May 7, 2015
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Eighty percent of affluent consumers across generations are planning to take a trip for pleasure in the next 12 months, according to a report by the Shullman Research Center.
Sixty-nine percent of affluent respondents said that they plan to travel domestically, while 27 percent said they had international travel plans. For brands in the travel space, the ability to swoop in and guide undecided consumers presents a large opportunity.
"Big picture, Boomers appear to be traveling more so in North America compared to the millennials who are more adventurous in their youth and in their travels to Hawaii, Europe, etc.," said Bob Shullman, founder/CEO of the Shullman Research Center, New York.
Shullman Research Center's "Pulse" reports derive data from interviews conducted in August 2014 among adults age 18 or older across generational and demographic lines.
Packing bags
Gen-X travelers were most likely to know where they wanted to travel, at 65 percent. Forty-two percent of millennials had a specific destination in mind and 55 percent of boomers also had plans established.
The preferred destination for Gen-X respondents was Florida, followed by California. Millennials favored Hawaii and Boomers preferred Nevada.
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Twenty-seven percent of respondents reported that they were most likely to stay with their family or relatives wherever they were traveling. This was the most common choice, followed by a standard hotel or motel, a four- or five- star hotel or resort and a rented villa or home.
The average intended days traveled for domestic trips was 7.6 among millennials, 6.5 among Gen-X respondents and 9.8 among boomers.
Thirteen percent of travelers expected their domestic trip to cost more than $5,000.
Expected international trips skewed longer. Millennials reported an expected 9.4 days, Gen-Xers 18.7 days and boomers 14.3.
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Twenty-eight percent of travelers expected their international trip to cost more than $10,000.
Ultimately, the survey indicates that many travelers across generations and wealth brackets can be swayed. Location, price and duration are all open-ended.
Travel brands should reach out to consumers in their preferred modes and seek to guide them throughout the research process.
Shaking it up
The Shullman Research Center regularly tries to depict the luxury market in unusual angles.
For instance, luxury marketers disregard the broader marketplace at their own peril, according to Mr. Shullman at the Luxury Insights Summit 2015 April 29.
During his session, Mr. Shullman warned luxury marketers against focusing exclusively on the ultra-affluent. Indeed, an enormous amount of sales come from mass market consumers who are rarely marketed to (see story).
With all six of its indexed brands netting top 10 rankings in L2′s 2014 hotels report, Starwood Hotels and Resorts demonstrates that portfolios can evenly employ digital innovations across brands.
The report depicts the increasingly complex digital landscape that hotel brands must navigate and argues that digital proficiency is a major differentiating factor. As travel firms, search engines and marketplaces pursue larger shares of the travel market, hotels will be pressed to keep guests from defecting (see story).
"The implication for marketers is one really needs to know which generation or generations travel to the site or sites being marketed by the brand as one approach does not necessarily appeal to all generations," Mr. Shullman said.
Final Take
Joe McCarthy, staff reporter on Luxury Daily, New York
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