Over the past 25 years, Ken Dychtwald has emerged as America's foremost visionary and leading authority on the business and marketing implications of the aging of the population. The founder and CEO of Emeryville, California based Age Wave LLC, he is a psychologist, gerontologist, entrepreneur and author of nine books including the best-seller Age Wave. His long-awaited tenth book, Age Power: How the 21st Century Will Be Ruled by the New Old, was published in September by Tarcher/Putnam.

TMD: You have come to be known as the "prophet of the age wave." Can you explain this unusual demographic phenomenon?

Ken Dychtwald: Throughout history, our nation's growth and development has been influenced by a variety of social, political and technological shifts. But underlying all of these changes, demographic dynamics have always remained relatively constant. There has consistently been high fertility-meaning there was steady growth in the number of young people, while at the same time there was high mortality-meaning that most people died before their 50th birthdays. As a result, the marketplace for everything from beauty products to credit cards to travel has been oriented toward the young.

TMD: Is this changing?

Ken Dychtwald: Yes, and in incredible ways. During the 20th century, as a result of advances in public health, food science, pharmacy, surgery, medicine, and, more recently, wellness-oriented lifestyles, the average life expectancy has skyrocketed from 47 at the beginning of the century to 76 today. In a manner unprecedented throughout human history, people have begun to routinely remain healthy and vigorous into their seventies and eighties, and tomorrow's mature men and women will, in all likelihood, live even longer.

As a result of this new longevity revolution, the number of older adults is multiplying while the youthful segments of our society are declining growth.

By the last day of the 20th century, there will be 76 million Americans past the age of 50-that's more than twice the population of Canada. And, believe it or not, 76 million is exactly the number of total Americans that there were on the first day of this century, in the year 1900. By 2020, the U.S. Census Bureau projects that there will be over 115 million adults age 50-plus-a staggering 50 percent increase.

TMD: With so many people remaining healthy longer, it would also seem that people are growing "old" much later than they used to. Is this what's happening?

Ken Dychtwald: Exactly. When I first met my literary agent, he told me that he remembered attending his grandfather's funeral. Although he was just a young boy, he distinctly recalled people commenting that his grandfather, who'd died at the age of 62, had lived a long life and died an "old man." As fate would have it, his father died at the exact same age, 62. At this funeral everyone lamented that his father had lived such a short life and had died so young. Old simply isn't what it used to be.

TMD: In your new book Age Power, you propose that we were in the midst of an unprecedented longevity revolution. I wonder if you think that we have gone as far as we're going to go, or are their further breakthroughs ahead?

Ken Dychtwald: Today there are more than 100,000 anti-aging related research projects underway in numerous disciplines in all corners of the world: more progress has been made in the battle against aging in the past decade than in the previous 10,000 years. Anti-aging breakthroughs in nutrition science, hormone therapy, genetic engineering, bionics and organ cloning will allow aging boomers to indulge their lifelong obsession with youth. By the time boomers reach old age, I predict that old age will have moved back fifteen or twenty years.

TMD: Is this "age wave" unique to the United States?

Ken Dychtwald: No, in fact, all of the modernized nations of the world are evolving from youthful to mature societies-and the developing nations will follow suit in the 21st century. For example, in 1950 the average life expectancy for Japanese women was 61.4 years, and for men 58. Since then, it has vaulted to the highest in the world-83 for women and 76 for men. Similarly, all of the European nations are experiencing declining birth rates and elevating longevity.

TMD: Even though the numbers of mature men and women are undeniably booming, it seems that most companies are still reluctant to target this segment. Why do you think this is and will it change?

Ken Dychtwald: Until recently, marketers paid little attention to 50+ men and women. There was, after all, little to spark their interest in a group whose members tended to be financially disadvantaged, frugal, set in their ways and uninterested in new products and experiences.

Though still entranced by young consumers, marketers are slowly coming to realize that they can no longer afford to ignore mature adults. The main reason has to do with the terrific reversal of financial fortune that older adults have experienced in recent decades. They've gone from being the poorest segment of society to the richest. In fact, today's 50+ men and women currently earn almost $2 trillion in annual income, and represent 50 percent of all discretionary spending power. Their per capita discretionary spending is 2.5 times the average of younger households. Representing 27 percent of the total population and 36 percent of all adults, today's new mature consumers: control more than $7 trillion in wealth-70 percent of the total; own 77 percent of all financial assets; represent 66 percent of all stockholders; own 80 percent of all money in S&Ls; represent 40 million credit card users, owning almost half of the credit cards in the U.S.; and purchase 48 percent of all luxury cars.

TMD: How has the relative financial security of mature adults been effected by the financial boom of the past decade?

Ken Dychtwald: While youthful consumer segments are struggling to make ends meet during the 1990s, 50+ men and women with income of $100,000 or more has nearly tripled.

TMD: To what extent are these new mature consumers willing to spend money on travel and recreation?

Ken Dychtwald: Mature men and women are becoming a terrifically attractive travel segment for four solid reasons. First, they've got vitality and a desire to engage new experiences. Second, they have more free time than any other age group. Third, as we just discussed, they have enormous financial resources. And fourth, different than their depression generation parents, this new mature cohort likes to spend money to enjoy themselves. 50+ adults already account for 35% of all domestic travel, 46% of all vacation and pleasure trips and represent a whopping 80% of all luxury travel. In fact, men and women over 50 currently spend 74% more on a typical vacation than 18-49 year olds-$4,794 vs. $2,757.

TMD: In the travel industry, we have all been tracking the fact that the oldest baby boomers began turning 50 in 1996. This generation has been referred to as "a pig moving through a python." How do you think the aging of the boomers will further transform maturity?

Ken Dychtwald: Between 1946 and 1964 the postwar fertility boom produced 76 million children-nearly one third of the U.S. population. Similar baby booms occurred in Canada, Europe, Asia, Australia, and New Zealand, although some were a few years shorter in duration.

The force of this demographic quake has been reverberating through society's institutions ever since. The massive numbers of this generation have amplified and intensified the importance of whatever experiences they've had at each new moment in their lives. Just as surely as they learned to use a baby bottle, they learned to read, to play records, to buy cars, to vote, to rent condos, and to invest in the stock market.

It's also critical to remember that boomers don't just populate existing lifestages or consumer trends, they transform them. For example; boomers didn't just eat food-they transformed the snack, restaurant, and supermarket industries; boomers didn't just wear clothes-they transformed the fashion industry; they didn't just buy cars-they transformed the auto industry; they didn't just date-they transformed sex roles and practices; they didn't just get married-they transformed relationships and the institution of the family; they didn't just go to the doctor-they transformed healthcare; they didn't just use computers-they transformed technology; and they didn't just invest in stocks-they transformed the investment marketplace.

What began as a baby boom is now evolving into the largest mature generation
in history. And as they age, the look, meaning, experience, and purpose of maturity will be transformed, just as they have revolutionized all of the other stages of life that they've occupied.

TMD: Can you share some of the key concerns and drivers that travel executives should pay particular attention to with regard to targeting maturing boomers?

Ken Dychtwald: Research conducted by Age Wave's various companies clearly indicates that as the boomers pass through their middle years and on to maturity, four key factors will reshape supply and demand. First, their desire to look, feel and act youthful-regardless of their actual age.

Second, increasing amounts of discretionary dollars (for some-but not all) as a result of escalating earning power, inheritances, and return on investments. Third, entry into new adult lifestages including empty-nesting, caregiving, grandparenthood, retirement, widowhood, and rehirement-each with its own challenges and opportunities. And fourth a psychological shift from acquiring more material possessions toward a desire to purchase enjoyable and satisfying experiences. As boomers migrate into maturity, I believe that their definition of recreation and travel will change with them, becoming progressively more active, adventurous, mind-expanding and customized.

TMD: In your presentation to the ATME conference in June, you commented that travel marketers would be better off targeting psychographics and adult lifestages rather than age. Would you explain this for our readers?

Ken Dychtwald: Studies have consistently shown that once people pass their 50th birthdays, they tend to think of themselves as 10-15 years younger than their actual age. And at Age Wave we have found that most mature adults don't think of themselves as "acting their age" but rather as involved in a particular lifestage.

For example, with children launched and homes in many cases paid for, millions of empty nesters feel entitled to a bit of self-indulgence: and many now have sufficient discretionary income to pursue their travel dreams. Empty nesting provides adults more time, flexibility and spontaneity, a chance to refocus on personal pleasure and satisfaction, and the challenge of re-orienting the marital relationship from a focus on the kids to each other. This is a perfect stage of life for free-spirited and/or romantic travel and recreation.

Another target segment within the 50 plus group that is underserved are singles. There are approximately 18 million mature single men and women who are very interested in meeting and making new friends, discovering new social activities and possibly, hoping to fall in love again. Travel programs designed for groups or ones that provide companions would be very appealing for this segment.

As another example, eighty percent of those age 50-plus are grandparents and over 6 million grandparents vacation with their grandchildren in a typical month. These kinds of activities provide a wonderful opportunity to grandparents to spend quality time with their grandkids while giving their parents a break. However, only a handful of travel operators have responded
to this new demand for multi-generational recreation.

Of course, for the travel industry, the motherload of adult lifestages is retirement. One hundred years ago, 85 percent of men 65 and older worked. Today, that figure has dropped to less than 15 percent. And due to elevating longevity, the average number of years spent in retirement is now
20. Modern retirees are seeking social interaction, lifelong learning and new adventures. And because they have the flexibility to schedule their time as they wish, retirees are able to plan vacations during off-peak seasons. I should note that many of today's retirees are particularly attracted to guided tours , where meals, hotels and baggage transfers are all handled conveniently.

TMD: Earlier you mentioned that as people mature, they become less interested in purchasing things and more attracted to "experiences." This sounds like great news for the travel industry.

Ken Dychtwald: There are only so many things people can buy before they have filled up their houses. With maturity, consumers are more drawn to purchasing "experiences" that provide pleasure, stimulation, learning and fond memories. And they're not nearly as constrained by the lack of available time as when they were younger. While in the past older adults were likely to be frugal, ailing and conservative, today there is a new group of mature men and women who are vital, active, financially strong and looking forward to their remaining decades of life. The coming of "Age Power" is terrific news for the travel industry.