Phocuswright: Private accommodation providers should target millennials that now have families 

As the ever important millennial age group continues to reach a certain level of maturity, some researchers are focusing on how their travel behaviour will change as they begin to start families.


Summary:

  • There have been many reports of millennial travel trends, but interesting new research has focused on how their travel behaviour will change as they begin to start families;
  • The Phocuswright insight looks at the state of US family travel, including a comparison of family related travel attitudes and activity across generations.
  • Family trips are an important piece to the travel industry due to the complexity of trips and the relative higher spend they create.

Phocuswright has recently conducted research on the state of US family travel, including a comparison of family related travel attitudes and activity across generations as part of its US Consumer Travel 2018 series. While focused on the US market, the findings offer some interesting insights that can be adapted across the world.

The global travel research company explained that family trips are an important piece to the travel industry due to the complexity of trips and the relative higher spend they create.  “This complexity makes travellers typically book earlier and spend more time researching,” said Phocuswright.

During 2017, one third of US travellers took at least one trip as a family with children under 18 years old, Phocuswright concluded. If families drive to their destinations, they can save on airfare and are more likely to take a longer trip and spend more money on accommodation and in-destination activities, the company concluded.

A larger family travel party is more likely to choose private accommodations, Phocuswright concluded. “This makes families, and millennial families especially (whether as parents or part of a travelling family), a highly attractive demographic for companies in private accommodations and tours and activities”, the company stated.

The family travel market is poised for significant growth according to a new study from the Family Travel Association (FTA). Based on a survey whose participants include key travel industry players ranging from travel agents to tour operators and hotels to tourist boards, the study reveals that this segment is set to continue to grow.

FTA,  a coalition of the leading family travel suppliers, resources and industry experts, says its 2018 US Family Travel Survey shows that the number one motivation for parents to invest in holidays is to allow children to “discover new places and have new experiences” ahead of “spending quality time travelling together as a family”.

The survey also shows that while nearly three out of five American families say they are very likely going to take a vacation in the next two years, about one out of five households will find it a challenge to afford and prioritise travel the next 24 months. It also notes how shorter vacations are becoming more popular for families and how one in five families have used a travel agent in the last three years.

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