travel tech insights

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.

With more advancements in mobile technology and the ease at which people can communicate, the line between work and play becomes more and more blurry. In today’s world, it’s not uncommon for people to respond to work emails on their smartphones or tablets while on holiday, nor is it uncommon for travelers to add small vacations onto their business or corporate travel bookings.

This merging of business and leisure travel, also known as bleisure travel, is a somewhat recent development in the market share of today’s travel industry customer, though it’s a segment that’s growing exceptionally fast with great potential impact on how travel companies position products and services. According to a recent study by BridgeStreet Global Hospitality, more than 60 percent of travelers reported merging business and leisure travel in the last year, with 30 percent of respondents adding at least two additional days to their trip.

True or false: Nearly half of all travel bookings made during 2016 will take place offline via phone or in-person with the assistance of a travel agent or travel management company.  

True, which is surprising, especially given the highly connected nature of today’s travel industry and the capability for travelers to complete complex, packaged bookings on their smartphone or tablets. In fact, according to a recent survey published by Euromonitor International, roughly 44 percent of travel and tourism-related bookings will be completed via desktop or mobile devices during 2016. While this is significantly higher than other retail industries, it can be something of a shockingly low figure considering how hard the travel industry has worked to align itself with mobile technology capability.

However, what’s perhaps more stunning in the Euromonitor International report is where industry analysts suggest mobile travel bookings are headed in the near future and the impact they’ll have on the travel industry in the coming years.

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.

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