Target Market Analysis

A group of hikers examine the marvelous view of the Bay of Kotor.

TARGET MARKET ANALYSIS

This section describes which American tourists are likeliest to visit Montenegro. The target markets demographic and psychographic factors are analyzed as follows.
Demographic Profile

The demographic profile focuses on the target markets age, marital and parental status, occupation, health, and income.
Age

The primary market most likely to travel to Montenegro are Baby Boomers. Boomers are born between the years !"# and !#". $t is the largest age group in the %nited &tates and it is pro'ected that they will amount to "() of the total population by the year *+ (.* Members of this age group en'oy outdoor activities and the history Montenegro offers.
Marital/Parental Statu

This plan will market couples, either married or unmarried. According to Baby Boomer Magazine, ,,) of Boomers prefer to travel with their partners.- Table depicts the marital demographics of Baby Boomers in *+ -. The divorce rate from !!+.*+ - has doubled, " and more Boomers are traveling with either another companion or their adult children and grandchildren.( The secondary market we target are the offspring in accompaniment with their Boomer parents, as /milestone vacations01those taken around a special life event, such as an anniversary or a birthday#1 grow increasingly popular. Ta!le "# $a!% $oomer Marital Statu in &'"(

Marital Statu Marrie) Single, ne-er marrie) Dome tic partner hip Di-orce) Separate) 0i)o1e)

*"+ .+ /"+ "'+ /"+ "'+

Multigenerational vacations are a way for e2tended family members living geographically apart to spend time together., 3ue to the increase in factors such as time, health, and income, more Boomers are traveling with their families.4 According to 5referred 6otel 7roup, in *+ alone, almost * million %nited &tates travelers took a multigenerational trip.! The director of Adventure&mith 82plorations, Todd &mith, has stated that these vacations have led to a -() increase in bookings. +
2ccupation

More and more Baby Boomers gain time and money for traveling as they head into retirement. After having established themselves in their careers, Boomers are retiring at the rate of 4,+++ per day, * or about --+ an hour. The average rate of retirement is at age (! and a half years, - with about * ) of the Boomers intending to work full.time until age , . " Montenegro as a 8uropean travel destination is ideal for the active, retired, American Baby Boomer. 9ith "+ :k; accounts and plenty of time for activities, more retirees are spending time traveling as the economy picks back up after the 7reat <ecession. (
3ealth

9hen Americans travel to Montenegro, the =enter for 3isease =ontrol and 5revention :=3=; recommends vaccination for 6epatitis A #, as infection can be spread through contamination in food and beverages. , Many Baby Boomers are known to be active, 4 and because Montenegro offers a wide variety of outdoor activities, the =3= also recommends vaccines for rabies if visitors are at risk for animal bites. ! 6owever, if illness occurs abroad, the 9orld 6ealth >rganization has deemed the destination to have ade?uate healthcare.*+ $ndustrial surveys have shown that many Baby Boomers report feeling about ( years younger than their true age, * which may be attributable to an increase in health awareness. >ver half of the Boomer population reports engaging in regular e2ercise** and have even claimed to feel their health increases with their age.*Income

Baby Boomers are known to be wealthy. They drive the economy with the power of their spending. *" They spend far more than any other generation at a whopping @"++ billion dollars annually.*( $t is pro'ected that within the ne2t ten years, retired Boomers over the age of #( will account for ,+) of the disposable income within the %nited &tates. *# A %& 7overnment =onsumer 82penditure &urvey has shown that this annual number averages around @*",+++ per person.*, Aigure * details annual household income for Baby Boomers. 9hen traveling, Boomers spend about half of the nations vacation money.*4 Boomers still seek a bargain, but this term signifies receiving a decent price on a much greater value.*! Aorbes has even shown that industry research has ranked travel as Baby Boomers primary leisure activity,-+ with an annual average of @ (, billion spent on these vacations.- 6owever, researchers have also discovered that not all Boomers wish to travel after retiring,-* but choose to stay active. >thers may not even have the option of retiring because they hadnt saved up enough money.-4igure &# $a!% $oomer Annual 3ou ehol) Income &'"(
P %chographic Anal% i

9e have established that the ideal demographic to travel to Montenegro includes retired Baby Boomers and occasionally their older offspring. $t is important to evaluate their psychological attitudes. This section focuses on the target markets travel characteristics, spending habits, rebellious attitudes, and e2pectations.
5haracteri tic

Baby Boomers have oftentimes been referred to as a /Me 7eneration,0 as they typically had the chance to e2plore their youth while postponing marriage and children for later in their life.-" They spend most of their income on themselves-( as they are /independent and self.reliant0 individuals,-# trusting mainly themselves.-,
3

Boomers seem to be unable to deal with the concept of aging and growing old.-4 The generation has taken on a /forever.young0 attitude, -! reporting that they define /old age0 to begin at 4+ years of age."+ <esearch has shown Baby Boomers attribute feeling young to their /mental attitude,0" feeling about ( years less than their actual age."* This generation is stimulated by new hobbies and multiple interests, contributing to their overall sense of well.being."- The activities Montenegro offers meshes perfectly with their youthful travel characteristics. $t has been reported that Boomers have very strong values, such as /individual choice, prosperity, and self.actualizing.0"" This generation overall is very /goal.oriented and adaptive,0 and also maintains a positive attitude."( Their confidence is highly prevalent in their tasks"# and they are non.confrontational, avoiding conflict if they can help it.",
Spen)ing

<ecently, Baby Boomers have faced times of financial stress. As the 7reat <ecession came and went, the generation collectively cut down on travel spending."4 They faced a depreciation of their "+ :k; retirement savings."! The =ongressional Budget >ffice has reported that about a ?uarter of Baby Boomers dont have enough money to retire.(+ This is not due to the fact that they did not earn enough, but rather they werent conservative in their spending.( These frivolous spending behaviors are likely to magnified on a vacation. Another gap in the retirement savings are spent on health care.(* Although the generation is conscious of healthy behaviors and intends to stay active, (- #+) of their services are covered by Medicare(" while some might need about @-++,+++ to cover the remainder.(( >ne in si2 Boomers attribute their lack of retirement funds to having to pay for their childrens college tuition(# and in *+ attribute it to buying a home.(,
Re!ellion

7rowing up in the !#+s and !,+s, Baby Boomers are known to be skeptical and self.reliant.(4 &candals such as 9atergate and the war in Bietnam allowed the generation to ?uestion authority and challenged the system.(! 7rowing up during a time of reformation has caused them to gain a sense that they possess the ability to /change the world.0#+ The time of in'ustice, war, and politics has sculpted them into skeptics.# This skepticism arisen during this decade translates into their travel e2periences.#* Boomers thoroughly research their travel destinations and activities and e2pect a large amount of information before choosing a vacation location.#- They seek control in the overlay of the travel and the activities they engage in#" and have a preference for fle2ibility in the itinerary of their travels.#( $t has been reported that Boomers crave adventure in smaller groups in new places with plenty of room for free time and hands.on activities.##
E6pectation

Boomers see travel and vacationing a necessary aspect of their lives.#, Therefore, they engage in it regardless of restraints pertaining to time or money.#4 As a result, they resort to using credit cards in place of cash.#! The age group also seems to demand instant gratification.,+ They were raised receiving rewards ?uickly and therefore do not plan trips too far in advance., Co matter when Boomers book their trips, Montenegro offers a wide array of accommodations that suit their budget or their thirst for lu2ury. Many Boomers have reported they prefer physical outdoor activities with an intellectual twist.,* Montenegro remains an appealing destination for visitors of this caliber, as it offers both historical sites as well as challenging, interactive outdoor tours. 6owever, tour guides must remember that Boomers dont have enough patience for uninterrupted e2cursions but rather have a strong preference for fre?uent pauses and breaks reserved for e2ploration.,- Many boomers
4

disdain group travel and seek smaller group sizes and more interactive e2ploration,," preferring /sight.doing0 instead of /sight.seeing.0,( The intellectual craving can be satisfied with a touch of local history and atmosphere.
5onclu ion

Baby Boomers represent a large target market in the %nited &tates superb for travel to the lesser. known 8uropean country of Montenegro. The destination offers e2actly what a Boomer looking to travel would desire. Arom challenging outdoor activities, to local and cultural dining, to historical appreciation, Montenegro offers everything an eager and active Baby Boomer would e2pect in their ideal vacation. Their financial means and enthusiastic thirst for adventure make this multidimensional destination a fantastic getaway spot.

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