RICHMOND, VA, OCTOBER 5, 2017 — Paydays aren’t as large and vacations aren’t as long, but the millennial traveler is having a profound impact on how all Americans will travel in the future, according to an analysis of travel throughout the 2017 peak season by Allianz Global Assistance USA.
Despite spending less on shorter vacations, the way in which millennials are getting more memorable experiences out of lower budgets and tighter schedules is driving innovation that will shape the industry in their image.
They work longer, spend less, share more and are avoiding direct contact with real humans faster than anyone else, as customer services become AI automated and travel takes off in flying cars and rockets to space.
According to the 2017 Vacation Confidence Index, millennials, on average, earn the least ($72,400), get the least vacation (12 days), take the least vacation (8.4 days), and spend the least ($1,373) on their vacation, when compared to their older counterparts.
|PROFILE OF A 2017 PEAK VACATION SEASON|
|2017 Season Average||“Those” Millennials(18-34)||THE “Oldies”(35+)||The American Traveler(18-99+)|
|Paid Vacation Days||12||15||14.2|
|Taken Vacation Days||8.4||12||11|
It’s no surprise, then, that the limited time and money they have is spent on disruptive products and services that maximize their ability to create unique and authentic travel memories.
Sharing economy services like Airbnb and Uber satisfy both needs of affordability and authenticity for millennials, who are more likely to trust (83 percent) and use (77 percent) sharing platforms over established methods like travel agents and online booking.
While millennials who prefer the sharing economy cited better value (43 percent) and a more authentic, connected local experience (45 percent) to get closer to their destination, they’re trying to get further away from interacting directly with the customer service representatives of general travel brands, with 78 percent likely to reach them through social media, compared with just 47 percent of travelers over 35.
|DISRUPTING PRODUCT AND SERVICE|
|Those Likely To||“Those” Millennials(18-34)||The “Oldies”(35+)||The American Traveler(18-99+)|
|Trust Sharing Economy||83 percent||58 percent||65 percent|
|Use Sharing Economy||77 percent||39 percent||50 percent|
|Engage with Brands on Social Media||78 percent||47 percent||56 percent|
Millennials are also moving away from face-to-face contact with living humans faster than anyone else.
While they are less likely to choose in-person contact (34 percent) or even a phone conversation (27 percent) as their preferred customer service method compared to older generations (47 percent of whom prefer in-person interaction), they are the more likely to prefer online and instant messaging (24 percent), or the emerging ChatBots powered by Artificial Intelligence (AI) (11 percent).
|CHANGING CUSTOMER SERVICE|
|Preferred Customer Services Methods||“Those” Millennials(18-34)||The “Oldies”(35+)||The American Traveler|
|Real, Face-to-Face Humans||34 percent||47 percent||43 percent|
|Disembodied Human Voices (Help Line/Call Center)||27 percent||33 percent||32 percent|
|Online and Instant Messaging||24 percent||10 percent||14 percent|
|Artificial Intelligence/ChatBots||11 percent||4 percent||6 percent|
Compared to their older cohorts, millennials will lead the demand for the supply of future travel methods, with 72 percent interested in experiencing, and 80 percent confident in the future safety of self-driving vehicles like those coming from Google and Tesla. Millennials are also more interested (72 percent) and confident (72 percent) in boarding both near and distant-future travel vehicles like flying cars, supersonic jets, Hyperloop rail, and space travel.
|EMBRACING THE FUTURE AND DRIVING INNOVATION|
|Self-Driving Vehicles, Flying Cars, Super-Sonic Jets, Rocket Ships, Space Travel||“Those” Millennials(18-34)||The “Oldies”(35+)||The American Traveler(18-99+)|
|Interested in Future Travel||72 percent||45 percent||59 percent|
|Confidence in Safety of Future Travel||72 percent||51 percent||57 percent|
“By surveying millennials about their travel plans, we’ve captured a glimpse of what the future of travel may look like for all of us,” said Daniel Durazo, director of communications at Allianz Global Assistance USA. “While millennials are more open-minded than other age groups about new developments – like the sharing economy and future travel methods – they also spend less and take fewer vacation days. How travel brands address these habits will make a significant impact on the travel industry as a whole.”
Allianz Global Assistance offers travel insurance* through most major U.S. airlines, leading travel agents, online travel agencies, other travel suppliers and directly to consumers. For more information on Allianz Global Assistance and the policies offered for travelers, please visit: www.allianztravelinsurance.com.
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Methodology 1: These are findings of an Ipsos poll conducted on behalf of Allianz Global Assistance. For this survey, a sample of 1,009 Americans from the Ipsos I-Say panel was interviewed from May 3rd to May 5th, 2017. The precision of online polls is measured using a credibility interval. In this case, the results are accurate to within +/- 3.5 percentage points, 19 times out of 20, of what the results would have been had all American adults been polled. Quota sampling and weighting were employed in order to balance demographics and ensure that the sample’s composition reflects that of the actual U.S. population, according to data from the U.S. Census Bureau. Credibility intervals are wider among subsets of the population.
Methodology 2: These are some of the findings of an Ipsos poll conducted on behalf of Allianz from June 1 for 4, 2017. For the survey, a nationally representative sample of 1,009 randomly-selected adults residing in the U.S. was interviewed by random-digit dialing telephone via the ORC Caravan omnibus. With a sample of this size, the results are considered accurate within ±3.1 percentage points, 19 times out of 20, of what they would have been had the entire population of adults in the U.S. been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample's regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau.
Allianz Global Assistance USA
Allianz Global Assistance USA (AGA Service Company) is a leading consumer specialty insurance and assistance company. We provide insurance to 25 million customers annually and are best known for our Allianz Travel Insurance plans. In addition to travel insurance, Allianz Global Assistance USA offers tuition insurance, event ticket protection, registration protection for endurance events and unique travel assistance services such as international medical assistance and concierge services. The company also serves as an outsource provider for in-bound call center services and claims administration for credit card companies.
*Terms, conditions, and exclusions apply to all plans. Plans are available only to U.S. residents. Not all plans are available in all jurisdictions. For a complete description of the coverage and benefit limits offered under your plan, carefully review your plan’s Letter of Confirmation/Declarations and Certificate of Insurance/Policy. Insurance coverage is underwritten by BCS Insurance Company (OH, Administrative Office: Oakbrook Terrace, IL), rated "A-" (Excellent) by A.M. Best Co., under BCS Form No. 52.201 series or 52.401 series, or Jefferson Insurance Company (NY, Administrative Office: Richmond, VA), rated "A+" (Superior) by A.M. Best Co., under Jefferson Form No. 101-C series or 101-P series, or Nationwide Mutual Insurance Company and Affiliated Companies (One Nationwide Plaza, Columbus, OH 43215-2200), under Form Nos. SRTC 2000 and NSHTC 2500, each rated “A+” (Superior) by A.M. Best Co., depending on state of residence. Allianz Global Assistance and Allianz Travel Insurance are brands of AGA Service Company. AGA Service Company is the licensed producer and administrator of these plans and an affiliate of Jefferson Insurance Company. The insured shall not receive any special benefit or advantage due to the affiliation between AGA Service Company and Jefferson Insurance Company. Non-insurance benefits/products are provided and serviced by AGA Service Company.