In a recent interview, Dean Sivley, President of Berkshire Hathaway Travel Protection, revealed a number of interesting trends sparked by traveling millennials. Millennials are always different in the way they consume products and services. The behavior of this generation when traveling is just as interesting.
Sivley noted many interesting trends that highlight the way millennials are engaging with travel differently. Aside from the drive to travel more, millennials are taking advantage of more tools, better travel gear, and a different type of travel experience.
Millennials now focus more on getting the best holiday experience and sharing the moments they come across along the way. Experience is a big metric in many industries these days, and the travel industry is no exception.
Stories and personal moments are valued more than amenities in some cases. For example, hotels that can deliver a unique experience to its guests are more likely to be popular among millennials than properties that offer luxurious amenities.
This trend isn’t a surprising one. According to Sivley, the demand for better user experience is also the reason why User Experience or development is on the leading edge of many businesses. It is up to the stakeholders in the travel industry to invest more in developing their UX.
Not all of the reported trends are positive. The Portrait of American Travelers by MMGY Global concluded a slight decline in willingness to spend on trips. This decline will only get worse as stakeholders in the travel industry continue to compete for more business.
Competing on price is not good for the industry. It won’t be long before it is impossible to drive the prices further down. When the industry reaches that moment, new ways of attracting travelers will finally take the center stage again.
There is another interesting fact about traveling millennials and the amount of money they spend. The average travelers of this generation spend more on travel gear and accessories than the trips themselves. That brings us neatly to our next trend.
On the other part of the equation, there is the increase in spending on travel equipment. Brands that manufacture travel-related products are reporting spikes in demands. Better walking shoes, more functional backpacks, and travel accessories are gaining traction on the market.
Millennials know how to find the best products based on their personal preferences. We now have review sites such as indreviews.com offering resources, independent reviews, and updates about the latest products and deals to help customers select the right products to buy.
There is also a huge jump in variety. Travel gear is considered a sexy market with more people traveling than ever before, so it is not surprising to see brands from different backgrounds beginning to tailor their products more for travelers.
Millennials are said to be the biggest spenders on the market, but these trends show that they engage with travel differently. The industry needs to make the necessary adjustments to stay ahead and to keep their products and services attractive to this generation of travelers.