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Sarah Burkhard, Trekksoft researcher, says, “Last year, we talked about how Millennials are coming into their own. As the largest living generation at the moment, they have got their fair share of focus from the tourism industry and any other that wants to buy into their attention.”
She says millennials account for one-third of the current working force. “They are spending on average $1,130 less on travel than their elders.”
While at first glance, their travel spending habits may seem to suggest that they aren’t a powerful travel market, at last estimate, these 22- to 31-year-olds are worth around $200 billion. Burkhard says, “In the annual study by Allied Market Research in 2016, it was estimated that by 2022, online travel will be worth $1 091 billion.That’s not a figure to take lightly. By 2025, millennials will comprise three-quarters of the global workforce, which will bring them into a new era of spending power.”
When surveying millennials in the US, UK and China, Airbnb revealed that most prioritised travel over purchasing a home, getting a car, or paying off debt. “In that same survey, when it came to what millennials put their savings towards, travel was also prioritised in China and the UK. With all three groups stating that their focus is local and personalised travel, with at least 80% of each group saying the best way to learn about a place is to live like a local.”
Burkhard suggests that most millennial travellers are looking for:
- Services that are easy to find and book.
- Services that are well-represented on review sites such as TripAdvisor. “In a survey by Stride Travel in 2016, it was revealed that 95% of travellers are more likely to trust reviews on a third-party site than on a destination or tour operator’s site,” says Burkhard.
She adds that as the majority of millennials are avid smartphone users, operators need to have a website that is both attractive and functional. “Millennial customers should be able to learn about your offers and then purchase once they’ve come to the decision in the easiest way possible.”
The Trekksoft report points out that with all eyes on millennials, some might miss that the next generation is already buying in.
Burkhard says, “Generation Z (those born between 1996 and 2010) is gearing up to take its share of the market. With the oldest in that group starting to collect their diplomas this year, prepare to see what they bring to the table. As early adopters to social media and technologies that some companies are still dragging their feet over, these are the kids who will be showing up for your tours and activities as they take their first holidays into adulthood.”
According to the Digital Tourism Think Tank (DTTT), Generation Z make up a quarter of the population and, in two years, could account for 40% of consumers.
Source: tourismupdate.co.za
