AMERICAN BABY BOOMER VERSUS MILLENNIAL TRAVELERS Insights to Help You Connect with These Behemoths

Transcription

1 AMERICAN BABY BOOMER VERSUS MILLENNIAL TRAVELERS Insights to Help You Connect with These Behemoths

2 TABLE OF CONTENTS 03 INTRODUCTION 04 THE ONLINE BOOMER AND MILLENNIAL TRAVELERS: INSPIRING AND REACHING THESE GENERATIONS 04 Inspiring and Reaching Boomer Travelers 06 Inspiring and Reaching Millennial Travelers RISING ABOVE THE NOISE: ENGAGING THESE TWO GENERATIONS 08 Engaging Boomer Travelers 10 Engaging Millennial Travelers CRAFTING COMPELLING MESSAGES: CONVERTING THESE TWO GENERATIONS 11 Converting the Boomer Traveler 12 Converting the Millennial Traveler 14 BRIDGING THE GENERATIONAL GAP American Baby Boomer Versus Millennial Travelers 2

3 INTRODUCTION It s a behemoth battle Goliath versus Goliath Baby Boomers versus Millennial travelers. And marketers everywhere have been warring to reach these two giants. Why? Because these two generations have enormous spending power and now number as the two largest generations in the U.S. 1 There s a trove of content surrounding both these generations, especially Millennials. It s almost overwhelming. But with such enormous potential for your brand to earn loyalty and revenue from these two generations, any insight you can harness will help you best the competition. So, how can you be a David to these Goliaths? It s all about going where they are, rising above the noise, and crafting compelling messages. Derived from our American Multi-Generational Travel Trends 2 study, this ebook helps you dive into insights to help you capture the attention of Boomer and Millennial travelers. IN THIS EBOOK YOU LL LEARN: WHAT INSPIRES BOTH GENERATIONS WHAT ENGAGES EACH GENERATION WHAT HELPS THESE GENERATIONS CONVERT Source 1 The Rise Of The Millennial Traveler in, Skift, 2017 Source 2 American Multigenerational Travel Trends 2017 produced by Expedia Group Media Solutions in conjunction with Northstar research partners. American Baby Boomer Versus Millennial Travelers 3

4 THE ONLINE BOOMER AND MILLENNIAL TRAVELERS: INSPIRING THESE TWO GENERATIONS Consumers are on an inexorable march from spending in stores to online purchasing, and Millennials are fueling this trend. When it comes to online travel specifically, Millennials are going mobile with 62 percent of them looking for travel inspiration via their mobile device. 3 On the other hand, while less likely to use mobile devices, Boomers are following in Millennials online footsteps, with nearly half of them spending almost 11 hours a week online. 4 INSPIRING AND REACHING BOOMER TRAVELERS If Millennials are mobile, where are Boomers? They re online too. However, they didn t grow up in an age of constant stimulation with multiple digital channels, and that means that Boomers prefer using devices they know and find reliable to access the online travel world their desktops. They use their desktops to plan and find inspiration for their travel. In fact, considering device usage, Millennials use both desktops and mobile devices for inspiration; however, Boomers love their desktops, with 86 percent of them using them to find inspiration on where to travel compared to 11 percent for mobile devices. Source 3 American Multigenerational Travel Trends 2017 produced by Expedia Group Media Solutions in conjunction with Northstar research partners. Source 4 The Digital Landscape: Seniors and Baby Boomers in Internet Marketing Inc American Baby Boomer Versus Millennial Travelers 4

5 Whether mobile or desktop, these devices are portals into the online travel world. And once there, 54 percent of Boomers turn to Online Travel Agencies (OTAs) and 50 percent look to search engines to plan their vacation. 5 These two resources represented the highest-ranking sites that Boomers used for inspiration. And like desktops, OTAs and search engines are proven methods upon which Boomers can rely. They understand them, accept their usefulness, and likely don t see a need to change those habits and preferences. their family and friends. This may not be surprising because as we ve seen, this generation has an affinity for reliable methods for gathering information. Indeed, after search engines, discussing their plans with family and friends came in a close third at 47 percent. What emerges from these statistics is a generation that prefers reliable, time-honored means to find inspiration. They know where they want to go (OTAs, search engines, and their family/friends), and they know how they want to get there (either mobile, desktop, or both). Outside of OTAs and search engines, Boomers turn to another well-established resource for inspiration; Source 5 American Multigenerational Travel Trends 2017 produced by Expedia Group Media Solutions in conjunction with Northstar research partners. TIP #1 MAKE SURE YOU PRODUCE INSPIRATIONAL CONTENT ACCESSIBLE ON OTAS. Because OTAs are crucial in the inspiration phase for Boomers, partnering with them is a great way to reach Boomers. To that end, many OTAs have content teams that can help you create engaging campaigns with stimulating creative messaging, so your branded message resonates with this audience more effectively. American Baby Boomer Versus Millennial Travelers 5

6 INSPIRING AND REACHING MILLENNIAL TRAVELERS If Boomers turn to OTAs for inspiration, then where might Millennials go to plan? It turns out, these digital pioneers turn to OTAs and search engines as well. In fact, OTAs are the leading resource for Millennials to plan their online travel at 52 percent. 6 Thus, the online sites to find inspiration and plan for both generations are the same; of course, we know Millennials are accessing this world differently. Their access is through increasingly mobile avenues. They ve got their phones on them (and maybe another mobile device) almost constantly, making it seem like they re everywhere, all at once. This digital omnipresence translates into mobile device usage rates much higher than Boomers. For example, 62 percent of Millennials use their phone for inspiration. 7 Keep in mind that doesn t factor in other mobile devices, so the total number is probably higher. Sources 6, 7 American Multigenerational Travel Trends 2017 produced by Expedia Group Media Solutions in conjunction with Northstar research partners. American Baby Boomer Versus Millennial Travelers 6

7 While Boomers consulted their family and friends at relatively high rates, Millennials turn to travel review sites as another trusted resource for trip inspiration (42 percent). 8 Less likely to consult family and friends than Boomers, the experience-driven Millennial traveler wants to see a breakdown of what there is to do in a location and perhaps read about others experiences there. And of course, travel review sites are just a fingertip and click away, as Millennials are already on their mobile devices. It s no surprise that other online sites with mobile access are a favorite of Millennials. With their technological fluidity, Millennial travelers are adept at moving across devices and expect marketers to mirror their mobile savviness. This also means that they have unbridled access to the online travel world. With this fluidity and access, what tactic can you take to reach this generation? Source 8 American Multigenerational Travel Trends 2017, produced by Expedia Group Media Solutions in conjunction with Northstar research partners. TIP #2 INCORPORATE A CROSS DEVICE ADVERTISING PLAN: This plan will help you inspire and reach Millennials across their devices, ensuring you engage this increasingly mobile generation. The key here, especially if you don t have other marketing channels like an app, is to make sure that your site is responsively optimized for all devices. American Baby Boomer Versus Millennial Travelers 7

8 RISING ABOVE THE NOISE: INFLUENCING THESE TWO GENERATIONS When it comes to travel, the path to purchase is hardly linear. 9 However, we can broadly understand the first part of the path we discussed above as the inspiration stage. If this first stage is about inspiration, then the next is about engaging travelers during the lengthy research and consideration phase of travel planning. To understand what influences both generations at this stage, we need to look at their motivations for travel. ENGAGING BOOMER TRAVELERS For a generation that s experienced so much, it may be hard to imagine what motivate them to travel. It turns out, experiences and activities never got old. Boomers rank activities as their highest travel consideration against other considerations like cultural experiences, and a once in a lifetime experience etc. 10 Compare that to their second-place consideration, deals and special offers at 171, and Boomers emerge as a true activitydriven generation. Source 9, 10 American Traveler s Path to Purchase 2016 produced by Expedia Group Media Solutions in conjunction with Comscore research partners. American Baby Boomer Versus Millennial Travelers 8

9 As you may expect, when Boomers aren t seeking out fun activities, they re traveling to visit family (61 percent); with the next highest category, relaxation, at 45 percent. 11 They have certainly earned the right to relax, but with a difference of nearly 20 percentage points, they re strongly prioritizing family. There are probably several reasons for this, not the least of which is that Boomers are at drastically different stage of their life than other generations and have the time to visit kids and grandchildren With the apparent freedom that comes later in life more time, potentially more money, and less work constraints, you d expect to see Boomers less concerned with deals and budget. The story, however, is slightly more complicated. Boomers said that they look for the best deals and most value for their dollar (95 percent), but only 57 percent of them prioritize budget. 12 How can we explain this discrepancy? A likely, and ironic answer, is that the freedom Boomers have is the explanation. It allows them to travel when it s most convenient and they can wait for prices to be at their lowest. In other words, Boomers don t mind spending money on a trip, as evidenced by their low prioritization of budget, but they do like to think they re getting a good deal. Source 11, 12 American Traveler s Path to Purchase 2016 produced by Expedia Group Media Solutions in conjunction with Comscore research partners. TIP #3 PROMOTE CONTENT THAT HAS GREAT DEALS AND VALUES. Deals are a priority for Boomers, but budget isn t as much. This means your content should feature messaging around the specific value of your offering especially compared to others rather than how it fits in with their budget. American Baby Boomer Versus Millennial Travelers 9

10 ENGAGING MILLENNIAL TRAVELERS Millennials are widely noted for their desire for a variety of experiences and they bring this desire to travel. They don t show a strong preference for one type of vacation over another: they want variety. They also travel more frequently than any other American generation 13 and combined with their desire for new experiences, Millennials don t just want one type of vacation. They want it all. Wanting it all does comes with a price tag as we see 81 percent of Millennials prioritizing budget. 14 Likewise, their desire for experiences bleeds into the rest of their lives in ways that affect travel decisions. For example, with rising house prices and record amounts of student debt, many economists have noted that Millennials are putting off buying houses until later as saving seems futile for something so far out of reach. However, a relaxing trip on a pristine beach that may cost $1500/person is a much easier pill to swallow. With this type of purchase, Millennials get their experience and have something to show for it. Millennials are like a mosaic: each tile represents one of their myriad motivations for traveling. Some want highadventure experiences, some may want a relaxing beach, and some want to spend quality time with their family. With so many travel priorities, however, Millennials keep a sharp eye on their spending habits so it s no surprise then that budget is an important consideration. Source 13,14 American Traveler s Path to Purchase 2016 produced by Expedia Group Media Solutions in conjunction with Comscore research partners. TIP #4 FEATURE DIVERSE ACTIVITIES AND EXPERIENTIAL MESSAGING IN YOUR CONTENT: With so many reasons for travel, content that captures a wide array of activities with strong experiential messaging will resonate with Millennials. American Baby Boomer Versus Millennial Travelers 10

11 CRAFTING COMPELLING MESSAGES: CONVERTING THESE TWO GENERATIONS Now that we ve seen what inspires and influences them, let s see what converts these travelers. Converting these generations, however, can be a bit tricky, but not if you know where they are going when they are ready to purchase. CONVERTING THE BOOMER TRAVELER Boomers don t just like OTAs for planning, they like them for booking as well. In fact, OTAs (59 percent), followed by hotel sites (48 percent) and airlines sites (39 percent), are their preferred booking channels. 15 Again, the established and deal-driven nature of OTAs are likely factors for Boomers, as they are reliable and allow consumers to cross-shop. Even hotel sites and airline sites play into the deal-driven nature of Boomers as hotels and airline sites allow shoppers to cross-shop as well, once they have narrowed their search a bit further. Boomers also show a preference for deal-driven content, with 90 percent of them looking to content with appealing deals before booking. Following this, 84 percent of them turned to informative content from destinations before booking a vacation. 16 If you recall, Boomers emerged as a true activity-seeking generation, so it s no surprise that informative content that showcases all a destination or brand has to offer, is important to them. Source 15,16 American Traveler s Path to Purchase 2016 produced by Expedia Group Media Solutions in conjunction with Comscore research partners. TIP #5 FEATURE INFORMATIVE CONTENT WITH DEAL-DRIVEN OFFERS: The devil is in the details, and it s also in the deals. With deals as the number one consideration when booking a trip for Boomers, highlight the value that your brand or destination offers while also giving detailed descriptions. American Baby Boomer Versus Millennial Travelers 11

12 CONVERTING THE MILLENNIAL TRAVELER Again, OTAs are the preferred sites for booking (57 percent), followed by hotel sites (36 percent), and then airline sites (32 percent) for Millennials. 17 Budget probably factors into their choice of these booking sites. That s because cross-shopping for Millennials is important. Millennials are not as brand loyal as older generations, according to Skift, 18 so that means sites that give Millennials the power to compare prices, will prevail. As we ve seen, budget and deals are important for Millennials and this preference carries over into the types of content they find compelling. Millennials report (91 percent) that they look for content that features deals before making a travel decision, followed by 88 percent who report informative content from destinations as influential. 19 To turn these content insights into action, remember that while Millennials may be relatively young, they are the most-well-educated generation in history. 20 They ve grown up with Source 17 American Multigenerational Travel Trends 2017 produced by Expedia Group Media Solutions in conjunction with Northstar research partners. Source 18 The Rise Of The Millennial Traveler in, Skift, Source 19 American Multigenerational Travel Trends 2017 produced by Expedia Group Media Solutions in conjunction with Northstar research partners. Source 20 8 Things You Need to Know about Millennials at Work in Business Insider, November American Baby Boomer Versus Millennial Travelers 12

13 CONVERTING THE MILLENNIAL TRAVELER CONTINUED companies throwing a variety of marketing tricks at them. So, when you re creating content for them, stick to creative messaging and be straightforward. Show them content that features great deals and has useful information that is devoid of marketing gimmicks. Of course, no explanation of Millennial behavior would be complete without a discussion of social media. For our purposes, social media is an increasingly important tool for marketers to target Millennials, as 71 percent say that Facebook alone is influential in their decisionmaking process when booking a trip; Instagram (45 percent) and Twitter (31 percent) follow this figure. 21 These statistics figure into trends that marketers have seen; social media continues to rise and it s showing no signs of slowing. With such a steady tailwind, social media s near instantaneous communication ability along with the fact that people are increasingly turning to friends and family for travel inspiration via social media, and it s easy to see why any marketing campaign needs a social media strategy to be effective. Source 21 American Multigenerational Travel Trends 2017 produced by Expedia Group Media Solutions in conjunction with Northstar research partners. TIP #6 HAVE AN INTEGRATED CHANNEL STRATEGY ON KEY CHANNELS LIKE OTAS AND SOCIAL. For Millennials, chat is King. Ensure you have an integrated marketing strategy with compelling content on key shopping channels like OTAs and social. Likewise, make sure you have a chat feature.

14 CONCLUSION: BRIDGING THE GENERATIONAL GAP Our journey through Boomer and Millennial travel preferences reveals some key findings. We see that they both find inspiration and engaging content online. However, Millennials are fueling a mobile trend that is changing the way marketers interact with them. Our path has also led us from inspiration to conversion, stopping along the way to see how best to influence these two generations. We ve called them behemoths for a reason: they represent the two generations with the most spending power in American history. And while the current king of generations, the Boomers, won t be dethroned for several more years, in the not-too-distant future, Millennials will reign supreme. For now, however, the spending power title still lies with the Boomers, but only just. In any case, with such purchasing power, each generation represents an enormous revenue opportunity for your brand. WANT TO LEARN MORE ABOUT HOW TO INSPIRE, ENGAGE AND CONVERT THESE AUDIENCES? CONTACT US bit.ly/contact-consultants CLICK ON THE LINK TO DOWNLOAD THE AMERICAN MULTI-GENERATIONAL TRAVEL TRENDS RESEARCH STUDY. American Baby Boomer Versus Millennial Travelers 14

15 EXPEDIA GROUP MEDIA SOLUTIONS, the advertising arm of Expedia Group, offers industry expertise and digital marketing solutions that allow brands to reach, engage and influence its qualified audience of travelers around the world. Through its vast network of leading travel brands and global sites, Expedia Group Media Solutions provides partners with datadriven insights about traveler behaviors during every stage of the purchase journey, along with dynamic advertising solutions, to deliver strategic campaigns and measurable results. LEARN MORE ABOUT US: DISCOVER MORE INSIGHTS blog.advertising.expedia.com FOLLOW US ON: LINKEDIN linkedin.com/company/ expedia-media-solutions OUR ADVERTISING SOLUTIONS advertising.expedia.com TWITTER twitter.com/expediamedia