Hispanic Family Camper Market - InsideOutdoor Magazine

Hispanic Family Camper Market - InsideOutdoor Magazine Hispanic Family Camper Market - InsideOutdoor Magazine

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CALL TO CAMPISTAS Camping Outlook ’04 Issue #9 Wild Fire Forecasts Markdown to Up Profits Outdoor Gatherings Rec Metrics

CALL TO<br />

CAMPISTAS<br />

Camping Outlook ’04<br />

Issue #9<br />

Wild Fire<br />

Forecasts<br />

Markdown to<br />

Up Profits<br />

Outdoor Gatherings<br />

Rec Metrics


14|IO


Pitching<br />

Campistas<br />

Camping vacations<br />

could be an inroad to<br />

<strong>Hispanic</strong> travelers<br />

According to United States Census figures, one in every three<br />

Americans now belongs to a minority group, though one couldn’t<br />

always tell by looking at the customers of most outdoor retail<br />

shops. And when considering that certain minority populations<br />

are growing at a much faster clip than the overall U.S. population,<br />

it’s no surprise that some within the outdoor industry are looking<br />

at ways to address what’s been called the “demographic shift”<br />

taking place across the country.<br />

Fortunately for folks playing in the camping market, especially<br />

family camping, a recent report from the Travel Industry<br />

Association of America (TIA) notes a significant increase in travel<br />

activity among minority Americans, specifically <strong>Hispanic</strong>, African<br />

and Asian American travelers. While overall U.S. travel grew by<br />

about 2 percent during the last three years, minority travel has<br />

increased by about 11 percent during the same time period. In<br />

2002, TIA estimates that minority travelers generated about 18<br />

percent of all “person trips” taken in the U.S. and 19 percent of<br />

domestic travel expenditures.<br />

That’s good news because the growth is coming exclusively<br />

in “leisure” travel, which is the primary objective of more than<br />

three quarters of all person trips taken, says TIA. The largest<br />

percentage of these trips occurs in the summer months – the<br />

traditional “camping season” – and are made by folks who like<br />

to head to the beach, shop, visit relatives and hit amusement<br />

parks while out vacationing. In other words, it’s many of the folks<br />

camping companies call customers.<br />

And if camping acts as a “gateway activity,” as its been called,<br />

what better opportunity to entice emerging minority markets to<br />

the world of human-powered recreation than a summer camping<br />

vacation? Zeroing in on minority “travelers” in particular<br />

appears attractive since these groups tend to skew higher than<br />

normal in areas such as income and education level, home and<br />

car ownership and access to media, suggests TIA research.<br />

Among the groups of travelers studied by TIA, <strong>Hispanic</strong><br />

American travelers, for many reasons, seem to represent the best<br />

fit for companies dependent on camping goods sales. And lots of<br />

those reasons are matters of simple numbers.<br />

Minority Travel Growth, Person Trips<br />

Taken in Millions<br />

Segment 2000 2002 Growth<br />

<strong>Hispanic</strong> Americans 64.1 77.1 20%<br />

Asian Americans 30.0 33.1 10%<br />

African Americans 72.2 75.2 4%<br />

Total U.S. 997.6 1,021.3 2%<br />

Source: TIA<br />

The Major Minority<br />

For starters, <strong>Hispanic</strong>s now represent the largest minority<br />

group in the nation, accounting for more than 13 percent of<br />

the total U.S. population in 2002 or about 39 million residents.<br />

<strong>Hispanic</strong> travelers also are the most apt to participate in outdoor<br />

recreation among the three groups surveyed by TIA. “Outdoor<br />

recreation” was listed as the second most popular trip activity<br />

among <strong>Hispanic</strong> travelers, behind only “shopping,” with 16<br />

percent of <strong>Hispanic</strong> person trips involving outdoor activities of<br />

one sort or another. That’s slightly more than Asian-Americans,<br />

IO|15


Trip and Traveler Characteristics, 2002<br />

Characteristic<br />

Total U.S.<br />

Travelers<br />

Hisp-Am.<br />

Travelers<br />

which listed “outdoor recreation” as the third most popular activity (14<br />

percent of person trips) and widely ahead of African Americans, for<br />

which outdoor sports (at 8 percent) fail to crack the list of top five most<br />

popular trip activities.<br />

What’s more, camping marketed as a classic “family” activity would<br />

seem to have the most appeal to <strong>Hispanic</strong>s, as “the primary theme for<br />

African-Am.<br />

Travelers<br />

Asia-Am.<br />

Travelers<br />

Avg. households traveling each month 31% 28% 22% 37%<br />

Trip involves “outdoor activities” 17% 16% 8% 14%<br />

Outdoor activity is primary purpose 10% 8% 5% 8%<br />

Trip includes visit to National/State Park 10% 9% 5% 9%<br />

Avg. trip duration (includes 0 nights) 3.4 days 3.8 days 3.3 days 3.1 days<br />

Avg. trip duration (excludes 0 nights) 4.1 days 4.5 days 4.2 days 3.3 days<br />

Avg. trip spending $457 $480 $428 $515<br />

Trips as solo travelers 44% 41% 51% 50%<br />

Party includes adult(s) with children 24% 33% 26% 22%<br />

Household median annual income $56,600 $45,400 $40,500 $73,300<br />

Married household 64% 58% 42% 48%<br />

Avg. age household head 47 years 40 years 45 years 38 years<br />

Household holding Visa card 73% 69% 65% 84%<br />

Household owning PC 82% 77% 71% 91%<br />

Cable TV household 66% 64% 71% 60%<br />

Household considered “young parents” 11% 22% 15% 7%<br />

Source: TIA<br />

<strong>Hispanic</strong> American travelers<br />

is family,” says Suzanne Cook,<br />

TIA senior vice president<br />

– research & technology.<br />

Consider, for example,<br />

that a third of trips taken by<br />

<strong>Hispanic</strong> households includes<br />

children under 18 years old.<br />

Conversely, adults traveling<br />

alone or with someone outside<br />

their household make up 51<br />

percent of African American<br />

trips and 50 percent of Asian<br />

American trips. All the while,<br />

one in four trips taken by<br />

African American households<br />

(26 percent) includes children<br />

under 18, while one in five<br />

Asian American household trips<br />

(22 percent) include children.<br />

<strong>Hispanic</strong> American travelers<br />

also are most likely to include a<br />

group of four or more.<br />

Likewise, according to Census figures, more than half of U.S.<br />

<strong>Hispanic</strong> households (58 percent) have children under the age of 18<br />

at home, compared with just more than a third (36 percent) of total<br />

U.S. households.<br />

<strong>Hispanic</strong> American travelers also tend to be younger than average,<br />

reflecting the generally youthful <strong>Hispanic</strong> population in the U.S. The


States with Highest Projected<br />

<strong>Hispanic</strong> Population, 2005<br />

California 12,268,000<br />

Texas 6,624,000<br />

New York 3,071,000<br />

Florida 2,845,000<br />

Arizona 1,269,000<br />

Illinois 1,450,000<br />

New Jersey 1,196,000<br />

New Mexico 821,000<br />

Colorado 682,000<br />

Massachusetts 524,000<br />

Washington 437,000<br />

Pennsylvania 391,000<br />

Nevada 350,000<br />

Connecticut 332,000<br />

Virginia 322,000<br />

Michigan 289,000<br />

Maryland 258,000<br />

Source: U.S. Census Bureau<br />

median age for U.S.<br />

<strong>Hispanic</strong>s is 25.9 years<br />

old compared with 35.3<br />

for the overall population,<br />

according to Census figures.<br />

More than a third of Latinos<br />

are under the age of 18.<br />

According to the research<br />

group HispanTelligence,<br />

younger <strong>Hispanic</strong>s control a<br />

greater share of their ethnic<br />

group’s total purchasing<br />

power than their non-<br />

<strong>Hispanic</strong> counterparts.<br />

<strong>Hispanic</strong>s age 15 to 34 earn<br />

37 percent of total <strong>Hispanic</strong><br />

income versus 21 percent for<br />

non-<strong>Hispanic</strong> whites, says<br />

HispanTelligence research,<br />

all of which doesn’t hurt<br />

efforts to inject some youth<br />

into the outdoor industry<br />

customer base.<br />

Counting the Dinero<br />

So how big is the potential U.S. <strong>Hispanic</strong> camping market? According<br />

to industry associations, anywhere from 20 to 25 percent of the total<br />

U.S. population participates in camping. If we can assume a 15 percent<br />

adoption rate by the 39 million U.S. <strong>Hispanic</strong>s, there could be up to 5.85<br />

million <strong>Hispanic</strong> campers in the states.<br />

In 2002, NSGA estimated that a base of about 60 million camping<br />

participants purchased about $1.4 billion in “camping equipment” at<br />

retail, or about $23.3 per camper. At 5.85 million <strong>Hispanic</strong> campers, the<br />

market for equipment purchased by U.S. <strong>Hispanic</strong>s could equal more<br />

than $136.3 million annually. At 20 percent penetration, there could be<br />

$181.7 million in <strong>Hispanic</strong> camping equipment purchases.<br />

SGMA, for its part, estimates that camping products created about<br />

$1.7 billion in wholesale value in 2002, spread amongst 58.3 million U.S.<br />

campers (tent and RV), for a wholesale value of $29.1 per camper. At<br />

those figures, the <strong>Hispanic</strong> camping market could have a wholesale value<br />

of $170.2 million, assuming 15 percent participation, and $227 million at<br />

20 percent participation.<br />

Of course, an adoption rate of 15 to 20 percent is a lofty goal and<br />

assumes any industry efforts to target <strong>Hispanic</strong>s would be highly<br />

effective. There are reasons, however, to believe they can be. While much<br />

of the 20 percent increase in <strong>Hispanic</strong> American travel can be attributed<br />

to population growth (<strong>Hispanic</strong>s accounted for half the growth in<br />

population for the entire U.S. from 2000 to 2002), TIA president and<br />

CEO William Norman believes industry efforts deserve at least some of<br />

the credit.<br />

“Every sector of our industry – hotels, theme parks, city visitor<br />

bureaus – has begun to reach out to the minority traveler through targeted<br />

advertising, minority travel guides and special ethnic promotions, and I<br />

think we are seeing the results,” says Norman.<br />

The sheer numbers also instill hope. After all, <strong>Hispanic</strong>s took more<br />

than 77 million person trips in 2002 or 8 percent of all trips taken by U.S.<br />

households. Furthermore, <strong>Hispanic</strong> American travel activity mirrors the<br />

overall population enough to suggest there could be similarities in their


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programs<br />

U.S. States with Highest Rates of <strong>Hispanic</strong><br />

Population Growth, 1995 to 2015<br />

State Pop. 1995 Pop. 2015 % Change<br />

North Dakota 4,000 11,000 175.0%<br />

Vermont 4,000 10,000 150.0%<br />

Nevada 192,000 460,000 139.6%<br />

Idaho 72,000 160,000 122.2%<br />

Rhode Island 60,000 133,000 121.6%<br />

New Hampshire 13,000 28,000 115.4%<br />

Oregon 150,000 323,000 115.3%<br />

Washington 284,000 605,000 113.0%<br />

Wyoming 27,000 57,000 111.1%<br />

West Virginia 9,000 19,000 111.1%<br />

Minnesota 73,000 150,000 105.5%<br />

Virginia 209,000 429,000 105.3%<br />

Massachusetts 355,000 719,000 102.5%<br />

Maryland 172,000 345,000 100.6%<br />

Arkansas 27,000 54,000 100.0%<br />

Delaware 19,000 38,000 100.0 %<br />

Source: U.S. Census Bureau; Inside Outdoor analysis<br />

camping and recreation adoption.<br />

For example, TIA estimates that each month<br />

during 2002, an average of 31 percent of the 109<br />

million U.S. households took at least one trip,<br />

while 28 percent of <strong>Hispanic</strong> households did<br />

the same. Leisure travel represented 77 percent<br />

of trips taken by both total U.S. and <strong>Hispanic</strong><br />

travelers, and the average length of a trip was<br />

3.4 nights for the total U.S. population and 3.8<br />

nights for <strong>Hispanic</strong> Americans. Additionally,<br />

the summer months are the most popular time<br />

for traveling among both groups, representing<br />

32 percent for each, while total U.S. travelers<br />

spent about $450 per trip versus the $480 per<br />

trip spent by <strong>Hispanic</strong> American travelers.<br />

About 10 percent of total U.S. trips involved<br />

a visit to a National Park or Forest, while 9<br />

percent of <strong>Hispanic</strong> trips did the same.<br />

Destinations<br />

Of course, differences do appear when<br />

looking at things geographically. In 2000, for<br />

example, 66 percent of the nation’s <strong>Hispanic</strong>s<br />

were concentrated in just four states: California<br />

(31 percent), Texas (19 percent), New York (8<br />

percent) and Florida (8 percent), so the market<br />

obviously is much more important to retailers<br />

in those states than in some others.<br />

Moving forward, however, <strong>Hispanic</strong>s are<br />

proving highly mobile, partly due to the fact<br />

that about 53 percent of the recent growth<br />

in <strong>Hispanic</strong> population can be attributed to<br />

net international migration. Recently, regions<br />

such as the Southeast, Pacific Northwest and<br />

Upper Midwest have experienced the highest<br />

growth rates of <strong>Hispanic</strong><br />

residents, according to<br />

Census estimates. Literally<br />

throughout the country,<br />

states not traditionally<br />

known for high <strong>Hispanic</strong><br />

concentrations, such as<br />

North Dakota, Vermont,<br />

Idaho, Washington and<br />

Minnesota, are seeing<br />

some of the highest rates<br />

of growth in <strong>Hispanic</strong><br />

citizens.<br />

Speaking in Tongues<br />

Already, in states such<br />

as California, New York<br />

and Arizona, bilingual<br />

signage at retail, Spanishenabled<br />

ATM machines,<br />

Spanish-speaking sales<br />

and support personnel<br />

and the like are becoming<br />

the norm. That’s likely to<br />

occur in more and more regions over time.<br />

But that’s not to say that every store manager<br />

suddenly needs to take Spanish lessons. Rather,<br />

the Spanish language is more a matter of<br />

marketing strategy than necessity.<br />

Typically, <strong>Hispanic</strong> groups are not overly<br />

resistant to learning and speaking English. It’s<br />

been estimated that as much as two-thirds to<br />

three-quarters of <strong>Hispanic</strong> Americans speak at<br />

least some English. The figures could be even<br />

higher among <strong>Hispanic</strong> American “travelers,”<br />

so language isn’t necessarily a huge barrier.<br />

On the other hand, analysts at research firm<br />

Cheskin argue that 69 percent of <strong>Hispanic</strong>s<br />

prefer to speak more Spanish than English and<br />

thus speak Spanish at home most often. What’s<br />

more, say Cheskin researchers, <strong>Hispanic</strong>s tend<br />

to “embrace their heritage and identity,” and<br />

the Spanish language “represents an emotional<br />

attachment to the culture.”<br />

In other words, for native Spanish speakers,<br />

communication in Spanish is not just functional<br />

but is a manifestation of emotion, says Cheskin,<br />

and that’s because a person’s native language<br />

carries connotations of past experiences, and<br />

the emotional component of language is a<br />

fundamental part of meaning and perception.<br />

Hearing and seeing one’s native language also<br />

works as a type of welcome mat, creating a<br />

comfort zone for conducting commerce.<br />

“Language is a powerful identification tool<br />

for marketing to <strong>Hispanic</strong>s in the U.S.,” says<br />

Cheskin.<br />

The influence of the Spanish language is<br />

best illustrated through <strong>Hispanic</strong> American’s


Aspects of Culture and Tradition<br />

<strong>Hispanic</strong>s View as Most Important to<br />

Preserve<br />

<strong>Family</strong>/commitment to family 56%<br />

Spanish language 54%<br />

Respect for elders/parents 47%<br />

Religion/church 37%<br />

Holidays/celebrations 35%<br />

Food/beverages 33%<br />

Music/songs 27%<br />

Spanish-language stories/books 19%<br />

Source: Cheskin; Yankelovich<br />

consumption of radio and television programming.<br />

According to Cheskin surveys, consumption<br />

of Spanish-language broadcasts is significantly<br />

higher among <strong>Hispanic</strong> Americans despite the<br />

much greater selection of English-only stations<br />

and content.<br />

As far as print media and Internet usage,<br />

which still trend toward English-only content,<br />

Cheskin argues that the preeminence of English<br />

in these formats is due to Spanish-language print<br />

and Internet content and distribution lagging<br />

dramatically behind Spanish-language broadcasts.<br />

Making Waves<br />

Radio is of particular interest, as it seems to<br />

represent the most effective way for local retailers<br />

to reach <strong>Hispanic</strong> audiences. According to<br />

Arbitron figures, <strong>Hispanic</strong> Americans are heavy<br />

radio listeners, averaging more hours of listening<br />

per week (19:15) than non-<strong>Hispanic</strong>s (16:30).<br />

When listening to Spanish-language radio,<br />

<strong>Hispanic</strong>s stay tuned even longer, averaging 21:45<br />

hours listening per week, says the ratings and<br />

media research firm. Ratings data also suggests<br />

that <strong>Hispanic</strong>s spend more time with radio than<br />

newspaper and even television, says Arbitron.<br />

As far as timing, radio listening among<br />

<strong>Hispanic</strong>s starts picking up at 6 a.m. and remains<br />

strong through 6 p.m., at which time it begins to<br />

taper off. Peak listening times on weekends fall<br />

around the noon hour – from 9 a.m. to 3 p.m.<br />

Listening is lowest throughout the week from<br />

midnight to 5 a.m., notes Arbitron.<br />

Again, Spanish-language radio is key, as it<br />

makes up for about half of listening hours. Of<br />

course, as Arbitron is quick to point out, Spanishlanguage<br />

is not a format but is made up of a group<br />

of formats, which includes Mexican Regional,<br />

Spanish Contemporary, Spanish News/Talk,<br />

Spanish Oldies, Spanish Tropical, Spanish Variety<br />

and Tejano. While listed here in order of highest<br />

to lowest ratings on a national level, some regional<br />

variations do apply. For example, while Mexican<br />

Regional is the most popular format in most of the<br />

country (no doubt due to the predominance of<br />

Mexican Americans among <strong>Hispanic</strong> populations),<br />

(Continued on page 38)


(Continued from page 19)<br />

Media Consumption by Language, Average Hours per Week<br />

Media Channel<br />

Television<br />

Radio<br />

Newspapers<br />

<strong>Magazine</strong>s<br />

Books<br />

Origin<br />

Hours<br />

English<br />

Hrs. Spanish/<br />

Other<br />

Spanish Tropical draws the best ratings in New England and Mid-<br />

Atlantic states, while Spanish Contemporary plays best in the South<br />

Atlantic and Spanish Variety in the West North Central, according to<br />

Arbitron figures.<br />

In terms of preferred “Latin Music,” Rancheros, Salsa, Boleros<br />

and Banda are most popular, according to Cheskin surveys. Outside of<br />

Spanish-language formats, adult contemporary and contemporary hit<br />

radio generate solid ratings among U.S. <strong>Hispanic</strong>s.<br />

Otra Opportunities<br />

Beyond the airwaves, ethnic marketing experts recommend tapping<br />

Total<br />

Hours<br />

<strong>Hispanic</strong>s 4.54 7.14 11.68<br />

Non-<strong>Hispanic</strong>s 12.07 0.25 12.32<br />

<strong>Hispanic</strong>s 4.16 5.88 10.04<br />

Non-<strong>Hispanic</strong>s 11.55 0.11 11.66<br />

<strong>Hispanic</strong>s 1.11 0.72 1.82<br />

Non-<strong>Hispanic</strong>s 3.43 0.02 3.45<br />

<strong>Hispanic</strong>s 0.80 0.72 1.52<br />

Non-<strong>Hispanic</strong>s 2.27 0.03 2.30<br />

<strong>Hispanic</strong>s 1.39 1.16 2.54<br />

Non-<strong>Hispanic</strong>s 4.86 0.07 4.93<br />

<strong>Hispanic</strong>s 1.71 0.46 2.17<br />

Internet<br />

Non-<strong>Hispanic</strong>s 5.27 0.04 5.31<br />

Source: Cheskin and People en Espanol `<br />

into <strong>Hispanic</strong>’s deeply rooted sense of family and<br />

community building by utilizing word-of-mouth tactics<br />

and gaining a presence in the places <strong>Hispanic</strong> Americans<br />

live and play. This could include working with local<br />

affinity groups, restaurants and markets, church groups<br />

and the like, as well as presenting relevant signage at<br />

cultural festivals and celebrations. There may never be<br />

a more opportune time to establish such relationships,<br />

because while <strong>Hispanic</strong> Americans make up more than<br />

13 percent of the population and maybe 7 percent of<br />

buying power, it’s estimated that only about 3 percent<br />

of advertising is focused on the market.<br />

Still others have had success using direct mail<br />

campaigns in neighborhoods with high <strong>Hispanic</strong><br />

American concentrations. Across all efforts, again some<br />

familiarity with the Spanish language helps portray a<br />

store or operation as being part of (or at least open to)<br />

the “community” and “culture.”<br />

Finally, marketing imagery that focuses on the “family”<br />

aspects of camping (relaxing with relatives or preparing<br />

meals with children, for examples) should prove much more effective than<br />

the “adventurous” photography often used by outdoor companies.<br />

As <strong>Hispanic</strong>s become the dominant minority in the U.S. (and in<br />

some cases the majority), many marketers feel content waiting for<br />

a “mainstreaming” of the segment, for a time when <strong>Hispanic</strong>s have<br />

assimilated enough to be captured by traditional advertising and<br />

promotional efforts. This may be the easiest path. But as the <strong>Hispanic</strong><br />

culture becomes more prevalent, and thus is validated, it’s likely<br />

<strong>Hispanic</strong> Americans will influence the mainstream as much as they<br />

assimilate to it. IO<br />

Advertiser Index<br />

Adventure 16 18<br />

American Hiking Society 25<br />

ASF Group 27<br />

Atwood Ropes 39<br />

Cam Commerce Solutions 17<br />

Clear the Air 35<br />

Cyclops 11<br />

Durapeg 37<br />

General Ecology 19<br />

HEC 3<br />

Implus/Sof Sole 5<br />

Kelty 16<br />

Kiva Designs 19<br />

NRS 23<br />

Paha Que 13<br />

Peregrine Outfi tters 21<br />

Polarguard 40<br />

Sevylor 7<br />

Sun Company 26<br />

Swarovski Optik 2<br />

TallySoft 31<br />

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