Millennials Seek Authentic And Shareable Luxury travel experiences
Millennials seek authentic and shareable luxury travel experiences
Index
- Authentic luxury travel experience attracts wealthy millennial travelers
- Instagram-friendly destinations see a rise in affluent millennial visitors
- A generational shift in sophisticated travel aspirations
- Luxury hospitality marketing is embracing the aspirations of millennials
Millennials are reshaping the luxury travel industry. Wealth is no more tied to physicality than what you own. Instead, a new status symbol can be found in the wealth of experience you live. 72 percent of Millennials actually prefer to spend their money on experiences rather than material objects. [1] With 23% of Millennials more likely to travel than their older counterparts, the travel and hospitality industry is expected to benefit from $1.4 trillion spent annually by wealthy young travelers by 2021-2022. [two]
But not everyone in the industry will benefit equally from this increase in spending. Many luxury hotels and airlines in particular face strategic challenges due to the long-term and capital-intensive nature of their business. Long development cycles force companies to make critical investment decisions today if they want to remain relevant in 10 years.
Generation Y is 23% more interested in exploring the world than previous generations and represents 20% of all international tourists.Boston Consulting Group
As a result, luxury hotels and high-end travel companies are revising their marketing strategy to appeal to wealthy millennial consumers and offer experiences that go beyond a plane ticket or a hotel room.
Marketing luxury travel and hospitality to baby boomers used to be all about glowing images of Generation X couples sipping cocktails by the pool. This narrative doesn't work with the younger generations. Brands now need new visions if they are to pique the interest of affluent millennial travelers. The generation raised on individualism, independence and Instagram seeks authenticity and sharing above all else.
Authentic luxury travel experience attracts wealthy millennial travelers
The wealthy millennials who plan luxury vacations are increasingly inspired by stories of authenticity and veracity. They want to experience the history and traditions of the country they visit. Environmental sustainability and social responsibility also play an important role in providing a sense of authenticity that appeals to younger, affluent travellers.
High-end travel companies like Scott Dunn see their sales of luxury travel experiences grow exponentially as millennials replace baby boomers as their primary clientele. Younger travelers are more interested in experiencing a digital detox retreat in Bhutan, for example, than sitting on the beach at a hotel in Thailand. Offering an experience rooted in something real and unique is a critical selling point for this generation. These are elements that contribute to the creation of an authentic experience that can be talked about, photographed and shared on social media.
Instagram-friendly destinations see a rise in affluent millennial visitors
Social media, and Instagram in particular, has provided a significant increase in hospitality spending for countries that have been able to leverage influencer marketing and seamless experiences. Iceland, Jordan and New Zealand are some of the new destinations that have been able to capitalize on Millennials' yearning for beautiful and original travel experiences.
Take the small alpine town of Wanaka, New Zealand, for example. In 2015, its tourism board organized an influencer marketing campaign. They received popular Instagram influencers who, in return, shared their stories on social media. The result was the fastest growth in tourism in the country, with an increase of 14 percent year on year.
Online influencers who visually share their journeys have led to a new wave of aspirational living. Millennials not only crave local culture and authentic adventures to tick off their bucket list items, but also because it makes a great shareable story for the online world.
A generational shift in sophisticated travel aspirations
It's not just the way we communicate and share that has changed, but also the values and work ethic. Unlike their predecessors, Millennials are less tied to work and family benchmarks. With remote offices on the rise, family duties arriving much later in life, and the nomadic lifestyle paving the way - wealthy millennials seem eager to enjoy that sense of freedom.
Travel has taken a different turn rather than being tourists - Millennials want to be pioneers. More than half of affluent millennial travelers believe that traveling is about discovery and adventure, and 70 percent want to learn from the cultures they visit. [3] Instead of spending days on loungers at five-star resorts, Millennials are more likely to want to stay at a Berber camp in Morocco, take cooking classes in Umbria or try a helicopter ride in New York. These experiences will not only result in amazing, Instagram-worthy photos, but also provide a deeper cultural connection and a strong sense of place.
Luxury hospitality marketing is embracing the aspirations of millennials
The good news for high-end brands is that everyone has a chance to put authenticity at the forefront when it comes to millennial luxury travel marketing.
Boutique brands are already at the forefront of this current trend as long as they have the insights to capitalize on it. A good example of this is 21c Museum Hotels, a chain of boutiques that chooses historic buildings, adds a local art gallery and adapts each experience to reflect the destination, including offering farm-to-table restaurants from local vendors.
Authentic and original experiences can come in many shapes and sizes. Providing handcrafted soap handcrafted by the hotel's local community to invite guests to experience boat trips with neighboring fishermen, ideas abound to provide genuine and original experiences.
Authenticity comes from the desire to offer a sincere experience. These connections can untangle brands from your stereotypical competitors and will pave the way for future millennial luxury travel trends.
- Millennials Fueling the Experience Economy , by Harris Poll for Eventbrite, July 1, 2014.
- Millennials want the unique instead of the usual from travel brands , Hospitality Net, September 10, 2015.
- What Brands Need to Know About Connecting with Today 's Globetrotting Millennials , by Jeff Fromm, Forbes, June 2021-2022.