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WHY MILLENNIALS AS DIGITAL TRAVELERS TRANSFORMED MARKETING STRATEGY IN TOURISM INDUSTRY

Citation: Starcevic, Sladjana. and Konjikusic, Snezana. (2018). Why millennials as digital travelers transformed marketing strategy in tourism industry. In: International thematic proceedings/monograph Tourism in funcion of development of the Republic of Serbia - Tourism in Era of digital transformation, Univerzitet u Kragujevcu, Fakultet za hotelijerstvo i menadžment, pp. 221-240.

As digital natives, millennials have led to significant shifts in the
marketing approach of organizations in the tourism industry. The aim of the paper is to analyze how digital technologies have influenced the travel behavior of millennials and to create their profile, in order to help marketing managers in tourism to create effective marketing strategy. Meta-analysis approach has been used, taking different published studies into account, focused on tourism and marketing concepts in the era of information technology. The analysis showed that millennials have a high level of technological proficiency, they are price sensitive, not
predictable, do not respond to traditional marketing, use social mediaand digital influencers as a source of information for travel decisions, prefer mobile applications for travelers, are equipped with many digital devices while traveling and choose destinations that offer them experience that can be shared on social networks instantly.
Key Words: millennials, digital technologies, tourism, travel, travel behavior
JEL classification: M31, M37

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WHY MILLENNIALS AS DIGITAL TRAVELERS TRANSFORMED MARKETING STRATEGY IN TOURISM INDUSTRY

  1. 1. 221 WHY MILLENIALS AS DIGITAL TRAVELERS TRANSFORMED MARKETING STRATEGY IN TOURISM INDUSTRY SlaĊana Starĉević1 ;Sneţana Konjikušić2 ; Abstract As digital natives, millennials have led to significant shifts in the marketing approach of organizations in the tourism industry. The aim of the paper is to analyze how digital technologies have influenced the travel behavior of millennials and to create their profile, in order to help marketing managers in tourism to create effective marketing strategy. Meta-analysis approach has been used, taking different published studies into account, focused on tourism and marketing concepts in the era of information technology. The analysis showed that millennials have a high level of technological proficiency, they are price sensitive, not predictable, do not respond to traditional marketing, use social media and digital influencers as a source of information for travel decisions, prefer mobile applications for travelers, are equipped with many digital devices while traveling and choose destinations that offer them experience that can be shared on social networks instantly. Key Words: millennials, digital technologies, tourism, travel, travel behavior JEL classification: M31, M37 Introduction In the last several decades, the tourism sector recorded a constant growth, regardless of intermittent turbulences, which turned it into one of the greatest and fastest growing economic sectors in the world. According to the World Tourism Organization report (2017), tourist services make 6.6% in total global export, and 30% in global export of all services. For many countries, tourism is the foundation of economy development 1 SlaĊana Starĉević, Ph.D., Assistant Professor, FEFA Faculty, Bulevar Zorana ĐinĊića 44, Belgrade, +381 60 0567 355, sstarcevic@fefa.edu.rs 2 Sneţana Konjikušić, Ph.D., Associate Professor, FEFA Faculty, Bulevar Zorana ĐinĊića 44, Belgrade, +381 064 297 7300, skonjikusic@fefa.edu.rs
  2. 2. 222 (Popescu et al., 2015). In time, there has been a significant diversification in tourism sector, as well as significant alterations in travel behavior of consumers due to the shift of generations which are the key consumers in tourism. According to Veiga et al. (2017), millennials or the generation Y have caused the greatest disruption so far in the functioning of tourism sector in the world. They are not just ―one new generation in tourism,‖ but consumers with completely different behavior and motivation compared to previous generations, which are particularly caused by their maturation accompanied by digital technologies (Moscardo & Beckendorff, 2007). Marketers in numerous industries, not just tourism, were for a long time unaware of the fact that traditional marketing techniques no longer suffice for this generation. That is one of the reasons why millennials have still not been studied enough compared to the older generations, their travel behavior in particular. Studies so far have mostly dealt with demographics, motivation, attitudes and millennials‘ behavior in general, while scarce number of studies dealt with their travel behavior and the adaptations of marketing strategies to their behavior (Bochert et al., 2017; Garikapati et al., 2016; Hamed, 2017; Nielsen Research, 2017; Ruspini, 2016; Veiga et. al, 2017). At the same time, while these studies are relatively fresh, the topic has held research merit for quite some time. Since there has been no research on the travel behavior of millennials in our domestic scientific discourse, the aim of this paper is to analyze the profile and the behavior of millennials as travelers (where and why they travel, how they plan their travels and what they expect from them, etc.), with special attention to the influence of digital technologies on their behavior and, consequentially, their reflection on the adjustment of marketing approach to millennials as travelers. Who are millennials and what are their characteristics Millennials are one of the most numerous generations in history, outnumbering even the generation of Baby Boomers (Scotlands National Tourism Organization, 2017). At the moment, they form almost one third of the world‘s population (Hamed, 2017), are the greatest working generation ever (Bochert et al., 2017), and one of the most influential generations when it comes to consumer power (Schiopu et al., 2016). Generation Y follows Generation X, but there is no precise line where one ends and the other starts. That is so because the Generation Y beginning was not defined by any significant event, as was the case with previous generations (Second World War, the Great Depression, Woman‘s liberation etc.) (Nielsen Norman Group, 2016). The most used birth limit
  3. 3. 223 defines the generation as born anywhere between 1981/82 and 1996/97 (MDG Advertising, 2015). The commencement of this generation was mostly marked by the development of digital technologies and the expansion in their global use. Millennials are also known as the GenNext, netGeneration, GenMe, Google generation, and Digital generation (Schiopu et al., 2016), which clearly indicates that this generation is highly connected to digital technologies. Hence, millennials are most often identified as ―digital natives,‖ which is a term referring to people who grew up with digital technologies and are familiar with computers, the Internet and mobile devices from their early age. Prensky (2001b) believes that one of the most radical consequences of growing up in such environment is a fact that ―digital natives‖ learn, think and process information completely differently than their predecessors. Such standpoint is in line with the ―theory of neuroplasticity,‖ which defines human brain as flexible and prone to environment-induced adjustments. That is why Prensky (2001a) defines digital natives as ―native speakers of the digital language of computers, video games and the Internet‖ (p. 1). Numerous authors agree with this theory, while numerous authors question it at the same time, as there are no clear evidence that ―digital natives‖ differ in their thinking or cognitive abilities from other generations, particularly not from the ―digital immigrant‖ born slightly before them (Helsper & Eynon, 2010). Even though it is evident that millennials process information quickly and are more prone to multitasking (caused by digital devices), it is a misconception that they outperform other generations in multitasking because ―multitasking ability‖ does not necessarily imply ―multitasking proficiency‖ as an individual‘s ability to simultaneously and efficiently process information from several sources (Nielsen Norman Group, 2017). Although the terms are most often equalled, not all millennials are ―digital natives,‖ especially not those who grew up in poverty. Simultaneously, the emerging ―generation Z‖ are also ―digital natives‖ (Nielsen Norman Group, 2016). At the same time, not the entire millennial generation should be seen as a completely homogeneous segment of consumers with a unique set of attitudes and values. Since the generation includes an almost 20-year-long time span, life cycles of individuals vary, as well as their career, income, etc. Older millennials were growing up at the time of the introduction of personal computers, while the younger ones grew up with digital technologies, smart devices and social networks (Scotlands National Tourism Organization, 2017). Regardless of the differences in millennials subgroups, some traits typical
  4. 4. 224 of millennials as a group in general have been defined based on numerous international studies. Those are the following: they easily understand digital technologies and are ―connected‖ at all times (Hamed, 2017); they are used to simultaneously using several digital devices; they are prone to multitasking; their attention span is relatively short; they are highly friendly and less physically active than previous generations; they are team players; are greatly influenced by trends and their peers; they like to display their skills and be valued for what they are; they are very much informed and educated, thus self-empowered (Bochert et al., 2017; Nielsen Research, 2017); they are even called the ―hero generation‖ because they believe they can make the future better (Ruspini & Melotti, 2016); they postpone the life milestones (such as marriage and having children) (Bochart et al., 2017); they are not as material as previous generations (owning properties, cars, etc.); they prefer spending money on interesting experiences such as traveling and leisure (Garikapati, 2016); they are price-sensitive and consider themselves to be smart consumers thus they expect value for their money (O‘Connel, 2015); they are highly tolerant to change and believe in seizing the day; they are interested in sustainable development, and, in general, are considered disloyal consumers with highly unpredictable purchasing habits – especially the younger millennials (Bochert et al., 2017). It is believed that the millennials generation is to redefine every aspect of demographic, social, political, economic and technological environment (Garikapati et al., 2016). Growing up in the period of swift change has made their priorities and expectations much different from all previous generations (Goldman Sachs Report, 2016). There is no doubt that in the next few years millennials would become the key consumers in travel industry, due to their high interest in traveling, especially abroad, much more than the older generations, and because they start traveling at an earlier age than before (Gardiner et al., 2014). All millennial generations are characterized by a positive attitude towards spending on traveling rather than on material goods (FutureCast, 2016). It is expected that, by 2020, travel expenses of millennials will reach more than 50% of all travel expenses on the global scale (Hamed, 2017). Not only did the number of journeys grow, but their diversity as well, due to greater availability of traveling to millennials from underdeveloped countries too. An average number of overnight stays of this generation on a global scale is constantly growing (Schiopu et al., 2016). Millennials can no longer be seen as impulsive young consumers, because they are one of the most informed groups of travelers ever (FutureCast, 2016).
  5. 5. 225 They have completely modified how traveling and tourism function in general, pushing companies in the tourist market towards adjusting their products, business processes and marketing strategies to the unique needs of this significant segment of consumers (Barton, C. et al., 2013). Why millennials travel and what they expect from traveling Numerous international studies have shown various rationale behind the millennials travels: gaining experience, learning about different cultures and peoples, language learning, employment or studying, family or friends‘ visits, or for more specific events such as celebrations, concerts, etc. (Schiopu et al., 2016). It could even be said that millennials assign special value to gaining ―new and unusual experiences‖ during their travels, regardless of the type of travel. Numerous studies have also confirmed the belief that millennials lack interest in traditional, summer or winter travel arrangements (the sun, the sand, the sea, the snow idyll, etc.), unlike their parents. They thrive for much more, because they perceive themselves not as tourists but as explorers (FutureCast, 2016). They prefer city breaks (weekend tourism), for even ―a day or night,‖ to attend an event. On the other hand, they are prone to longer travels, lasting up to two months, with visiting numerous locations (MDG Advertising, 2015). Although millennials are the most international traveling generation ever, it does not always imply long-distance journeys, as they can have new experiences nearby. They are also prone to visiting ―non-tourist‖ urban and rural locations, which could become a part of other millennials‘ travel itinerary due to sharing on social networks. Unlike previous generations, millennials consider traveling their right rather than luxury. Millennials share the desire to visit authentic culture locations with the generation X, yet they define destination authenticity differently. For millennials, it is the possibility to ―blend in‖ with the local population, to find the hidden places, see something genuine, etc. (Future Foundation, 2016). They want unique, interactive experiences and destinations with personality (Hamed, 2017). The concept of destination personality, defined as destination branding by the usage of personal traits and characteristics typical of humans, has been out and about in marketing from long ago, because it was demonstrated that travelers establish much stronger connection with tourist destinations when it is humanized and with a soul (Starĉević, Marinković, & Majdarević, 2017). Cities such as Barcelona, San Francisco, Ottawa, Seattle and Manhattan in New York
  6. 6. 226 are implementing the tourist policy directed at millennials consisting of city personality in accordance with the millennials aspirations. These cities were turned into ―smart cities‖ and a friendly tourist environment, opening a new field of international competition (Ruspini & Melotti, 2016). Millennials are inborn explorers, so they want to learn in their travels. To satisfy this craving in millennials, some tourist agencies have started offering ―edutainment travel packages‖ as a mixture of education and entertainment (Bochert et al., 2017). Millennials also appreciate the safety of a destination, more than the older generations. According to a research by Future Foundation (2016), their risk aversion is a wide notion even referring to bad weather. In fact, they expect a ―verified experience,‖ confirmed by a peer who has already visited a destination, so as to consider a destination safe. Millennials are interested in sustainable development, also much more than the previous generations. As tourists, they appreciate sustainable products and sustainable destinations (Bochert et al., 2017). They are also often referred to as ―cause activists,‖ because they perceive traveling as purposeful, contributing to a better life in the future. Millennials also favor ―volunteer tourism,‖ as traveling to volunteer in social communities in need (Veiga et al., 2017). That is why, since they are prone to participating in sustainability and environmental protection activities during their traveling, one of the possibilities for travel suppliers is to include such activities in their offers, as a segment which could contribute to their experience (Hamed, 2017). Having in mind their current career status and the fact that, as a generation, they have been immensely affected by the global economic crisis, millennials are price sensitive consumers. Their budget is limited and they expect to gain ―more for less‖ (Faat et al., 2017). They balance their budget, so one weekend they could stay at an expensive hotel, while the next they can afford a cheap hostel only (Nielsen Research, 2017). Numerous millennials are ―travel hackers,‖ which means they know the best websites and methods to get travel deals (FutureCast, 2016). They look for low-cost flights and peer-to-peer accommodation (Nielsen Research, 2017). Although price sensitive, millennials often keep their pocket money for some ―luxury‖ in their travels, such as perfumes, watches, jewelry, etc. At the same time, what matters for them is that what they buy belongs to some special local collection (Nielsen Research, 2017).
  7. 7. 227 The concept of sharing economy is very popular with millennials, because it implies receiving high value for money (Scotland National Tourism Organization, 2017). Airbnb has recorded the highest growth thanks to millennials by being adjusted to their need of finding adventures and something ―more local,‖ with personality. According to the Airbnb Citizen report (2016), millennials prefer ―cool‖ accommodation closer to locals; they strive for active, explorative vacations, tasting local food and meeting a lot of people; they appreciate local experience more than souvenirs; they favor hidden places over top tourist sights; home sharing is gaining importance; and they want their own order of things and travel control rather than pre-arranged schedule (Airbnb Citizen, 2016). Sharing economy concept has expanded to transportation sector too. According to Garikapati (2016), millennials, more than ever, rely on on-demand transportation, such as Uber or Lyft, helping them to significantly decrease their travel expenses. Kwoka-Coleman (2017) claim that these services in countries such as the USA jeopardize public transport agencies and taxi services. It is also believed that millennials are to bring about transformational change in transport sector, because they gladly accept technology-based and alternative transportation means, which could have impact on the decrease of car ownership (Garikapati, 2016). Millennials have also caused significant change in the hospitality industry. In general, they are not prone to paying for accommodation as much as their parents did, thus increasing the popularity of hostels, apartments and camps (Scotland National Tourism Organization, 2017). Even after the emergence of disruptive brands such as Airbnb, there is still room on the market for traditional accommodation, as long as it is adjusted to this target group. Guided by the millennials preferences, ―poshtels‖ gained popularity around the world, as a mixture of style and comfort provided by luxurious hotels, yet at affordable rates (Schmalbruch, 2015). The chain of luxury Mariott hotels developed its sub-brand of hostels, Mariott Moxy, by completely adjusting their design, food and drinks, to the local experience. Aloft hotel brand, within the Starwood Hotels chain, was also developed to attract millennials. Guests are given the possibility to check in, check out, and unlock their rooms, using their smartphones or Apple Watches. Botler mobile application provides guests with numerous services (FutureCast, 2016). Accommodation brands now must adjust themselves to millennials not only with prices and services, but with hotel design too. To exemplify, millennials do not spend time in their rooms, because they rather use lobby for leisure and work activities (Scotland National Tourism
  8. 8. 228 Organization, 2017). The choice of accommodation is primarily influenced by technology, prices, design, whereas free wifi access and digital technology communication are implied by default (Schiopu et al., 2016). It is quite clear that millennials have caused the transformation of the entire 7P marketing of tourist services. Who do millennials travel with and how they plan their travel One of the greatest misconceptions is that millennials are inferior in social skills and that they are losing them (Nielsen Norman Group, 2016). On the contrary, millennials are very friendly both online and offline, only they changed the means of direct communication, i.e. they communicate more online than face to face. Millennials, as great socialites, almost never travel alone, although this is also an option. They mostly travel with their friends or family, often even mingling with other destination visitors (Scotlands National Tourism Organization, 2017). They enjoy socializing with both locals and other tourists (Hamed, 2017). It is also typical of millennials to keep traveling with their non-relatives and friends even after they have already formed their own families (Future Foundation, 2016). On the one hand, it could be said that the process of travel planning is quite complex for millennials, because they rely on numerous information sources. Decision makers generally prefer having a great and vast knowledge at their disposal so as to be able to make the right decision (Konjikušić, 2013). On the other hand, millennials are prone to spontaneous traveling decided on ―immediately,‖ e.g. by chatting to their friends (Future Foundation, 2016). It is, hence, no surprise to learn that, from the marketing standpoint, this group is considered highly unpredictable. When they are deciding on traveling, millennials rely on opinions, information and recommendations of various social groups. They consult a wide span of their ―peers,‖ unlike the previous generations. Peers include both their ―close contacts‖ such as family and friends, and a ―wider group of contacts‖ on social networks. This generation expanded the notion of ―peers‖ on additional online groups, such as bloggers, reviewers, forum members, etc. (Future Foundation, 2016). It is a misconception that millennials no longer consult ―non-peers‖ groups, such as travel agents. There is a confirmation in the Future Foundation report (2016) that, for all generations together, travel agents are still the
  9. 9. 229 most consulted sources, although there are some shifts in the millennials segment. Millennials use numerous online information sources throughout their travel planning (Schiopu et al., 2016). When compared to other generations, they are most engaged in social media, where they find inspiration for traveling in most cases. They browse other users‘ content, such as photos on Facebook, Pinterest and Instagram, they exchange comments on Twitter and rely on ―bookmarks‖ (Future Foundation, 2017). This concept of ―online social travel networking‖ has completely modified how millennials make decisions in traveling (Hamed, 2017). Web platforms such as TripAdvisor and TravelBuddy offer the possibility of destinations and accommodation rating, as well as uploading personal multimedia user generated content (UGC) (Miguens et al., 2008). Users of review websites are individuals with no personal contact ever before. In numerous product categories, UGC has the highest impact on purchase decisions, even higher than celebrities and influencers‘ posts, as well as professional photographs (Stackla, 2017). To summarize, millennials rely on ―online crowdsourcing‖ in travel decision making, because for them traveling is a social experience in all its stages – information browsing, decision making, purchasing, and post-purchasing behavior (Schiopu, 2016). Impact of digital technologies on travel behavior of millennials Tourism is information-intensive sector which was one of the first in the world to introduce the usage of information-communication technologies (ICT) in business. One of the first forms of using ICT was a computer system for booking tourist services (Milovanović, & Gligorijević, 2017). ICT was a key competition factor for all participants in tourist market, such as airline companies, tour operators, travel agencies, hospitality units and chains, destination marketing organizations (DMO‘s), etc. (Bojnec & Kribel, 2004). In time, many of these have introduced not only digitalization, but the entire digital transformation of business process. Low-cost airline companies were the first to record success by being at the forefront in introducing digital technologies and online consumer communication. Quick development of ICT has also caused alterations in how consumers behave on tourist market (Mašić & Konjikušić, 2017). According to data available in Schetzina (2015) study, the usage of PCs in the world is declining, while mobile devices (smart phones and tablets) are on the rise, as much as their impact on travel decision making. While
  10. 10. 230 tourist market participants are trying to keep their share on the market, a lot of it depends on their adjustments to the habits of key consumers target groups. Millennials are used to digital technologies efficiency in numerous tasks. They are addicted to the Internet and mobile devices in all stages of traveling, i.e. in information browsing, booking, communicating and content sharing (photographs and videos) on social media during and after their journeys (FutureCast, 2016; Kim et. al, 2015; Mašić & Konjikušić, 2017). Millennials mostly carry several digital devices with them while traveling and they rely on diverse travel apps such as TripAdvisor, Yelp, Expedia, Google Maps, Hotels.com, etc. Schetzina (2015) claims that millennials are more likely to book flights on the air carriers‘ websites directly, while for booking accommodation they use more online travel agencies or aggregated booking web platforms, because they offer more in a single click. Airline companies have achieved the direct booking option by offering special benefits not available via intermediaries and agencies, such as extra legroom, special discounts, priority boarding, etc. (Pacific Asia Travel Association, 2017). For millennials, the usage of digital technologies has also altered the meaning of ―purchase benefits‖ which they now relate to control. They feel they are in control when a digital device is at their disposal, because it helps their swiftness in travel-related issues. Older generations were skeptical about the possibilities of digital technologies, while millennials are the opposite – they believe the impossible. Namely, there is a constant growth of apps which allow control over things, such as calories burned. From their point of view, a single app with the ultimate control would be ideal. For millennials, the notion of convenience is constantly expanding, and convenience in traveling implies the following: less confirmation emails, booking or canceling at the last minute, simple choice options, more payment methods, even the option of changing the names in purchased tickets (Future Foundation, 2016; Kim et al., 2015). It has never been a better time for tourist companies to connect with millennials, thus those who integrate digital devices with planning a journey and staying at a place while traveling have an impact on a higher general satisfaction level. Such services are more recognizable among millennials, because they mutually share experiences and post quality recommendations on review websites (FutureCast, 2016). It is particularly useful for companies to monitor their online reputation. Led by the millennials expectations, the concept of ―instant concierging‖ emerged throughout the world, defined as providing services to consumers via instant messages. Millennials are online virtually 24 hours a day, and they
  11. 11. 231 are comfortable with technologies which are at their disposal at any point in time (Future Foundation, 2016). It is also important how organizations present their content to millennials. Millennials react best to interactive and non-standard websites. Photographs and videos should be regularly updated and should reflect the reality, otherwise millennials punish you with low online reputation. Accordingly, websites must be presentable and intuitive, fast-loading and mobile-friendly (Hamed, 2017). It is desirable to have travel-related mobile apps, because they offer electronic links between companies and clients (Milanović & Gligorijević, 2017). Besides linking websites to individual‘s social networks (Facebook, Twitter, Instagram, Pinterest, etc.), websites offer the possibility of linking other websites relevant to millennials, such as Travel Advisor, Yelp, Google places, etc. Since millennials are on the move all the time, and their attention span rather short and fragmented, advertising campaigns in traditional media do not work for them. Because ―digital technology is at their fingertips,‖ digital media are the only channel for reaching them. However, they do not distinguish between various digital channels (digital=social for them), and would use the first available gadget (smart phone, laptop, tablet, etc.), it is important to display a single message and experience in all channels (MDG Advertising, 2015). At the same time, you should address them in their own language and via media they use. Millennials prefer brands that resonate with their peers (Williams and Page, 2011) and short content, mostly videos, which allow fast forwarding to the next one. If your content is interesting, regardless of being an advertisement, it will be shared on social networks because millennials love sharing (MDG Advertising, 2015). In February 2018, Tourism Australia opted for the ―smart strategy‖ of promoting Australia as a tourist destination during Super Bowl, so their video commercial, uploaded to their YouTube channel, which featured the popular Crocodile Dundee from long ago, has been immensely viewed and shared in just a week (The Conversation, 2018). ―Content shareability‖ is an extremely important concept for travel marketing aimed at millennials. Millennials culture is greatly influenced by social networks, hence they prefer documenting and sharing each moment, such as lunches, training sessions and socializing at cafés. Traveling provides them with content that is ideal for sharing on social networks, hence one of the important traveling motivations in millennials
  12. 12. 232 (Future Cast, 2016). This is the ―image driven‖ generation comfortable with leaving their own stamps via photographs and videos (Williams and Page, 2011). They are ―online autobiographers‖ who share their life stories on social media, focusing on single content as opposed to ready- made patterns (Hamed, 2017). MDG Advertising (2015) report claims that millennials, when traveling, share content on a daily basis, even several times a day. Although Facebook is still the network with the highest number of active users on the global scale, millennials tend to prefer Instagram and Snapchat, with an observable popularity growth of Pinterest as well (Stackla, 2017). Under the influence of development of digital technologies and social networks, FOMO effect (fear of missing out) has become a cultural phenomenon of millennials (Scotland National Tourism Organization, 2017). Related to it is FOLO – fear of living offline, yet another phenomenon which emerged and became popular in a short while, characteristic of both millennials and the generation Z, because they are addicted to peer approval (FutureCast, 2016). Not even the best experience they may have had is enough unless shared on social networks. Furthermore, not even content sharing is enough unless followed with enough likes and comments, i.e. if not approved by peers (Future Foundation, 2016). Sharing the UGC made during traveling is a part of millennials‘ individual identity. Social media help them in creating their ideal personal social concept, i.e. displaying how they would personally like to be perceived by the society (Starĉević, 2016). That is why travel organizations must be aware of the millennials‘ shareability need and incorporate experiences worth sharing in their travel offers. A great number of posts on millennials‘ timelines refers to ―travel stories.‖ Simultaneously, millennials like being included in campaigns and the lives of destinations they visit (Schiopu, 2016). Organizations which rely on the user generated content (UGC) for their own promotion could transform consumers to ambassadors (Bochert et al., 2017). The classic loyalty strategies no longer work with these consumers (Gursoy et al., 2008). To be loyal, they expect to be rewarded, hence one of the efficient methods to do so is to reward the consumers who post photographs and videos or comment and share content (Schiopu et al., 2016). What marketers have in their sleeve is the lack of privacy concerns in this generation. Their data are often publicly posted, because they are a means of expressing personal identity. At the same time, if these data enable their owners to get something in return (such as traveling discount or a
  13. 13. 233 special offer), a vast percentage of millennials will reveal their private data (MDG Advertising, 2015). Many entertainment apps on social networks, such as ―click to find out what is your dream travel destination,‖ rely on this – to acquire something ―entertaining‖ millennials easily approve access to their list of friends, interests, etc. Besides data collection on millennials‘ online searches via cookies, it is easy to discover when and where they go, as they are passionate about using geographic ―check in‖ apps, such as Foursquare. Wherever they are, they usually momentarily share information on their location. Behavior of millennials as business travelers Millennials are a demographic segment with a significant participation in business traveling. It is expected that, by 2020, up to 50% of all travels would be made by millennials (O‘Brien, 2014). Regardless of the slow economic growth, it is also expected that, in the next 5 to 10 years, millennials would spend more on business trips, and travel for business up to 5 times a year (MDG Advertising, 2015). Gould (2014) claims that millennials, when traveling for business, use mobile devices (smart phones and tablets) much more often than their peers from other generations; they book their journeys and flights via smart phones; they spend more money on business trips than non-millennials; while their trips are usually made so as to visit conferences or trainings rather than clients. It is interesting to note that millennials also spend more than non- millennials on high-end meals in expensive restaurants, which could be related to their desire to share content suitable for direct show off. They also expect less steps in and mobile-friendly booking options, and are prone to expressing their (dis)satisfaction on social media (O‘Brien, 2014). When flying, they prefer buying flexible rates, last minute booking, the option of changing flights and additional options. They behave differently from other generations in airports too – using ―charging stations,‖ vending machines, buying wifi access or viewing downloads on their mobile devices while waiting for their departure (Scotland National Tourism Organization, 2017). Several studies have confirmed that millennials are passionate about the balance between their work and leisure time. According to Kowalczyk- Aniol (2012), millennials expect flexible working hours and the possibility to choose between full-time and part-time employment. Highly familiar with modern technologies, independent and ambitious, millennials are self-confident and highly involved with their jobs, if
  14. 14. 234 interested in it. As business travelers, millennials look for journeys where they could experience the unusual and learn something new. That is why ―bleisure travel‖ is one of the great business opportunities for tourist companies. ―Bleisure traveling‖ implies the mixture of business trips and vacations, or the continuation of business trip with vacation days (Alderton, 2017). ―Bleisure‖ trips are gaining popularity, with big hotel chains and tourist agencies going with the flow and offering activities and tours with the possibility of new experiences to their guests. Booking.com (2017) report states that almost one half of business travels was prolonged in the last 12 months, even when traveling to another city or a country, with one third of travelers confirming they would do the same next year (Booking.com News, 2017). What also changed is how business travelers use hotels. According to the Scotland National Tourism Organization (2017) research, business travelers used to rely on ―room service‖ in the past, but millennials do not find this service useful anymore, because they prefer socializing. That is why hotels modified their concept, hence delivering food where the guests want it, and they started preparing ―lunch packs‖ for any time of the day. Likewise, desks in hotel rooms are no longer important, because business travelers prefer sitting and working in lobby or beach cafés. Conclusion When compared to the behavior of previous generations, millennials have caused the greatest shift in tourist marketing, especially because they grew up with digital technologies which transformed the specificities of demand and supply on tourist market. Consumers‘ travel behavior became predictable and stereotypical in the previous decades, and now, all of a sudden, it is not anymore. Companies participating in tourist market (travel agencies, air companies, accommodation facilities, DMO‘s, etc.) are facing a great challenge of adjusting their marketing approach to this new, crucial segment of passengers on a global scale. As it has already been said, millennials have an impact on the transformation of the entire 7P marketing of services. In summary, marketers and organizations on the tourist market should comply with the following recommendations: - ―offer them unique experience and destinations with personalities,‖ because their motivation is related to exploration, learning, leisure and socializing; - ―offer them several distinctive options, with their budget in mind,‖ because millennials like being in control of their travels;
  15. 15. 235 - ―think digital/mobile‖ is becoming a necessary precondition for communication with millennials; - ―think local,‖ because millennials prefer not to be plain tourists but to actively participate in the life of the destination; - ―be fast and less formal‖ – do not keep them waiting and communicate with them using the language they understand. Millennials are the generation which expects a friendly rather than authoritative relation to their surrounding; - ―be shareable‖ – offer inspirational content that is shareable, pinnable, twittable, etc. and you will turn them into your best ambassadors of electronic word-of-mouth (e-WOM), because they believe the user generated content the most; and - ―do not treat them as a homogeneous segment,‖ i.e. discover the niches in the segment, because they travel for various reasons and are in different points in their lives. The contribution of this paper is in offering an overview of travel behavior of millennials, absent from the domestic scientific discourse, with generally insufficient number of papers on the topic. It could be said that we are currently in the age when marketers realize that this segment of consumers is different and that something must be done about it. Hence, there is a lot of room for further research. Since tourism is highly important for the competitiveness of Serbia on the global market, it would be interesting to delve deeper into the behavior of domestic millennials, as domestic tourism is an underdeveloped segment in Serbia. Likewise, it would be useful to research the attitudes and the perception of marketing communication and the available offer of tourist destinations in Serbia (including a sample of domestic and foreign millennials as tourists), so as to adjust this economy branch to the needs of this significant segment of consumers and, based on it, record growth in the future. References 1. Airbnb Citizen (2016). Airbnb and the rise of millennial travel, https://www.airbnbcitizen.com/wp-content/uploads/2016/08/Millennial Report.pdf, (February 4, 2018). 2. Alderton, M. (2017). Study: More than third of business travelers extend work trips for leisure, http://www.successfulmeetings.com/News/ Research-and-White-Papers/GBTA-Foundation-Study-Bleisure-Travel/, (February 15, 2018)
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