travel tech insights

In today’s market, travel and tourism have become less expensive and more accessible for greater percentages of the population than ever before. The internet - through the proliferation of online travel agencies, discount travel websites, travel review websites, and social media - has created a space where those with strict financial constraints can still experience the world without breaking the bank. Often referred to as the budget traveler, this sect of the travel and tourism market is still a sizable portion of the traveling public, and one the travel industry would be foolish to write off even as global travel grows more and more attainable and commonplace.

But who is the budget traveler? What does this breed of tourist look like?

If travel companies would be ill-advised to ignore budget travelers, then it only make sense the industry understand the needs, wants, and desires of this customer pool to best position products and services of greatest appeal and importance.

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.

Based on the frequency of articles focused on millennials over the past two years it’s apparent the travel industry views them as an important demographic. That’s not surprising, the Baby Boomer generation is retiring – perhaps gaining more time for travel but likely with less disposable income to pay for it. Millennials, on the other hand, are entering the workforce and starting to climb the income ladder.  As was the case with the Boomers, these Millennials might have limited travel budgets at the moment, but they’re likely to transform into a lucrative age group for travel agencies over the next ten years.