Whoever wins the millennial market could win big. Mariam Sharp extracts some essential tips for making this happen

In 1982 the all-girl band the Go Go’s had a hit single called Vacation. The lyrics with the verse ‘Vacation all I ever wanted, Vacation had to get away’ oddly heralds the millennials attitude to travel. 

So who are these millennials? Born between 1982 and 2004, they are now beginning to enter their peak, spending phase and travel is one of the things they most willing to fork out for.

“For 38% of millennials, travel is part of the American dream…compared to baby boomers and Xers,” Neha Parikh, VP & General Manager North America, hotels.com told the audience at EyeforTravel’s recent Travel Distribution Summit in New York. Naming her presentation after 80’s boy band - The New Kids on the Block – Parikh warned that: “Millennials are going to shape the travel industry during the next five to ten years in a huge way, and they are not the same as the customers we see today.” 

Millennials are going to shape the travel industry during the next five to ten years in a huge way, and they are not the same as the customers we see today

8 things travel brands need to know about millennials:

1. Millennials have great expectations: they value status, adventure, excitement and travel.
2. Adult millennials, according to a Pew Research Centre report, are detached from institutions. Instead they network more closely with friends.
3. They are twice as likely to travel in organised groups, and three times as likely to plan travel with family and friends. For hotels, this has implications as milliennials are much more likely to use communal spaces, such as lounges and bars.
4. Millennials have distinctly different behaviours, values and attitudes from previous generations. For example, Generation X and the Baby Boomers considered the American dream to be less about travel and more about owning a house and having security. This can partly be explained by the technological and economic implications of the internet, but also by the recession of 2008. They are the first in the modern era to have higher levels of student loan debt and unemployment, and many live with their parents for longer. Studies predict that they will switch jobs frequently, holding many more jobs in their lifetime than Xers.
5. Sociologist Andy Furlong describes millennials in his book Youth Studies: An Introduction as optimistic, engaged, and team players.
6. Millennials are more highly educated and more diverse than previous generations and many feel that brands are part of their identity.
7. They favour brands with personality, that are communicative, show authenticity and support causes. They also want 24/7 availability; speed and efficiency matter more than customer service or face-to-face contact.
8. They are three times more likely to demonstrate strong brand loyalty than other generations. They are less concerned about the brand’s history and more interested in what the brand stands for. If a brand upsets a millennial will tell them, and more likely to broadcast negative experiences than positive ones.

With those high expectations, these are tough customers to please, but those that succeed could “win big” says Parikh, who quotes from a Boston Consulting group’s report. After all, with their high expectations, many millennials aspire to a Chris Guillebeau-style life. Between 2003 and 2013, Guillebeau, an entrepreneur and author visited every country in the world. Today he visits around 20 countries each year; research shows that millennials have similar aspirations.

• 70% want to travel to every continent
• 75% want to travel abroad
• 32% of all US travellers are millennials and are the fastest growing segment

In her presentation, Parikh also introduces the ‘reciprocity principle’ that stresses the importance of creating a two-way dialogue with milliennials. Taking that a step further she outlines a five-point plan to optimise products and distribution for millennials’ shopping behaviour. Here is her advice:

• Refine your pricing strategy
• Be everywhere
• Balance ‘perks’ vs. free/discounted stays in loyalty programmes
• Expand your product portfolio to cater for millennials’ preference for an interesting experience over comfort
• Streamline the shopping experience from a single device pull world to a multi-device push world that leverages millennials