The convention and business meeting industry is cyclical, and mirrors fluctuations in the economy. After a marked slowdown during the post-September 11 years, the Travel Industry Association expects the growth noted over the past few decades to gradually resume, reaching approximately 3.6% in the United States in 2005.

Be that as it may, players in the convention sector need to be aware of the major trends that will exert a strong influence in the years to come. Two university researchers did a qualitative study to see if there was any consensus concerning important trends among a sample group of over 250 British and Australian experts from tourism associations, convention bureaus, specialized convention planning services, sectorial associations, universities and convention centres. Three categories emerged from the study results: the business environment, technology and the social and political context.

Competition: the No. 1 business issue

There is growing consensus concerning the significance of global competition. This factor can only intensify, given the rapid proliferation of new convention centres, the modernization of services, the competitive prices offered by emerging destinations and higher customer expectations. For instance, meeting and convention space in the United Kingdom is no longer centred solely in large cities. It is also being integrated into country hotels, educational institutions and other kinds of alternate accommodation, such as castles or even historic sites. Even cinema complexes are trying to attract corporate events with high-tech audiovisual facilities and turnkey service.

The panel also identified currency fluctuations as a major issue. In the context of global competition, this can have a significant impact on destinations with a strong currency. In that respect, the strong appreciation the Canadian dollar over the past few months could negatively affect Quebec’s desirability for international travellers.

In fact, convention organizations will have to adapt to the changing nature of the events themselves, which will be shorter, with fewer delegates. These kinds of changes will require marketing initiatives that focus on developing long-term relationships with clientele, to ensure a certain stability and encourage repeat business.

In 2003, Meeting Professionals International identified the major technological factors influencing convention planning. These are: shorter reservation times – primarily attributed to more effective communication – and online reservation services, which greatly assist more rapid event organization. These factors inevitably make the long-term scheduling of events more problematic.

Technological advances

Although equipping convention centres with the latest technology makes them more efficient, it can also create problems. Often, the centre lacks the necessary support; when technological difficulties arise during an event, its efficiency is compromised. This, and the fact that convention centre employees need to be trained to use of the new equipment, are some of the reasons for a certain resistance to implementing cutting edge technology.

On the other hand, many customers are demanding the latest technological innovations. Unfortunately, the costs associated with installation and frequent updates are often prohibitive for smaller convention centres. In terms of technology, this will give the larger centres an increasingly significant competitive advantage.

For the past few years, much has been said about the effect of videoconferencing on business travel. Some experts have hailed it as a substitute for the trips themselves, but it seems this view is not completely accurate. These days, the panel of experts by and large agrees that Web solutions will never completely replace the traditional face-to-face meetings. Despite the technological breakthrough, human contact remains essential for effective communication. This view restores business meetings and conventions to their rightful place as the ideal setting – far better than an online videoconference – in which to make business contacts.

Social and political context

The steady growth in international tourism will increase demand for convention tourism. This is due to the simple fact that the more people travel – whether for business or pleasure – the more acceptable the idea of attending a convention in another country becomes.

Work habits have changed over the past few years, with more and more people working from home. The sense of professional isolation this can engender leads to the growing necessity of bringing together geographically dispersed colleagues in the context of business meetings.

Sociodemographic changes could also create new business opportunities. As the working population ages, a large number of former employees remain active in their field by joining various retiree associations and by attending conventions and business meetings. Also, as work-life balance becomes a more pressing issue, an increasing number of delegates will choose to add a pleasure component to their business trip by bringing along the family. Destinations that are seen as “family-friendly” will benefit from this trend.

Finally, a destination’s political stability remains a guarantee of visitor safety, in addition to conferring a significant competitive advantage. In that respect, Quebec must continue to capitalize on its completely safe environment, even in the downtown core of major urban areas. As for the future outlook, it remains to be seen what other factors will influence convention planners – choice of destination.

Sources:
- Biarritz, Anne. «Organiser un événement corporatif dans une salle de cinéma», Le Planificateur, mai 2005.
- Meeting Professionals International. «Welcome to Futurewatch 2003», MPI [www.mpiweb.org], 2003.
- Travel Industry Association. «Travel Industry Optimistic For 2005», Hospitality Net [www.hospitalitynet.org], 2 novembre 2004.
- Weber, Karin et Adele Ladkin. «Trends Affecting the Convention Industry in the 21st Century», Journal of Convention & Event Tourism, Vol. 6, No 4, 2004.

Why target the senior market?

Demographics is one of the few fields capable of generating fairly reliable forecasts. Here are a few interesting statistics concerning the senior (50 +) market:

• In the United States, a baby-boomer becomes a senior every 8.4 seconds;
• People born in 1950 live 20 years longer than those born in 1900;
• In 2025, there will be 63 million Americans over 65 years old;
• Florida currently has the highest concentration of people over 65, and will continue to do so until 2025;
• In 2025, 30% of the French population (over 16 million people) will be over 60 years old;
• Given current demographic trends, there will soon be more grandparents than there are young people;
• On average, seniors spend more than any other population segment on a variety of consumer goods, one of which is travel;
• In 2001, more than 50% of Americans between the ages of 50 and 64 were using the Internet.

William S. Reece (West Virginia University) studied the senior market by isolating specific sociodemographic variables likely to have a positive or negative impact on senior demand for travel (see Figure 1). He based his findings on two sample groups: one consisting of senior American leisure travellers (average age: 69) and another one of non-senior travellers (average age: 40).

Certain variables can have a greater or lesser impact on seniors’ demand for travel. Study findings revealed that propensity to travel varied between groups of individuals that were defined by a specific variable. Thus, 40-year-olds with an annual household income between $75,000 and $100,000 are more likely to travel than seniors in the same income category.

The accompanying figure shows the extent of each factor’s influence. The orange arrow (1.96+) marks the point beyond which the variables become significant. Only two criteria reach that threshold: the distance from residence to destination, and the type of residence (house). Based on these variables, seniors show a markedly greater demand for travel than people in their 40s. One possible explanation for this is that older consumers generally have fewer financial obligations: 80% of Americans over 65 are home-owners, and 80% of that group are no longer paying off a mortgage. As for the other criteria, the differences are not great enough to be deemed significant.

The study’s author rejects the idea that senior travellers behave the same as other travellers, although the differences are not as marked as one might have expected. However, the results do show that older people travel further than the average.

The term “baby-boomers” refers to people in the 40- to 60-year age bracket. Within that group, those over 50 are called “young seniors.” Even though their demand for travel may – by and large – be the same as that of their older counterparts, their reasons for travelling are significantly different. According to Lalia Rach of the Tisch Center for Hospitality, understanding the new reality for seniors is key to grasping their influence on the tourism industry.

The new generation of 50+ seniors was born in the 1950s and lived through the dramatic social changes of the 60s. As a result, people in this consumer segment no longer conform to the stereotype of an elderly stay-at-home. Inaccurate assumptions about seniors abound:

• They are brand loyal;

• They are not comfortable with technology;

• They prefer organized travel (such as senior tours);

• They prefer activities geared towards older people;

• They retire at 65;

• They live a slow-paced lifestyle.

The 50-year-old senior is much more likely to be:

• highly educated;

• completely independent;

• experiencing a sort of personal awakening;

• living a fast-paced lifestyle;

• able to enjoy life on their own terms;

• eager to make choices;excited to learn.

Strategic Approaches

These days, tourists in the over-50 set are more adventurous than ever. According to a survey of UK residents conducted by NOP World, seniors are now choosing far-flung destinations over the traditional beach holiday, with roughly 65% expressing the desire to go on a safari. The survey also showed that fully two-thirds of individuals over 50 find they are still able to enjoy all aspects of life. Tourism products and marketing strategies need to reflect that reality.

Certain industries are ahead of the game in this area, offering innovative equipment that allows older people to keep practicing their chosen sport for longer. Skiers can wear the much more comfortable ?soft? boot (see illustration), and golfers can use the ?Big Bertha? club (see illustration), enabling them to hit a long, straight shot with less effort.

Advertising campaigns have not adapted to certain aspects of the aging boomers’ sociodemographic profile (for example, 31% of this group are single). Destinations should make a point of showing photos of radiant older people in their advertising material. Seniors have never felt so youthful ? roughly 63% say they feel younger than their actual age, and they want to see that perception acknowledged when they purchase a product. To win over this market segment, be prepared to do the following:offer them a product that is simple, yet original;

• provide an activity that others are unwilling or unable to offer;
• don’t try pigeonhole them;
• encourage them to get involved;
• offer an experience, not a product;
• guide but do not manage them;
• build in frequent breaks and rest stops.

Advertising messages aimed at seniors must be pitched in such a way that they target them without pandering to blatant stereotypes. Seniors do not want to be thought of as ?old,? or consumer automatons. Merchants take note: the following terms are to be avoided when speaking of seniors: golden agers, the elderly, senior citizens, retirees, the grey rinse set, etc.

Companies will have to adapt their approach to the new reality. Golden age discounts can stay, but they should be renamed ?specials for 60+ customers,? in order not to stigmatize those who use them. Finally, managers should be constantly evaluating their products or services for signs that they are no longer relevant to an aging clientele.

Sources:

- Direction du Tourisme de France – Département de la Stratégie, de la Prospective, de l’Évaluation et des Statistiques. «Les pratiques touristiques des seniors en 2003», octobre 2004.
- Littrell, Mary A., Rosalind C. Paige et Kun Song. «Senior travellers: Tourism activities and shopping behaviours», Journal of Vacation Marketing, vol. 10, n^o 4, 12 mai 2004.
- Outburst Advertising/Marketing News. «Why Target the Senior Market?», octobre 2004.
- Rach, Lalia. «The Aging Society: Realities and Perspectives Impacting the Travel Industry», 18th Annual Governors Conference on Travel & Tourism, 29-30 mars 2005.
- Reece, William S. «Are Senior Leisure Traveler Different?», Journal of Travel Research, vol. 43, août 2004.

Characteristics of cultural travellers

Over 44 million American cultural tourists stay in commercial lodgings when they travel and generate an estimated US$29 billion per year in travel spending. Around 76% of them are leisure travellers, while 24% are business travellers. Some specific traits of cultural travellers are listed below:

• Average age is 46 years old
• Average household income is US$75,800
• 62% are married
• 87% have a college diploma or higher
• 31% have children living at home
• 37% travel during the summer

Interest in culture = interest in travel

According to Mitchell, Americans interested in history and culture, like the readers of Smithsonian Magazine, are especially interested in travel with an historic/cultural emphasis. A survey of the magazine’s readers showed:

• 93% visit historic sites
• 84% learn all they can about a destination before going there
• 76% consider culture and heritage when selecting a destination
• 71% explore towns off the beaten path

According to a TIA/Smithsonian survey, American cultural travellers can be characterized by the four “L’s”:

• Learning – 82 million say, “Trips where I learn something new are more memorable.”
• Leisure Activities – 67 million say, “My hobbies and interests influence my destination selection.”
• Locals – 63 million say, “While on vacation, I like to find places that are popular with locals.”
• Love it! – 34 million say, “Vacation/leisure trips including cultural activities are more important to me.”

Not the same as other travellers

Comparing cultural travellers with other travellers reveals some interesting differences. For example, cultural travellers spend a lot more than other travellers and tend to stay at destinations for much longer (see table). In addition, they are very active tourists: nearly half of those who stay in hotels participate in at least four activities. They are fond of shopping, nightlife and urban sightseeing.

Table 1: Comparison of American travel behaviours

All travellers Hotel travellers Cultural hotel travellers

• Spent US$1,000+ on trip 11% 20% 30%
• Primary travel by air 19% 30% 32%
• Trip = 3+ nights 41% 52% 66%
• Trip = 7+ nights 13% 23%
• 3+ people in party 19% 26%
• 2+ activities on trip 38% 45% 88%
• 4+ activities on trip 7% 45%
• Shopping 29% 29% 47%
• Nightlife/dancing 7% 10% 16%
• City/urban sightseeing 10% 15% 30%

Source: Roper Reports 2004

Promising outlook for 2005

In 2005, the demand for historic/cultural travel products will be high. According to a Roper survey, among Americans planning to travel in 2005:

• 24% will visit an historical site
• 17% will take a fishing trip
• 16% will visit a casino
• 16% will go hiking or camping
• 10% will purchase a package tour

• 9% will visit a health spa

Renee Mitchell emphasized that the travel behaviour of cultural hotel travellers makes them very profitable targets. She also stressed that hotels are ideal cultural partners for promoting special products, packages, events, etc.

However, one must remain realistic with regard to the overall tourism potential of US travellers. It is increasingly difficult to get them to cross any borders. For Americans, the most important factor in selecting a destination is safety (75%), which has now surpassed affordability (62%). Obviously, statistics such as these tend to favour domestic travel. Nonetheless, Canada does offer proximity and a reputation for safety, which certainly gives it an edge over other destinations.

Source:
- The Roper Center - TIA and Smithsonian Magazine. “The Historic/Cultural Traveler” [www.tia.org], 2003.