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15.03.2019

YouGov study – Millennials book separate travel products online

Young adults are increasingly booking holidays and other trips online and as separate products rather than as tour operator packages according to a new study by German market researchers YouGov. This is a new development that tour operators and coach holiday operators should be fully mindful of. They should ensure that appropriate marketing, distribution, sales and booking channels are in place to safeguard future relevance and sustainable market shares.

The current generation of 18-34 year-olds or “Millennials” – i.e. potential coach tourists – are taking advantage of technology more than ever before to book their travel online. For example, the readiness of Millennials to book accommodation through Booking.com has risen from 25 % to 28 % over the past two years, while Airbnb has increased from 15 % to 19 %. In contrast, traditional tour operators – despite strong overall performance – are losing popularity among the first generation of “digital natives”.

This generation uses online platforms and apps intensively to research travel information. 40 % of them pay attention to online hotel evaluations, compared to only 29 % of respondents aged over 35. Young adults are also quite careful with their travel spending. More than a quarter (27 %) selected their most recent holiday destination taking low costs into account, compared to only 18 % of consumers over 35. In contrast, only 20 % of Millennials selected their destination because they had already been there and enjoyed their stay.

YouGov warned that traditional travel companies should take note of these trends. Traditional providers (and this includes coach and group travel operators) should continually monitor the travel behaviour and needs of Millennials, in order not to completely lose them as customers to suppliers of individual products.

Further information: https://yougov.de/news/2019/01/23/klassische-reiseanbieter-verlieren-bei-millennials/

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