Presentation on theme: "José M. Barreiro Director, Digital Media"— Presentation transcript:
José M. Barreiro Director, Digital Media
Sources: Mintel. New Generation Latino - US - August 2011 Mintel. Hispanics & Travel – US – August 2010 Hispanics are the biggest ethnic group in the U.S., with purchasing power projected to reach more than $1.4 trillion by The U.S. Hispanic population hit 50.5 million in 2010, accounting for 16.3% of the population. The Hispanic population is projected to grow nearly 13%, to 51 million, between This compares to 2.9% growth among non-Hispanics. Three in 10 (30%) non-Hispanic households have children, whereas nearly half of all Hispanic households have children younger than 18. With population increases fueled by births, rather than immigration, younger generations of Hispanics are poised to greatly influence media trends and content. Marketers should develop advertising campaigns and content with this young audience in mind. In 2010, 62% of all Hispanics were under age 35, versus 47.7% of the total U.S. population. This means that in the next decades the majority of Hispanics will reach their highest income levels. As Hispanics will represent a significant percentage of media consumers, marketers should increase their advertising expenditures in all media used by this increasingly important consumer group and develop content that is appealing to this younger consumer group.
Changes in expenditures A third of Hispanic households (33%) are spending less on travel than they did last year. Travel companies can accommodate these financial changes by emphasizing the affordability of their services and offering special deals that fit a tight budget. However, three in 10 Hispanics (30%) are also spending either the same or more on travel as they did last year, demonstrating that Hispanics are a promising consumer group for the travel industry, despite a recent decline in overall travel within the U.S. Hispanics spend more on domestic travel than any other ethnicity. Because they often have larger families than non-Hispanics, they will spend more on expenses such as airfare, food, and hotel/motel stays.
Majority travel domestically 51% have travelled more than 100 miles within the United States and within the past 12 months. On average take 2.9 trips (vs. 3.4 overall) Language and acculturation matter English only (65%) and English dominant (56%, mostly English but some Spanish) travelled domestically A majority (52%) that speak English and Spanish equally travelled domestically A plurality of Spanish Only (38%) and Spanish dominant (47%) travelled domestically More likely to travel internationally 41% have taken an international trip in the past three years Hispanics take more international trips (2.35 avg )
Means of transportation Three quarters (75%) of Hispanics use car transport when traveling domestically, meaning that car rental companies should pay particular attention to this ethnic group. Hispanics with multiple people in their household are the most likely of groups to prefer car transport because it is more cost effective than purchasing airline tickets. Preferred travel activities Hispanics most preferred activity when traveling in the U.S. is visiting family (62%), followed by visiting friends (49%). Hispanic men are significantly more likely than women to enjoy camping &outdoor sports, whereas Hispanic women have a stronger proclivity than men for cultural, historical &religious activities. Travel companies should consider combining the themes of family/friend visits and nature or city tours in advertisements. States such as California, Texas & Florida are home to large Hispanic populations, yet are locations of natural beauty & cultural interest as well. Cruise ship vacation Hispanics are the least likely of all ethnicities to have taken a cruise ship vacation in the past three years, in part because many Hispanics travel mainly for the purpose of family visits. Cruise lines can do more to promote cruises as a family vacation or a way for the relatives to get together for a family reunion.
Insights and Opportunities Hispanics are travelers - Perusing through the pages of Spanish-language magazines and websites, we are sure to find Hispanics featured in the latest shampoo or laundry detergent ad. While Hispanics are an obvious consumer group for the necessities of groceries and apparel, travel companies have traditionally focused on non-Hispanic consumer groups. Yet Hispanics spend more on domestic travel than any other ethnic group, and are more likely than the average American to travel internationally, making them worthy of greater attention from businesses in the travel sector. Advertising in general has been insufficiently focused on the Hispanic consumer. Mintels report, Share of Wallet: HispanicsU.S., February 2010 found that companies continue to allocate an average of 2-3% of their media budget on advertising targeted specifically to Hispanics, even though Hispanics constitute 16% of the total U.S. population and their total purchasing power represents close to 9% of total U.S. buying power. Not only is the Hispanic population and purchasing power increasing, but Hispanics are dispersing to new places throughout the country, making domestic travel for family visits ever more essential.
Preferred countries to visit The most popular destinations among Hispanics, especially those who are Spanish-dominant and bilingual, are in Latin America. Mexico, Puerto Rico, and Dominican Republic are among the most traveled-to countries by Spanish-dominant and bilingual Hispanics, presumably for the purpose of visiting family. While Europe is mostly frequented by English-dominant Hispanics, Spain remains a popular destinations for Spanish-dominant Hispanics, namely because it doesnt pose a language barrier. Italy and France are exceptionally popular among English-dominant Hispanics, although only a fraction of Spanish dominant Hispanics travel there. Airlines that fly to these destinations should emphasize the availability of Spanish-speaking staff and flight attendants, and tour companies might advertise cultural tours led by Spanish-speaking guides to European destinations. Travel companies dealing with Spain can even further increase their Hispanic clientele by advertising Spain as the home away from home, as there remain many similarities between European Spanish and Latin American Hispanic cultures. To this day, airfares to Madrid and the prices of lodging and food in Spain are comparatively lower than in other EU countries, so airlines, hotels, and tour companies might bring up this fact in order to attract budget-minded Hispanic travelers.