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In this insightful article Laurel Van Horn describes the growing market of disabled travellers. The disability market will continue to expand well into this century, with increasing revenues to be derived by those willing to understand and meet their particular needs. Smart tour operators need to notice this trend since there is a lot to be gained from specialising in this field.
Travellers with disabilities: market size and trends
An
address by Laurel Van Horn,
Executive Director, Society for Accessible Travel & Hospitality and Editor,
OPEN WORLD for Disability and Mature Travel
I want to talk today about the size of the disability market, both in North America and Europe, and to tell you what little we do know about how many persons with disabilities are currently travelling and how big the potential market is estimated to be. I should preface my remarks, however, by noting that this market is under-researched as well as under-served, so hard data are often lacking. This trend, however, is definitely upward, especially during the last decade. There are a number of reasons for this: improved services and facilities due in part to disability rights legislation in a number of countries, a greater number of persons with disabilities due to the aging of the population, and a higher level of employment and therefore higher disposable income.
Person with disabilities – America's largest minority
Disability travel is often described as a "niche market," but there are estimated to be more than 600 million people worldwide with disabilities. Within the United States alone, as of 1994-95, 20.6 % of the population – 54 million people – had a disability. When results from the 2000 census are released, these figures are likely to be still higher. In Canada, the percentage of persons with disabilities was 15.5 as of 1991. In Europe, Deloitte Touche in 1991 estimated that there were 50 million people with disabilities at any given time, roughly 14 percent of the population.
In the U.S., in terms of buying power, the figures are even more surprising. In 1996, the aggregate income of Americans with disabilities was $796 billion, projected to exceed $1 trillion by the year 2001 (Fortune, March 2, 1998). Discretionary income for 1996 was $176 billion (U.S. Census Bureau).
In the Simmons Market Research Bureau study of travellers with disabilities conducted in 1991: 73 percent of respondents were heads of households, 48 percent were principle shoppers, 46 percent were married, 77 percent had no children in the household (boosting their disposable income and free time for travel and leisure activities) and 58 percent owned their own homes. As Aldo Papone, former CEO of American Express commented, "This is a very desirable consumer segment: stable, possibly in their peak earning years, with a good amount of disposable income in their 'empty nest' households.
At least potentially, this is a huge market, and one which will only continue to grow in size and economic power due primarily to the aging of Western populations and, secondarily, to increasing opportunities for education and employment. These stem in part from technological advances which permit people with even the severest disabilities to lead full and productive lives, in part from civil rights advances resulting from the Americans with Disabilities Act.
The potential travel market
It
has been estimated that of the 54 million Americans with disabilities, 39 million
are actual or potential travelers, i.e., persons who have both the economic
and physical ability to travel. This estimate is in line with findings from
both Canada and the UK. In Canada, Keroul estimated that 75 percent of persons
with disabilities in the U.S, Canada and Europe are physically and financially
able to travel. (With regard to physical ability to travel, only 18 percent
of Canadians with disabilities disqualified themselves. Similarly, Deloitte
Touche in their study for Tourism for All in Europe" found that 70 percent
of Europeans with disabilities have the means to travel.
While most of these individuals are not yet on the move due to factors for a number of reasons-- lack of accessible facilities and services, lack of information, prior bad travel experiences--the Simmons Market Research Bureau found that a significant number were already traveling in the U.S. and abroad. Twenty-five percent took a domestic trip in 1990-91, 23 percent are frequent domestic flyers, 10 percent stayed in a domestic hotel/motel that year, 9 percent took a foreign trip within the 3-year period, 5 percent are heavy travellers to foreign destinations, 4 percent belong to a frequent flyer programme, percent took a cruise that year, and 3 percent spent $3000 on their trip.
While data on the current level of travel by persons with disabilities is hard to come by the airlines do keep track of the numbers of requests they have for assistive services such as wheelchair transfers. In 1999 Northwest Airlines had 900,000 such requests, American Airlines1.5 million. At Heathrow Airport in London, the number of wheelchair transfers jumped 70 percent from 1996 to 1997. In the cruise industry, the major cruise lines serving the North American market are rapidly expanding the numbers of wheelchair accessible cabins in their fleet" as demand continues to outstrip supply. On ships sailing in the Caribbean, the number of wheelchair cabins will jump from 670 in 1999 to 1076 in 2002, an increase of 60 percent over the 3-year period.
The attempt of the cruise industry to meet the needs of older travellers and those with disabilities is purely market driven, since it comes in advance of U.S. regulations, which only now are being written for passenger vessels. Cruises are popular among persons with all types of disabilities. who often find good deals in groups organised by specialist tour operators.
There are cruises for the blind; the deaf--who bring their own interpreters; wheelchair user’s people with developmental disabilities; seniors groups; and also for persons with medical problems such as cardio-pulmonary disease or who are on dialysis. The well-equipped medical facilities provide an added sense of security to older passengers as well. Packing and unpacking once is a great advantage to persons with physical impairments. As on land, these are "All-in-one ADA kits" for the guestrooms used by the hearing impaired, as well as assistive listening systems in entertainment areas. Many ships welcome guide dogs and other service animals. And almost any special diet can be accommodated. Not surprisingly then, cruise travel is the most common way for Americans with disabilities to venture overseas.
In estimating the impact of the disability travel market, it is also important to realise that persons with disabilities seldom travel alone, so that if one cannot accommodate their needs, one is also losing the business of their friends and family members. In other words, the potential market doubles to at least 78 million American travelers. More conservatively, Deloitte Touche put the multiplier effect for friends/companions at 0.5, which brings the European potential market up to 75 million, with estimated revenue of £23.4 billion.
Types of disabilities
In discussing disability access, the focus is most frequently on wheelchair users due to the need to remove architectural barriers, but other disabilities actually occur more frequently. Among the 237 million Americans six years old and older, 7 million have a mobility impairment, with 1 .8 million using a wheelchair on a long-term basis. 10.4 million have a sight impairment or are unable to see. 11.1 million have a hearing impairment or are deaf. 4.1 million need assistance with activities of daily living such as getting around the house, getting in or out of bed or with personal care. One in 5 Americans have a disability; for 1in 10 the disability is severe.
Only a small percentage of persons with disabilities are born with their limitations The remainder acquire their mental and physical impairments as a result of illness or accident, with the likelihood of disability increasing with age. The most common chronic health conditions leading to disability are heart disease, back disorders, arthritis, respiratory diseases, mental disorders, and diabetes, in that order.
More people than ever are traveling in spite of having serious medical conditions, with cruise travel being a popular option. Recently on the Internet I found a Canadian-owned resort in Anguilla called Hotel de Health, specifically for people on dialysis and with cardiopulmonary problems. I also found a tour operator in Greece who's now offering oxygen travel to the Greek Islands. This part of the market is growing very rapidly, and we're getting a lot of calls at SATH from people who are tired of staying at home with their oxygen tanks. They want to get back out there and do some travelling. This is true of many retirees who have the time and money to travel but now must contend with failing health.
Mature Americans, disability, and spending power
Disability increases both in frequency and severity with age. For Baby Boomers aged 45-54, the percentage with some degree of disability is 24.5. This increases to 36.3 percent among Americans aged 55-64, and to 47.3 percent among those aged 65-74.
According to statistics reported in American Demographics (July 1997), these older consumers, who are more and more likely to have special needs, are also the market segment with the greatest spending power. The 45-54 age group spends more than any other: 17 percent more than the average household on a per capita basis. Ranking second are householders aged 55 to 64 who spend 15 percent more per capita (Bureau of Labor Statistics 1995 Consumer Expenditure-Survey). And contrary to the stereotype, spending does not plummet in retirement. Householders aged 65-74 spend an average amount per person.
In 1994-95, 12 percent of the U.S. population was 65 years old and older. By 2030, if current trends continue, this will increase to 20 percent of the population. Similar demographics exist in Canada, Europe and Japan. (Worldwide the number of persons over 80 years old was 66 million as of 1998, a jump of 147 percent from 1970 when the number was estimated at 26.7 million). So the disability market will continue to expand well into this century, with increasing revenues to be derived by those willing to understand and meet their particular needs. Note, however, that mature travelers often have hidden disabilities and do not identify themselves as disabled. Meeting their needs in a sensitive way is definitely a must for their service providers.
Foreign travel
Aside from cruises, group travel by Americans with disabilities makes up a small part of the overall market and is mostly to foreign destinations. Even overseas, people with disabilities are mostly travelling independently with their families or with, in some cases, hired companions. Europeans, however, do still travel in large groups, both to the U.S., and to other destinations in the world.
In general, SATH's members who are travel agents and tour operators do not have enough products to sell when it comes to foreign destinations. People with disabilities want to see the world like everyone else, but the countries w here they can safely or comfortably go at present is rather limited. Of course, this does not stop the most adventurous, but it definitely holds back the average traveller with a disability and therefore limits the growth of the market. The tendency for only 5-star hotels to have wheelchair accessible rooms also limits travel to the more wealthy segment of the market. In South Africa recently, I was pleased to find B&B's and game lodges in the national parks offering less expensive alternatives. In India, Oberoi now has a 3-star chain -- Trident, which has wheelchair accessible rooms and public restrooms. This is a very positive development for the market.
At SATH one of our ongoing initiatives is to locate and help train receptive operators in every country worldwide -- companies on the ground who know the details of access locally and who can work with their counterparts in Europe or North America to provide a seamless, accessible travel experience. We also encourage the national tourism boards or ministries to establish a policy mandating access in public spaces and in newly built tourist facilities. We have had very good success in this regard in Peru, where we have worked for the past 4 years. While one might not think of mountainous Peru as a likely place to develop wheelchair access, the government and private sector suppliers are farsighted enough to recognise the power of this market and to realise that persons with disabilities are no less likely than the rest of us to want to visit the Andes and its cultural and scenic wonders.
By holding an international symposium in a different country each year, SATH also helps to spread awareness and access worldwide. I have not discussed meeting planning and the importance of accessible conference facilities, but these days the decision about where to hold a meeting also takes access into account. People with disabilities participate more and more in the labour market and in professional organisations. This is something that hoteliers everywhere need to be aware of Earlier I mentioned that if you cannot meet the needs of the person with a disability, you will lose the business of his friends and family as well. In this case, one can lose a whole conference due to lack of access for those delegates with special needs.
Travel preferences and destination selection
In terms of travel preferences, the choices of destinations and types of travel of persons with disabilities tend to mirror those of the general society. This was borne out in the Deloitte Touche study. After all, disability is just an additional attribute of the individual, even if the facilities and services needed to make his or her stay or trip a success are necessities rather than amenities.
So some people with functional impairments do choose to visit exotic destinations like Egypt, India, and Costa Rica and to engage in adventure or soft adventure activities like whitewater rafting, parasailing or scuba diving. But like most Americans, people with disabilities are much more likely to travel within North America and to use their own vehicles. This is even more understandable given the additional effort and uncertainty of travel for this segment. The Deloitte Touche also found that the differing propensities to travel of Europe's various nationalities were reflected in the frequencies of travel by their citizens with disabilities.
However, one way in which travellers with disabilities may differ at least under the current circumstance is in their brand and destination loyalty. Deloitte Touche found that they returned time and again to the same destination, once it was established as accessible and welcoming. This is true as well of loyalty to a particular agent or tour operator, which is definitely a plus for the specialists in the market..
A study by PromPeru also turned up some difference worth noting. Foreign visitors with disabilities tended to visit in low season to avoid crowding; tended to stay longer and take slower paced tours; and tended to spend more per day than able-bodied visitors. The latter was due in part to the lack of access in lower-priced hotels and to the need to hire additional help to overcome environmental barriers, so as access improves, that may change.
Marketing and outreach
Finally, I would like to note that while creating accessible services and facilities is obviously key to serving the disability market, promoting these new tourism products is also critical. Information, so important to this travel segment, has historically has been very hard to come by. Too often the philosophy at work seems to be that of the American movie, Field of Dreams: we build it, they will come."Happily, these days there are many specialised magazines and newspapers as well as organisations who can help in targeting the market. And the Internet is revolutionising the spread of access information. Anyone serving this market that is not advertising or reaching out via the Internet is definitely missing the boat. This includes convention and visitors bureaus, national tourist boards, hotels, cruise lines, transportation providers, tour operators, travel agents and equipment manufacturers. Including access information in your brochures and on your websites tells the traveller with a disability, "You are welcome here." And that's the most important message of all.
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