By Matt Ayres

Only 5% of businesses in the hotel and travel sector prioritise the spending power of over-65s, according to a new report.

The report, published by Barclays, showed that a third of businesses in this sector saw 34 to 44-year-olds as their most important potential customers, despite them spending less than the older age group.

The report comes shortly after changes in the pension system came into force, allowing retirees the option to cash in their defined contribution pension pot.

It also suggested that 76% of businesses in the sector had no plans to introduce products and services to specifically target the over 65s.

"There appears to be a gulf between the perception and reality of the spending power of the over 65s," commented Mike Saul of Barclays.