Columbus Day 2013
The changing face of the over 55 cruise
customer
Nathan Philpot
Sales & 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 ...
Mori/Mintel Research Feb 2012
14% had been on a cruise
62% will not consider a cruise
But 24% would consider a cruise
Love...
Today’s over-55s feel relatively sheltered from the economic turmoil
as high income and asset ownership as well as absence...
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%
7...
• Average age 67 (from 50 on short cruises to 69 on long
cruises)
• Read Telegraph and Daily Mail
• High standards of dres...
• Private pensions are worth 30% of what they were and
retirement will not be possible as it is known today
• One in 10 pe...
Make love, make war,
make money
War Babies
1929-1938
Cash Kids
1949-1958
Love 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 ...
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: Com...
Cash Kids (aged 55-64)
• 7.2m people growing slightly to 7.4m by 2017
• Represent 27% of cruises and remaining static
• Pl...
Don’t forget the Swofties?
• Smash stereo-types of the ‘old spinster’
• Independent & open to new
experiences
• May look a...
Fred. Olsen Research
Getting underneath the stats
Focus Groups
1.Newcastle: Cruise Rejecters, 65-75
2.Newcastle: Cruise Co...
What they want?
The key driver remains the
destination not brand or ship
They want more time in port
to discover destinati...
Sell the Destination
“Destination, destination, destination
Itinerary needs to be at the heart of the cruise marketing mes...
The Experiences is the new Destination
“Who has got the best experience: it’s like who’s got the best tan”
Film Stars &
Fa...
In Summary
Fish where the big fish are:
The 65-74 age group is the biggest and fastest growing in cruise
with 2.7m potenti...
How to sell the wrong product to the
right audience
(or not)
The Hi-fi Store
of 24

Nathan Philpott Columbus Day 2013

Nathan Philpott Columbus Day 2013
Published on: Mar 3, 2016
Published in: Travel      Business      
Source: www.slideshare.net


Transcripts - Nathan Philpott Columbus Day 2013

  • 1. Columbus Day 2013 The changing face of the over 55 cruise customer Nathan Philpot Sales & Marketing Director
  • 2. 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
  • 3. 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?
  • 4. 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?
  • 5. How we view the market vs how they view themselves
  • 6. Illusory Superiority
  • 7. Our View of Cruisers
  • 8. Are we ageist?
  • 9. The Majority of cruisers (64%) are over 65 Source: PSA Cruise Review, March 2013
  • 10. Only 11% are aged 26-44 Source: PSA Cruise Review, March 2013
  • 11. 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
  • 12. • 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
  • 13. • 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
  • 14. Make love, make war, make money War Babies 1929-1938 Cash Kids 1949-1958 Love Childs 1939-1948
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. Fred. Olsen Research Getting underneath the stats Focus Groups 1.Newcastle: Cruise Rejecters, 65-75 2.Newcastle: Cruise Convertibles, 65-75 3.Newcastle: FOCL: working/retired 55+ 4.Sutton Coldfield: Competitors: working, 65-75 5.Sutton Coldfield: Rejecters: working 50-65 6.Southampton: FOCL, retired 7.Southampton: Competitors, 50-65 8.Southampton: Convertibles, 50-65
  • 20. 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’
  • 21. Sell the Destination “Destination, destination, destination Itinerary 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 cruise No. 1 Destination (79%) Mail Newspapers ‘Cruise Diaries’ Research
  • 22. 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
  • 23. In Summary Fish 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 ladies There’s a potential cruise market of2.6m singles, mostly female who want to meet people and have fun Question ourselves and be honest Are we promoting the image of cruise that we feel comfortable with or the image that is the most relevant to the audience?
  • 24. How to sell the wrong product to the right audience (or not) The Hi-fi Store

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