Gone are the days when you spend all of your money on a hotel when you go traveling, now it’s all about packing in as much fun as possible. Millennials have changed the way people travel, and travel companies have had to change the way they work or be left behind. This is the way that travel companies have altered the way they run thanks to the demands of Millennials.
What you do
Years ago, a vacation was defined by where you went, and that was just about it. You were only worried about what kind of service you were getting from your hotel, but these days it’s all about what you do when you get to your destination. Gone are the days when travelers worry about the quality of their hotel, now it’s all about exploring and making life an adventure. At least, that’s the way Millennials view their vacations and travel companies are trying their best to cash in on that trend.
Spending on experience
Statistics found by the U.S. Bureau of Economic Analysis and McKinsey and Co. have noticed that spending on experience has grown. People are now more willing to spend their money on experience-related purchases over personal consumption and goods.
This is being attributed to Millennials, who are seemingly earning so much money they are almost swimming in disposable income. Millennials are spending less on cars and putting off buying homes, so that money is being spent on traveling the world and experiencing as much as possible.
A survey conducted by Skift discovered that 69% of the people they spoke to would prefer to spend more money on better activities than their hotel room. Additionally, 65% of those people said they would rather come back from their vacation having experienced something new rather than feeling refreshed and relaxed. This has led companies like Airbnb to enter into the activities and experiences market.
Airbnb, in particular, says it now offers more than 30,000 experiences world-wide. Marriott International has also changed its model, and the hotel chain is also focused on bringing experiences to its customers. The hotel chain claims they are targeting high-end customers, but offer drinking tours and recreational events with sporting legends.
Spreading the load
Although the main source of income for these travel companies is still the accommodation they provide, the demands of the market cannot be ignored. Booking Holdings Inc, an online travel agent, says they are making a big push into the experiences market as well. All of the travel companies are now aware that if they are going to remain at the top of the food chain, they need to listen to what modern customers want.
Given the levels of disposable income, and demand for experiencing something new, just staying in a nice hotel is no longer going to cut it for Millennials. Instead, the travel companies have had to expand the services they offer to keep up with emerging businesses designed on giving Millennials exactly what they want.
The job of being a travel agent is getting harder as the demands of the traveler continue to rise. No longer is it enough to relax by the pool for people on vacation, they want to get out and explore as much as possible. That’s why there is such little importance placed on the actual hotels for Millenials, and the travel companies are focusing so much on proving experiences.