Friday, May 17, 2013

Business Travel, the Millenial generation and other things

I have a post about Hawaii coming up shortly, but in the meantime I came across this article from Boston Consulting Group about business travel and the Millenial generation.

As I am on the tail of of Millenials (16-34... I have no idea why I am grouped in the same group as a 16 year old today but WHATEVER lol) I suppose this applies to me, but is just kind of fun overall.  It does say that older Millenials account for 90% of this sectors travel spending.

Millennial Business Travelers
Millennials who fly for business report significantly more generational diversity than non-Millennial business travelers: Millennial business fliers include 60 percent more Hispanics than, twice as many Asian Americans as, and 40 percent more women than non-Millennial business fliers.....
Millennial business fliers want different things from loyalty programs than do non-Millennials or Millennials who fly primarily for leisure. And the difference has clear implications for the strategies and tactics of airline loyalty programs. Millennials report more dissatisfaction with frequent-flier benefits such as miles, elite status, and rewards—and, especially, with how quickly points or miles expire: Millennials would rather use loyalty programs to earn free or discounted travel than to improve the travel experience with upgrades. Thus, while not the payment method of choice, cashing in miles or points on airline tickets is much more prevalent among Millennials than non-Millennials. Millennials also report greater willingness to switch from one airline program to another if they can get the same elite status, if they perceive the other frequent-flier program as more valuable, or if they think the other airline has a superior network of global partners. That said, because of their age and life stage, Millennials are far less likely than non-Millennials to use airline loyalty programs or credit cards today.

Millennial Leisure Travelers
...Half of the Millennials we surveyed report taking four or more overnight leisure trips per year compared with more than 75 percent of non-Millennials. It’s not surprising that the frequency of leisure travel increases with household income. High-income Millennials travel for leisure as much as non-Millennials, and much more than low-income Millennials. Those who report the most frequent business travel also report the most leisure travel, and this is especially true of Millennials and businessmen. Millennial women say that they take more leisure trips each year than do men who travel primarily for leisure, and Hispanic Millennials report the least amount of leisure air travel on average. Men of both generations report traveling alone for leisure more than do women.
For both generations, visiting family and friends is the most popular reason for leisure travel, but it is more popular among Millennials. This intensity appears to be generational rather than simply related to life stage. Outdoor adventures, shopping, and special events such as weddings, entertainment, and food and wine festivals are key reasons for Millennials’ leisure travel, and the presence of children in the household doesn’t change this. Millennials are also almost twice as likely as non-Millennials to travel for a hobby. And they travel more for personal interest, food and wine, entertainment, outdoor activity, and shopping than do non-Millennial leisure travelers. Male Millennials travel more for gambling and personal hobbies; female Millennials travel more for special occasions, to visit family and friends, and for cultural enrichment and sightseeing. For Millennials and non-Millennials alike, “relaxation and rejuvenation” is the second-most commonly cited reason for travel.
Members of all generations tell us that they respond to economic pressures by taking fewer trips, but Millennials—who book further in advance, book fewer (but longer) trips, and seek out good deals more than do non-Millennials—also tend to see booking as more of a game and respond opportunistically to low prices and interesting packages. On the other hand, non-Millennials say that they would drive instead of fly, stay with family or friends, vacation closer to home, or choose less expensive flights and hotels to save money. All of these generational habits and preferences have implications for travel promotions, packages, rewards, and OTA inventory.

The full report can be downloaded here.

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