The millennials are considered a typical generation in initiating trends and remarkable milestones. This demographic segment accounts for the major spending expenditure in the tourism industry, willing to pay the extra miles in exchange for the taste of memorable experiences instead of material things. Determine the millennial travel trends shall benefit your hotel operations in better tailoring to their needs and retaining these huge customers segments long-term. What are the travel trends of the millennial generation this 2022, then? Let’s discover them with CiHMS in today’s blog.
Who are the Millennials?
The Millennials (also known as Gen Y) are those born between 1981 to 1997. This demographic has fast become the major part of the world population recently, making up for 27% global population, approximately 2 billion people, and roughly 38% of the Vietnam national population, according to the population research done by Pew Research center. The World Economic Forum defines the millennials are those born between 1980 and 1994, about 1.8 billion millennials worldwide, roughly making up for 23% of the world population. This generation has been exposed to revolutionized digital devices, online resources, and ever-changing social networks. By 2020, 50% of the global workforce and purchasing consumers goods or services are the millennials (based on an analyst from Bernstein).
United Nations World Tourism Organization (UNWTO) believes the millennials are the emerging golden generation and the most potential demographic that the hospitality industry should pay close attention to. Passionate about travel, the Gen Y travelers shall reach nearly 300 million travelers annually, and take at least 35 days per year to travel. The high satisfaction of customers service is the important key factor to Gen Y’s loyalty.
Mobile devices and social network orientation
Being digital natives, millennials are tech-savvy at heart. Always on the hunt for new destinations, have their itineraries, ideal accommodations that they shall be visiting on their next trip. Up to 74% researched their trip, 87% of millennials used Facebook to inspire their booking, and over 50% used Twitter (reports generated from Condor Ferries). They search for it to believe it. 97% of millennials confess they share their travel experience on social media. 2 out of 3 would post about it at least once a day.
Understanding Gen Y surfing habits enables the hotel’s marketing department to easily identify and approach this particular target segmentation through the social networks’ platform, to convert leads and maximize their sales revenue. Providing exciting and unique experiences is the essential sales point to attract these demographics in purchasing your added-value products and services during their stays. Encourage them to share on their social media in exchange for vouchers and other free services also a win-win option for hotels to look at.
Several hotels have been giving away complementary services, promotional products, group discounts, etc. to further upsell the millennials targeted group. Getting the exposure the hotels need to the target customers’ friend circle, at such a lower cost ongoing mainstream and broad social posting advertisement. Exceeding the customers’ expectations while optimizing hotels’ operational expenses.
If Baby Boomers (the previous generation before the Millennials) strongly believe travel is outrageous to overspend for indulgence, it’s understandable as they entered their childhood amidst national economic decline; the millennials enjoy travel as a crucial and irreplaceable part of their daily life. Travel brings invaluable benefit to the soul and mind, and merely priceless. Millennials yearn for the true experience, the chance to rediscover themselves, to relieve stress after burying themselves in deadlines and projects, to rejuvenate their energies, set themselves back to balance, ready to come back to their normal life.
An Expedia survey has found, 74% of millennials are happy to spend on travel experiences rather than material things. 58% prioritizes hotels with full services, while 35% seeks luxurious stays at premium hotels and resorts. Only a minor prefers to stay at Airbnb accommodations are millennial travelers with kids. This reassures gen Y craves experiences over anything else. By providing immersive accommodations in various levels of personalized experiences: from adventurous to discovery, and finding your inner-self, hotels leverage their services to accustom to all the Gen Y customers.
The millennials focus on making a difference rather than receiving corporate and generalized hotel stays. They embrace local lifestyles, traditional dishes, music, and crafting experiences.
Generation Y seems to be the pioneer in leading the sustainable travel trend. Highly responsible for the surrounding environment, they prominently support businesses revolving around sustainable operation models. Especially in Tourism and Hospitality lately, these two industries have been called out to actively up their game in turning “greener” with the community.
This explains why the sustainable travel trend has made such remarkable impacts. In many countries around the world, as well as in Vietnam, the governments have put in their side of the efforts to promote the sustainable trend, making a positive influence to engage the tourism and hospitality industry take on the “greener” path. Thanks to modern technologies, seamless integrations, and functionalities aiming to make the smart hotels‘ transformation possible to existing hotels facilities without the hassles of remodeling. Up to 73% of millennials lean toward eco-friendly hotel models as their preferred accommodations for their next trips.
The millennials’ impacts have been brought into tourism in general and the hospitality industry specifically is undeniably compelling. It helps redefine and reshape the hospitality industry for the year 2022 and more to come, with the majority of customers being the millennial generation. Keeping up with the latest trend to adjust hotel services with a touch of technology, while being personalized to each individual shall help retain this most potential customers segments for the long-term.