|
By Mike Fitzpatrick
Hispanics are the most rapidly growing ethnic group in the United States. And, because they’re also becoming increasingly affluent, their importance to hospitality marketers has never been greater.
To tap into this burgeoning consumer group, hospitality marketers need to understand the differences — some subtle, some profound — in consumer behaviors within the different types of Hispanic households.
Numbers You Can’t Ignore
In 2005, about 10.9 million U.S. households — that’s one in every 10 — are Hispanic. This translates into a Hispanic population of about 41 million. The U.S. Census estimates that by 2020, the Hispanic population will reach 60 million — or almost 18 percent of the total U.S. population.
The economic influence of Hispanics is growing even faster than their population. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion by 2008 — a 55 percent increase over 2003 levels.
A Quick Cultural Overview
As a starting point for understanding the Hispanic marketplace, it’s useful to have a few basic facts.
Hispanic households tend to be larger and younger than non-Hispanic households. Hispanic households are more likely to have both multi-generational and non-related family members living together. And 54 percent have children living in the home, which is 64 percent higher than the general U.S. population.
In addition, Hispanic households vary widely in terms of how long they’ve been in the United States. In fact, 40 percent of U.S. Hispanics are foreign-born and therefore less assimilated into the broader U.S. culture than Hispanics who were born here.
Research has shown that the Hispanic community shares at least three broad cultural characteristics of which hospitality services marketers should be aware.
First, Hispanics are focused on family enjoying spending time at home and with family. So when they travel, many are inclined to stay with friends or relatives.
Second, they tend to hold traditional values. Hospitality marketing that utilizes recognized experts like pilots and cruise ship captains as well as Hispanic leadership positions will resonate strongly.
Finally, Hispanics are generally media friendly — trusting the information presented by newspapers, magazines, radio and television. And they enjoy advertising that is lightly entertaining and gives them something to laugh or talk about.
Diverse Down to the Household
Understanding these broad cultural characteristics is important, but to effectively market to Hispanics, hospitality marketers need to understand that the U.S. Hispanic community encompasses not only different geographic origins and cultural backgrounds, but also widely varying income levels, age groups and degrees of acculturation.
While it might be tempting to assume that cultural heritage is a key determinant of Hispanic diversity, the vast majority of consumer behaviors are determined by current needs and wants — not by historical cultural ties. One of the biggest mistakes hospitality marketers make in trying to reach Hispanic consumers is to simply translate existing marketing messages into Spanish.
Therefore, hospitality marketers would be wise to segment the Hispanic community by the household-specific economic and acculturation circumstances that drive consumer behavior, rather than by country of origin.
An extensive study undertaken in 2004 utilizing market research, census data and statistical analyses identified 19 distinct household types (or segments) within the Hispanic marketplace. Here are four examples:
Just as is true of all segmented marketplaces, Hispanics represent groups of varying size and importance to your business. Hospitality marketers would do well to reach certain Hispanic consumer segments right now — and not to waste money on others.
With higher incomes, a keen interest in international travel and a willingness to pamper themselves on a regular basis, Professional Couples not only justify your current marketing investment, but also will continue to become an increasingly larger business segment for you over time.
On the other hand, Latinos with Roommates don’t have the extra time or income for travel. They are not members of any frequent flyer or hotel loyalty program. And the only gambling they do is a “house bet” on the soccer game being aired on Univision — so they might be a good segment to suppress in your next direct mail campaign.
Generating the Right Message
Because Hispanic households vary widely, how marketers speak to Hispanic consumers must also vary. That’s why successful hospitality marketers will make use of the wealth of Hispanic household-level information that exists to ensure that they deliver the right message to the right Hispanic household.
Here’s an example of how household-based segmentation can help hospitality marketers communicate to two Hispanic consumer segments that are similar in income, but different in their attitudes and hospitality needs:
What Now?
With the insights derived from the household-level Hispanic consumer segmentation tools available today, hospitality marketers can finally understand the consumer and media behavior of their key Hispanic customers and prospects. For the first time, integrated Hispanic marketing communications programs can be developed across media that target specific, relevant segments of the Hispanic marketplace. 
Mike Fitzpatrick is Vice President, Account Services for Cohorts®, a marketing information company that helps marketers improve the effectiveness and ROI of customer/prospect databases through the use of household-based segmentation. He is the founding co-chair of the Direct Marketing Association’s Travel & Hospitality Council. Mike can be reached at (303) 893-8600 or mfitzpatrick@cohorts.com. Learn more about the Hispanic marketplace and all 19 Hispanic household types by visiting www.cohorts.com. Sources: U.S. Census 2004, Simmons Market Research Bureau and Cohorts
© Cohorts 2005
HISPANIC COHORTS™ and the HISPANIC COHORTS logo(s) are trademarks of Looking Glass, Inc.
|
