Age Group Composition of the U.S. Population Baby Boomers Born 1946–1964 Constituted over one-fourth of the population in 2003 Generation Xers Born 1965–1975 Have reputation as worldly wise, independent, pragmatic, computer savvy, ad-intelligent consumers Transparency 2-2

Age Group Composition of the U.S. Population (continued) Echo Boomers Born 1976–1994 Children of baby boomers Will have overtaken baby boomers in number by 2010 Transparency 2-2 cont’d

Growing Diversity of the U.S. Population Hispanics and African Americans are about equal in number, while the latter continue to be the slightly largest minority group after 2003 Most U.S. Hispanics (almost 60 percent) are of Mexican origin The number of Asian Americans is expected to increase over 100 percent from 1990 to 2001 Transparency 2-3

Changing Family Composition Households with only two people Largest segment today—36 million  Spend more than any other household Households with children under 18 Will continue to decrease as baby boomers’ children grow up and leave home Transparency 2-4

Changing Family Composition (continued) Single-person households Growing because more people are delaying marriage until completing their education Good potential customers for the hospitality industry Single parents Have relatively lower incomes Eat out less often than the average American Less likely to be hotel customers or to travel Transparency 2-4 cont’d

Key Factors of Supply Land and its produce (food) Labor Capital Transparency 2-5

Good Locations for Hospitality Establishments High-traffic areas Locations near major destinations Locations associated with scenic beauty Transparency 2-6

Hospitality Occupations Expected Growth Rates from 2000 to 2010 Growth of U.S. workforce: 15.2% Management jobs: 12% Chefs and head cooks: 9% Foodservice management jobs: 15% Lodging management jobs: 9.3% Cooks and food preparation jobs: 12.3% Food and beverage servers: 22.7% Flight attendants: 18.4% Travel agents: 3.2% Transparency 2-7