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Australian Millennials disrupting traditional travel models

May 27, 2016 Business News No Comments Print Print Email Email

New global research from travel data platform ADARA reveals that Millennials in Australia are disrupting traditional models for travel. They are dedicated travelers with 2 in 3 (72%) prioritizing travel above any other expense, but are savvy bargain hunters with a penchant for luxuries. They are more likely to book through intermediaries and are less likely to be in loyalty programs as they currently exist.

The study looked to expose the travel habits of Millennials using focus groups and research to compare attitudes and behaviors among 18 to 34 year olds and 35+ year olds. ADARA also leveraged first-party insight into millions of every day travel transactions across Europe, Asia Pacific and America. The research shows that 89% love to travel to new places and the majority agree that travel involves new experiences and going off the beaten track (90% and 68%, respectively).

The research also shows that when compared to their older counterparts, Millennials in Australia are more likely to use digital resources, such as review sites (39% vs. 30% among those 35+) to plan and book their travel – proving that marketers need to adapt their campaigns to reach this audience. In addition, the research found that:

  • Unlike their counterparts in the US, Millennials in Asia Pacific are more likely to book flights through airline websites (44% in Australia; 45% in Hong Kong; 56% in Singapore vs. 34% in the US)
  • They are more likely to book hotels through general travel websites (52% vs. 27% hotel sites)
  • 51% of those surveyed agree: “I don’t think it’s worthwhile to sign up for loyalty programmes.”

Millennials plan ahead to ensure the best experience at the best price

76% of Australian Millennials prioritize price over airlines when choosing a flight (vs. 60% of those over 35+). Millennials tend to plan ahead compared to older travellers – they start searching for flights 13 days in advance of booking the flight compared to 9 days to ensure that they get the experience at the best price. Hotel searches are no different, with a longer window of 8 days prior to booking compared to 6 days for older adults.

The data also reveals that Australian Millennials fly more and opt to travel front of cabin (39% of flights vs. 29% among those 35+), highlighting that they have disposable funds to spend on favoured luxuries. This is higher than those surveyed in France (32%), Singapore (25%) and Hong Kong (23%). In addition, ADARA found that:

  • 49% of Australian Millennials are willing to pay for upgrades, compared to 38% of 35+ year olds and are more likely to purchase amenities in-flight
  • 36% of Australian Millennials have stayed in a house or apartment rental (e.g., Airbnb) in the past year compared to only 24% of those 35+
  • 75% have stayed in hotels (vs. 83% of those 35+), and they are more likely to prioritize free Wi-Fi and amenities such as a spa & gym compared to those 35+ 

Elizabeth Harz, President of Media and CMO, ADARA, said: “Our research shows Australian Millennials are interesting to travel brands in ways they may not have data to support. They are travel influencers, helping friends and family make purchase and brand decisions. As a group, they are savvy shoppers who are willing to splurge on the right experiences from extra leg room to a cooking class in a new destination.”

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