Millennials responding to a just completed TripAdvisor survey spend almost three times less on a place to stay than baby boomers, but are just as willing to pay a little more for luxury. This was one of the key findings of TripAdvisor’s TripBarometer study, which revealed a significant gap in spending habits between older and younger generations, as well as showing how travelers choose destinations and accommodation.
Conducted by independent research firm Ipsos MORI in partnership with TripAdvisor, the TripBarometer survey analyzed more than 23,000 responses from TripAdvisor travelers around the world including 1,808 from the UK. They were asked about their most recent trip, including their destination, budget, activities and concerns while travelling.
Other key findings from the survey included the following:
—Millennials spend almost three times less on accommodation than baby boomers but are just as willing to pay a little more for luxury.
—Over half of travelers choose to stay in a hotel versus 7 percent for accommodation arranged through home sharing websites.
—Asian travelers are most interested in hotel brands they trust, while UK travelers least interested in brands.
—On average, travelers spend more on cruises than safaris.
“These results show that exploring new cultures is more of a factor than weather when choosing a destination, with UK travelers eager to expand their horizons and experience something new instead of just going somewhere warm,”
Said Sally Davey, global director of industry relations, TripAdvisor: “This year’s TripBarometer reveals key trends that show the evolving travel landscape in 2019, from travelers’ sources of inspiration when choosing destinations and hotels, to the amount they’re likely to spend while away.”
- The Generation Gap
—Survey results showed the divide in spending habits between generations, with participating baby boomers spending almost three times as much on accommodation ($1,140) when compared to their children’s generation. —Millennials have the smallest accommodation budget by a significant margin, spending an average of just $500 on accommodation on their most recent trip.
However, while younger travelers are more cautious with their finances, they are just as willing as their parents’ generation to pay a little more for luxury, with 54 percent of millennials and 56 percent of baby boomers prepared to pay a little more for a luxury trip.
—The 25-34 age group is also more likely to be attracted to a great deal, with 16 percent being prompted to think about their trip because of a bargain – however, this declines with age; 65+ age group are less tempted by a deal (9 percent).
—Globally, younger travelers are less fixed on a destination when they start thinking about a trip, with 46 percent of participating 18-24-year-olds having decided on their destination before starting their research. For the 65+ age group, this is a lot higher; 70 percent have already decided where to go.
—Millennials are more likely to book attractions than older travelers, with almost half (49 percent) pre-booking things to do before embarking on their trip.
—Baby boomers are far less likely to book in advance with just over one third (35 percent) pre-booking attractions.
—However, across all respondents, the majority (57 percent) do not take advantage of bookable experiences, potentially meaning longer time spent queuing for tickets and entry while on holiday.
- Choosing a Destination
—When it comes to choosing a destination, culture is more of a factor than weather for participating travelers from the UK. One third (33 percent) choose their destination to experience the culture, society and people, compared to a quarter (25 percent) of travelers who are seeking good weather.
City breaks are the most popular type of trip, with 42 percent of Millennials taking a city break. Millennials are also far more likely to conduct thorough research to find the right accommodation and flight combination to make their city break a more economical trip, and to stay within their limited budget.
- Finding a Place to Stay
—When it comes to accommodation, global travelers remain fairly traditional, with 53 percent of survey participants choosing to stay in a hotel for their most recent trip, with 10 percent in a resort, 8 percent in a holiday rental or apartment and 7 percent for accommodation arranged through home sharing websites.
—When selecting hotels, UK travelers are the least interested in hotel brands (22 percent), while Asian travelers, particularly those from China, value hotel brands much more, with 82 percent of Chinese travelers reporting that it is important to stay in a hotel with a brand name they know and trust.
—Families are also more likely to prefer a hotel with a brand they trust (44 percent) compared to other traveler groups.
—Surprisingly, cruises came out as the most expensive type of holiday from global respondents, at an average cost of $4,000+ per person, even more than safaris $3,400, which might traditionally be seen as one of the most expensive types of trip.
—Some of the cheapest trips were taken by travelers visiting family or friends ($2,030).