the state of the american traveler tm · 2016-08-15 · the state of the american traveler survey...

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OUT OF THIS RESEARCH was also born our Top 10 Tips for Marketing to the Generations, which highlights ways in which these insights can shape your strategies and make your travel marketing more effective. Please enjoy this edition. As always, if you have questions or ideas for future survey topics, we welcome you to message us. [email protected] or @DA_Research. THIS SUMMER EDITION of The State of the American Traveler TM explores issues related to differences in how the generations travel. We begin with a look at how American travelers are feeling about the near-term future, and show how much of the existing optimism is driven by the high-spirited Millennial generation. The report also examines the psychographic make-up of the generations, as well as their use of technology in travel planning. SPONSORED BY The Generations Edition The State of the American Traveler TM GENERATIONS EDITION July 2016 | Volume 21

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Page 1: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

OUT OF THIS RESEARCH was also born our Top 10 Tips

for Marketing to the Generations, which highlights ways in

which these insights can shape your strategies and make your

travel marketing more effective. Please enjoy this edition.

As always, if you have questions or ideas for future survey

topics, we welcome you to message us.

[email protected]

or @DA_Research.

THIS SUMMER EDITION of The State of the American

Traveler TM explores issues related to differences in how

the generations travel. We begin with a look at how

American travelers are feeling about the near-term future,

and show how much of the existing optimism is driven by

the high-spirited Millennial generation. The report also

examines the psychographic make-up of the generations,

as well as their use of technology in travel planning.

SPONSORED BY

The Generations Edition

The State of the American Traveler

TM

GENERATIONS EDITION

July 2016 | Volume 21

Page 2: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by

Destination Analysts, Inc, a San Francisco-based tourism industry research company.

The survey is conducted online amongst a nationally representative sample of adult

Americans. From June 30th to July 7th, 2016, surveys were collected from a group of

respondents who were then screened by their leisure travel behavior. Only those respondents

who had traveled at least once in the past 12 months for purely leisure or personal reasons

were interviewed. This travel must have been of at least 50 miles one-way — the standard

distance threshold used in the tourism industry to signify that a “trip” has been taken.

In total, 2,007 leisure travelers completed the survey. With this sample size, the top line

data presented here can be considered to have a reliability of +/- 2.2%. This information

is provided “as is” and intended for informational purposes only. It should not be relied

upon for operational, marketing, legal, technical, tax, financial or other advice.

Destination Analysts is not responsible for your use of the information contained herein

(including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions

or conclusions you might draw from its use.

Travel Optimism Remains High

Psychographics: Getting Inside the Head of Each Generation

Top 10 Tips for Marketing to the Generations

What You Need to Know About Technology Use by Generation

Methodology

Contents

02

04

06

09

01

Page 3: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Q : In the next 12 months, do you expect to

travel more or less for leisure than you did in

the most recent 12 month period?

JAN 2014

expect moreTHE KEY: expect the same expect less

JAN 2015

JAN 2016

JULY 2014

JULY 2015

JULY 2016

60.2%

59.0%

53.8%

56.7%

59.0% 55.3%

56.7%

57.6%

59.8% 57.7%

54.8%

53.8%

29.2% 31.5%

31.1% 32.1%

34.3%

34.2%

32.2% 32.8%

34.4%

35.0%

9.9% 13.2%

9.9% 11.2%

11.2%9.0%

8.2%

8.0% 9.4%

10.8%

32.3% 32.5%

10.6% 13.7%

OVERALL, AMERICAN LEISURE TRAVEL EXPECTATIONS

continue the stable path seen in recent years. While July

results from our national survey show optimism about

upcoming leisure travel has dipped slightly from a record

high last summer (34.3% of American travelers said they

would travel more in the coming year in July ’15 compared

to 32.2% now), it remains in firmly positive territory. In fact,

when considering the combined percent of leisure travelers

expecting to travel more or the same in the upcoming

year (compared to the previous year), this is actually up

slightly to 92 percent from 91 percent last year.

Similarly, leisure travel spending expectations remain high,

signaling that prospects for a continued leisure travel

performance are solid.

1.1 Travel Expectations & Travel Spending Expectations

Percentage 0 030 3010 1020 2040 4050 5060 60

Q: In the next 12 months, do you expect to

spend more or less for leisure travel than you

did in the most recent 12 month period?

Travel Expectations (Trips) Travel Expectations (Spending)

02

Page 4: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

expect more expect the same expect less

MILLEN-NIALS

BABY BOOMERS

GEN X

PREBOOMERS

43.0% 43.3%

56.3

66.5%

72.1% 65.6%

64.2%

55.0%

51.4% 50.2%

37.7%

24.3%

16.4% 21.4%

25.7%

36.0%

5.6% 6.5%

9.0%6.0%

9.3%

11.5% 13.0%

10.1%

Although Not at Peak, Americans Remain Solidly Optimistic about Leisure Travel.92%

of leisure travelers expect to travel

as much or more this year as last

The Generational Perspective: Youthful Enthusiasm

1.2

Percentage 0 030 3010 1020 2040 4050 5060 70 60

TRAVEL OPTIMISM IS DRIVEN in a major way by younger

travelers. The charts below show the proportion of each

of the four main generations that expect to travel more

and spend more in the upcoming year. Major differences

exist between the generations, with Millennials showing by

far the most desire to increase their travel and spending.

More than half of the Millennial generation expects to

increase their travel and spending in the upcoming year,

compared to only about one quarter of Baby Boomers.

THE KEY:

Travel Expectations (Trips) Travel Expectations (Spending)

03

Q : In the next 12 months, do you expect to

travel more or less for leisure than you did in

the most recent 12 month period?

Q: In the next 12 months, do you expect to

spend more or less for leisure travel than you

did in the most recent 12 month period?

Page 5: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Psychographic Profile: The GenerationsHOW THEIR TRAVEL STYLES DIFFER

Want real destination vs. commercial tourism

AUTHENTICITY

6

5.2

64

.8

64

.8

M X B

Prefer active vacations

ACTIVITY SEEKERS

Want to engage in arts and cultural assets

CULTURAL INTERESTS

Like food & cuisine driven travels

CULINARY INTEREST

MILLENNIALS

40

40

40

50

50

50

60

60

60

70

70

70

56

.9

5

4.0

49

.0

68

.5

6

7.5

61.

1

6

5.1

6

0.2

55

.9

M X B

M X B

M X B

2

70

.3

6

8.6

63

.8

M X B

Stay connected during leisure travel & its planning

CONNECTIVITY

04

Destination Analysts’ proprietary Traveler Psychographic

Intensity IndicesTM use a series of related seven-point scale

questions to measure the strength intensity in a traveler’s

feelings about aspects of leisure travel.

For each psychographic category, every survey respondent

is given a score of 1-100, with high scores indicating high

levels of intensity or importance.

De

stin

atio

n A

na

lysts

’ Psy

ch

og

rap

hic

Ind

ex V

alu

e

M= MILLENIALS X= GENERATION X B= BABY BOOMERS

Page 6: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

BABY BOOMERS Desire rural travel experiences

NATURE LOVERS

Gain pleasure from exploration

EXPLORATION HUNGRY

58

.8

6

0.7

6

5.0

6

9.5

71.

1

72

.3

M X B M X B

55

.4

55

.7

5

1.9

M X B

6

0.5

61.

1

58

.7

M X B

GENERATION X Is concerned about pricing

PRICE SENSITIVITY

Intensively plan leisure travel

TRAVEL PLANNING INTENSITY

WHILE DIFFERENCES BETWEEN the generations are

often exaggerated, they do exist and an understanding of

them can help the savvy destination marketer gain a

larger share of each. Destination Analysts’ Traveler

Psychographic Intensity IndicesTM

were designed to paint

an accurate picture of how travelers in different age groups

think about, approach and plan leisure trips. The infographic

below tells the story that, in the simplest form, Millennials

are highly connected travelers with a strong desire for

urban experiences, culture and cuisine.

As we get older, interest in these trip characteristics wane

somewhat. Baby Boomers are more interested in less active,

outdoor experiences that yield a sense of exploration.

Generation X sits sandwiched in the middle between these

two larger groups, as does its travel preferences across

nearly all categories.

40

40

50

50

60

60

70

70

05

De

stin

atio

n A

na

lysts

’ Psy

ch

og

rap

hic

Ind

ex V

alu

e

M= MILLENIALS X= GENERATION X B= BABY BOOMERS

Page 7: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Top 10 Tips for Marketing to the Generations

3

3.1

LET’S TAKE A BREAK FROM the over-used and often erroneous stereotypes attached to

the generations, and look at some actionable differences between them.

Millennials travel more for leisure than other generations;

taking 4.7 leisure trips annually, compared to only 4.4

for others. They are by far the most likely generation to

expect to increase their travels in the upcoming year.

Baby Boomers appear to have their travel patterns set

more firmly in stone, signaling a lower openness to

non-traditional seasonal travel or shorter notice getaways.

Ad hoc campaigns to fill gaps might be best targeted to

a younger traveling set.

Millennials need for connectivity is paramount. Ignore

it at your peril. Fully 83% use mobile devices to plan

trips, compared to only 33% of Baby Boomers. On the

bleeding edge, one fifth of Millennials use apps while

traveling to receive real-time, personalized content

from vendors—eight times the rate of Baby Boomers.

Millennials are also five times as likely as their older

counterparts to say they feel a need to check their

emails/texts six or more times a day while on vacation.

50% say they would feel “very uncomfortable” without

access to these services while traveling. Connectivity

must influence our thinking about marketing to this

generation, from influencing pre-trip decisions to

in-market messaging.

Take advantage of their enthusiasm

MARKETING TO MILLENNIALS

Put connectivity front and center

4.783%

number of leisure

trips Millennials take

annually

of Millennials use mobile

devices to plan trips

06

Page 8: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Millenials Gen X Baby Boomers

Millennials are more open to new ways of experiencing

destinations. The emergent demand for peer-to-peer

travel services (like Uber and AirBnB) has been driven

by Millennials. Peer-to-peer lodging services already have

26% of Millennial travelers onboard as users, compared

to only 7% for Baby Boomers--and Millennials are also 8

times more likely to use ride sharing services.

The possibilities for the destination marketer are many.

Encouraging visitors to explore beyond traditional tourist

neighborhoods, and to visit when city-wide events may

have gobbled up traditional lodging opportunities are

more feasible with these new options.

Exploit their openness to new ways of traveling

Millennials think they lack time and money. They rate high

psychographically for “price sensitivity,” and have less

disposable income. The most likely generation to say

“personal financial reasons” have kept them from traveling

in the past year, 60% will “actively look for travel discounts

and bargains” in the upcoming year. Time also constrains

Millennials, who are twice as likely as Boomers to say being

Buzz matters to Millennials. 65% agree that friends and

relatives are a “highly trusted source of travel advice,”

compared to half of Baby Boomers. Opinions from outside

their personal networks matter more, too. 46% say that

Generate Buzz

Be Sensitive to Resource Scarcity

Despite their youth, Millennials are sophisticated travelers.

They index high in psychographic attraction to culture

and cuisine. More than half (50.7%) say they won’t visit a

destination that doesn’t have good restaurants. 62%

agree that unique, special or interesting culinary travel

experiences are “very important” to them. Their interest

in culture also surpasses older travelers. 68% say they

are generally likely to visit art, cultural, natural history or

science-related museums while traveling. 63% attend

theater, performing arts or live music shows. Don’t count

out younger travelers when selling culture and food related

experiences—they may well be a mainstay of your success.

Use culture and cuisine as selling points

Maximum Annual

Travel Budget

$ 3

,05

7

$ 3

,42

6

$ 3

,13

5

65 46% %

%

of Millennials say their

personal network is a

“highly trusted source of

travel advice”

trust travel companies with

more fans & followers

26

.3%

6.7

%

15.8

%

Millenials Gen X Baby Boomers

62 find unique culinary

expereinces to be

an important part of

leisure travel

Peer-to-Peer

Lodging Use

having “many fans/followers” makes them more likely to

trust a travel company—only 14% of Baby Boomers agree.

Creative ways to get people talking about your destinations

are vital to effectively reaching the younger audience.

“too busy at work” keeps them from traveling. With these

limitations, marketers are wise to promote affordability and

easy access to their destinations.

07

Page 9: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Social Media Channels “Used Regularly”

Give them the real deal

Baby Boomers index high on the desire for travel that

includes nature, authenticity and exploration. We don’t

recommend talking to them about their bucket lists as

they’re still young at heart, but their travel aspirations

demand a degree of meaning. While not averse to urban

travel, 60% agree that experiencing nature (away from

urban areas) is usually an important part of their leisure

travel. Only 22% prefer visiting large cities to more

nature-oriented travel experiences, half the rate of

Millennials. When selling to this group, showing your

destination as an authentic one close to the natural world

is likely to appeal.

Your travel-related content is probably not reaching

many older travelers via mobile devices. 84% of

Millennials use their mobile phones to plan their trips,

only 33% of Baby Boomers do so. Be sure not to let

your mobile-only strategy lead you to neglect your

traditional web presence and diminish your ability to

influence Baby Boomers.

While social media marketing can be an abundant ROI

generator for DMOs, reaching the Boomer audience can be a

challenge. 70% of Millennials report having used social media

to plan their travels in the past year, but only 31% of Baby

Boomers have done so. If you’re looking to influence older

travelers, it would be wise to use the more traditional channel

of Facebook, over other less used ones.

Be careful with mobile only strategies

Focus on mature social media channels

Baby Boomers have money, but they are still careful

consumers. They control over 70% of the nation’s

disposable income, and they’re set to inherit $13 trillion

over the next 20 years. While they have far less interest in

sticking to tight travel budgets, 81% say getting the lowest

possible prices while traveling is important to them.

Providing this generation with value is critical, despite their

current reign over the nation’s travel purse strings.

Deliver value

73

.7%

8.9

%

16.1

%

3.0

%

1.0

%

Facebook Twitter Instagram Snapchat Periscope

3.2

MARKETING TO BABY BOOMERS

81%of Baby Boomers say lowest

price is very imporatant

60%agree experiencing nature

is an important part of

their leisure travels

33%of Baby Boomers use

mobile devices to plan trips

08

Page 10: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Younger Travelers: Heavy Content Consumers + Still Driving Tech Adoption

Any Social Media

(for travel planning)

Any Print Resource

(for travel planning)

Any DMO resource

(for travel planning)51.2% 46.3% 42.1%

68.8% 56.3% 31.4%

49.8% 46.5% 47.2%

4

TWO INTERESTING GENERATIONAL findings emerged

from this year’s study. First, it’s clear that Millennials

are the heaviest content consumers, using more types

and more variety of travel planning content than their

older counterparts. Second, Millennials are driving the

adoption of new technology in travel planning, with

little change being seen in how older travelers plan. For

example, in the past 12 months, no change has been seen

in how Baby Boomers plan their leisure travels. Adoption

of new technology by older travelers has not budged,

leaving newer methods of collecting travel information

(mobile devices, social media, etc.) still largely the realm

of the Millennial. The infographic below tells the story,

with younger travelers driving the resource adoption and

growth in resource usage overall.

Millennials Generation X Baby Boomers

09

The use of travel resources by different generations in the last12 months

Page 11: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Adoption of new technology by older

travelers has not budged, leaving newer

methods of collecting travel information

still largely the realm of the Millennial.

Millennials

KEY:

Generation X

Baby Boomers

10

U

sed

Faceb

ook

Used Twitter

Used Instagram R

ead a travel o

r life

styl

e

Rea

d a

new

spap

er

trave

l

U

sed

g

rou

p d

isco

unt

Use

d peer-t

o-peer

Used a mobile phone Used a DMO w

ebsite

Use

d a

DM

O

w

eb

site

l

odging

to plan travel

visito

r gu

ide

(for tra

vel p

lannin

g)

(for travel planning) (for travel planning)

magazine for t

rip p

la

nnin

g

s

ecti

on f

or

trip

pla

nn

ing

35.8%

18.2%

32.8%

46.5%

12.8%

40.5%

1.1%

2.3%

17.2%

26.3%

14.5% 13.5%

28.4%

21.3%

7.9%

19.3%

13.4%

25.6%

22.1%

34.5%

36.7%

30.0%

15.8%

9.8%

13.9%

6.7%

20.7%

19.0%

Travel Resources usedin the last 12 months

61.2%

83.5%

Page 12: The State of the American Traveler TM · 2016-08-15 · THE STATE OF THE AMERICAN TRAVELER SURVEY is conducted quarterly by Destination Analysts, Inc, a San Francisco-based tourism

Thank You [email protected]

@DA_Research.

SPONSORED BY

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