Thanks to the March release of the we’ve got the latest data on this powerful traveller segment’s fluctuating behaviours and intentions as well as what’s preventing them from planning and booking travel.
In partnership with the Travel and Tourism Research Association (TTRA), several MMGY experts discussed the key takeaways from the report ahead of its release. Chris Davidson, EVP of MMGY Travel Intelligence, introduced the discussion participants: myself, Andrea Olsen, Media Director, and Trey Williams, SVP of Strategic Planning.
Here are just some of the questions discussed during the webinar that you won’t want to miss the answers to:
- Is travel becoming unaffordable for Americans?
- What does travel mean to them?
- How should the increased use of AI by travellers affect media strategy?
Watch the complete webinar recording to catch each participant’s actionable insights.
As discussed briefly in the webinar and expounded on further in the report, we’re seeing a significant divide occurring between younger and older generations of U.S. travellers as far as priorities, decision drivers and behaviours are concerned. The main discrepancies identified in the report are:
- Accommodations: Resorts, B&Bs and short-term vacation rentals are gaining ground on traditional chain-affiliated hotels for younger travellers.
- Sustainability: A quarter of Millennials and Gen Zers report that the impact of sustainability and environmental considerations by travel service providers affects their decision-making (compared to just 3% of Boomers).
- AI Use in Travel Planning: While half of U.S. travellers use AI for travel planning purposes, Millennials (68%) and Gen Zers (76%) utilise it most often.
Reaching the right U.S. audience with the right message is more crucial now than ever, particularly as 79% are planning to travel in the next 12 months. We’re seeing that the greatest growth in intent to travel is among those making $30,000–$50,000 a year, indicating that no American is immune to being bit by the travel bug.
Across the board, optimism is high and spend is higher. Our research shows that fewer people are saying the reason for spending more on travel is because the associated costs are higher; rather, they are spending more on travel because they want to.
Plus, people simply have more information at their fingertips that provides them with travel inspiration and tips and tricks. AI usage continues to grow; it’s having an impact primarily in the planning funnel, showing that the technology is being used to supplement, rather than replace, existing methods. When people know where they want to go, they’re using AI to find out more about the in-destination activities.
Strategically, destinations must consider that not all travellers want to use AI in their travel inspiration and planning processes. Often, people take trips to get away from the overwhelming technological nature of the modern world. Balancing the convenience of using AI with the feelings of uncertainty that arise with its use is imperative for travel brands.
Americans are increasingly trying to balance the negative environmental effects of AI technologies with an increasing consideration of their own impact on the world around them. Consequently, sustainability concerns remain important for travellers, particularly younger generations, and it’s essential that travel brands don’t add on surprise costs around sustainable initiatives. Instead, the initiatives need to be core to the brand, centring sustainability as an ongoing effort rather than the issue of the day.
Looking ahead, brands can’t ignore generational needs. Does the ‘dreaming’ element of travel become less important as we age? Or is it that we have a better idea of where we want to go and what’s left on our bucket list? As people age, they continue to build loyalty with the brands that serve them, and it’s crucial that brands don’t damage these hard-won relationships.
More than anything, destinations and brands should be aware that people are prioritising themselves – what brings them value and what value actually means in their daily lives.
The U.S. traveller’s sense of ‘self’ is becoming more important than ever, evidenced in the way that they are choosing destinations partially based on how it will affect people’s perceptions of them when they arrive. More holistically, Americans want to use leisure time to focus on themselves and return to what matters most to them. There are many opportunities to support and engage with U.S. travellers both close to home and further afield. And allowing them to feel like part of the destination story by helping them cement or reignite their passions will differentiate your brand from the rest.
To dig deeper and glean even more insights into the hearts and minds of U.S. travellers, purchase the Portrait of American Travelers™ “Spring Edition” report here.
