It’s no secret that Millennials love to travel. Travel apps and websites such as Airbnb, Uber and Skyscanner have helped to make traveling easier and more affordable, and social media has made it more visible. Adara recently conducted global research on Millennials’ travel habits, and found that 76% of British Millennials and 66% of French Millennials now prioritize travel above any other expense.
Adara’s research reveals Millennials to be travel influencers who help friends and family make purchase and brand decisions, and are disrupting traditional travel models in ways travel brands don’t always have data to support. Adara’s insights therefore offer travel marketers and brands the opportunity to better understand Millennial travel habits, and reach them most effectively to harness their spending power. Whilst globally Millennials possess similarity in travel booking behaviors, there are regional nuances marketers should consider.
The research was conducted through focus groups, and leveraged first-party insight into millions of travel transactions across Europe, Asia Pacific and North America. It compares attitudes and behaviors of those aged 18 to 34 years old against their 35+ year old counterparts. Adara is the travel industry’s data co-op and houses the world’s largest aggregation of global travel data and insight.
A penchant for luxuries
Adara’s insight shows globally, Millennials are willing to spend on new experiences. Yes, Millennials are savvy bargain hunters, but they have a penchant to spend on luxuries such as extra leg room on a flight or a cooking class in a new destination. Their spending power is valuable to travel marketers, but only if they are promoting the right experience. Millennials won’t splash out for the sake of it.
Millennials in the UK fly more, and opt to travel front of cabin compared to their French neighbors (44% vs. 32%). They have disposable funds to spend on favored luxuries and are more likely to purchase amenities in-flight than Millennials in Asia (who average 24%). Whilst globally, Millennials possess certain similarities in booking behavior, marketers must pay attention to the nuances across the world.
Loyal only to new experiences
The days of traveling to the same pool-side apartment in Majorca each summer are gone. Most Millennials agree that travel involves new experiences and going off the beaten track. They are less loyal to a specific place or brand compared to their older counterparts. In fact, only 49% of British Millennials surveyed thought it worthwhile to sign up to loyalty programs. Similarly, 86% of Brits and 83% of French Millennials prioritize price over the airline carrier when choosing a flight.
Whilst at first Millennials’ lack of loyalty means their booking habits appear unpredictable, marketers can use data such as Adara’s to better understand Millennials and reach them in different ways. They should not rely on Millennials revisiting destinations, airlines and hotels based off the points they have accrued through loyalty schemes during past visits. Millennials choose not to revisit the same hotels and destinations, and should be targeted accordingly.
Where, when and how
Marketers must consider when and where they are speaking to Millennials, as contrary to popular belief they tend to plan in advance when compared to older travellers. They start searching for flights 13 days in advance of booking the flight compared to 9 days. This ensures they get the best price. Hotel searches are no different, with a longer booking window of 8 days compared to 6 days for older travelers. Travel brands must take advantage of this longer booking window to influence Millennials’ purchasing decisions.
Even when booking hotels and flights, marketers should note that Millennials’ booking habits differ from country to country. Unlike Millennials in the US, Adara’s research found that Millennials in Europe are more likely to book flights through airline websites. But when it comes to hotels, they are more likely to book through general travel websites, and not hotel websites.
Value of Data
By combining high-quality, first-party search booking and loyalty data, with insightful qualitative input from travellers, Adara helps marketers understand Millennial travellers and engage them correctly, to deliver business results and build brand affinity.
Travel brands and marketers that make use of data co-ops’ research into their target audience, will uncover insights into their customers and be better positioned to craft meaningful campaigns that deliver ROI. Knowing where, when and how to reach Millennials, must begin with knowing what Millennials across the world want from their travelling experiences, and where the similarities and differences lie between countries.