As millennials – generally defined as those born between 1981 and 1996 – reach 40 years old, their knowledge of technology, social awareness, and more responsible consumption habits are transforming the travel industry.
To begin with, the millennial generation is traveling much more than other age groups, surpassing the wealthier baby boomer generation. According to a study by the research company Morning Consult, 18% of millennials took three or more domestic flights last year, compared to 10% of Generation X and 6% of baby boomers.
They are also traveling differently than those who came before them. “They see travel as a right and not a privilege, and they consider their travel experiences as part of their identity, not just a ‘check mark’ on a wish list,” the study pointed out.
Concerns about money are causing the millennial generation to delay everything from buying their first home, cars, to marriage.
However, they still value “the idea of taking vacations over adding a few more dollars to their savings,” according to a report from GWI Travel. They are “far ahead of other generations” in considering vacations very or extremely important to them, according to the report.
The same study states that despite their willingness to spend, there is no need to splurge on travel. Millennials are more likely than other generations to pay more for flights, but only one in five says they look for business class, for example.
Although many millennials are burdened with student debt and pressured by the rising cost of living, the insurance company Insure my Trip noted that they still spend to travel – but about a third less, on average, per trip than boomers.
This generation, along with Generation Z, is much more likely to spend money on experiences rather than consumer goods. They prioritize trips focused on personal well-being and staying in hotels with spas and wellness services, according to a survey by American Express Travel.
Younger travelers are also more likely to take trips inspired by movies and TV shows, as well as social media platforms like Instagram and TikTok.
Other research also shows that millennials are much more likely to stay in homes than in hotels. This generation accounted for nearly half of Airbnb’s customers in 2022 – more than Generation X and boomers combined, according to the British market research company YouGov.
Many millennials are now parents and are traveling with their children. Since 2019, Airbnb home rentals have increased among travelers with children aged six or younger.
Hotels are trying to reclaim some of this business. Multinational hospitality companies have launched brands aimed at the millennial generation – such as Moxy and Aloft by Marriott, Canopy and Curio by Hilton, and Even and voco by IHG, to name a few. The brands aim to attract younger travelers through interior decor, wellness services, and even complimentary cocktails.
Source: cnbc.com