Millennials today travel more than ever before, with their annual spending on holidays surpassing that of Generation Xers, a study conducted by travel and hospitality consultancy firm MMGY Global has found.
Millennials are the demographic cohort that follows Generation X, with their birth date generally placed between the early 1980s and early 2000s. According to the study, the younger demographic plan more overnight trips, with one in every four saying that they will travel more for leisure this year compared to 2013. However, as 14% of Millennials intend to take fewer trips, the net positive difference amounts to 10%.
MMGY's poll among consumers aged 18 to 35 (that is to say, Millennials) found that they are likely to spend more on travel services than any other demographic over the next year. According to the report the amount will rise by $887 on average, or from $4,499 in 2013 to $5,386 in 2014.
When it comes to Generation X, or those born between the 1960s and the early 1980s, they intend to increase their travel spending this year by $666. This puts Generation Xers at number two, with spending of $5,007 as opposed to $4,341 last year.
About 60% of Millennials say that they prefer spending their money on experiences rather than on material possessions, MMGY Global vice president Steve Cohen commented. This may be one of the reasons for the surge in their leisure travel intentions for the 12 months ahead, he added.
While this is positive news for travel service and destination marketers, it is also likely to present them with certain challenges, Cohen went on to note. This has to do with the fact that Millennials differ significantly from older generations in their planning, booking, sharing and researching behaviours, Cohen explained.
For example, research published by Expedia last year highlighted the importance of having a mobile-friendly site after finding that these digital natives are more likely than other travellers to make last-minute changes to their travel plans via mobile device.
The MMGY Global survey included "staycations" within 50 miles of a person's home as travel.
The poll was conducted among 2,550 US active leisure travellers with an annual income of at least $50,000. The participants were people who had taken at least one holiday over the previous year that was 75 miles or more from their home and booked accommodation overnight for their travel.
Statistical weighting was used to balance the sample so as to guarantee that the data represented all US active leisure travellers fitting the target profile, the report noted.