travel tech insights

Like so many concepts in today’s global travel industry, the definition of luxury travel has changed. In the last five or so years, travelers - many of which are millennials or even younger - have made the move away from the posh hotels, lavish resorts, and all-inclusive nature of these bookings to a more unique, culturally experience when it comes to luxury travel. Not that long ago, a vacation to Mexico might have meant lazy days by the pool, surf lessons, and perhaps a guided tour of an open-air market not far from the resort. But today, with the rise and proliferation of social media, travel review websites, and mobile apps, luxury travel means leaving the hotel behind and experiencing the heritage and diversity of a destination through unique, individually-curated activities.

While this is an important development for travel agencies, travel management companies, and other major players across the value chain, it’s particularly relevant for tour operators in how they source and position tours and activities.

It’s no secret that millennials are a driving force in today’s travel industry. Whether we’re talking about adventure of budget travelers, the buying power and influence millennial travelers have is increasing each and every year, particularly as more and more travel markets emerge and mature, especially in Asia and Central Europe. What’s more, millennials are now set to emerge as a critical customer pool in yet another burgeoning travel and tourism market: Corporate travel.

According to a recent released earlier this year titled The Portrait of Business Travelers by travel industry group MMGY Global, millennials are poised to become the largest segment of the corporate travel sphere in 2017 and beyond. The report indicated the average business traveler booked about 6.8 trips per year, while millennials completed roughly 7.4 bookings per year in 2016 - a figure that is only expected to increase in the next 12 months.

It may seem counterintuitive that the most connected, digitally tuned-in generation in history is helping to reverse the trend in recent years away from travel agencies, but a series of reports and surveys in recent years indicate that’s exactly what’s happening. Millennials, one of the most sought-after market shares in today’s travel industry, are leading the charge in utilizing travel agents and online travel agencies to help curate their travel experiences, which is proving to be a boon for travel companies as they seek to leverage new competitive advantages for relevancy in today’s fast-paced travel landscape.

According to a new report by the American Society of Travel Agents (ASTA), about 30 percent of millennials reported using a travel agency in the last 12 months - in addition, more than 45 percent indicated they would recommend using a travel agent to friends or family.

It’s Tuesday night and you just discover you don’t have enough milk to finish cooking the family dinner. You know you’ll have to run out for a fresh quart, but as you scramble to find your car keys and a few dollars you have to decide where you’re going to go. You have options: a big-box grocery retailer or a small, independent market. The big-box store may be fractionally less expensive and offer much in the way of convenience and choice, but the market is nearby, offers a more personal experience, and is more knowledgeable about the products on the shelves.

Which do you choose? Tuesday night dinner aside, a similar scenario plays out time and time again in the travel and tourism industry, particularly between OTAs - as well as tour operators and TMCs - and traditional travel agencies.

There are times it seems the travel industry should take a cue from its customers; go to some quiet place and just relax for a long time without reading anything about travel (except this blog, of course) or talking to anyone in the business.