Table of Contents
Executive Summary
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- The issues
- Millennials are emerging as the most important travelers
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- Figure 1: Travel types and attitude, by generation, February 2016
- Millennials want to splurge
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- Figure 2: Splurging categories, by generations, February 2016
- Millennials most interested in sharing economy
- Increase in travel booking competitiveness for foreign markets
- The opportunities
- Millennial families with children and key consumers
- Socioeconomic diversity and attitudinal preferences for marketing to Millennials
- Destinations and activities are key components for marketing travel to Millennials
- What it means
The Market – What You Need to Know
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- Travel market stable and growing, Millennials becoming greatest contributors
- Factors point positive for Millennial travelers in 2016
- Older Millennials leading the way in travel
Market Size and Forecast
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- Figure 3: Best- and worst-case forecast value sales of vacations and tourism, at current prices, 2010-20
- Figure 4: Total US value sales of vacations and tourism, at current prices, 2010-20
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Millennial Snapshot
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- Millennials account for one quarter of the US population
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- Figure 5: US population, by generation share, 2016
- Figure 6: Projected US population, by generation share, 2016 and 2021
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- Figure 7: Distribution of Millennials by race and Hispanic origin, 2016
- Millennials gaining financial stability
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- Figure 8: Median household income, by age of householder, 2014
- Married older Millennials are important players for the US travel market
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- Figure 9: Marital status, by age/generation, 2016
Market Factors
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- Declining gas prices points to increased leisure travel
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- Figure 10: US gasoline and diesel retail prices, January 2007-December 2015
- Shorter, more frequent vacations appear to be picking up
- Strong dollar may prompt US travelers to go abroad
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- Figure 11: One Euro to one US dollar exchange rate, weekly, not seasonally adjusted, March 2011-16
- Figure 12: Foreign travel in the past 12 months, by generation, February 2016
- More Americans willing to spend – Particularly Millennials
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- Figure 13: Perceived change in spend on vacations, January 2013-16
- Millennials soon to lead average trip spending
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- Figure 14: Average trip spending, by age, 2013
- Households with children are a key demographic
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- Figure 15: Households with own children, by generation of householder, 2013
- Figure 16: Vacation in the last 12 months and two or more vacations, by parent status, March 2014
Market Perspective
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- Travel is an important personal goal for Millennials
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- Figure 17: Personal goals, December 2014
- Travelers are motivated by experiences and look to de-stress
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- Figure 18: Attitudes toward vacation – March 2014
- Kids have a strong influence on vacation decisions
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- Figure 19: Kids’ role in vacation decisions, kids’ influence on vacation decisions, November 2012-December 2013, February 2014
- Quality is the cornerstone to loyalty
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- Figure 20: Aspects of favorite brands according to Millennials, December 2014
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- Figure 21: Millennials’ interactions with companies and brands, December 2014
Millennial Market Drivers
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- Older Millennials driving the market
- Older Millennials travel for business and take foreign vacations
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- Figure 22: Travel in the last 12 months – Type and destination, by older and younger Millennials, February 2016
- Older Millennials are more likely employed, have higher earnings, families
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- Figure 23: Employment status, household income, parent status, by older and younger Millennials, February 2016
- Millennials with families are a key segment for leisure travel
Key Players – What You Need to Know
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- Millennials are inspired by and lead trends in multiple travel categories
- Activities on vacations key component of travel “experiences”
- Short domestic vacations more popular among Millennials
- Family travel opportunities for Millennials
What’s Working?
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- Visual imagery inspires travels
- Social media influences Millennial travels
- Millennials and off-peak travel
- Balancing the message, delivery tools, and considering all angles
- Personalizing the experiences
What’s Struggling?
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- Establishing brand loyalty among Millennials
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- Figure 24: Tru by Hilton Fly Through, January 2016
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- Figure 25: Welcome #AtTheMoxy, July 2015
- Can the tech-savvy Millennials truly disconnect?
- Hesitant to take time off, Millennials work while on vacation
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- Figure 26: Work while on vacation – By season, by generation, March 2014
What’s Next?
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- Solo travel trend taking off
- Subscription-based travel set to grow
- Curated travel
- Food tourism – What’s in a name?
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- Figure 27: Toledo, Spain “Capital Española de la Gastronomía,” 2016
The Consumer – What You Need to Know
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- Millennials don’t always know where to go
- Domestic travel most preferred, but desire to travel abroad exists
- High income, urban Millennials key targets for vacations
- Travel is the glue that holds Millennial families together
- Splurging means different things to Millennials with children versus those without
Leisure Travel in the Last 12 Months
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- Short domestic vacations most popular among Millennials
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- Figure 28: Leisure travel in the last 12 months – Nets, Millennials indexed to all, February 2016
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- Figure 29: Leisure travel in the last 12 months – Duration/destination, Millennials indexed to all, February 2016
- Affluent, urban Millennials aged 25-39 most likely to travel
- What motivates Millennials to travel?
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- Figure 30: Millennials’ domestic and foreign leisure travel in the last 12 months, by age, household income, and area, February 2016
- Millennial families key contributors to leisure travel
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- Figure 31: Millennials’ leisure travel in the last 12 months – Duration/destination, by gender and parent status, February 2016
- Race and Hispanic origin impacts Millennials’ travel habits
- White Millennials more likely than Blacks to vacation in the US
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- Figure 32: Millennials’ domestic leisure travel in the last 12 months, by race/Hispanic origin, February 2016
- Hispanic and other race Millennials travel internationally
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- Figure 33: Millennials’ foreign leisure travel in the last 12 months, by race/Hispanic origin, February 2016
Business Travel in the Last 12 Months
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- Millennials are traveling for business
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- Figure 34: Business travel in the last 12 months – Nets, Millennials indexed to all, February 2016
- Older Millennials more advanced in their careers, traveling for business
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- Figure 35: Millennials’ business travel in the last 12 months, by younger and older, February 2016
Most Recent Vacation
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- Similar to travel overall, most recent vacations are to US destinations
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- Figure 36: Most recent leisure travel – Duration/destination, Millennials indexed to all, February 2016
- One in five Millennial dads most recently vacationed out of the country
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- Figure 37: Most recent leisure travel, by gender and parent status, February 2016
- Domestic vacations make financial sense
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- Figure 38: Most recent leisure travel – Domestic, by household income, employment status and education, February 2016
Type of Vacation Travel
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- Millennials more likely to have traveled for all reasons evaluated
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- Figure 39: Type of vacation travel in the past 12 months – Any, Millennials indexed to all, February 2016
- Millennial parents experience a greater variety of vacation types
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- Figure 40: Millennials’ type of vacation travel in the past 12 months – Any, by parent status, February 2016
- Hispanic Millennials more likely to enjoy cities, theme parks, cruises
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- Figure 41: Millennials’ type of vacation travel in the past 12 months – Any – Select, by race/Hispanic origin, February 2016
Most Recent Vacation Planning Research
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- Internet used most widely, Millennials also using other sources
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- Figure 42: Research for most recent vacation travel – Nets – Millennials indexed to all, February 2016
- Millennials aren’t commitment shy – But they do seek validation from others
- Mobile research lags – For now, traditional methods still relevant
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- Figure 43: Millennials’ research for most recent vacation travel, February 2016
- Affluent Millennials seek traditional vacation planning tools
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- Figure 44: Millennials’ research for most recent vacation travel, by household income, February 2016
- Parents – Particularly dads – Using a variety of research methods
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- Figure 45: Millennials’ research for most recent vacation travel, by gender and parent status, February 2016
- For some activities Millennials seek out traditional planning tools
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- Figure 46: Research for most recent vacation travel, by most recent travel type, February 2016
Splurging versus Saving
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- Good news: Millennials more likely to splurge in nearly every area
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- Figure 47: Saving versus splurging on vacations – Splurge – Millennials indexed to all, February 2016
- Millennial men more likely than Millennial women to splurge on vacations
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- Figure 48: Millennials splurging on vacations, by gender, February 2016
- Parents more likely to splurge in all areas – Except for restaurants, meals
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- Figure 49: Millennials splurging on vacations, by parent status, February 2016
Vacation Interests and Inspiration
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- Millennials seek immersive travel
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- Figure 50: Vacation preferences and interests, by all, all vacationers, Millennials, Millennial vacationers, February 2016
- Multigenerational trips have a stronger audience among Millennials
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- Figure 51: Millennials’ interest in multigenerational trips, by gender, parent status, gender, and parent status, February 2016
- Hotel alternatives even more attractive to parents
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- Figure 52: Millennials’ interest in lodging alternatives to hotels, by gender and parent status, February 2016
- Millennials have varied travel inspirations
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- Figure 53: Vacation inspiration, by all, all vacationers, Millennials, Millennial vacationers, February 2016
- Males, younger Millennials look for technology to inspire their travels
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- Figure 54: Millennials’ interest in technology for making vacation decision, by gender and age, February 2016
Attitudes toward Vacation
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- The more the better – Millennials on a quest for new experiences
- Are Millennials addicted to travel?
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- Figure 55: Travel attitudes – Destinations, by all, all vacationers and Millennials, Millennial vacationers, February 2016
- However, safety concerns may temper travel
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- Figure 56: Travel attitudes – Concerns, by all, all vacationers, Millennials, Millennial vacationers, February 2016
- I travel, therefore I am: Millennials define their identity through travel
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- Figure 57: Travel attitudes – Importance, by all, all vacationers, Millennials, Millennial vacationers, February 2016
- Millennials are budget conscious but willing to splurge
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- Figure 58: Travel attitudes – Cost, by all, all vacationers, Millennials, Millennial vacationers, February 2016
Consumer Segmentation
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- Overview
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- Figure 59: Millennial traveler segments, February 2016
- Spendy Experiential Travel Addicts (45%)
- Definition and demographics
- Characteristics
- Opportunities
- Enthusiastic Invincible Travel Investors (27%)
- Definition and demographics
- Characteristics
- Opportunities
- Budget Conscious Contented Travelers (28%)
- Definition and demographics
- Characteristics
- Opportunities
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- Figure 60: Attitudes toward vacation, by Millennial traveler segments, February 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Terms
Appendix – Market
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- Figure 61: Household income distribution, by age of householder, 2014
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