The Future of US Millennial Travel

Millennials will likely have more of an impact on travel and tourism than any other generational group, according to a new report from Resonance Consultancy. The report—the “Future of U.S. Millennial Travel”—studied the travel habits and preferences of Millennials, a generation that values experiences over material possessions.

The study is based on a March 2017 online survey of 1,548 U.S. Millennial travelers. The respondents were between 20 and 37 years old, had an annual income of $35,000 or more and had taken an overnight vacation at least 75 miles from home during the prior year.

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Millennials’ travel behaviors hold particular importance for travel and tourism, given MMGY Global’s estimate that 10 percent of U.S. Millennials plan to travel increasingly more in the future.

Family Travel. Echoing the findings of past MMGY Global research, the Resonance study found that Millennials aren’t just traveling more than ever; 44 percent of them are also traveling with their children. The study found that more than half of U.S. Millennials—58 percent—have kids under 18.

Family travel, in fact, is this generation’s most popular type of vacation, according to the study. “Once kids enter the picture, Millennial parents continue to travel, and their appetite for exploring new places and immersing themselves in different cultures doesn’t abate,” it said.

“The main difference with this next generation of family travelers is their interest in traveling to cities with the kids,” said Chris Fair, Resonance’s president and CEO. “It’s relatively easy to book a family vacation on your own at a beach resort. Where travel agents can provide real value is in making recommendations on family-friendly hotels, restaurants, and experiences within cities, which are much more difficult to navigate with kids in tow.”

Urban Destinations. The rise in popularity of urban destinations was another significant finding in the study, which said that in the next two years, Millennials are nearly as likely to visit a major metropolitan city, 38 percent, as they are to visit a beach resort, 40 percent.

“The fact that beach vacations—that synonym for ‘getting away from it all’ for decades among tourism and travel consumers—are essentially neck and neck with urban centers, is a sea change the likes of which the industry has never experienced,” the study said.

“Cities have been rising in popularity for leisure travelers of all ages, and travelers are no longer just visiting a city once and checking it off their list,” Fair said. “Travel agents need to not only be knowledgeable about a city in general, but the character and experiences of different neighborhoods within it, in order to provide meaningful advice and recommendations to these frequent city travelers,” he added.

Dining, Immersive Experiences. A significant number of the report’s respondents cited dining as the most enjoyable activity while on vacation—ahead of attractions, sightseeing and learning new things. The quality and number of restaurants predominated as an important factor for more than one-third of all respondents considering a vacation. The importance of quality restaurants increased significantly for respondents earning $100,000 or more.

“Learning new things” as a motivation to travel also holds implications for agents. “It’s one of the most desired activities for Millennials on vacation,” Fair said. “If I were a travel agent, I would be building a calendar of unique and interesting festivals and events happening around the world and promoting places based on these experiential opportunities, which often tend to happen in shoulder- and off-season times of years.”

Booking Patterns. When it comes to booking travel, the report found that 64 percent of Millennials book on travel websites; 47 percent on hotel, resort and airline websites; 24 percent on the phone with hotel, resort and airline central reservations; 24 percent with travel agents; 23 percent with Airbnb; 22 percent on destination websites; and 4 percent through other methods.

The report’s booking findings actually bode well for travel agents, according to Fair. “While online travel websites are far and away the most popular booking option for Millennial travelers—64 percent used one last year—24 percent told us that they have used a travel agent in the past 12 months to book their vacation,” he said. “To put that in perspective, 23 percent used Airbnb—so using travel agents is just as popular as the fastest-growing travel platform on the planet.”

More Findings

Here are some other additional findings from Resonance Consultancy’s “Future of U.S. Millennial Travel” report.

—Luxury. While other generational groups may view travel as a luxury, Millennials see it more as a necessity. A third of Millennials said they’re likely to visit a foreign country in the next 24 months.

—Solo Travel. Millennials are not averse to traveling solo; in fact, 25 percent of those polled said they like traveling alone.

—Social Media. 24 percent of Millennials consider family and friends’ social media postings to be extremely important in their choice of a vacation destination. However, a similar percentage, 22 percent, continue to read magazine and newspaper articles to make those decisions.