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The Rise
of the
Millennial
Traveler
Sponsored by

SKIFT REPORT #9
2014
With Millennials expected to soon surpass
Boomers in overall travel spending, hotels,
booking sites and destination marketing
organizations are retooling their product,
branding, business models and communication methods. Here’s what they should
prepare for.

This material is protected by copyright.
Unauthorized redistribution, including email
forwarding, is a violation of federal law.
Single-use copy only.
If you require multiple copies, contact us at

WWW.SKIFT.COM

trends@skift.com.
Subscribe to the Skift
Trends Report
Get the twice-monthly Skift Trends Report for the latest intelligence
on the travel industry.
Each edition in our new series of reports will brief you on a specific
trend, providing insight into the current state of the market, the context around the trend, and where the industry is heading in the near
future.
After you subscribe, you will receive 24 reports direct to your inbox for
an entire year. Reports are delivered as a downloadable PDF. Subscribers also receive access to our archive.
For any comments or questions, email us: trends@skift.com.
Subscribe and check previous reports at: Skift.com/travel-trends

About the sponsor

buuteeq creates easy-to-use, cloud-based digital marketing software that
gives hoteliers complete control of their online content anytime, anywhere.
Web, mobile, social—it’s all you. No more waiting for an agency to update your site. You’ll publish and manage content, view complete analytics, and integrate with your property’s existing reservation system, all
while keeping pace with technology.
Since its 2011 launch, buuteeq has helped more than 6,000 properties
worldwide connect with guests directly, thereby saving time and money
over traditional agencies.
Learn more.
The Rise of the Millennial Traveler

SKIFT

REPORT

#9

2014

Table of contents
Executive Summary 3

About Skift
Skift is a travel intelligence company that

Introduction 5
Millennial Trends 9
Marketing to a Generation That Can’t Easily Be Labeled 9
Articulating a Voice of a Generation 10
The Rise of User-Generated Content 12
Traveling with Millennials 13
Hotel Trends 15
The Kinship Economy 15
Booking Habits of Millennials 16
The Future of Mobility 17
Building a Brand for Next Gen Travelers 18
Millennial-Native Hospitality 19
Destination Trends 21
Becoming an Insider 21
Marketing a Digital Destination 22
Targeting What Motivates 24
The Neighborhood DMO 25
Pairing Conventions with High-Concept Tech 26
“Meetovation” Inspires Next Gen Planners 28
Key Strategies for Attracting Millennial Travelers 29
Further Reading 32
About Skift 33

7

services to professionals
in travel and professional
travelers, to help them
make smart decisions
about travel.
Skift is the business of
travel.
Visit skift.com for more.
The Rise of the Millennial Traveler

SKIFT

REPORT

Executive summary

Millennials:
The Connected
Generation
Courtesy
Aloft Hotels

With Millennials/Generation Y expected to soon surpass Boomers in overall travel spending, hotels, booking sites and destination
marketing organizations (DMOs) are retooling their product, branding, business models and communication methods. However, many
established players in the travel and hospitality industries are simply
applying cosmetic changes to outdated methodologies. This is due to
an under-appreciation of the magnitude of changes looming in the
future, and a lack of true understanding about the root factors underpinning the motivations of Millennial travelers.
Presently, a large percentage of hotels and DMOs believe that technology and social media are the answer to engage Millennials. That’s
true, but it’s only half of the answer. According to keynote speaker
Jason Dorsey (The Gen Y Guy), Millennials are not necessarily technologically savvy; they’re technologically dependent. That dependence is merely a conduit through which to dream, research, share and
experience travel. It is not the travel experience itself.
The biggest travel trends today, especially for Millennials, revolve
around personalization and connectivity. The successful travel pro-

3

#9

2014
The Rise of the Millennial Traveler

SKIFT

vider in the future will incorporate technology to deliver the ultimate
travel aspiration for Millennials: Highly personalized experiences
shared within larger connected networks of like-minded travelers—
both real and virtual.
In other words, Millennials want more, and they’ve redefined “more.”
They want the freedom to do what they want, when and how they
want to, and they want to share those experiences with friends,
family and colleagues when and how they want to.
Chris Klauda, a VP at travel and hospitality market research company
D. K. Shifflet & Associates, discussed this in the The New York Times
last year. Describing the Millennial desire to connect online in hotel
lobbies versus guest rooms, he said, “We coined the phrase ‘isolated
togetherness.’“
Michael Tiedy, senior VP of brand design/innovation at Starwood Hotels,
puts it even more succinctly: “Millennials like to be alone, together.”
We call it the rise of independent social travel.

4

REPORT

#9

2014

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Skift Global Trends Report: The Rise of the Millennial Traveler

  • 1. The Rise of the Millennial Traveler Sponsored by SKIFT REPORT #9 2014 With Millennials expected to soon surpass Boomers in overall travel spending, hotels, booking sites and destination marketing organizations are retooling their product, branding, business models and communication methods. Here’s what they should prepare for. This material is protected by copyright. Unauthorized redistribution, including email forwarding, is a violation of federal law. Single-use copy only. If you require multiple copies, contact us at WWW.SKIFT.COM trends@skift.com.
  • 2. Subscribe to the Skift Trends Report Get the twice-monthly Skift Trends Report for the latest intelligence on the travel industry. Each edition in our new series of reports will brief you on a specific trend, providing insight into the current state of the market, the context around the trend, and where the industry is heading in the near future. After you subscribe, you will receive 24 reports direct to your inbox for an entire year. Reports are delivered as a downloadable PDF. Subscribers also receive access to our archive. For any comments or questions, email us: trends@skift.com. Subscribe and check previous reports at: Skift.com/travel-trends About the sponsor buuteeq creates easy-to-use, cloud-based digital marketing software that gives hoteliers complete control of their online content anytime, anywhere. Web, mobile, social—it’s all you. No more waiting for an agency to update your site. You’ll publish and manage content, view complete analytics, and integrate with your property’s existing reservation system, all while keeping pace with technology. Since its 2011 launch, buuteeq has helped more than 6,000 properties worldwide connect with guests directly, thereby saving time and money over traditional agencies. Learn more.
  • 3. The Rise of the Millennial Traveler SKIFT REPORT #9 2014 Table of contents Executive Summary 3 About Skift Skift is a travel intelligence company that Introduction 5 Millennial Trends 9 Marketing to a Generation That Can’t Easily Be Labeled 9 Articulating a Voice of a Generation 10 The Rise of User-Generated Content 12 Traveling with Millennials 13 Hotel Trends 15 The Kinship Economy 15 Booking Habits of Millennials 16 The Future of Mobility 17 Building a Brand for Next Gen Travelers 18 Millennial-Native Hospitality 19 Destination Trends 21 Becoming an Insider 21 Marketing a Digital Destination 22 Targeting What Motivates 24 The Neighborhood DMO 25 Pairing Conventions with High-Concept Tech 26 “Meetovation” Inspires Next Gen Planners 28 Key Strategies for Attracting Millennial Travelers 29 Further Reading 32 About Skift 33 7 services to professionals in travel and professional travelers, to help them make smart decisions about travel. Skift is the business of travel. Visit skift.com for more.
  • 4. The Rise of the Millennial Traveler SKIFT REPORT Executive summary Millennials: The Connected Generation Courtesy Aloft Hotels With Millennials/Generation Y expected to soon surpass Boomers in overall travel spending, hotels, booking sites and destination marketing organizations (DMOs) are retooling their product, branding, business models and communication methods. However, many established players in the travel and hospitality industries are simply applying cosmetic changes to outdated methodologies. This is due to an under-appreciation of the magnitude of changes looming in the future, and a lack of true understanding about the root factors underpinning the motivations of Millennial travelers. Presently, a large percentage of hotels and DMOs believe that technology and social media are the answer to engage Millennials. That’s true, but it’s only half of the answer. According to keynote speaker Jason Dorsey (The Gen Y Guy), Millennials are not necessarily technologically savvy; they’re technologically dependent. That dependence is merely a conduit through which to dream, research, share and experience travel. It is not the travel experience itself. The biggest travel trends today, especially for Millennials, revolve around personalization and connectivity. The successful travel pro- 3 #9 2014
  • 5. The Rise of the Millennial Traveler SKIFT vider in the future will incorporate technology to deliver the ultimate travel aspiration for Millennials: Highly personalized experiences shared within larger connected networks of like-minded travelers— both real and virtual. In other words, Millennials want more, and they’ve redefined “more.” They want the freedom to do what they want, when and how they want to, and they want to share those experiences with friends, family and colleagues when and how they want to. Chris Klauda, a VP at travel and hospitality market research company D. K. Shifflet & Associates, discussed this in the The New York Times last year. Describing the Millennial desire to connect online in hotel lobbies versus guest rooms, he said, “We coined the phrase ‘isolated togetherness.’“ Michael Tiedy, senior VP of brand design/innovation at Starwood Hotels, puts it even more succinctly: “Millennials like to be alone, together.” We call it the rise of independent social travel. 4 REPORT #9 2014