Experience Over Value: Why and How Agents Should Target Millennials

For millennials, travel agents’ value doesn’t lie in finding the best deals but in arranging authentic experiences, according to a new report from the Ensemble Travel Group.

The report, which is based on the responses of more than 1,000 agency owners, managers and agents in the U.S. and Canada, finds that the reasons millennials use agents are: their knowledge (47%) and the time they can save their clients, (26%) rather than cost savings (14%) or help in emergency situations (13%).

“As an agent, [to target millennials], you need to be value added to the whole experience,” said Georganne Shirk, the vice president of marketing at Ensemble. “They can price shop on their own but you have to offer something more.”

Experience over value
The one thing that millennials don’t need agents for is value shopping because, Shirk said, that’s something they can do themselves. What they can’t do themselves is create the kind of unique, authentic experience they crave.

“Millennials want to see every state, every continent and they want to have a unique experience while doing it,” Shirk said. “When it comes to millennial travel that’s the kind of thinking that you need.

“The experience part is where agents can distinguish themselves.”

Millennials hunger for experiences is clearly evidenced in the report.

Millennials increasingly prefer exotic destinations, including Thailand, Costa Rica and Peru. This also shows up in terms of the kinds of trips millennials favor.

A majority of them (64%) go on FITs rather than ocean or river cruises.

“Millennials are much more well traveled than their parents, so they are looking for those unique places,” said Shirk.

The differences
In addition to looking for different destinations from their parents, the generation also communicates differently.

That means agents need to adapt to millennials’ way of thinking.

“Our agents have talked about, in terms of communicating with the millennial community, that it’s much more online based, they’re not coming in or chatting on the phone,” Shirk said.

Despite these differences, millennials—like other clients—recognize and appreciate the good work agents do.

A sharing culture
According to Ensemble’s report, agents with millennials clients are most likely getting them through referrals—either from millennial’s parents (88%) or friends (72%).

“I thought it was really interesting to see a huge number come through referral,” said Shirk. “Their culture is about sharing, so when it comes to seeking advice and attaching that advice to referrals, that’s great.”

The report suggests that millennials’ propensity to share and refer, make them perfect clients because providing them with good service will lead to more business.

More than 80% of respondents said their millennial clients are equally, or more likely, to refer friends and family compared to other clients.

“Millennials are a sharing group and it’s extremely lucrative [that they’re] telling their friends about it,” Shirk said.

It’s as easy for agents who want to get an initial introduction to millennial clients as examining their existing customer bases.

Among respondents of the report, 88% said that most millennial referrals came from parents and 72% said the business came from friends of their clients. Social media recruiting came in at a distance third (38%).

“I think it’s really about mining your current customer bases and getting those referrals,” Shirk said. “Getting to know your currents clients and getting to know their family will help you expand it.”