Adapting To The Travel Habits Of The Millennial

Young travelers are taking up more of the tourism market than ever before and their lifestyle habits are creating new demands and innovations in the lodging experience. A study carried out in  2012 by the World Youth Student and Educational Travel Confederation revealed that of the $1.088 trillion spent by tourism worldwide, $217 billion came from young travelers between the ages of 18 and 34. As an innovative entrepreneurial startup connecting the lines between #insuretech and #traveltech, our mission is to bring travel insurance into this age of innovation,  and we are keen to find out what the young traveler in the fasting growing share accommodation segment seeks in his/her experience.

1.Technology Consumption

It goes without saying that technology has become an integral part of the millennial’s lifestyle. These are the early adopters of technology, this generation both creates and consumes massive volumes of digital content. The young traveler is bound to set off on their journey armed with a smartphone, laptop, tablet, and Go Pro or camera or all of the above. So much that we are considering offering gadget insurance because some of the younger generation quite literally have their entire lives on them. Instagram, Snapchat, Facebook, Twitter and more have become the primary means to find and create travel ideas and inspiration. Wi-Fi has become a bare necessity and the entire trip was most probably executed from the beginning to end by a myriad of cutting edge apps and online services, it’s clear that the #traveltech industry is in full bloom. Generally, the more gadgets and online services you can have available from tablets and gadgets in lounges to requesting room services online, the more likely these savvy young travelers are to be impressed.

2.Unique Experiences

The millennial generation seeks personal enrichment, one of a kind experiences and a desire to travel and see as much of the world as they possibly can. This is fantastic news for non-mainstream, smaller, boutique like accommodations – even those in more remote areas. Millennials are all about finding undiscovered gems and they prefer the unique atmosphere of a smaller home-like private accommodation. This way they can find personalization in their experience and you can be sure to find pictures of the lunch served at your cabin rental on social media, these are the footprints of the gratified millennial traveler.

3.Convenience Meets Cost

A sizeable segment of millennial are students, and young adults in the early stages of their career. Thus, although some do, many are not likely to spend extravagant amounts of money if they don’t have to. This includes students studying abroad, interning abroad, or learning a new language. This might explain their preference for more casual, free and private accommodations loaded with house like amenities such as a kitchen or convenience food and beverage outlets and laundry facilities versus higher class, more formal hotels. Accessibility is also important to them and some lodging companies have ventured into partnerships with Uber and Lyft. Research has shown that millennials are the most comfortable and most likely to opt for non-traditional lodging such as private accommodation rentals. A study by PhoCusWright has shown that 31% of a new generation of private accommodation renters are under the age of 35. [1]This demographic are the ones to push the revolutionary ideas of alternative accommodation[2] into motion. Millennials tend to be spontaneous decision makers though sometimes depending on the occurrence of breaks, holidays and days off, they’ll take what they get which is both affordable and convenient.

What demands have you seen arise from millennials that are changing the travel industry? What can we, as an industry change to adapt to these new demands? We want to hear your thoughts. #PABLOWPROTECTS

 

 

 

 

[1] Quinby, Douglas and Gasdia, Marcello.,pg 3 PhoCusWright’s Share This! Private Accommodation & the Rise of the New Gen Renter (June 2014)

[2] Quinby, Douglas and Gasdia, Marcello., pg 1  PhoCusWright’s Share This! Private accommodation & the Rise of the New Gen Renter. (June 2014)

 

 

The #traveltech Industry Is In Full Bloom.

 

 

The idea of going on a trip, whether it’s to a tropical location by air, or a short road trip to a scenic vacation rental lakeside cabin, has always been one filled with pure excitement. The anticipation builds after much discussion and online research about where-to-go, how-to-get there, where-to-stay and what-to-do-there.  Finally the ball swings in full motion as online reservations are made for the vacation rental, flights, and rental car.

Travel Gone Digital

The immense digitization of almost all industries in the last couple of decades is without a doubt changing the landscape of the business, and the travel industry is no exception to this. Discussions on the best places to go, sites to see, places to stay and most cost-effective ways to get there have moved online to places like TripAdvisor, and transport apps such as Rome2Rio, where everyone’s voice can be heard. Then there’s the shift from traditional vacation accommodation such as hotels and lodges to the vacation rentals of rooms, apartments and entire houses anywhere from a night to a couple of months that has been facilitated by startup turned billion dollar giants such as Airbnb, HomeAway and VRBO. It’s never been easier to find the most affordable ways to get to your destination with informative and comparative websites such as Kayak and Expedia and accessible on any device.

Having an entire vacation just a couple of clicks away is just fantastic news for consumers and providers alike, and is something worth getting really excited about. For consumers, there’s never been more diverse options right at your fingertips – from beach houses to penthouses to cabins, villas and even tree houses. For service providers this is only just the beginning – the evolving terrain of the travel industry is creating new demands and needs to be met by employment opportunities which have not previously existed. This domain has really become the innovative entrepreneur’s paradise. PhoCusWright tracked that nearly $900 million in the funding of over 60 vacation rental startups alone between 2005 and 2012.[1] The products and services created are often so targeted, specific and composed of a sophisticated and savvy elements of hospitality, management, finance, digital marketing all infused with cutting edge technology tying it all together, with the end goal of giving the best value to end consumers in the simplest way possible.

Homestay, for example has a built-in video chat function for better communication and understanding prior to the stay. Handy, a startup cleaning and maintenance and hospitality service that offer on demand options for such services.  SafelyStay was created with the goal of increasing trust between all parties of the vacation rental experience. [2]Alan Clarke, CEO of Homestay was quoted saying, “As the marketplace matures, entrepreneurs will find ways to create value for that ecosystem.” These ways are possibilities are endless, and with all these new opportunities comes an element of risk both for the consumers and the service providers. Pablow, Inc. is excited to be involved in the blooming travel industry and in particular the private rental market, and who’s mission is to bring travel insurance into this age of innovation for both ends of the market – consumers and service providers alike! We are excited to hear your thoughts and innovations, where you think this market is headed and what can be done better to shape the future of our promising industry!

Get in touch with us and tell us about your business and market segment, to be covered in future blog posts. We want to hear your thoughts.  #PABLOWPROTECTS 

[1] Pg. 3 Deepak Jain, Douglas Quinby, Maggie Rauch, Cathy Schetzina., PhoCusWright’s US Vacation Rentals 2009-2014: A Market Reinvented. (May 2013)

[2] Jason Q. Freed + Skift Team., The Vacation Rental Technology Ecosystem (July 2015) http://products.skift.com/trend/vacation-rental-tech/?utm_campaign=Skift+Trends+Reports&utm_source=hs_email&utm_medium=email&utm_content=2087035