BOOMERS GEN X GEN Y
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- Emory Cook
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1 Making sense of employees, how they view travel and their preferences. With the steady increase of choice in corporate travel programs, travel managers have noted a rising voice of the traveller within their organisations. Indeed, Travel Management Companies (TMCs) have cited greater levels of interest from procurement in sourcing and offering employees who are travelling for business more choice for their air, hotel and ground transportation. Technology has opened the door, enabling disruptors such as sharing economy providers and travel content aggregators to become a major catalyst for this change however another major influence on this is the movement of generational travellers through organisations. Generations a brief background The study and analysis of generations is not a new phenomenon, with such research having been undertaken by universities and organisations for decades since the early nineteenth century. Such research is based on the premise that people born around the same time and raised in the same place (or places that share similar cultures) will exhibit similar characteristics, preferences and values. It is difficult to find any two pieces of research which agree exactly on the years of birth which define a generation, however for the purposes of this whitepaper the following periods have been used: BOOMERS GEN X GEN Y This whitepaper explores the three generations most typically seen within organisations today (Baby Boomers, Gen X and Gen Y) and outlines some frequently seen trends within these groups that can be useful for organisations when making decisions around travel policy and preferred supplier arrangements. Today, we are witnessing a transition period where many Boomers are moving toward retirement age whilst the youngest working Generation Y are leaving university and commencing their professional careers. With this progression, driven by technology, there are transformations occurring within organisations at all levels. Understanding these groups, how large each cohort is within your organisation and their preferences can be key to effective travel management and improving employee satisfaction.
2 BOOMERS AGE BOOMER PROFILE HAS BEEN WORKING PROFESSIONALLY FOR 30+ YEARS TRAVELS FREQUENTLY INTERNATIONAL JOHN SMITH JANE SMITH 70% 30% DOMESTIC REPRESENTS 32% OF BUSINESS TRAVELLERS GLOBALLY FLYS BUSINESS CLASS MOST OFTEN FIRST CLASS WHERE POSSIBLE OFTEN SENIOR MANAGEMENT ROLE PLATINUM STATUS WITH AIRLINES & HOTELS PLATINUM WANTS TRAVEL TO BE EASY PREFERS A TRAVEL CONSULTANT TO ONLINE RARELY EXTENDS FOR LEISURE PREFERS TO GET IN AND OUT
3 IMPORTANT THINGS TO THE BOOMER PREFERS OVERNIGHT FLIGHTS TO MAXIMISE WORKING HOURS LOUNGE ACCESS LOCAL FLIGHT CONNECTIONS CHAUFFEUR SERVICES GENEROUS ON-BOARD BAGGAGE ALLOWANCE PRIORITY CHECK-IN REPUTABLE BRANDS RECOGNITION OF THEIR STATUS WI-FI CONNECTIVITY How you can adapt your travel program to suit a large proportion of Boomers: Consider a high-touch VIP service such as FCM s Pinnacle for senior executives as a way to recognise/reward their tenure Work with your account manager to negotiate rates with a preferred ground transportation provider for seamless door to door transfers Negotiate additional baggage allowances with preferred air suppliers PREFERRED SEATING Air travel has certainly become more affordable and the frequency and efficiency of flight scheduling means that most destinations are within easy reach. Certainly most airlines have also improved their on-board experience which is a huge plus. Spending nearly 40% of my year away, seamless flight connections, hotels close to offices anything that reduces time spent idle is critical to me.
4 GEN X AGE GEN X PROFILE HAS BEEN WORKING PROFESSIONALLY FOR 15+ YEARS THE BULK OF ROAD WARRIORS OFTEN IN MANAGEMENT OR SKILLED PROFESSIONAL ROLE REPRESENTS 53% OF BUSINESS TRAVELLERS GLOBALLY TRAVELS FREQUENTLY INTERNATIONAL TRAVELS A LOT. WELL PREPARED. TAKES CARE TO AVOID ROADBLOCKS TECH SAVVY & PREFERS TO BOOK ONLINE FOR CONVENIENCE JOHN SMITH JANE SMITH 50% 50% DOMESTIC FLYS ECONOMY WILL UPGRADE TO BUSINESS WITH POINTS OR OWN $ GOLD GOLD STATUS WITH AIRLINES & HOTELS EXTENDS FOR BLEISURE WHEN FAMILY OBLIGATIONS DON T CONFLICT
5 IMPORTANT THINGS TO GEN X AVOIDING DELAYS AND QUEUES LOUNGE ACCESS BREAKFAST INCLUDED PRIORITY CHECK-IN A DRINK AT THE END OF THE DAY FAST ROOM SERVICE WI-FI CONNECTIVITY How you can adapt your travel program to suit a large proportion of Gen X: Negotiate room rates with hotel suppliers that include meals where possible Make use of FCM SmartSTAY rates to ensure free inclusions such as WiFi, Breakfast or Parking Create a process to allow regular travellers to salary sacrifice (where legislation allows) or use points to upgrade flights to Business Class Provide easy access to a quick online booking tool with your company policy requirements built-in that allows for electronic approval to avoid delays in booking travel Implement a smart-phone travel expense app such as Concur, Fraedom, or Expense8 which allow travellers to capture receipts using their phone while they travel PREFERRED SEATING I never check-in a bag and always travel for the unexpected. Travelling as much as I do, unexpected delays or diversions are commonplace in foreign countries, so being prepared and always having my luggage with me is a sensible precaution. The ability to access an airline lounge to shower and one that has WiFi to catch up on s and FaceTime with the family are very important to me. If I travel to a destination I have not visited before I may stay an extra day to see the sights, however that is rare.
6 GEN Y AGE GEN Y PROFILE JOHN SMITH JANE SMITH HAS BEEN WORKING PROFESSIONALLY FOR UP TO 10 YEARS REPRESENTS 15% OF BUSINESS TRAVELLERS GLOBALLY (BY 2025 IT WILL BE 75%) BEGINNING TO TRAVEL 20% 80% INTERNATIONAL DOMESTIC EXCITED TO TRAVEL, USES SOCIAL MEDIA USES APPS READS/WRITES REVIEWS PREFERS NOT TO USE ONLINE BOOKING TOOLS LESS PREPARED FOR DISRUPTIONS WHEN TRAVELLING LONG HAUL TMC SUPPORT IMPORTANT FLYS ECONOMY, PREMIUM ECONOMY WHEN COST EFFECTIVE. BUSINESS CLASS ONLY AS A TREAT YOUNG EXECUTIVES, FIRST TIME MANAGERS OR PROFESSIONALS SILVER, SOMETIMES GOLD STATUS WITH AIRLINES & HOTELS SILVER LIKES TO RESEARCH THEMSELVES, BOOKS USING BLENDED MOBILE/TRAVEL CONSULTANT APPROACH EXTENDS FOR BLEISURE IN NEW DESTINATIONS
7 IMPORTANT THINGS TO GEN Y SHARING ECONOMY E.G. UBER, AIRBNB LOUNGE ACCESS ONLINE REVIEWS GYM OR SPA AT AIRPORT/HOTEL SOCIAL MEDIA /BEING SEEN MOBILE/SMS UPDATES LIVING LIKE THE LOCALS WI-FI CONNECTIVITY How you can adapt your travel program to suit a large proportion of Gen Y: Negotiate rates with hotels that offer gym facilities or are close to popular parks for jogging and outdoor fitness Provide travellers with access to TMC travel apps such as FCM Mobile which allows travellers to mark that they are safe in the event of an incident and also access a range of information pertinent to their trip Encourage participation in social media, allow young travellers to post about their work trips to your company s official Facebook and Instagram profiles Explore sharing economy providers such as Uber or Airbnb where appropriate Negotiate rates on Premium Economy fares to high volume destinations for trips 7+ hours to allow extra comfort I love travelling for work it s definitely a perk whether overseas or within Australia I enjoy seeing the world and meeting new colleagues from around the world. A priority for me is safety and peace of mind, knowing that if something goes wrong there s a person to call 24/7. Aside from that it s about being able to stay connected with colleagues, friends and family so WiFi is important included in the hotel room rate is the best option. I ll always take the opportunity to spend a few days in town before or after my meeting to explore a new city or catch up with friends in the area having access to reliable reviews of hotels, restaurants and things to do is helpful.
8 Looking to the future As we head to 2020 and beyond, we know our future travellers are going to be more experienced on the how to of business travel, they will be totally self sufficient using their mobile phone to book everything, they will be naturally drawn to new and interesting experiences as they travel for work. The future workforce will become more liquid, as more employees take contract work and less permanent roles resulting in them moving from employer to employer, taking their opinion of airlines, hotels, transport, TMC s, booking engines and business travel experiences with them from workplace to workplace. The travellers voices just got even louder. To ensure optimal travel program performance, organisations need to plan for the future and develop a clear mobility strategy to cater for changes and preferences in the workforce. For more information, contact your account manager or enquire online here: au.fcm.travel/contact-us/enquire-online Australian OpCo Pty Ltd (ABN ) trading as FCM Travel Solutions. ATAS Accreditation No: A FCMAUS73246
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