y to raise travel costs in 2009: Report |
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