Gaining Greater Share of the Wallet with Millennial Travelers

Gaining greater share of wallet with Millennial travelers.Insights into the expectations and preferences of Millennial travelers.

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Who we are.• Fully integrated brand development

and marketing agency• Founded in 1985• Work with B2B and B2C clients across

multiple industries, specifically hospitality, insurance, healthcare and industrial

• Travel & Hospitality experience includes:• Over 100 full-service hotels and resorts• Dining cruises• Restaurants• Luxury rail service


Millennials are:The biggest demographic – outpacing their Boomer generation parents. They are frequent travelers – valuing new experiences in both business and leisure contexts. They demand attention – leaving the travel, tourism and hospitality industries scrambling to serve them.


Working with the hospitality industry led us to appreciate the critical importance of understanding this quickly growing market. We wanted to know more about how Millennials make decisions and their expectations and preferences in regards to travel, in order to help businesses better differentiate, attract and serve this audience.

Our experience.


• 25-question survey conducted in Q4 2014• Respondents born between 1982 and 1992 • Qualified respondents took or planned to take

a minimum of two leisure trips in 2014 (not including visiting family)

What we did.


445 completed responses

Who we heard from.

Female

Male

32%

68%

Single

Married or in Relationship

43%

57%

13%

48%

27%

12%

Post-graduate degree

Some high school/GED

Some college/no degree

Bachelor's degree


Our findings


Millennials as travelers


Millennials are frequent travelers.Millennials as travelers

Travel is dominated by family visits, but also includes leisure and

business trips

Business travelers frequently extend trips to

include leisure travel

(How many trips have you taken or are you planning to take in 2014? Indicate the purpose of those trips.)

Leisure/pleasure Visiting family Business only Leisure travel extended on a business trip

89.33% 83.01% 41.1% 31.63%


Travel is a clear priority

in the lives of Millennials.


(Please indicate your agreement with each statement as it describes you as a traveler.)

Being able to travel is an important part of who I am

I place a high priority on travel in my life

Spending money on travel generally comes

before spending on any other category for me

1Disagree Agree

2 3 4 5 6 7

5.47

5.09

4.41


When traveling, comfort and new

experiences motivate Millennials.


I place a high value on being comfortable

Regardless of who I am traveling with, I look for some time to be alone –

even for just a few minutes

I like to be immersed in the local culture

I like to be pampered

When I travel, I’ll skimp on housing costs to be able to spend on experiences and attractions

One of the best parts of a leisure travel

experience is meeting new people

1Disagree Agree

2 3 4 5 6 7

5.71

5.24

5.24

5.22

4.83

4.69



Balance of planning and spontaneity

is important.


I enjoy trying new things having new experiences

I prefer to be spontaneous when on vacation

All expenditures for my trip are budgeted before I leave home

I get into “vacation mode” where money is no object

I consider myself to be a risk taker

I like going to the same destination year after year

1Disagree Agree

2 3 4 5 6 7

5.01

4.89

4.50

4.45

5.71

4.32



Decision making


Costs and local attractions lead criteria

when determining a travel destination.

(How important are each of the following in making a decision about the destination of travel?)

In addition, open-ended comments remind us that food and restaurants were very or extremely important to several respondents.

Cost Lots of local attractions

Opportunity to engage in a

specific activity such as skiing

or golf

Culture different than where I live

Weather

Location of an event such as a

business meeting, wedding or other

occasion

81% 77% 75% 74% 70% 66%

Decision making


Nearly 1/3 of respondents

still use travel agents.

32.6% of respondents agreed that they would

use travel agents.32.6%

Decision making


Millennials do online research

as part of the planning process.

Decision making

1009080706050403020100

TripAdvisor or similar sites

(please name the site)

Local websites such as those for

hotels/resorts

Perc

enta

ge

Visitor bureaus Travel agents

(Which of the following resources are you likely to consult when planning your travel? Check all that apply.)


Millennials place significant value

on online reviews.

Decision making

50

40

30

20

10

0

Not at all important

Very unimportant

Very important

Extremely important

Somewhatunimportant

Neither important nor unimportant

Somewhat important

Perc

enta

ge


Millennials are likely to change plans

based on what they read on review sites.

Decision making

1009080706050403020100

Ignore the review and go with my

original plan

Change plans somewhat based

on the review

Perc

enta

ge

Change my plans completely and

look for new options

Follow what others are saying and make plans according to

reviews

Does not apply


Many post their own reviews

on social media.

Decision making

Whenever I travel

Often

Several times

Once

Never

(How often have you created an online review?)

42.66%

8.35%

4.29%

25.51%

19.19%


Accommodations


Hotels still lead choice

of accommodations.

Accommodations

(Stayed at least once in 2014)

Hotel Private residence Resort AirBNB Hostel

90% 74% 53% 32% 15.5%


50454035302520151050

Num

ber o

f vot

es

Among those who stayed at an AirBNB,

satisfaction was high.

Very dissatisfied

Dissatisfied Satisfied Verysatisfied

Somewhatdissatisfied

Neutral Somewhat satisfied

Accommodations


1009080706050403020100

Num

ber o

f vot

es

Most respondents were likely to consider

AirBNB in the future.

Very unlikely

Unlikely Likely Verylikely

Somewhatunlikely

Undecided Somewhat likely

Accommodations


Accommodations

Rate and location are important when

selecting paid lodging.

(Thinking about your selection of a hotel. How important are each of the following factors when selecting paid lodging?)

Room rate

Location

Free WiFi

Hotel brand

Dining options on site

Opportunity to earn loyalty rewards

1Not Important Important

2 3 4 5 6 7

5.89

5.82

5.53

4.92

4.76

4.45


Accommodations

Millennials are looking for flexibility and

personal choice in loyalty perks.(If the following opportunities were available to you through a hotel loyalty program, how likely would you be to take advantage of them?)

Dining credits at restaurants within the hotel

Dollars to spend at hotel bars

Credit that could be applied toward in-room dining

Credit that could be applied to mini-bar, in-room purchases

Invitations to special events during a hotel stay

Free wireless services

Early check-in privileges

Late check-out privileges

In-room movies

Parking vouchers

100%80%60%40%20%

Very unlikely Unlikely Somewhat unlikely Undecided Somewhat likely Likely Very likely


Key takeaways to attracting and servicing

Millennial travelers


Millennials travel often and form deep and intractable preferences as they do. Get Millennials to appreciate your offer and they’ll tell others and come back to you again and again.

To successfully reach your share of the Millennial traveling pie, invest in understanding the profile of your specific segment to know who they are, where they are, and how to reach and keep them.

Key Takeaways

Travel is an integral part of the identity

of Millennials.


Your offering must perform on these basic criteria to earn its way into the decision set. However, final decisions are made and loyalty is won on the experience delivered.

To better differentiate your products or services, create and promote experiences – ideally ones that are authentic to the local culture. Telling stories about how visitors have engaged with your product or service can further the sell.

Key Takeaways

Cost, comfort and convenience

are “table stakes.”


While these travelers do a lot of research and take the time to plan their travel, they also appreciate a certain level of spontaneity. Give them something unexpected to talk about and keep them coming back by providing new and unanticipated experiences and services, such as:• “Pop-up”eventsfeaturinglocalpersonalities• Experiencestiedintolimitedtimelocaleventssuchasfestivals• Localchefsforacookingdemonstration• Musiciansorotherartistdemonstrations• Localwineorbeertastings

Key Takeaways

Millennials stay open to new opportunities.


Accommodate this need to be online all the time by ensuring that wireless access is easily available throughout your venue and ensure the connection is fast. Free WiFi is also likely to be appreciated, if not expected.

Connectivity doesn’t end with wireless access. Make charging stations (conventional outlet and USB) easily available and plentiful. It’s also a good idea to have extra chargers on hand.

Key Takeaways

Being connected all of the time

is a given for Millennials.


Your online and social presence is likely a Millennial’s first impression of your brand or offering. Whether thinking about your own website or your listing in directories, keep information up-to-date, complete, easy to access and consistent.

Further, ensure your online experience is seamless between devices (i.e., computer, tablet, phone) and continually monitor that experience from the perspective of your user. Any changes or updates should be tested to ensure that information is still easy to access and intuitive to find.

Key Takeaways

Millennials do their travel research

using a variety of sources.


Your social media presence and review sites speak volumes. It’s not only what the reviews say but also how you respond to those reviews –what you post and what you don’t. It is absolutely critical to invest in a comprehensive social media strategy and follow it. A successful social strategy will take resources, but may be the most powerful tool for attracting and engaging with Millennial travelers.

Key Takeaways

Millennials are social beings.


A surprising third of our survey respondents reported using travel agents as part of their travel research. Continue to include travel agents as part of the hospitality promotion plan.

Key Takeaways

While use of travel agents may be

diminishing, it hasn’t gone away.


Our research indicated that Millennials make decisions on cost, location, comfort andconvenience.Likelythesamedecisionmakingcriteriaasthegenerationswho preceded them.

Yet there are notable expectations of this generation of travelers. As Millennials become a greater presence, these expectations must be met, otherwise they are likely to take their significant travel dollars elsewhere and tell a lot of people on the way.

Key Takeaways

Conclusion

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For more information, thoughts

and ideas. Check us out.

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Gaining Greater Share of the Wallet with Millennial Travelers

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