Why Millenials are the next big (travel) spenders

We’ve had baby boomers and Generation X…and now here come the Millenials. 

What’s a Millenial? Google “Millenial” and Wikipedia defines them as:
  1. “Millennials (also known as the Millennial Generation or Generation Y) are the demographic cohort following Generation X. There are no precise dates when the generation starts and ends. Researchers and commentators use birth years ranging from the early 1980s to the early 2000s.”
  2. For anyone who still thinks timeshare ownership is for the fifty-plus brigade, here’s the breaking news: the United Nations now estimates that 20 percent of all international tourists these days are young people, which equates to a whopping 200 million travellers.
  3. Younger holidaymakers are more experimental, they want the experience and freshness of travel and they have specific tastes and habits. In many cases it’s more about the journey than the destination – more surfing on the Atlantic Coast of Morocco, or hiking in the Grand Canyon, than a straightforwad fly-and-flop holiday in Malaga.According to the latest research, Millenials are:

1. Committed to travel. An Expedia survey reported that those 30 and under said they’re taking an average of 4.2 leisure trips a year, which is significantly more – and more often – than any other age group. So for many of these younger holidaymakers, timeshare has new appeal and as a result the timeshare industry has seen a surge in younger buyers.

In fact, these days new timeshare owners are almost 10 years younger than traditional timeshare owners have been in the past (normally/traditionally, couples in their fifties and sixties), according to a study by the American Resort Development Association (ARDA).

2. They don’t just visit destinations. They perfer to really experience places. Younger travellers are less interested in “the traditional sun, sea and sand holidays” than previous generations were, according to the World Youth Student and Educational Travel Confederation. They’d rather dive into local culture and experience unique, authentic experiences, really getting to know the local lifestyle. As one report put it, they believe that life is too short to not go skydiving in New Zealand or hike the Grand Canyon.

3. They don’t place as much value on ownership. Millennials want access more than they want whole (freehold) ownership. And they want choice. So again timeshare options are appealing – through vacation exchange brands such as RCI, a timeshare can give travellers access to accommodations all over the world, making this type of investment interesting for younger timeshare owners.

4. They research their destinations well.  Thanks to Facebook, Twitter, Instagram, Google and YouTube, Millenials have a host of ways to check out a property online before deciding to purchase.  In fact almost 3/4 of millennials research the product online, according to The Intelligence Group. They also like to try out a product before they commit – so trial memberships or on site rentals offered by timeshare developers are a perfect way to dip their toes into the water before buying longer term. According to ARDA, 42 percent of new timeshare owners experienced the product firsthand by renting before buying.

5. M is for Millenial (and mobile). Millenials are much more likely to book and research their travel through mobile devices. Only 18 percent of those under 30 have not used a smartphone for travel, according to an Expedia survey – the do-everything smartphone is fast eclipsing tablets, laptops and other devices as the Millenials’ device of choice, for everything from researching the best beaches in Fuerteventura to sharing those Mykonos beach party selfies.

 

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