Is the Senior Living Sector Ready for the Crush of Boomers? Hospitality People Understand the Dynamic. By John Hendrie

But, of course, we have been looking to retirement for many years, those Golden Age days!  We have our pensions (some of us); our IRA’s and other plans; the nest has been flown of offspring.  Now, let’s take that normal step in the continuum – “right-size” our next phase of life.  Woops, hold on – we cannot make that jump just yet, for our price of entry (the equity in our house) is flat, no market for that beast we have fed for years (mortgage payments), reduced value and a murky future ahead on the housing market.  So, we sit and curse the day, our next adventure held hostage to our devalued nest egg.  This is now a holding pattern, but it will not last forever. 

“Senior Living” operates under quite a tent – part Healthcare, part Real Estate and Property Management, part Hospitality.  Consider all the options – assisted living, retirement homes, Home health care service, independent living, Alzheimer care, active adult, Hospice – just to name a few of the sector choices.  And the options for accommodations are just as vast – from rooms, apartments and condos, to individual houses to estate living.  You can reside in-city, by a university, in a town or village, on the coast, the mountains or the plains. The Hospitality factor provides the difference in terms of services and atmosphere – dining, golf courses, concierge, personal shopping, gyms, masseuse and more.  Please let me in!

This generation, the Boomers, really is different.  We are the privileged crowd, “Dr. Spocked” from birth, nurtured with the drive to succeed and show it.  We are healthier, wealthier and wiser (we think) than our prior generations.  Our judicious and hard working parents have passed on in many cases, leaving us their legacies and their wealth, which they looked at quite differently.  This Boomer generation is a selfish lot, as well; the anthem seems to be, “I’ve got mine” – Boomers are not patient.  Many of us have had success, but we have tended to wrap it around appearances, all that clutter which has little value in the larger scheme of life – big cars, big boats, big houses, a hard hit portfolio.   And, that is what we sit on until the market changes, for, the transition we seek is expensive, mostly all costs inclusive.  This is not a quick decision.

The Senior Living sector is ever watchful of this next cascade of customers.  They are trying to figure out Health Care legislation and the impact of Medicare reimbursement schedules, now under intense attack in Washington.  Something will happen we all know; the stream of revenue will be altered forever.  Executives are also reviewing their current constituencies and properties.  There are mergers, new construction and acquisitions afoot. 

The parallel to the Hotel business is reasonable and predictable – providing accommodations and services at a variety of price points.  Extended Stay operations are a good model, as well as Resort communities and Vacation Clubs.  Many Senior Living operations are beginning to further appreciate the Hospitality “touch”.  Yes, you need the medical and psychological expertise with your Senior Living staff, but the sensibility to Hospitality tenets and traditions also has great value. 

Additionally, we also know how to gauge the success of the Experience and enhance success; we have been doing this for years through QA, Mystery Shops, Customer Feedback mechanisms and focused Customer Service Training.  Plus, we have learned to be quickly adaptable, as the market, Consumer demands and Customer Expectations change.  Lastly, we know how to establish differentiation and distinction in the marketplace.  We are the perfect Partner to help you usher into your varied Senior Living and HealthCare businesses the Boomers.  Tally-Ho!

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