Opinion: Tammy Marshall on why agents should target NEO consumers
Did you know that there is a consumer segment that spends three times more than everyone else?
This group is university educated and are more likely to work in professional or management role or run their own business. As a result of this, they tend to earn higher salaries.
But it’s not about how much they earn – it’s about how much they spend.
Say hello to NEOs: the New Economic Order.
Economist Dr Ross Honeywill says that society is split into two groups: NEOs on one side and Traditionals on the other.
He says that there are two kinds of NEOs – the ones that have made it and the ones aspiring to the NEO lifestyle. Honeywill says Traditionals are born that way and won’t change.
In his recent report, Honeywill explains: “NEOs are far from some small niche in society – they are a quarter of the population, and have powerful social and business clout.”
“They will buy new technology – all those 4G smartphones, tablets, WiFi devices, wearables and implantables – but they’ll also spend their hard-won rewards on home extensions and renovations, travel, eating in and out, drinking, online banking, investing in shares and online high-interest savings accounts, and an entire range of services that make their lives easier, more individual, and more controllable.
“They vote governments in and out, fill our colleges and universities, and take professional roles and executive positions.”
According to Honeywill, there are 4.6 million NEOs in Australia and an additional 5.4 million Aspiring NEOs meaning that together they represent almost half of the population.
So how do you spot them?
Honeywill says you just need to hang out at a popular artisan bakery. NEOs are people who are willing to pay a premium for a really good croissant; the people who drive across town to buy the best sourdough.
NEOs are big on yoga classes, marathons, triathlons, jogging and running. They are considerably more likely to go snow skiing, surfing, sailing, scuba diving or learn to fly.
They love drinking good wine, eating out, and cooking at home for friends and family.
They are inconspicuous consumers and tend to avoid ‘blingy’ luxury and instead seek out quality with a sense of provenance and, at times, social conscience.
They are also massive consumers of media – they go to the movies, they read the paper, they watch movies and TV on Netflix and they love the Internet.
NEOs see themselves as intellectuals and politically align themselves with both sound economic strategy, as well as social responsibility making them hard to peg from a party voting point of view.
On the flipside, what does a Traditional look like?
Unlike the NEOs, the Traditionals are happy with organised holidays and coach tours where they can follow the leader.
They are comfortable with predictable experiences like the consistency of service of known brands. They find comfort in the certainty of crowds, majority rules, they are slower to adopt new technology, and distrust giving their credit card details to anyone.
When it comes to tracking down NEOs and targeting them, the internet is a happy hunting ground.
Much of the NEO life is lived online and they are happy to spend online—a place where they can accelerate the mundane tasks in life such as banking, joining online communities, booking travel, and shopping online.
In addition to their high level of discretionary spending, they are early adopters of technology.
NEOs seek the path less travelled. They love the discovery of the whispered secret and are driven by value rather than discounting.
Why is it worth finding them? They are in the top 48 per cent of discretionary spenders so there’s a good chance they could be your biggest and best customers.
Tammy Marshall is the founder of The B Hive – a business transformation consultancy that specialises in the Travel, Tourism, Hospitality, Leisure and Entertainment sectors. Throughout her more than 25 years’ experience in travel and tourism, she’s worked across leading brands such as TFE Hotels, Carnival Australia, P&O Cruises, AAT Kings/Inspiring Journeys, Contiki and more.
Latest News
Collette goes off the beaten track with Canyon Country tour
To be clear TW is not advocating actually walking off the beaten track. Avoid the coyotes. Stay on the beaten track.
Intrepid & Korean Tourism Organisation team up to give agents a cooking masterclass
These guys learnt that Korean cooking is more than just putting kimchi on 2-minute noodles (as we once thought).
Winner, winner! Intrepid reveals the 9 lucky agents that won $2k
Who won the incentive? Which Intrepid trip will they spend it on? What day of the week is it again? Where am I? Huh?
Corporate Traveller reports 42% increase in Easter traffic this year
Business travellers just love Easter! Expect plenty of chocolate stained documents returning to the office on Tuesday.
Turbulent year wiped $384m off Qantas brand value: Report
Meanwhile, eating tuna at your desk can damage your own personal office brand value by several thousand dollars.
FAMIL: Room-Res & Singapore Tourism Board shows agents the Lion City’s roar
Click this article to see a man very impressed by a 20-layer chocolate cake. We're not kidding, he loved it!
Oceania Cruises offers sailors free pre-cruise hotel stay
Looking for ways to make your holidays as long as possible? Look no further.
Bonza launches new website to compliment app, agent portal
Does news about an airline's website fill you with ecstasy, glee and joy? Get your hit of the good stuff here.
MTA agents attends ‘Lunch ‘n’ Learn’ with AMA Waterways
When organising the event, Lunch 'n' Learn beat out Dinner 'n' Divulge and Breakfast 'n' Banter. Understandably so.
Travelmarvel reveals 2025 South America tours
If you spot any typos in the newsletter today it is because TW became distracted Googling images of Machu Picchu.
Tourists from 5 countries could be BANNED from visiting Australia
Anthony Albanese's immigration laws could impact tourism from certain countries.
Just how many passengers will Qantas & Jetstar hop around this Easter?
Airline workers are ready for gleeful Easter travellers! Also prepared for sticky children with chocolate on their face.
Air New Zealand gets ready for bumper Easter weekend
Air NZ gears up for travelling passengers this Easter, while TW looks to beat our egg eating record. 117 here we come!
Four Seasons Yachts reveals first itineraries to the Caribbean & Mediterranean
These trips look so good we wish there were five seasons! Alright, we'll see ourselves out...
FAMIL: Travellers Choice treats top agents to the wonders of Rotorua
This one's got plenty of famil pics and no one looks shockingly hungover in them! Clearly no TW staffers were there.
European Waterways celebrates 50th anniversary with week-long founders cruise
Plan on celebrating your 50th anniversary with a bottle of Moët and fairy bread? European Waterways has better ideas.
100th route! Jetstar celebrates the launch of Brisbane-Avalon with 12 hour sale
Jetstar knocks a ton and celebrates with a sale while TW once scored a ton and celebrated with about 17 beers.
Record-breaking year for NSW as visitor expenditure soars past $50 billion
Enjoy running round the Opera House? Be prepared to elbow even more tourists out the way.
Norwegian Cruise Line makes play for solo travellers
NCL ensuring you don't have to go trawling Tinder to find a cruise partner. Thank goodness, we were sick of catfishing.
Entire Travel Group’s Canada and Europe 2024/25 brochures are out now
Entire's new brochure is bittersweet; it both informs your clients and makes you envious of the holiday they'll take.
Malaysia Airlines adds 3 new destinations & A330neo seats
More seats means cheaper airfares and more money to spend on overpriced airport sandwiches. Woohoo!
Two divine days onboard Crystal Serenity
It's only pure serenity onboard this ship. Anxiety, agitation and anguish have been rejected by the bouncer.
How the Globus Family of Brands elevates coach touring: Travel Weekly TV with Chris Fundell
Chris' here so you don't think coaches mean peeling your thighs off a sticky leather seat every time you stand up!
The Flight Centre Foundation gears up for massive 2024 with 3 new board members
The foundation looks to invest $200k this year, spurring the TW journos to figure out how to qualify as a charity.
Barking Owl Communications to head up Anantara & Avani in ANZ
Fellow PR competitors had been barking up the wrong tree even thinking of bidding for this job!
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
1000MTG’s second global conference reminds agents to ‘strive and thrive’
Alongside messages to 'strive' and 'thrive' were those to 'survive', 'drive', 'arrive' and 'jive' (when appropriate).
Qantas A330 makes “loud bang”, pilots forced to shut down one engine
Qantas refusing to let Boeing have all the headlines in aviation world today!
GX Community Tourism Summit 2024 location revealed!
The new location has arrived and it'll blow your socks off! Time for another trip to Target for more socks then.
Visiting the destination my Mum didn’t want me to
Yet again, this journo has been a stress to his mother. Discover how this trip spurred his mother's anxiety here.
Agents come out of their shells at P&O’s turtle hatchery event
For some, it's a few glasses of bubbles to lure them out of their shell. For these agents, it was a bit more literal.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Virgin looks to swap MAX 10 order for MAX 8s amid Boeing delays: Reports
Virgin has changed its order for something smaller. Much like we have to at Maccas following a worrying doctor's visit.
Club Med unveils newest luxury yacht for 2024/25 early bird sale
This yacht is preserved for the early birds! Night Owls may also get onboard depending how late they stay up.
Abercrombie & Kent 2024 Asia Portfolio is here
Round up the family and get planning an Asia jaunt. Or, if they're hard to handle, brush them all and go it alone!
Elevate your earnings: Final days to secure double commission with Inspiring Vacations’ March offer
What could inspire you to sell more Inspiring Vacations? Double commission of course! That's all the inspiration needed.