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Who鈥攁nd we mean this literally鈥攊s going to influence travel brands鈥 strategies over the next few years? While corporate decision-makers, travel bloggers and industry media have some clout, it鈥檚 the travel trendsetters鈥攖he customers鈥攚ho will inspire business decisions ranging from pricing to technology offerings to marketing campaigns. Potential new customers live around the globe and represent a wide variation of ages, interests, and travel preferences, but we鈥檙e going to look specifically at the five market segments that are expected to drive the most change.
Pursuing a diverse marketplace isn鈥檛 as easy as breaking consumers into segments based on age, gender, or even income bracket. That鈥檚 the message from MMGY Global, who defined the modern traveler 鈥渕icrosegments鈥 you鈥檒l see below in their 2016-2017 report. We鈥檝e added our thoughts on how to best approach these dynamic consumers with ideas for making the most of every opportunity to thrill them with satisfying travel experiences.
Brat Pack鈥These are children 12 and under who influence their families鈥 travel decisions. Almost half of them, finds MMGY, have parents 鈥渁t their mercy鈥 when it comes to choosing destinations, picking activities and otherwise spending the family travel budget. So from airlines and hotels to destination cities鈥 tourism centers, travel brands targeting family business are well advised to appeal to the youngest family members.
As explored in How Travel Companies Are Gearing Up to Accommodate Generation Z, some best practices include catering to these consumers鈥 sense of immediacy (e.g. text messaging, quick calls-to-action), digitizing services and messaging, and inciting their sense of adventure and overall enthusiasm for the diversity in the world around them. Read more about making trips enjoyable for the youngest (to the oldest) travelers in It鈥檚 a Family Affair: Multigenerational Travel and Four Generations of Travelers Mean Four Kinds of Travel Marketing.
HENRYs鈥Travelers who are High Earners, Not Rich Yet. They鈥檙e young and affluent, but haven鈥檛 accumulated the level of wealth that enables them to take a 鈥渘o holes barred approach鈥 to travel spending. That means it鈥檚 a good idea to take an 鈥渁spirational鈥 approach with these consumers, making them feel like they鈥檙e on the way up in the world, toward a hifalutin lifestyle. They鈥檙e likely attracted to luxury brands and appreciate the frills and prestige associated with big names and top-drawer amenities鈥攂ut they are at least somewhat price-sensitive, at least today. See Current Insights into Today鈥檚 Affluent Travelers for a look at the types of products and services that appeal to these consumers.
At this stage in their life journey, however, they may be attracted to travel packages and deals that have curb appeal鈥攁llowing them to experience a range of exotic destinations and cultures鈥攐r that otherwise treat them to personalized attention (think spas and wellness) and give them options to create their own unique vacation, without breaking their banks.
Jet Sweaters鈥擳hese are the amateur adult athletes without children who travel to fulfill their own athletic pursuits. Visiting distant cities to run high-profile marathons or to participate in iron man competitions might be on their agenda. Or, perhaps, scaling mountains, swimming across large bodies of water, or biking across the country are more their speed. Tour packages that accentuate adventure and activity, even in the realm of voluntourism, may offer what they鈥檙e looking for. (Read Making a Difference on a Volunteer Vacation for more on the voluntourism trend.)
And since they鈥檙e traveling without kids, they may have the resources to splurge on accommodations offering the most comfort (e.g. first-class cabin seats, quiet hotel suites) or opportunities to rejuvenate (pools, spas, and the like). Then again, these folks may be of the more rustic sort, who prefer to camp their way across the landscape or stay in private homes to better immerse themselves in local culture. In either case, consider ways to Win Customers By Offering The Right Destination Choices.
GottaGoSOLOs鈥擯redominately Millennials and Gen X-ers, these travelers are the ones who leave the family behind when traveling. That could mean leaving them behind entirely for some quality alone time, or taking some time on their own to explore their destinations while their travel companions sleep in or enjoy a room service dinner. Independence is surely at the heart of their intentions, and probably some degree of adventure.
The answer to Do Millennials Make The Most Attractive Customers For Travel Companies?, based on results from a 糖心Vlogsurvey of UK Travelers, is 鈥渓ikely, yes鈥 because they spend more and take more trips compared to other age groups. But we don鈥檛 want to make too many generational assumptions about this set of the market; rather, focus on what makes their travel preferences unique. And that鈥檚 pursuing their interests on their lonesome, whether they鈥檙e looking for a local video gaming caf茅 or golfing. For suppliers, that might mean offering one-seater deals amidst family-friendly options or arming the concierge with ideas for the family-of-one.
YAHTZEES鈥擸oung At Heart Travelers Zooming Everywhere Enthusiastically are active retirees who travel more than 3 times per year and plan to spend over $8,000 annually on traveling. As retirees, it鈥檚 safe to assume the bulk of these travelers are over the age of 65 and part of the Baby Boomer generation. But as with the GottaGoSOLOs, travel brands can focus on these consumers鈥 preferences, rather than their age; although their willingness to spend money while traveling is an important consideration.
In this case, it鈥檚 their active lifestyles that brands need to accommodate today. Providing options to customize itineraries is one way to go, another is making it easy for customers to maintain their workout schedules and healthy eating initiatives. Consumers in this microsegment might have an appetite for visiting multiple destinations within the same trip and making the most of each destination through cultural, entertainment, or dining activities. This makes international travel and cruise trips particularly enticing, especially if they鈥檙e on the traveler鈥檚 鈥渂ucket list.鈥
For more, take a look at the 3 Ways to Delight Boomer Travelers in 2017.
Subscribe to our Inside 糖心Vlogblog and follow us on social media for the insider view on everything WEX, from payments innovation to what it means to be a WEXer.