While much has been said (and rightfully so) about the power and importance of Millennials as a driving force in travel sales, there is plenty to be gained by focusing on the other end of the spectrum as well. The Boomers and Matures who claim the title of grandparents are growing in both numbers (at twice the overall population growth rate, in fact) and influence.
According to the U.S. Census, there will be 80 million grandparents by 2020, accounting for nearly one in three adults. In addition, these grandparents are widely expected to work longer, have higher incomes, and spend more on discretionary products and services than their predecessors. They, more so than parents (35 percent vs. 25 percent), are inclined to pay for multigenerational trips to help family members enjoy a vacation they otherwise could not afford. And as the number of grandparents continues to increase—this demographic segment is growing at twice the overall population growth rate—multigenerational travel will also continue to grow.
These are just a few of the key findings of a recent Preferred Hotel Group (PHG) study aimed at identifying emerging trends in multigenerational travel, which also noted that this demographic shift is reflected in the composition of active U.S. travelers. Specifically, the number of American travelers who have reached the life stage of “grandparent” (25 percent) has also risen to the highest level recorded in contemporary travel marketing research. Within this demographic group, 35 percent took at least one vacation with their grandchildren during the previous year (41 percent for affluent grandparents living in households with an annual income over $250,000).
MMGY Global’s 2014 Portrait of American Travelers, released this past June, concurs that fully one quarter of travelers are now grandparents, which is significantly higher than observed in 2012 and 2013. The aging of the U.S. population is presumed to be a factor, with eight out of 10 Matures (defined by MMGY as 68 and older) reporting to be grandparents. The Portrait also noted that better than three in 10 grandparents traveled with their grandchildren during the past 12 months, while eight in 10 who did so also took the parents along. Similarly, the PHG study reports that 35 percent took at least one vacation with their grandchildren during the previous year.
Given these demographics, it’s not surprising that the PHG study also notes that multigenerational vacations now represent half of all vacations taken by both grandparents and parents. And multi-gen travel will continue to grow, says MMGY Global Vice Chairman Peter Yesawich, a notion supported by a brand new MMGY report, “10 Travel Trends to Expect in 2015,” which states that traditional and non-traditional families are getting larger, spending more on leisure travel and traveling in larger numbers per party.
Kid Power
While the older travelers may be seen as a catalyst in, or at least a contributor to, planning the family vacation, attention must be paid to the as-yet-unnamed generation, often called “pre-Millennials”—a.k.a. the kids. Here is some of what travel agents we spoke with had to say on that score.
“Children are a lot more involved in the vacation-planning process and love recommendations on the latest travel apps and other tech tools,” says Daniela Harrison, Avenues of the World Travel, Flagstaff, AZ.
“I would definitely say children have a great deal of say when choosing a destination,” says Jessica Griscavage, McCabe World Travel, McLean, VA. “Children are often the decisions makers, and parents want their children to be happy and also get something out of the destination. Happy children equal happy parents.”
Nancy Yale, president of Cruise and World Travel, Fairfield, CT, says the degree of the kids’ involvement depends on their ages. “If they are young, then they usually don’t get a say,” she says, but note that, nevertheless, such vacations “must be geared toward activities they will enjoy.”
These observations are supported by the PHG study, which indicates that fully 40 percent of both grandparents and parents say their children “actively participate in or influence vacation planning.” In a statement, Lindsey Ueberroth, president and CEO of Preferred Hotel Group, said, “This is multigenerational travel ‘2.0.’ And these days, children are calling the shots.” And they will continue to do so, according to the MMGY Trends report, which states in part that, in 2015, “we expect that children under the age of 17 will have a growing influence on destination choice, accommodations and activities.”
It’s not entirely up to the kids, of course, says Yale. “Since they are usually the ones paying, the grandparents often have the last say, but they will do what their kids tell them is best for the grandchildren and their schedules.”
Where They Are Going
Once the decision process concludes, where will these multigenerational groups be headed? Classic destinations are hot, according to the PHG study. Orlando (25 percent) and the National Parks (17 percent) top the list of domestic places multigenerational travelers would like to visit during the next two years, while the Caribbean (29 percent) and Western Europe (28 percent) are the leading international “dream destinations,” with Europe, Italy, England and France drawing the most interest. Beaches and theme park vacations are perennially popular types of multigenerational vacations.
Getting down to specifics, travel agents shared some of their clients’ choices with us.
“Country hopping in Europe and cruise-land combination vacations have been most popular so far for the spring of 2015,” says Harrison. “We’ve also observed an interest in private villas or condos for families. It provides a more intimate experience and gives families more flexibility to do their own thing on their own schedule.”
“I have a few grandparents taking grandkids at certain age milestones on a trip that the grandchild chooses,” says Heather Christopher, Classic Travel at Tackett’s Mill, Woodbridge, VA. “In most of these scenarios, they are choosing escorted touring [such as Tauck Bridges programs] or Mediterranean cruises, although the grandparent seems to dictate which cruise line, based on their loyalty.”
Christopher also gets requests for stays at group- and family-friendly villas in Tuscany, as does Jody Rains, Strong Travel Services, Dallas, who also recommends Palazzo Avino on the Amalfi Coast, which she describes as “fantastic for children.” Rains has also sent multigenerational groups to such far-flung destinations as Southeast Asia and the Galapagos Islands (more on that later).
Cruises Make Waves
Christopher adds that she is seeing “a larger 2015 push in cruising” for this market. “Cruising remains ever popular for multi-gen. Fortunately, they book early to help ensure we can get the cabins they are requesting.”
Harrison says she has also seen increased interest in cruises for multigenerational families. Why? “It makes simple things like having dinner as a family so much easier,” she says, “especially when trying to seat 20-30 people at once. Little ones that need babysitting are well taken care of and the cruise ships offer something to do for every age group.”
“I find that a cruise that has kids’ activities and daytime tours that can be interesting for the kids while the elders can do more sedate activities [depending on their condition and desires] works best,” Yale says.
Challenges to Be Met
Naturally, there are unique challenges inherent in dealing with clients representing an extended range of ages and tastes traveling together. For starters, says Yale, “Setting the dates and coordinating everyone’s schedules” presents an immediate set of complications. “Whether it is school/college calendars and vacation times or summer camp schedules, this is usually the most difficult challenge.” Travelers of the “middle generation,” she adds, “may have busy work schedules as well as specific vacation times that are more restrictive.”
“There is always a challenge as you are often working with three to four generations and each has a different opinion of what they want from the vacation experience,” says Griscavage.
“Also, often you are dealing with several ‘leaders’ who have their own opinions. It is important to find a destination that speaks to all generations.” She cites an Alaskan cruise as being “wonderful for multigenerational travel. Young children can hold Iditarod puppies while older kids can fish, kayak, hike and zip-line.” She says, “Whale watching is a perfect activity for all ages and physical levels. At the end of the day, the entire family can meet together for dinner and share their experiences.”
Similarly, Rains says the key is “finding the correct place which will offer activities, amenities and variety for all family members.” One large group she worked with was nine families who chartered the Eclipse to the Galapagos. “Trying to make parents happy with all their needs of food to beverages, to having enough on board for the kids, was a big challenge,” she says, especially since, “each family had a minimum of two children and some had four.”
With any large group, she adds, “It will succeed only if you have a great onsite property contact to work with and communicate with before the group arrives.” It was indeed successful, as it turned out. “The Galapagos was a terrific trip…educational. They chartered the entire boat so they catered to the families,” she says.
Yates cites the importance of working with “good tour companies such as Tauck Bridges and Destinations by Disney, which have preplanned land tours to worldwide destinations and offer activities that appeal to everyone during the trip. For example, in the Louvre [with Tauck], the kids may go on a scavenger hunt to find different items in paintings or go behind the scenes and find out how the artwork is preserved, while the adults have museum time with an expert explaining each painting.”
Yale has also put together luxury African safaris to East and South Africa, “where every generation has a life-changing experience and the family has a lot of quality time together regardless of their age.”
Firsthand experience is an invaluable tool, she adds. “I have taken my three children since they were six, eight and 10, around the world. Traveling with kids has made me knowledgeable about the family and multigenerational market.”
Harrison perhaps best sums up the goal for mutigenerational travelers and their agents to work together toward: “Overall,” she says, “it’s about connecting and enjoying each other’s company, while discovering a new destination.”
Agents Make It Work
Multigenerational families are finding value in working with traditional travel agents, PHG reports, much more so than other leisure travelers. During the past year, 38 percent used the services of a traditional travel agent to plan a multigenerational vacation, and 41 percent say they intend to do so during the next two years. Both percentages are twice as high as the incidence of traditional travel agent usage observed among all other leisure travelers.
More good news from PHG: Travelers who have taken a multigenerational trip previously are “likely” or “very likely” to plan another domestic (86 percent) or international (48 percent) multigenerational vacation during the next two years.
An Affluent Aspect
Multigenerational travel will continue to grow, with significant upside for the luxury sector. That was the thrust of a presentation by Peter Yesawich, vice chairman of MMGY Global, at Luxury Travel Exchange International in Las Vegas last month. Citing findings from the MMGY 2014 Portrait of Affluent Travelers, he noted that 28 percent of those surveyed are grandparents and more than 40 percent of them took at least one vacation with their grandchildren, sometimes with parents invited along as well.
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| Peter Yesawich at LTX: Travel funded by affluent grandparents “is going nowhere but up.” |
“We discovered in our work that one of the primary motivations for affluent grandparents is to provide a vacation experience with kids and their grandkids that they feel they otherwise would not be able to afford. They’re the ones funding the cost of the trip,” said Yesawich.
Therein lies opportunity for travel advisors as the number of affluent grandparents will continue to grow steadily as America continues to age and as wealth continues to get passed along to the next generation.
“This is going nowhere but up,” said Yesawich. “As parents pass on, you’ll inherit what it is they’ve acquired in their lives. The wealth transformation that will occur in this country over the next 15 to 20 years is unprecedented.”
Family Reunions at Sea: Tips From CLIA
Here are some selling points from Cruise Lines International Association (CLIA) to help in planning a multigenerational family reunion at sea:
* Think Bang for Your Buck: The inclusive nature of a cruise helps keep families on a budget. There are no worries about who is going to pay for this dinner or that activity as almost all meals, entertainment and activities are included in the rate. Extras, such as specialty restaurants, can be decided ahead of time.
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| Norwegian Breakaway is just one of many family-friendly ships. |
* Kid’s Programming: For parents who may want a break from their children—and vice versa—most cruise ships offer structured and supervised recreation programs and facilities.
* Adults-Only Time: Many CLIA lines have adults-only areas where they can enjoy a mini-escape while the kids are at play.
* The More the Merrier: Many lines offer group discounts and points for onboard group amenities. Usually the bigger the group, the more extras they can enjoy.
* Take Advantage of Home Ports: CLIA member cruise lines leave from numerous ports throughout the U.S., such as New York City, Boston, Fort Lauderdale, Miami, Seattle, San Diego, Los Angeles, Galveston in Texas, and more. Families can save time and money on airfare and drive to their closest home embarkation and disembarkation port.
* Do Your Own Thing: Families are full of diverse people and a cruise lets everyone find their own fun and then share it later.
* Together Time: While in port, groups can explore together on family-friendly shore excursions.
For more tips and details on cruise vacations, visit www.cruising.org.
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| Disney-oriented “Memory Making Grandparents” are more likely to vacation with their grandchildren. |
The Disney Factor
In doing research for its new multigenerational initiative, “The Grand Adventure,” executives at Walt Disney Parks & Resorts identified a market segment called “Memory Making Grandparents” who are exclusively interested in vacationing at Disney destinations. They were the first generation to experience Disney Parks and they want to share that narrative with their grandchildren. Other findings about the Memory Making Grandparents include:
* 71 percent vacation with their grandchildren, compared to 54 percent of all grandparents who travel with their grandchildren.
* Four out of five vacation with their grandchildren at Disney Parks.
* They have an average of four grandchildren from pre-school through teens.
* Their average household income is $80,000 and they average 18 vacation days.
* They spend an average of $3,000-plus on each vacation.
* 71 percent consider it “very important” to take at least one major vacation per year.