The Post-Covid Future for Grey Nomads – Happy Golden Years or Gloomy Twilight?
It’s almost too obvious to be worth saying that everything has been upended by covid-19. At the time of writing, Australians are trapped not just within their national borders but within their own states. NT has said that that its borders may not open until 2022.
And we’ve been hearing about https://www.coredata.com.au/blog/baby-boomer-personal-finances-hit-hard-by-covid-19/. And of course, we know that being older is strongly correlated to being vulnerable to covid-19.
Is this the end of the great Grey Nomad experience?
In the near to medium future quite the opposite!
We need to look at the longer-term underlying trends for the Grey Nomad market, but also to do a deep dive into it and unpick it a little.
First and foremost, let’s look at the wealth issue. Despite the losses experienced in the short term, the current cohort of Grey Nomads is probably the wealthiest we have ever seen. At the last census, those aged over 55 constituted 27% of the population, but owned more than half of its wealth. Older people are more likely to have defined benefits pensions and a broader range of assets.
It’s also a growing sector of the market. As the chart shows Australia’s population is aging.
But more importantly, we need to understand who the current and next generations of Grey Nomads are and just as importantly what their core needs are.
Older generations ain’t what they used to be….
The current generation of Grey Nomads is mainly built of the Baby Boomer generation – basically anyone aged 57 – 75 forms part of this age group. Baby Boomers are the ultimate disruptive generation. As Bronwyn White of New Young Consulting points out this is the group who lead the ‘Summer of Love’ in the 60s – the first true counter-culture generation. They are not going to grow old gracefully. Indeed, this showed in the early stages of the pandemic where they were the least likely to heed warnings – until it became clear that they were vulnerable.
But it hasn’t stopped them dreaming. According to OOH media, 72% of Baby Boomers intend to holiday in Australia in the next 12 months[1]. And border closures are no deterrent – a similar proportion (72%) are looking forward to travelling in their own state – fully 10% more than in other age groups.
Caravan and Camping is built for the Post-Covid Generation
And Caravan and Camping is going to appeal to them more than ever – both because of what it has always been and what it has become since covid-19.
At MyTravelResearch.com we’ve developed our 4 laws of Trends that have proven a reliable way to predict the future. Our number 1 law is “Trends arise when the changes in external factors like technology or demography collide with eternal, unmet or under-served needs”.
All of the evidence about caravan and camping trips is that at their core they meet a need for freedom. And freedom is of course one of the biggest losses that we have faced so the opportunity to regain the freedom of the open road is important.
It has also offered flexibility – and with a constantly fluctuating situation with borders the flexibility to change your itinerary with no penalty is going to be more appealing than ever.
Paradoxically, caravan and camping also meets a new and quite contradictory need: the need for control and safety. Caravan and Campers can retreat to their own safe space – one with no concerns on cleaning standards.
And broader market trends are confirming this:
- According to caravancampingsales.com, fully 67% of Australians are considering buying a caravan. This is also a brilliant win win for jobs as Australia is still a major manufacturing centre for caravans.
- The Caravan Industry of Australia notes that regional operators who welcome Grey Nomads stand to benefit to the tune of $292 million as Campermate saw a 140 per cent increase week on week on its app. These travellers are typically spending $584 per trip.
- Bookings on Camplify the ‘Airbnb of caravanning’ increased a whopping 1,125 per cent by the end of June compared to two months earlier (height of the lockdown)
It is these core needs that ensure that the Grey Nomad experience has a bright future – especially when you consider two other key trends.
This is a market with longevity – in every sense
Life expectancy for the Baby Boomer generational cohort is amongst the highest ever (and 20 years longer than 100 years ago according to New Young Consulting and McCrindle).
And the much ignored, Generation X is actually as likely to take a trip – and is only 5-7 years away from entering retirement age.
So how can regional destinations attract this market?
Firstly, recognise that they are ripe for digital marketing! It’s a cliché that Baby Boomers don’t use technology, but unlike most clichés this is less and less true. Thanks to covid-19, even the laggards are now on there. 34% of digital purchases are by Boomers in 2020 according to Boston Consulting Group, an impressive proportion given that they are 27% of the population.
This points to the broader point: don’t dare patronise them. According to New Young Consulting, most marketing is done to this generation by people (often millennials) who see them as old, grey and dull. This is NOT how boomers see themselves. Work done by the BBC shows that the gap between our perceived and real ages increases as we grow older. So, if you are showing people at their actual age, they won’t recognise themselves.
Finally, talk to those needs we note above. Do that and the future of Grey Nomads to your destination will be assured.
A shorter version of this article appeared in The Grey Nomads Times A version is also available on the MyTravelresearch.com blog
[1] Source: 1 oOh!media Pulse Report | Timing Wave 1: 1st- 4th May, 2020 Wave 2:18th- 19th May, 2020 Wave 3: 1st -3rd June 2020| Research Panel: Dynata| Australians aged 16+, Total n=2,953 | Gen Z (16- 24) n=267, Gen Y (25-39) n=777, Gen X (40-55) n=769, Baby Boomers (56-74) n=970, Pre Baby Boomers (75+) n=170.