Our Instagram feeds are filled with significant travel stories of our friends, travel is something that has turned into the integral part of Millennial’s life. Innovative and helpful applications like Airbnb, Oyo, Lyft, Uber, Google map and Trivago has made our travel more easy.
According to the Intelligence Group, Millennials are nearly a quarter of the population and already spend about $200 billion per year in the U.S. and spending will keep seeing upward rise. So, if you are from travel and leisure industry or looking to start your entrepreneurial journey in this segment then you should take Millennials as well as this article seriously. In 2015, 82% of millennial population took a vacation against 75% of all U.S. consumers. 72% say they would like to increase their spending on experiences rather than physical things in the next year. As per the AARP’s 2019 Travel Trends report, the average millennial (ages 21 to 37) plans on taking roughly five trips throughout the year, three of which are expected to be international, which is more international trips than Gen X (ages 38 to 53) and more overall trips than Baby Boomers (ages 54 to 72).
Millennials plan their spend average wisely, they have spent $4,400 on their travel compared to their predecessor Baby boomers with around $6,600 and GenX with spending around $5,400. Millennials make a separate budget on monthly basis to accommodate their travel despite other financial burdens. Debt don’t stop Millennials from travelling, Tiffany Aliche author and blogger says “You don’t have to be debt-free in order to enjoy your life”.
Accommodation has always been the one of the biggest cost head in our travel budget and with the rise of solution like Airbnb, it has become more affordable now and Millennials loves sharing. If we see the 2019 report of TripAdvisor, Millennials spend less than half on accommodation than baby boomers.
Millennials way of selecting destination is also different from the baby boomers. According to the site muvTrvael, travellers are interested in destinations that offer “memorable and original moments”, Millennials like to explore new culture and self-discovery is vital for them. Millennials look for more authentic experiences when they are planning a travel.
Millennials are influenced by social media while selecting destination and they prefer friends recommendation on selecting their destination. According to the American Society of Travel Advisors 55% of Millennials are inclined to hire travel experts to plan their trips, while just 28% of Baby Boomers.
For travel and leisure industry it’s time to gear up with the products which suits the taste of Millennials to stay relevant & stay out of extinction.