Hey, Gen X'er: You’ve Won!

This is from Tammy Erickson who writes for a blog called Across the Ages for Harvard Business School. If you get a chance you should check out this blog, as it is filled with interesting information. http://discussionleader.hbsp.com/erickson/

Picture this.

A Boomer walks into a Gen X’er’s office (okay, cubicle) and says, “I’ve got great news for you! You’ve won!”

Now remember: Boomers, as I’ve argued, tend as a group to be pretty competitive. This is the cohort that grew up in a world that was fundamentally too small for them. They went to high school in Quonset huts behind the high school because there weren’t enough classrooms to hold them all. They’ve competed for everything from spots on the high school sports teams, to college admissions, jobs and promotions. Winning, for Boomers, is a very big deal.

“You’ve won the promotion!” Pause, as the Boomer waits for any obvious signs of delight from the X’er. “Of course, it does mean you’ll have to relocate. The promotion is in our Topeka office.” Pause. Dead silence from the X’er. Then, “No, thanks.”

What does the Boomer, in all likelihood assume? For most, it would be easy to make a rapid leap to a value judgment regarding the X’er’s level of commitment to the company and to his or her career. It would be a short step to assume that the person lacked ambition, confidence, or perhaps even raw intelligence. After all, how could they not get how big a deal this is?

All of these judgments would, I believe, almost certainly be wrong.

And, by the way, what does the X’er, in all likelihood assume about the Boomer? Would insensitive, out-of-touch, or even down-right nuts be possibilities? I suspect they might.X’ers, as I’ve discussed, were teenagers during a difficult time in many national economies. During the 1980’s and 90’s there were persistent financial crises in many Latin American countries and stagnation in Europe. It was a time when the President had Americans wearing Whip Inflation Now buttons. And, it was the era of re-engineering. Knowing an adult who was laid off from a corporation where he or she had once planned to collect a gold watch of retirement is a widely-shared experience for many in Generation X.

As a result, many X’ers tend to be very nervous about putting too many eggs in the corporate basket. When I talk with X’ers, I often visualize athletes bouncing on their toes, ready to dodge one way or the other, depending on which direction the play moves next. Many hate the feeling of being boxed in. They don't like having their degrees of freedom, their options, reduced.

Of course, in many traditional corporate career paths, boxing people in – at least in the sense of urging them to specialize or to take on managerial roles that remove them from the “skill” of the business is exactly what we do to people in their 30s (where the majority of X’ers are today). Hence many X’ers are feeling increasingly uneasy within corporations. Our research shows that X’ers, for example, are more likely than any other generational cohort to fear being laid off. (In reality, they are probably the least likely cohort to be laid off -- but they are the most perpetually worried about it.)So, back to the promotion to Topeka.

In all likelihood, the idea of being promoted and relocated feels to the X’er, not as a “win,” but as being moved out along a tenuous limb that could, goodness knows, be sawed off by a capricious corporation at any moment. Helping X’ers feel more comfortable in taking on these types of roles has to do with helping them see the opportunity as one that broadens their options, rather than limiting them. And, of course, suspending the predictable Boomer knee jerk reaction in the process.

By the way, I was teaching a class of executives recently – and told this story as part of a discussion about the importance of looking at each generation’s actions through their eyes, not our own. One of the participants, an X’er, shared with me that she had just gone through an identical experience, right down to the specifics of Topeka as the targeted site for the promotion!

What did you do? I asked.

“I quit.”

Question: X’ers, have you had similar experiences?

To hear more from Tammy on generational issues facing the workplace today, click the link to the Harvard Business radiocast found on the right hand side of this blog.

Do You Know What Your New Hires Want From You?

No? Then you should read this list compiled by Jennifer Blanchard, called What Are Today’s Gen Y College Graduates Looking For?

1. 
   Performance-based Compensation—they want to know that the work they do matters and makes a difference for the company they’re working for. Performance-based compensation is a great way to show Gen Yers the value of their work.
2. 
   Flexible Schedules—some Gen Yers work better first thing in the morning while others don’t function at all before 10 a.m. Giving them flexibility in their work schedule will keep them happy, and will allow them to give you their very best work.
3. 
   Flexible Location—the line between work and life is blurred for Gen Yers. They like to be able to work when they want and where they want, even if that doesn’t always include coming into the office. A flexible work location allows them to have a personal life while also completing their daily tasks.
4. 
   Marketable Skills—Gen Yers always think about the future. They come into their first day on the job imagining where they’ll be a few months from then. Gen Yers are big dreamers, but in order for them to reach their dreams they are going to need skills that make them marketable for promotions and future jobs.
5. 
   Access to Decision-Makers--according to Tulgan, Gen Yers want strong bosses. They want bosses who give them direction and mentor them throughout their time at the company. It’s hard for a Gen Yers to work for a company where your boss doesn’t even know your first name.
6. 
   Personal Credit for Results Achieved—Gen Yers will work hard for you, but they want to know that any results attained from working hard will come with their name on it. They’re good working on a team, but they aren’t fans of doing work and not receiving any credit.
7. 
   A Clear Area of Responsibility—although it often seems difficult for employers to grasp because they come into the workplace with only a little experience, Gen Yers want responsibility right off the bat! They don’t want to come to work and do menial tasks, they want to be in charge of a project. They want to own the work they do.
8. 
   The Chance for Creative Expression—Gen Yers are looking for jobs where they can be creative and add their input to the projects they work on. They’re not looking for cookie-cutter jobs that include doing the same thing everyday the same way it’s always been done. They want jobs that allow for innovation, period.

Quote of the Week

How dare those lazy Gen Y kids ask for such luxuries like health care, a personal life, and performance based raises!

~TTAM (screenname on Digg Forum)

Check out the forum on the link to the left

IS THIS THE WAY YOUR BOSS FEELS? SURE HOPE NOT!

There are always two sides to every coin and this article broadcasts the side that is not very happy with Generaton Y. This information written by Bob Dumpling, entitled "Gen Y Don't You Just Shut Up?" seems important to share this on the blog. This is because it may be the opinion of more individuals than just the author, and its important to hear because, how can we combat what people are feeling and saying if we don't know that that is?

What are your thoughts on Mr. Dumplings diatribe? Do you believe he has a point, no point or an inkling but no perspective? And, is it our responsibility to try to change his mindset or not, and if it is how do we do it? Feel free to comment on this blog post as a means of working out this complicated issue.

ARTICLE: Gen Y Don't You Just Shut Up?
found @ http://newmatilda.com/2008/07/31/gen-y-dont-you-just-shut

With World Youth Day finally over, it's time to pause and ask ourselves why we give young people so much attention. The fact is, every day is world youth day. And there has never been a younger, more naive and inexperienced collective of youth than Gen Y.

Apparently Gen Y are much like baby boomers and are referred to as "echo boomers". Not because they're crazy, misunderstood dreamers, but because they're revolutionaries, striving to change the world. Seriously.

I think there is a subtle distinction between Gen Y and the Boomers: Baby Boomers actually stood for stuff, had beliefs, dropped out and shook things up. No doubt there is an element of echoing in Gen Y, but more of the vacant, drafty kind than anything that actually resonates.

Many accuse Gen Y of consuming at an unparalleled rate. This would seem very unlike the Boomers in the 1960s. I don't necessarily see this as a bad thing - and you can't really blame them when they grew up in the age of John Howard's annual tax cuts and a booming economy. But unfortunately much of this extra cash is being spent on five lifestyle "pillars". They are: entertainment ($151 per week), fashion ($55), sport ($25), travel ($24) and music ($11).

Gen Y is stereotyped as living in a world full of white noise, the static of incessant, clicking, twittering and txting. These young impressionable minds are drowning in the sound of this pervasive buzz, with little respite for reflection or deeper thought. Meanwhile, Google has killed off any understanding of sub-text. Sound nasty? Employers are at a loss to deal with "self entitled and whiney" Gen Y employees who won't use old-world technology such as email, who find rostered start times personally offensive and see having more than 10 jobs before they are 30 as a rite of passage.

The mediascape is filled with analysis of a generation who psychoanalyse each other via the insight of Facebook status updates or cry for hours over the aptness or crassness of an ill-spelt txt msg. Apparently, Gen Y doesn't read books published before 1999. They read the Wikipedia entry for pre-millennium publications.

Surely there is a deeper level of introspection going on out there? To be fair, the weight of being a millennial may be a greater weight than any weight ever weighed. I say this because I just read the insightful night thoughts of Ryan Paugh (pronounced "paw" or "paff" or "fluff"). Ryan is a Penn State grad (Journalism with a minor in Business) and co-founder of Brazen Careerist, which sounds like a deceptively honest consultancy firm but in reality is a convenient hub for unbelievably amusing Gen Y quotes.

Ryan was "reflecting" on his current position in the world and asks, "Am I Still A Millenial?" In short he suspects he is, although Ryan says he is more mature than he was a year ago. Genius. How could he possibly know this? Well Ryan explains with four points: "I'm not as idealistic; I'm more skeptical; I'm not as bold," and (my favourite), "I'm more myself than I've ever been".
Ryan is all too familiar with the slings and arrows Gen Y endures, such as "narcissistic", "politically impotent" and "consumer obsessed". So Ryan has a new motto when tempted to respond to such hurtful accusations: "Stay cool. Backlash is always going to suck, but as soon as I give into the hate I lose my leverage as a reputable voice." I know what Ryan means and it terrifies me. At the very least it proves McKinsey & Co have truly conquered the world.
In 2006 another Ryan - Ryan Heath - published the succinct, Please Just F*ck Off, It's Our Turn Now - demanding older generations make way for an enlightened Gen Y which was ready to change Australia. Unfortunately, after working on the Kevin07 election campaign, Mr Heath f*cked off to Belgium, so it's lucky no one took him up on his request.

Why so angry? In the past 10 years, the media, entertainment and political landscape has changed and it's all Gen Y's fault. The majority of consumer products and infotainment are marketed towards Gen Y. Media content is dictated by the 16-25 year-old demographic and it has been completely dumbed down.

When the media isn't producing content for Gen Y, it's pushing content about Gen Y: What makes them tick? How to get their attention? What Gen Y really wants. What's our favourite infantile celebrity up to this week. This is the generation that talks like it invented the exclamation mark. The attention spans of Gen Y-ers are now being classified in categories according to species of goldfish. They don't know what they want and we should all stop trying to figure it out.

Unfortunately there is no Planet Y, only Planet Us. For the sake of Gen Z, Gen 0 and Gen Mars something needs to be done and this incoherent buzzing needs to stop. I'm not completely sure what the answer is but it does include an internet tax, conscription and bucket loads of harden the f*ck up.

The Nielsen Company - the one that rates EVERYTHING - has polled Americans on their economic outlook

U.S. Consumers Tighten Belts & Spending

Consumer attitudes and spending patterns are revealed

By: James Russo, Vice President, Food Sector Marketing, The Nielsen Company

Net worth is declining. Credit tightens up. Salaries stay fixed. Unemployment rates rise. Foreclosure actions surge. U.S. dollar weakens. Personal debt increases. Food costs soar. Gas prices explode. Nielsen reveals how economic pressures are changing the what, when and how of consumer spending.

The U.S. economy is in a very precarious situation. Recent information from The Federal Reserve indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters. And while readings on core inflation have improved somewhat, energy and other commodity prices have increased, and some indicators of inflation expectations have risen in recent months. The Committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization.

U.S. consumer confidence has plummeted 50 points.

With all this activity, U.S. consumer confidence has plummeted 50 points since January 2006 to 57, the worst performance since the recession levels of 1992. With good reason. Everything costs more these days, from fuel oil (a 48% increase), to gasoline (up 35%), eggs (27%), bread (16%), milk (13%) chicken (10%) and that menu staple of large families, ground beef (7%).

With the average wage inching up a mere 3%, it’s clear that family finances are losing ground. For a real double whammy, as the cost of living rises, people face the specter of their primary asset—the family home—losing value by the minute, an average decline of 8% so far in 2008.

Global confidence declines
The U.S. isn’t alone in its gloomy economic forecast. A Nielsen Global Consumer Confidence survey found that 56% of global online consumers believed their country was in a recession. For 39 of the 48 countries surveyed, confidence levels posted double-digit declines in the past six months, with New Zealand, the USA and Latvia recording the steepest declines.

Conversely, Taiwan bucked the trend, with a confident 14-point uptick in consumer confidence over the last six months, followed by the Netherlands (5%), Russia, Poland and the Czech Republic (3%), Brazil (2%) and Belgium (1%).

Word travels fast
The Internet has had a profound effect on financial markets and consumer confidence due to its near-instantaneous relay of information. To get another angle on U.S. consumer confidence, Nielsen Online, through its BuzzMetrics service, monitors consumer chatter on the Internet, tracking consumer-generated content on more than 70 million blogs.

Results showed dramatic jumps in economic discussions on the heels of critical events. For example, when the Federal Reserve announced a 0.75% rate cut and the Dow Jones Industrial Average plummeted 400 points in January, economic discussion increased 26% compared to the prior week.

Competitive advantage will require a pulse on consumer sentiment...

Negative sentiment inched up again between February and March to 65%, as news of the sub-prime lending fiasco and ethics violations spread. In this age of consumer control, the new building blocks of competitive advantage will require a pulse on consumer sentiment as one of the best ways to foster consumer engagement and loyalty.

Coupon activity has jumped noticeably by 10.2%...

Retailers feel the squeeze
U.S. non-discount retailers are feeling the pinch. From 2001–2007, shopping trips per household are down 4%. There are some bright spots, however. Bargain shoppers are shifting spending to value channels, making 35% more trips to supercenters, 10% more trips to club stores and 9% more trips to dollar stores to stretch their budget. Regardless of channel or department type, coupon activity in the year ending April 2008 has jumped noticeably by 10.2% driven by in-store offers.

Shrinkage is redefined
U.S. consumers might find more than their budget shrinking. Food manufacturers are taking action in price-sensitive categories by opting to downsize packages—a less for more philosophy. Consumers find that 12 ounce bags of potato chips are now 10 ounces. Nineteen ounce cereal boxes are now 18 ounces. Sixty sheet paper towel rolls are now 52 sheets—the list goes on.

Consumers would prefer larger sizes with lower price per serving...

Bad move, according to consumers. New findings from a recent Nielsen Panel Views study in the U.S. reveal that when given a choice, consumers would prefer that manufacturers offer larger sizes with lower price per serving rather than downsize or reduce the frequency/amount of price breaks (sales) to offset costs. However, with price increases at such staggering levels, more manufacturers have been offering smaller packs as a better approach than passing on double-digit price increases to consumers.

Economic impact segmentation
Recognizing the relationship between consumer confidence and purchase behavior, Nielsen conducted an analysis of 47,000 members of the Nielsen Homescan Panel in the U.S. across 36 product categories. The panelists sorted into eight Economic Impact Segments ranging from the light coupon & sales segment (22%) made up of older, smaller households that take advantage of coupons and sales, to the panic-stricken segment (6%) comprising large, bustling families who will do whatever it takes to save money—from switching stores to changing brands, to stocking up, to using less product.

Each of the eight segments represents a different belt-tightening strategy, both in terms of how they plan to save and which products they look to for savings. Pet food, for example, registered as the most recession-proof category, and air fresheners were one of the most recession-sensitive ones. Getting into the mindset of consumers during these tricky times could prove golden to marketers as they struggle to develop strategies that not only keep shoppers happy but that deliver profitability as well.

Gas burned up 12–16% of the weekly consumer retail budget...

Road wage
U.S. gas prices are another factor taking a big bite out of household budgets. Nielsen determined that in 2007, gas burned up 12– 16% of the weekly consumer retail budget. That number is expected to grow to 19%—almost one-fifth of planned retail expenditures—as gas prices hit four dollars per gallon. While consumers try to limit their per trip gas spending, they cannot control the weekly gas spend, despite economizing efforts such as combining errands and trips, eating out less and doing more things at home to offset gas costs. Overall weekly gas spending in 2007 increased by 46% from a weekly average of $32.02 to $46.72 per household.

And as gas prices rise, so does Internet chatter. As the majority of U.S. consumers are feeling the impact of rising gas prices, they are turning toward social media to discuss which vehicles are the most fuel-efficient on the market that meets their needs. Discussions are centered on alternative methods for fuel, more efficient cars and commutation options.

Consumers make tough choices about their spending habits...

Product immunity and vulnerability
As spending power declines, consumers reevaluate necessities and are forced to make tough choices about their spending habits and the product categories they purchase. Knowing which products are most affected by a recession can guide effective strategic decisions with regard to pricing, promotion and assortment tactics.

Nielsen’s analysis of macroeconomic variables, historical trends and consumer behavior reveal that products such as seafood, dry pasta, candy, beer and pasta sauces are most immune to a recession and are expected to weather the troubled financial waters. Conversely, the most vulnerable product categories included carbonated beverages, eggs, cups/plates, food preparation/storage and tobacco.

Higher prices drove private label dollars, not national brand abandonment...

Private label sales grow
While private label products have traditionally been touted as the low-cost alternative to national brands, contrary to conventional wisdom, Nielsen analysts discovered that the 9.1% private label sales growth in the U.S. during these tight financial times was more a function of rising commodity and food prices than consumer preference.

The telling fact: while dollar sales climbed to $77 billion, unit sales decreased slightly. Turns out that higher prices for commodity categories like eggs, milk and cheese drove private label dollars, not national brand abandonment.

Escape from reality
The movies have always provided an escape—a reality transport from everyday concerns, which might explain why U.S. movie-going box office sales has increased 9% in the five years between 2003 and 2008, according to official figures released by Nielsen EDI. And while January–June 2008 box office sales are slightly down year-to-year (-3%), a May 2008 survey of adult moviegoers report that fully 78% of respondents said that rising gas prices did not keep them from going to see a movie over the weekend.

DVD sales, on the other hand, have suffered. In a separate Nielsen VideoScan study, findings show that approximately 18,000 DVD sales are lost each week in the U.S. for every one-cent increase in the price of a gallon of gas. While a variety of other factors affect DVD sales as well, rising gasoline prices appear to have a direct correlation to weekly sales levels of both new release and catalog titles.

There are opportunities in a slowing economy...

Opportunities exist
When market volatility defies convention, how do companies plan for the future? All is not doom and gloom. There are opportunities in a slowing economy to lead the recovery and Nielsen has developed a model to help clients cope with these uncertain times. The Predictive Macroeconomic Impact System explores the macroeconomic landscape along more than two dozen variables, evaluates the impact on client business by product category and proposes a holistic business response to optimize outcomes.

Category-specific opportunities exist to maximize in-store efforts. For products that are performing strong and showing immunity during a recession, manufacturers and retailers in these industries have the opportunity to increase product exposure even further. For products at the other end of the spectrum, companies would be well-advised to target their marketing efforts to shore up performance and maintain traction during tough times. Now is the time to plan for recovery.

Just how BIG is the travel industry in America? This report from the Travel Industry Association attempts to break it down

Economic Research: Economic Impact of Travel and Tourism

In 2007, the U.S. travel industry received $739 billion from domestic and international travelers (excluding international passenger fares). These travel expenditures, in turn, directly generated more than nearly 7.7 million jobs with $186 billion in payroll income for Americans, as well as $116 billion tax revenue for federal, state and local governments.

Economic Impact of Travel in the U.S., 2007p (Including both U.S. resident and International Travel)
Travel Expenditures *	$739.4 Billion
Travel-Generated Payroll	$186.0 Billion
Travel-Generated Employment	7.7 Million Jobs
Travel-Generated Tax Revenue	$116.1 Billion
Travel Trade Surplus	$17.6 Billion

Source: Travel Industry Association, Bureau of Economic Analysis/U.S. Department of Commerce
* Includes spending by domestic and international travelers in the U.S. on travel related expenses (i.e., transportation, lodging, meals, entertainment & recreation, and incidental items); p=preliminary

Travel Expenditures in the U.S., 2000-2007p ($ Billions)
Year	Domestic*	International	Total	International Passenger Fares	Grand Total
2007	642.7	96.7	739.4	25.6	765.0
2006	614.1	85.7	699.8	22.0	721.8
2005	572.1	81.8	653.9	21.0	674.9
2004	532.4	74.5	606.9	18.9	625.8
2003	495.8	64.3	560.1	15.7	575.8
2002	478.3	66.6	544.9	17.0	561.9
2001	483.8	71.9	555.7	17.9	573.6
2000	503.4	82.4	585.8	20.7	606.5

International Visitors spent $122.3 billion traveling in the U.S. in 2007, including international passenger fares. U.S. resident travelers spent $104.6 billion while traveling in foreign countries during 2007. As a result, a travel trade surplus of $17.6 billion was generated. Click here for detailed data and analysis on travel economic impact.

Source: Travel Industry Association, Office of Travel & Tourism Industries /U.S. Department of Commerce
Note: * Spending by international visitors traveling to the U.S. on U.S. flag carriers that are made outside the U.S.

Updated on June 2008

Here is another insightful article from the Neilson company about about Gen Y's spending power

Why Ask Y?
Meet the Millennials: Generation Why?

By: Laurel Kennedy, President, Age Lessons, LLC and Kathy Mancini, DirectorConsumer Insight, The Nielsen Company

If you had to pick one word to summarize Gen Y, it would be interactive. Weaned on the Internet and reality TV, Millennials expect to be entertained and involved, to shape an outcome vs. await one. They’re copious consumers who blur the lines between real life and reel life, seamlessly working anytime from anywhere

Meet the Millennials, also known as Generation Y, Generation Next, Echo Boomers or the Digital Generation – one of the most confounding, connected, confident and collaborative age cohorts on the planet. Shaped by influences ranging from Columbine to cell phones, terrorism to text messaging, merged families to corporate mergers, they bring a buoyant outlook to life. To many, Millennials are reminiscent of the Baby Boomers—both generations notable for their enormous size and cultural influence.

Gen Y is the beneficiary of being born in the most child-centric era in U.S. history, defined by “baby on board” signs and helicopter parents hovering over every soccer game and piano lesson. Their experience stands in stark contrast to Gen X, the so-called latchkey kids left to their own devices after school, whose parents engaged at arm’s length, via phone.

Gen Y is accustomed to “on demand” everything...

Life on demand
Gen Y has one thing in common with Gen X—both have little use for hierarchies and authority. The world is literally their playground, and they are equally at ease gaming online with a counterpart in China as they are texting friends in the middle of High School Musical. With noticeably short attention spans, Gen Y is accustomed to “on demand” everything, conditioned by limitless choices in programming, media options and immersive, interactive experiences. For marketers and employers, the challenge will be keeping pace in the race to engage Gen Y consumers and employees.

Roughly 70 million strong, Gen Y is the most ethnically diverse of any American generation. According to the 2006 American Community Survey, Gen Y comprises 60% White, 15% Black Non-Hispanic, 18% Hispanic and 4% Asian. Compare that to the Boomer cohort composition of 72% White, 11% Black Non-Hispanic, 10% Hispanic and 4% Asian.

Half of consumers under age 24 made an Internet purchase...

Web-wise shoppers
The 2007 Nielsen Global Omnibus Survey looked at online shoppers around the world and found that approximately half of consumers under age 24 made an Internet purchase in the previous month, and 100% had made an online purchase over the six months preceding the survey. Top sellers included clothing/accessories, books, videos/DVDs/games, electronic equipment, airline tickets/ reservations, music downloads and tickets to events.

As a domestic buying influence, the Nielsen Homescan Panel determined that U.S. households with at least one Gen Y member represent the third largest buying group, accounting for 37% of total dollars, 31% of total trips and 15% more dollars than the average U.S. household

During 2007, Gen Y households spent close to $1,600 in the dry grocery department alone. Peek in to a Gen Y household basket and you’re likely to find dry mixes, frozen pizzas/ snacks/hors d’oeuvres, stationery/school supplies and shelf stable juices and drinks.

The typical Gen Y-er surfs the web an average of 22 times per month...

Stoked to surf
With snacks at the ready, the typical Gen Y-er hunkers down to surf the web an average of 22 times per month for more than 25 hours total, scanning an astonishing 1,426 web pages. Popular sites (Nielsen Online rank orders by unique audience percentage) include Bungie Studios, Code My Layout, Flirtingquiz.com, TinyPic.com, SparkNotes.com, Urfortunerevealed.com, Aeropostale.com, AOL RED, WhateverLife.com and Hollister Co. Content for these top-rated sites is a perfect reflection of eclectic Gen Y interests, ranging from gaming to free MySpace page layouts, from a flirting skills test to photo and video sharing, from study guides to fortune-telling.

Game on!
Xbox 360 commanded play during 28 days per month among 10-26 year olds, possibly due in part to the higher attach rate of the platform. Attach rate refers to the number of games owned along with the system and assumes the greater number of games owned, the more the system is used. Other likely factors in the success of Xbox 360 are the strong library of games available (including Halo 3 released in the fourth quarter of 2007) and the large installed base of the platform (over 62% share of next generation console usage).

In contrast, PlayStation 3 logged the highest number of usage days (21+) among the 27 and older crowd, likely appealing not only to video gamers, but to tech-conscious, Blue-ray early adopters. Wii lagged on usage days with the older demographic, possibly due to the fact that Wii video games tend to appeal to a younger crowd.

American idyll
Where will you find Gen Y on Tuesday and Wednesday nights? Eyes glued to American Idol for the finalist performances, text voting for their favorite singers, blogging about each set and watching the results round. The Fox network owned eight of the 2007 top ten shows appealing to the 9–24 year old demographic, per Nielsen Media Research.

Media madness
Consistent with American tradition, Gen Y is just as interested in cars and driving as their predecessors, although perhaps more likely to opt for a hybrid vehicle. In an effort to appeal to this wheel base, car companies spent more than $433.6 million on TV advertising targeting Millennials. Phone companies were a close second in ad expenditures, budgeting more than $410.4 million on targeted Gen Y commercials.

Four in ten see new movies within the first 10 days of release...

Moving to the big screen and big picture, Nielsen Entertainment found that four in ten movie-going youth ages 12–26 identify as “early attenders”, jockeying to see new movies within the first 10 days of release, a rate 20% higher than average. Roughly the same relative percentage rate applies to Gen Y’s overall theater habits, which include taking in 9.5 movies per year and five of the summer 2007 releases. Must-see genres for Millennials include comedy and action adventure, followed by suspense, animation, horror and sci-fi/fantasy.

Spirited consumers
Along with sophisticated media consumption patterns comes a more sophisticated palate. By tracking alcoholic beverage purchase behavior, Nielsen discovered that beer consumption dropped 12 percentage points in the 1997–2007 period among consumers age 21–30, with wine and spirit sales picking up the slack. Although the same pattern is evidenced for drinkers over 30, the change was only half as fast for that cohort at 6%.

Beer remains the beverage of choice for Millennials...
On a dollar basis, beer accounts for 47% of Gen Y alcoholic beverage spending, and on a volume basis, 83% of purchases. Millennials are almost twice as likely as older consumers to purchase imported beers and almost three times as likely to pick up a craft beer.

Immediate needs
The big take-away about Gen Y is immediacy. They see it. They want it. They want it customized. They want it now. They text it to their friends. And then they want it changed. Product life cycles will be compressed beyond precedent. Customers will literally design their own products. Aesthetics matter, but environmental considerations rule. Honesty will be the only allowable policy, because within minutes, vigilant bloggers will have spread the viral word about corporate transgressions.

It’s a new age of media and a new generation of challenging consumers with money to spend, a discerning eye, and an electronic neural network that never rests.

QUOTE OF THE WEEK

"Multi-tasking - Screwing everything up simultaneously"

~ Anonymous

You Are Invited to the VRMA Conference at Wild Horse Pass

Quote of the Week

"Dick Cheney and I do not want this nation to be in a recession. We want anybody who can find work to be able to find work."

-George Bush

IS THE ECONOMY ON YOUR MIND?

CNN Money polled over 1000 members of the American public in May 2008. This poll , which was conducted by Opinion Research Corporation found the following results:

52% - Consider the economy "good"

47% - Call it "poor"

AND If your are anything like the the Americans sampled in this poll, than you might be concerned about the state of economy or just curious as to what that state is.

The VRMA blog understands the uncertainty of the economy and wants to help you navigate all the "geek speak", keep you up to date on changes in the economic forecast and offer news and tips regarding the the link between economy and travel and the economy and the X and Y generations. This in the hope of offering some you some sort of safeguard and even business building skills during these uncertain times....

There are 3 articles directly underneath this announcement that are all related to economy that you might want to check out! This is a new theme, which will continue until the economy has stabilized (which will hopefully be some time next week : ), but will only be a portion of information covered.

The blog will continue to provide information on the Vacation Rental Managers Association, as well as information on generations in the workplace, in the travel industry and as consumers.

If you have specific questions about any of these topics or other topics, not listed here, you are invited to ask them as they come up and the blog will do its best to find the answers you are looking for and to post them as soon as possible!

Selling the Great ‘Not-So-Great-Economy’ Getaway: How to Attract Guests to Your Vacation Home

(This article was directed more at VRBO's, but there are some great tips for anyone who manages vacation rental properties)

RISMEDIA, May 27, 2008-If you own a vacation home that you rent to others, you may be a bit nervous about all the “doom & gloom” you keep hearing. The economy has slowed to a crawl, consumers have a death grip on their wallets, and worst of all, gas prices are through the roof. Sure doesn’t give you much hope that your rental calendar will be filling up this summer, does it? Actually, says Christine Karpinski, you may be worrying needlessly. In a strange sort of way, the economic downturn actually benefits vacation homeowners.

“In stressful times, people crave vacations more than ever,” says Karpinski, director of Owner Community for HomeAway.com and author of “How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment”. “We all need something to look forward to. “I own several vacation homes, and for me personally, this past year has been great,” she adds. “I made more money from them in 2007 than I made in the last five years. In fact, the only better year I’ve ever had was right after 9/11. It just makes sense that when things are bad, people plan vacations. We want to spend time with family and friends because we’re more aware of how precious our loved ones really are.”

Karpinski points out that vacation homeowners are particularly well positioned to capitalize on people’s desire to “get away from it all” on a budget. After all, it can be considerably less expensive to drive to a nearby vacation home than to hop on an airplane and fly to some big tourist attraction-even with higher gas prices. You just need to make this case to potential renters.

Chances are you already have your vacation home listed with a vacation rental marketplace website like HomeAway.com. (Even though many of your guests might be local “road trip” vacationers, it still makes good sense to advertise on sites that draw national and international traffic-just in case.) You may use other marketing methods as well. But no matter how you attract people to your beach cottage, mountain chalet, or lakeside cabin, Karpinski recommends doing everything possible to sell potential guests on the fact that your home is a fun and economical choice.

She reveals a few ways you can get this across in your advertising:

• Make the case for a short road trip rather than a long flight. Yes, it’s more expensive to fill up your tank these days. But plane tickets still cost more. And no matter how high gas prices may climb, it surely costs less (probably considerably less) to pack a family of four into a vehicle and drive a few hours than buy plane tickets for everyone to fly a longer distance. And that’s not even taking into account the hassle and inconvenience factors that come with air travel.

“Do the math for your guests,” urges Karpinski. “Refer to an online fuel calculator like AAA’s fuelcostcalculator.com, which bases its estimates on current regional gas averages. I just checked it and found that if you drive a mini-van from Chicago, Illinois, to Mackinaw City, Michigan, which is 412 miles away, you’ll spend $121.60 for the round-trip gas prices. Compare that to buying airline tickets for everyone and you can’t deny that opting for a road trip is a smarter choice, financially speaking. There’s just something about seeing the numbers in black & white that makes a trip seem more manageable.”

• Play up big cities within driving distance. Everyone knows that there’s a lot to do in, say, Orlando, FL. But if your vacation home is located somewhere quieter and less touristy like, say, the outskirts of Chattanooga, TN, people may not realize that Atlanta, GA, is only an hour and a half away. Gatlinburg and Nashville are within driving distance, too. Be sure to point all this out to potential guests.

“A good vacation is all about getting a lot of bang for your buck, particularly in a time when bucks aren’t as plentiful as they once were,” says Karpinski. “And even though your guests may not want to go all these places, they like knowing they have the option.”

• Give a “gas incentive.” Even though people can save a lot more money driving to your vacation home than they could flying to some other destination, they may still cringe at filling their tank a couple of times at $80 a pop. Rational or not, it just feels too expensive. It’s all a matter of perception, not reality. If you can make them feel you’re giving them a break at the pump, they might be more inclined to choose your home.

“Offer to subtract from your rate the amount of money it takes to drive from their home to yours,” suggests Karpinski. “Or promise them you’ll have a prepaid $50 gas card waiting for them when they arrive. These little extras may provide the psychological boost someone needs to book your place. And is offering a small price break really that big a deal in light of the $1,500 or so you’ll be pulling in? I don’t think so!”

• Point your guests toward inexpensive or quirky local attractions. Some potential guests may not want to drive to a big city for shopping, culture, and fine dining. Perhaps they’d prefer to tour the local cheese factory, hike to a nearby waterfall, go see the world’s biggest ball of twine, shop at a sleepy country store, or dine at the hole-in-the-wall restaurant that has delicious barbecue. That’s why it’s a good idea to list unusual nearby attractions on your website or in your other marketing materials.

“Everyone mentions the local theme park or ski resort,” notes Karpinski. “You can differentiate yourself by also listing out-of-the-ordinary spots that don’t cost a lot of money. And be sure to mention odd local events. If your home is near Key West, FL, for instance, spotlight the nightly Sunset Celebration at Mallory Square, which is one of the top-ranked “tourist traps” mentioned in a recent BudgetTravel.com article. You can’t put a price on its stunning sunsets and kitschy street performers. People always like to get this kind of inside information, but in a slow economy, they really appreciate it.”

• Spell out all the benefits of staying in a vacation home-economic and otherwise. There are many reasons vacation homes are a better deal than hotel rooms. Often they just cost less, period. Even if they don’t, people can share a vacation home with friends and family members and split the rate among them. They can cook their own food rather than having to eat every meal at pricey restaurants. And of course, vacation homes often have tons of attractive amenities like hot tubs, swimming pools, and acres of private land to enjoy-perks that just aren’t the same at crowded hotels.

“Of course you’re going to list your home’s amenities,” says Karpinski. “But don’t be afraid to spell out what makes them so great. Be creative! Say ‘Prepare fresh produce purchased from the local farmer’s market-only two miles away!-in our spacious kitchen. It’s delicious and economical!’ Or ‘Spend a lovely evening under the stars, listening to the night sounds of the woods. Our crickets, owls, and whippoorwills give free concerts every evening!’”

• Allow pets. Many people hate to leave their pets behind when they go on vacation, regardless of the state of the economy. But when money is tight, even people who would normally board Fido or Fluffy might just decide not to go at all. After all, kennels and pet sitting services can cost hundreds of dollars. Offering to let renters bring their furry family members might make all the difference.

“Many vacation homeowners let guests bring pets along, and very few regret it,” observes Karpinski. “People know they’re a guest in your home, and they’re unlikely to bring a dog who isn’t housebroken or who will chew up the furniture. Plus, people who love their pets enough to want to bring them on vacation usually have pets who are accustomed to being inside-and indoor pets aren’t typically destructive.”

• Tap into your network to start a word of mouth campaign. Let fellow employees, friends, relatives, church family, and even casual acquaintances know you have a great vacation home only a short drive away. You may not feel comfortable “selling” to people you know, but you may not mind asking them to refer their friends and acquaintances. (If your coworker wants to rent your place herself, she’ll let you know.) You might even send out a link to your vacation home web page and ask people to forward it to anyone they know who might be interested.

“People often get into a vacation rut,” notes Karpinski. “It’s not that they want to go to the same place every year; it’s just that they’ve never thought about going somewhere different. When they hear second- or third-hand about your log cabin in the woods or your condo in a nearby city, they think, ‘Well, there’s an interesting idea!’ And they decide to check it out. The more people talking about your vacation home, the better.”

Of course, there is one overarching step you can take to stay booked up even in the toughest economic times: Make sure everyone who rents your vacation home has a perfect stay. Keep it comfortable and spotless. Promptly and efficiently solve any problems that crop up. And send thank-you notes to all guests after their stay. (See sidebar below.)

“People will always long to escape the stresses of daily life, to get away from it all,” says Karpinski. “A bad economy can’t change that basic human need. They may not spend money as frivolously as they once did, but they’re going to spend it on good times with their family and friends. I mean, isn’t that what makes life worth living? Help people have a great time, help them nest with the people they love, and make them feel truly welcome. They’ll always come back for more.”

Sidebar: Ten Special Little Touches That Will Keep Guests Coming Back
Christine Karpinski offers these tips:

1. Plenty of “inside information.” Chances are, you know which gas station has the cheapest gas, which farm stand has the best produce, which Thai restaurant wins raves from diners. And you probably know the best places to go for an afternoon of hiking or guided river tours. You can mention these kinds of helpful hints on the phone when people call to reserve your home, or better yet, keep a list you email to guests.

2. A ping pong table. Great for basements, garages, and screened-in porches. Ping pong tables are cheaper than their billiard counterparts ($100-$300 vs. $300+) and have fewer pieces for your guests to lose.

3. A soft-serve ice cream maker, espresso machine, or Belgian waffle maker. Guests love playing with kitchen gadgets they don’t have at home.

4. High-speed Internet. It has become a must-have for most vacation destinations; however, vacation rentals in urban settings absolutely must provide high-speed Internet to capitalize on business travelers.

5. Baby gear. It will cost you around $50 for a foldable high chair and $60-$100 for a portable crib. Look for deals at garage sales and consignment shops.

6. Great bed linens. Egyptian cotton sheets will run around $40 to $60 for a king bed-a small price to pay to make guests feel as though they’re sleeping in the lap of luxury.

7. Terrycloth bathrobes. Ask any vacationer: There’s nothing more decadent than lounging around in a cozy robe each morning while you sip coffee and listen to birdsong or a roaring ocean.

8. A DVD player and good library of movies. If your guests have kids, at some point they will want to pop in a movie. It helps the little ones unwind before bed and gives parents some welcome “adult time” free of childish chatter.

9. A selection of games. Think of this as “rainy day insurance.” If bad weather strikes, you want guests to remember the fun they had playing Monopoly, Twister, or Scrabble-not the boring hours they spent staring out the window at the downpour.

10. A small parting gift. This could be a magnet, a picture frame, a seashell. Not only will renters feel grateful for the gift, they will likely think fondly of your vacation home each time that they see it.

Article: Luxury Travel Less Effected by Poor Economy

By David Sharp, Associated Press Writer

PORTLAND, Maine — High gas prices may mean fewer families will be headed to the beach or the mountains this summer, but rising prices likely won't be keeping wealthy people from missing out on vacation.

Although their stock portfolios may be in decline, wealthy Americans who are less likely to feel the impact of a slowing economy and rising energy and food prices are largely going ahead with their vacation plans even though consumer confidence is at a 16-year low.

Households earning $100,000 or more have been taking a larger share of hotel rooms since 2000 and now account for about a third of hotel stays, according to D.K. Shifflet & Associates in McLean, Va.

"If you think about the high-income folks in the U.S., the CEOs and others who make a lot of money and have been doing well over the last eight years, they can afford to do that. And they're doing it while they can," said Doug Shifflet, chairman and CEO of the travel research firm.

At a country club outside of Portland, about 150 people spent part of a recent sunny day indoors at a "Luxury Explorers' Showcase" to learn about African safaris, tours of the Amazon and Galapagos, private jet charters and even space tourism.

Organizer Pamela Hurley-Moser said not all of the attendees were loaded with money, but all had one thing in common: They had no intention of canceling travel.

"There are many people who absolutely can't afford to travel (right now). Then there's a middle range where people are going to scrimp and save in almost every other area in their life so that they can do a trip," said Hurley-Moser, owner of Hurley Travel Experts in Portland.

The tour operators that made presentations seem to be doing just fine. TCS Expeditions, which offers tours via private jets, is sold out for 2008 and nearly sold out for 2009 even though the standard price for trips like "Wildlife of the World" and "History's Lost Cities" is $64,950 per person, said Melanie Cole, vice president of sales in Seattle.

Guests who're ponying up for a one-of-a-kind experience are well aware of the economic uncertainties facing the U.S., said Martha Wharton, vice president of marketing. "They're very concerned about the economy, the political uncertainties, all of those things, but they're not changing their buying patterns because of it — yet," Wharton said.

Likewise, Conservation Corporation Africa is doing well with safaris launched from lodges it owns or operates in Africa and India.

"Certainly the economic events have affected travel. There's no doubt about that. But it has not affected the luxury sector of the market as much as the middle-of-the-road market," said James Currie, a former safari guide who now serves as CCA's public ambassador.

Michael and Hedy Cohen listened to Currie's pitch and said they hope to go on an African safari within a year. "It's not cheap. It's probably going to be $10,000 per person," Michael Cohen said.
"If you want to go, you go. That's the way I feel," said Cohen, who's from Cape Elizabeth. "I've worked all my life. I've been fortunate. We've been able to make a few bucks and we like to travel. If I want to go on a trip, then we go."

Houghton and Jennifer Carr of Yarmouth looked into luxury barge canal trips in France because the slower pace suits him better at age 78. He said he and his wife always look carefully and try to use frequent flier miles that they've accumulated.

At this point, they're not ready to give up the trip.

"Sure, if the expense skyrocketed we might have to rethink, but we're looking forward to doing it now at this stage," Houghton Carr said.

Some tour providers have noticed a change in preferences. Instead of seeking outright opulence, many travelers are now seeking vacations that educate as well as entertain. Travelers are seeking out language immersion programs and cooking schools, for example.

"They want more than tiki torches and umbrellas in their drinks," said Jennifer Reynolds, director of travel agency sales for International Expeditions. "They want substance-driven travel. They're looking at something that has some 'mind candy.'"

International Expeditions offers a seven-night Amazon cruise for $3,100, 10 days in the Galapagos for $5,000 and a 15-day tour of Egypt led by a naturalist for $6,500. So far, the Alabama-based company is holding its own, Reynolds said.

British Airways, for its part, is betting that wealthy travelers are still willing to pay for luxury. The airline's new premium affiliate, OpenSkies, began trans-Atlantic service last month with a Boeing 757 with only 82 roomy, leather-clad seats.

While it's difficult to quantify, one thing is clear: occupancy rates are higher at the top-tier hotels like Ritz Carlton than at lower-end "economy" chains, said Bobby Bowers of Smith Travel Research in Hendersonville, Tenn.

That stands to reason: Those who earn the least are the first ones to cancel their vacations in tough times, and they're more likely to stay in economy hotels.

Higher-end hotels, meanwhile, seem to be holding up better despite a drop-off in corporate travel that began when the economy started to sour.

Helping to offset the drop in business travelers is the weak value of the U.S. dollar, which has discouraged Americans from traveling abroad for their vacations while luring Europeans who see travel to the U.S. as a relative bargain, Bowers said.

"The fact is there are a ton of luxury hotels that have gone up in the past year, and they don't seem to have too much trouble filling their rooms," said Peter Frank, editor-in-chief of the travel site Concierge.com.

All of this could change if the economic slowdown isn't reversed.
"High-end is holding its own right now," Shifflet said, "but if the economy doesn't improve some, then it's going to start to see an additional slowdown."

Article: Soft Economy Hurts Travel Industry

By Brett Zongker • The Associated Press • July 17, 2008

WASHINGTON – It seemed like a can’t-miss tourist attraction that would pull in visitors to the nation’s capital: a new Madame Tussauds wax museum.

But since opening last fall, the attraction featuring likenesses of Barack Obama and Hillary Clinton – among many others – hasn’t been a big enough draw.

• Special section: The cost of living
Crowds dwindled after the opening, and Madame Tussauds is cutting prices. Adult tickets, previously selling for $21.15, have been lowered by more than $3, and local residents will be offered even better deals.

In a soft economy, Madame Tussauds and other businesses in the tourism industry are starting to feel the pinch of high gas prices and dwindling home values.

Big cities such as New York and Washington may attract more foreign visitors, thanks to the weak dollar, but ticket sales can be erratic, and Americans are thinking about fewer, shorter, less-expensive trips.

“We’re really in kind of tenuous territory,” said Suzanne Cook, research vice president at the Travel Industry Association.

A recent Rand McNally survey says two-thirds of Americans planning road trips this summer are either altering their plans to shorten their trips or canceling altogether.

AAA said the number of Americans driving more than 50 miles over Memorial Day weekend fell 1 percent this year. Air travel has declined slightly as well, AAA said.

In the casino capital of Las Vegas, things already are tough.

Room occupancy rates have fallen slightly, forcing casinos to lower hotel room prices.

Gambling giant MGM Mirage Inc. and local casino operator Station Casinos have cut their work forces.

Las Vegas Sands, which opened a massive new casino on the Strip in January, unexpectedly swung to a loss of $11.2 million in the first quarter of the year.

The skittishness among American tourists is also rippling overseas.

The number of Americans in Britain declined slightly last year, according to the government-funded Visit Britain, and those who have come to the country have spent less money.

A Continental Airlines cabin crew from Ohio, peering through the gates at Buckingham Palace recently on a 24-hour layover in London captured the mood. Amy Nalepa said their flight from Cleveland was quite empty.

“Who can afford this?” she said. “I changed 50 bucks and got 22 pounds. And that got me lunch.”France is seeing a similar trend. About 12 percent fewer Americans have visited the country since January versus the same period in 2007, said Christine de Gouvion Saint-Cyr, a top official at the Paris Office of Tourism and Trade.“In 2008 we are being very cautious and attentive, because at any time the impact can take effect,” Saint-Cyr said.

Quote of the Week

"My interest is in the future because I am going to spend the rest of my life there."

- Charles Kettering

From the Millenial Marketing Blog: Gen Y are Harry Potter and Boomers are Professor Snipe...

Written by: Carol Phillips

Millennials vs. Boomers: Hogwarts as Metaphor?

I highly recommend Millennial Makeover by Winograd and Hais (Rutgers Press, 2008). While the focus is political, there is plenty of useful data for marketers, much of it from familiar sources like Pew (see previous blog post). My reason for recommending it, however, is their use of the data to address the question, 'Are Millennials just younger versions of previous generations or are they really different'? The arguments they put forth are compelling. According to the authors

"... media moguls, authors and even politicians make the fundamental error of thinking that today's young people think and act just like they did when they were young. Nothing could be further from the truth." They ask us to think of Millennials as a generational cohort made up solely of Harry Potter and his plucky friends, and to contrast them with the adults at Hogwarts, the scowling, often clueless faculty and ministry of magic administrators. While Harry and his team (key word) work hard to save the world, applying special ingenuity and talents, the grown ups they must contend with are "individualistic, judgmental egotists who talk more than they act."

Millennial professionals who participated in two online focus groups, to our surprise, expressed a similar view of Boomers. When asked who they prefer to work with, all said they preferred to work with other Millennials (no surprise there), and they MUCH prefer to work for Gen X'ers over Boomers. This was indeed a big surprise to us, after all that has been written about the supposed natural affinity between Millennials and Boomers. Boomers are considered to be like their parents, pretty old fashioned and out of touch. One young brand manager at Unilever even shared with us that there is a 'reverse mentoring' program in place at his company, where Millennials share their technology wizardry insights with older, less adept Boomers. In contrast, they feel as if they have more to learn from Gen X'ers and that X'ers are more willing to take the time to teach them what they need to know.

Generation Next -- Generational Job Defintion in The Workplace

Quote of the Week

I start with the premise that the function of leadership is to produce more leaders, not more followers.

- Ralph Nader