PHOTO: Millennials continue to spend more on experiences. (photo courtesy of Thinkstock)
Millennials might be one of the most catered-to generations in the travel industry. Hotel companies have developed specific brands for this generation, tour operators have doubled down on tours that cater to their wants and needs and even river cruising, once known as a solely boomer-friendly, has enveloped the spirit of the millennial traveler.
If a new survey aggregated from Bank of America’s more than 40 million credit and debit users proves true, these investments will serve travel brands well.
According to the research, overall travel spending among all generations continues to grow but is driven by millennials, who prioritize travel more.
The survey, based on spring 2016 data, also showed that boomers age 65-plus, often in competition with millennials for most-catered-to generation in the travel industry, showed the slowest growth. Millennials, on the other hand, showed the most growth with an increase in travel transactions of 31 percent.
In comparison, boomers’ travel transactions showed just an 8 percent increase.
Millennials are also outpacing other generations in terms of airline transactions, showing that they are not just looking for the cheapest form of transport. Transactions grew more than 10 percent followed by Gen-Xers with a growth rate in airline transactions of 7 percent.
READ MORE: What Will 2017 Tell us About Millennial Travel?
Not surprisingly, millennials are also the biggest users of the sharing economy. Transactions on home-sharing services increased 74 percent year over year and overall spend on home sharing was 57 percent.
In possibly not-so-good news for the hotel industry, transactions were flat across all generations, definitely a sign of the times.