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Millennial Travelers - US - April 2016

Millennial Travelers - US - April 2016

"Based on their travel behaviors and attitudes, Millennials are emerging as one of the most valuable population segments for the growing US travel industry. Mintel’s consumer research data indicates that not only are they leading in leisure travel and business travel spending, but they are also blurring the lines between leisure and business travel."

Rupa Ghosh, Analyst - Leisure & Travel

This report looks at the following areas:

Millennials are emerging as the most important travelers
Millennials want to splurge
Millennials most interested in sharing economy
Increase in travel booking competitiveness for foreign markets


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Travel types and attitude, by generation, February 2016
Figure 2: Splurging categories, by generations, February 2016
The opportunities
What it means
THE MARKET
What you need to know
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
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
Millennial snapshot
Millennials account for one quarter of the US population
Figure 5: US population, by generation share, 2016
Figure 6: Projected US population, by generation share, 2016 and 2021
Figure 7: Distribution of Millennials by race and Hispanic origin, 2016
Millennials gaining financial stability
Figure 8: Median household income, by age of householder, 2014
Married older Millennials are important players for the US travel market
Figure 9: Marital status, by age/generation, 2016
Market factors
Declining gas prices points to increased leisure travel
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
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
Figure 13: Perceived change in spend on vacations, January 2013-16
Millennials soon to lead average trip spending
Figure 14: Average trip spending, by age, 2013
Households with children are a key demographic
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
Travel is an important personal goal for Millennials
Figure 17: Personal goals, December 2014
Travelers are motivated by experiences and look to de-stress
Figure 18: Attitudes toward vacation – March 2014
Kids have a strong influence on vacation decisions
Figure 19: Kids’ role in vacation decisions, kids’ influence on vacation decisions, November 2012-December 2013, February 2014
Quality is the cornerstone to loyalty
Figure 20: Aspects of favorite brands according to Millennials, December 2014
Figure 21: Millennials’ interactions with companies and brands, December 2014
Millennial market drivers
Older Millennials driving the market
Figure 22: Travel in the last 12 months – Type and destination, by older and younger Millennials, February 2016
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
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?
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?
Establishing brand loyalty among Millennials
Figure 24: Tru by Hilton Fly Through, January 2016
Figure 25: Welcome #AtTheMoxy, July 2015
Can the tech-savvy Millennials truly disconnect?
Hesitant to take time off, Millennials work while on vacation
Figure 26: Work while on vacation – By season, by generation, March 2014
What’s next?
Solo travel trend taking off
Subscription-based travel set to grow
Curated travel
Food tourism – What’s in a name?
Figure 27: Toledo, Spain “Capital Española de la Gastronomía,” 2016
THE CONSUMER
What you need to know
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
Short domestic vacations most popular among Millennials
Figure 28: Leisure travel in the last 12 months – Nets, Millennials indexed to all, February 2016
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
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
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
Figure 32: Millennials’ domestic leisure travel in the last 12 months, by race/Hispanic origin, February 2016
Figure 33: Millennials’ foreign leisure travel in the last 12 months, by race/Hispanic origin, February 2016
Business travel in the last 12 months
Millennials are traveling for business
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
Figure 35: Millennials’ business travel in the last 12 months, by younger and older, February 2016
Most recent vacation
Similar to travel overall, most recent vacations are to US destinations
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
Figure 37: Most recent leisure travel, by gender and parent status, February 2016
Domestic vacations make financial sense
Figure 38: Most recent leisure travel – Domestic, by household income, employment status and education, February 2016
Type of vacation travel
Millennials more likely to have traveled for all reasons evaluated
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
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
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
Internet used most widely, Millennials also using other sources
Figure 42: Research for most recent vacation travel – Nets – Millennials indexed to all, February 2016
Mobile research lags – For now, traditional methods still relevant
Figure 43: Millennials’ research for most recent vacation travel, February 2016
Affluent Millennials seek traditional vacation planning tools
Figure 44: Millennials’ research for most recent vacation travel, by household income, February 2016
Parents – Particularly dads – Using a variety of research methods
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
Figure 46: Research for most recent vacation travel, by most recent travel type, February 2016
Splurging versus saving
Good news: Millennials more likely to splurge in nearly every area
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
Figure 48: Millennials splurging on vacations, by gender, February 2016
Parents more likely to splurge in all areas – Except for restaurants, meals
Figure 49: Millennials splurging on vacations, by parent status, February 2016
Vacation interests and inspiration
Millennials seek immersive travel
Figure 50: Vacation preferences and interests, by all, all vacationers, Millennials, Millennial vacationers, February 2016
Multigenerational trips have a stronger audience among Millennials
Figure 51: Millennials’ interest in multigenerational trips, by gender, parent status, gender, and parent status, February 2016
Hotel alternatives even more attractive to parents
Figure 52: Millennials’ interest in lodging alternatives to hotels, by gender and parent status, February 2016
Millennials have varied travel inspirations
Figure 53: Vacation inspiration, by all, all vacationers, Millennials, Millennial vacationers, February 2016
Males, younger Millennials look for technology to inspire their travels
Figure 54: Millennials’ interest in technology for making vacation decision, by gender and age, February 2016
Attitudes toward vacation
The more the better – Millennials on a quest for new experiences
Figure 55: Travel attitudes – Destinations, by all, all vacationers and Millennials, Millennial vacationers, February 2016
However, safety concerns may temper travel
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
Figure 57: Travel attitudes – Importance, by all, all vacationers, Millennials, Millennial vacationers, February 2016
Millennials are budget conscious but willing to splurge
Figure 58: Travel attitudes – Cost, by all, all vacationers, Millennials, Millennial vacationers, February 2016
Consumer segmentation
Overview
Figure 59: Millennial traveler segments, February 2016
Spendy Experiential Travel Addicts (45%)
Enthusiastic Invincible Travel Investors (27%)
Budget Conscious Contented Travelers (28%)
Figure 60: Attitudes toward vacation, by Millennial traveler segments, February 2016
APPENDIX
Data sources and abbreviations
Data sources
Terms
Market
Figure 61: Household income distribution, by age of householder, 2014
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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