Companies Canceling Senior Discounts

September 1, 2001
It will probably come as no surprise to aging boomers to learn that, now that they're entering their 50s, the senior discount is going the way of the typewriter. After all, these are the people who were born in hospital hallways, suffered through grade-school classes of 50 or more and found the job market flooded just as the ink on their resumes dried.

Suddenly, hotels, theaters, restaurants, ball parks and others have done the math. One in five Americans is now 55 or older and the numbers will grow dramatically over the next few decades. That's a lot of discounts.

Delta Air Lines has eliminated its senior club, which offered dirt-cheap fares to those 62 and over who paid an annual membership fee. American Airlines is planning to do the same, though both airlines say they will continue to offer 10 percent senior discounts. General Cinema has ended its senior discounts, as have many ball parks and ski resorts.

In Florida, it's reported that the time-honored early-bird discount dinners are beginning to be offered during shorter time periods and, in some cases, only on weekends.

What's behind all this? One factor is sheer numbers. With so many Americans over 50, businesses say they just can't afford to give away such a big chunk of their profit margin. More significantly, marketing types say the "new" older Americans are more affluent and freer with a buck than their predecessors and may not need the incentive of the senior discount.

In other words, companies think the aging boomers will willingly pay full price.

When what is now AARP began promoting senior discounts in the 1950s, retailers found that the senior discounts helped them get more business out of the frugal Depression-era elders. There was also a feeling that seniors had contributed to their country and deserved a break. To say the least, that attitude is changing.

The Wall Street Journal recently quoted aging guru Ken Dychtwald as calling today's 50+ generation "the most advantaged, entitled group in America."

"You can dig yourself a hole ... if you give stuff away to people over 50," Dychtwald was quoted as saying. He should know. Dychtwald has spent most of his career as a marketing executive helping companies find ways to sell things to older people.

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