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On the Trail of the American Traveler

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2 On the Trail of the American Traveler
According to What’s Changing the Way You Travel Today?, a report from the CMO Council and GeoBranding Center, 46% of travelers trust online travel aggregators (Expedia, etc.) to assist and satisfy them; 32% rely on a travel agent. The same report found leisure travelers travel less because their lives are filled with too many distractions and obligations, they don’t like the crowds or discomforts of travel, they lack the time to book and they are concerned about the dangers of travel. Of those surveyed, 43% said special interests and hobbies were their top travel choice influencers; followed by the security, stability and friendliness of the destination, 36%; adventure, recreation or sports, 30%; and local culture and history, 29%.

3 More Boomers Are Exchanging Deck Chairs for Adventure
As the global and US populations continue to age, more travel companies are expanding their offerings for Baby Boomers from predominately cruises and short-haul coach touring to “epic adventures, worldwide tours and luxury cruises.” According to AARP’s 2019 Boomer Travel Trends report, the average Boomer is expected to take 4 to 5 leisure trips during 2019, and spend more than $6,000, with 47% planning domestic travel only; 6%, international only; and 48%, both. The increasing adventurous spirit among Boomer travelers is reflected in the AARP report, as 53% of international travelers want to eat a meal with locals, 50% want to tour with locals and 22% want to stay with locals.

4 It’s Family-Travel Time for Millennials
Depending on the source, the oldest Millennials have reached 37 to 40 years of age, which means more of them are traveling as a family, as reflected in a recent Expedia Group report, where 73% of Millennials said “every vacation is family-oriented.” A recent Claritas report described two Millennial traveler segments: Connected Bohemians – typically younger, mostly without kids and planning a vacation abroad –and New Homesteaders – middle- aged, have children and more likely to visit Orlando. Not surprisingly, New Homesteaders prefer US travel (+6%), are influenced by discounts (+6%) and prefer short vacations (+11%) while these don’t attract Connected Bohemians, at -22%, -42% and - 11%, respectively.

5 Gen Xers Like to Travel by Car and Stay at Resorts
The same recent Expedia Group report cited in slide #4 found relaxation, at 51%, and sightseeing, at 48%, were the most-popular types of vacations for Generation X, who are now 37 to 55 years of age. Of the four primary generational groups in the report, Generation X members traveled by car more than the others, at 43%, compared to Millennials, 35%, and Baby Boomers, 38%. Generation X members were also more likely to stay at resorts, at 17%, followed closely by Millennials, at 16%. 68% of Gen Xers preferred to stay in hotels, just a percentage point behind Millennials, at 69%.

6 Generation Z Is Already Influencing the Travel Industry
As they reach adulthood, Generation Z, whose birth years are generally accepted as 1996–2010, are becoming travelers too. According to a 2018 Expedia Group report of Gen Z members in 11 countries, 59% are more likely to travel domestically. Much as other generations, Gen Zers rank relaxation, 54%; sightseeing, 44%; and visiting family, 42%, as their favorite reasons to travel. Not surprisingly, Gen Zers are in search of fun during their vacations, much the same as Millennials: special events, 26% and 25%; activity-based vacation, 20% and 20%; and partying, 21% and 18%, respectively.

7 Luxury and Wellness Is a Potent Travel Combination
According to MMGY Global’s Portrait of American Travelers survey, wellness travelers are 10% of all US travelers, with an average age of 47; however, 34% are Millennials, 34% are Gen X members and the other third are Boomers and Matures. Although luxury wellness travelers say they will take 15% fewer vacations during 2019, they expect to spend 8% more, primarily because 49% are planning to travel to international destinations, with Canada, Italy and France at the top of their list. Luxury wellness travelers are more likely to book last- minute vacations, at 43%, compared to 26% of all travelers. They also consider themselves outdoor adventurers, 44%; foodies, 43%; and beach bums, 40%.

8 Advertising Strategies
Travel service providers can distinguish their brands by matching travel and touring opportunities with various special interests and hobbies of travel consumers. Although more Boomers are attracted to travel destinations in the South and West, Midwest states and travel service providers there can increase interest in their region by highlighting resorts, activities and attractions unique to the middle of the country. Travel service providers may be able to grab a larger share of the luxury/wellness travel market by emphasizing their knowledge of high-end wellness locations as well as their ability to help this special segment of travelers with last-minute bookings.

9 New Media Strategies With more Boomers replacing cruises with “living-like- locals” adventures, travel service providers have a whole new palette of social media content to market this type of travel to older adults. Since Gen Xers are more likely to travel by car, travel service providers can enhance their exposure with social media posts that feature car-travel tips; links to sites, such as GasBuddy; and unusual and unique attractions on America’s byways and back roads. Now is the time for travel service providers to start connecting with Gen Zers on social media with deals and featuring locations with special events, activity- based vacations and that welcome young partyers.

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