Experiential Economy Finally Arrives

For several years, trendspotters have been talking about the experiential economy–that the time would come when consumers chose experiences over material things. 2005 might be the year that it finally arrived. As the Baby Boomers have matured (note that we don't say aged, since there is a whole segment of them that are only in their forties) they have less interest in acquiring more "things." In fact, the Leading-Edge Boomers who are turning 60 beginning in January are starting to try to figure out how to rid their lives of "things." They are thinking "downsize," and part of that is to eliminate getting and giving gifts for which they have no need. Rather, they are choosing to spend their money on experiences that will give them memories, easily stored and easy to take with you, no matter where you are.

Thus, we've seen myriad friends in their mid to late 50s who have chosen a family cruise for the Christmas or Hanukkah holidays, or a ski trip, or a trip to Spain to visit a family where they once enjoyed a stay as an exchange student, or a bareboat Caribbean jaunt with good friends. The ones who didn't go away this year are planning what they will do next December.

In his book, Advertising to Baby Boomers, Chuck Nyren suggests that Boomers are less likely to buy packaged cruises and other kinds of trips and more likely to want to plan their own experiential travel and they will rely on the Internet to do it. "We want to rattle lots of [computer] keys, have our mouses pounce and bite off appetizing chunks of graphics and descriptions from all sorts of sources–and build unique variegaqted vacations. Some smart dot.com entrepreneur will partner with thousands of travel companies, resorts, hotels, museums, airlines, car rental companies, and build a modular travel and reservation website. Myriad tempting experiences will be offered. The website will calculate the price of eact activity, cataloging and coordinating everything."

We offer one caution to Nyren's wisdom. The Baby Boom does come in segments. There are the adventurous travelers who have "been there, done that" and are looking for new experiences. There are also the more conservative, less well-traveled group that defines adventure as something more low-key, where the relaxation comes because someone has planned the trip to the last detail. Whatever you offer in the way of experiences, you need to know which segment of the Baby Boom is your natural audience and then go for it! The Experiential Economy has definitely arrived.