Blog - CommDesign | Graphic Design Montreal
In Company News
On 19, Oct 2016 | In Company News | By Ruth
In our latest blog post, we spoke about what is special and unique to Millennials – their lifestyle, typical preferences, and the reason for these inclinations. We also covered key “to do” steps on the road-map to reaching this audience.
Today, we would like to focus on Generation Y’s travel habits and choices and understand how this is shaping the travel and hospitality industry.
Priorities and preferences are shaped by various factors. Age and generational differences seem to strongly influence consumer behaviour: from planning and researching, to booking and sharing memories.
Millennials will impact the travel landscape as they gain decision-making power at work and purchase power in their personal lives. Their approach is different and if we want to cater to their preferences, travel offers will need to be shaped accordingly.
According to a study conducted by the Shullman Research Center:
- 77% of Generation Y travel is for leisure purposes.
- Generation Y is more interested in travel outside the U.S. than previous generations.
- Millennials look for unique trips and see themselves as “explorers”.
- This generation’s ease with technology explains its preference for self-guided booking. Mobile providers with transparent offers and authentic experiences can score high with this audience.
- Millennials travel mostly by airplane and are more likely to establish a budget for a trip (65% of Millennials vs. 42% of Boomers set a budget).
According to an AARG Travel study:
- Millennials are more open to use sharing economy options like Airbnb and VRBO (22% millennial users vs. 9% Boomer users).
- Millennials make up 70% of hostels guests, and led to a new concept development for hostels around the globe, featuring private rooms, private bathrooms, movie theatres, bars, etc.
Even Hilton, according to latest interview with Hilton CEO, Christopher Nassetta, is considering a similar idea of simple, affordable lodging alternative.
Topdeck, a group travel provider for people ages 18-30+, surveyed 31,000 people from 134 different countries and found that 88% of them traveled overseas between 1-3 times a year.
Destination: They chose the destination according to:
- Friend’s recommendation 76%
- Travel agent advice 18%
Unique experiences beat everything
Millennials look to immerse themselves in the native culture, customs, and cuisine and enjoy the destination to the fullest and are willing to pay a bit more for the right experience. Their list of priorities:
- Trying local cuisine 98%
- Experiencing a new culture 86%
- Partying 44%
- Shopping 28%
- Keeping fit/exercise 14%
Booking process: Almost 50% of Generation Y use smartphone to research and plan their trip and 35% book on mobile devices.
- 75% did the planning and booking by themselves
- 50% booked the trip 6-12 months ahead of time
- 50% travel independently, yet book local tours
Social Media while traveling: Access to Wi-Fi is key! Millennials take advantage of various apps to improve their travel experience; from check in, to locating the best hot spots, to planning itineraries. How often do they share their travel updates?
- 50% update their social media accounts a few times a week
- 10% do not update their social media while traveling
Most used apps to post travel updates:
- Facebook 94%
- Instagram 71%
- Twitter 14%
Expedia surveyed how Millenials will impact the travel landscape as they gain decision-making power at work and purchase power in their personal lives. The study found:
Half of Millennials highly value loyalty programs when booking:
- Flights 48%
- Hotels 51%
Versus travellers aged 46-65:
- 31% Flights
- 30% Hotels
Mobile devices are crucial for booking. Millennials prefer self-guided booking and compare offers online: 32% book via smartphones and 20% use tablets. On the other hand, among travellers aged 46-65, 12% book on smartphones and 9% on tablets.
Higher spendings on the company’s account: 18-30 year old business travellers tend to be freer with the company’s money.
- Spending more on high-end meals: 42% of Millennials vs. 26% of travellers aged 46-65
- Spending more on room service: 37% of 18-30 year olds vs. 21% of business travellers in the 46-65 age group.
“Bleisure” – Mixing business with pleasure
Millennials are more likely to extend a business trip into a personal vacation than older employees. Inclination/age group to prolong a business trip into a vacation:
62% of 18-30 year olds
51% of 31-45 year olds
37% of 46-65 year olds
Location matters most!
- 53% say that the hotel’s location outweighs everything else
- 44% of business travellers consider hotel’s price most important
- 42% regard travel time (from the hotel) to the city centre as the next most important
- 36% ranked airfare price as most important
Voicing their feedback
Millennials value online reviews and take them into consideration in their decision making process (77% leisure, 82% business travel). Among business travellers, Millennials are the most likely to post negative reviews online (33%).