Millennials Warming Up to Agents
by Robin Amster /The news for travel agents from MMGY Global’s annual report on American travelers is both good and in one respect surprising.
Not only is a bigger percentage of travelers using the services of agents, but in a recent 12-month period millennials accounted for the highest usage of any generation.
MMGY’s 2014 Portrait of American Travelers found that 18% of all respondents booked trips with an agent between February 2013 and February 2014. That’s up a healthy 50% from a year earlier, when 12% booked through an agent.
And, “perhaps counter-intuitively,” the report said, more millennials booked with agents during the year than any other generation. Specifically, 28% of millennials used an agent, 21% of matures, 15% of Gen Xers, and 13% of boomers.
Looking ahead, the report had more good news for agents. The share of travelers who expect to consult an agent over the next two years is going up, a trend that holds true across age groups.
The report defines millennials as ages 18 to 35, Gen Xers as 36 to 49, boomers as 50 to 68, and matures as over 69. It is based on online interviews during February 2014 with 2,550 leisure travelers, which it defined as those who took at least one trip of 75 miles or more during the previous 12 months.
Surprise, surprise
“Agent usage [in general] continues to be the highest among the matures. That’s not surprising as that’s what they’ve known their whole life,” said Steve Cohen, vice president of insights for MMGY Global. (See sidebar.)
“And we can’t say millennials are booking with agents more than with OTAs and travel service providers [suppliers]. But it’s surprising that more millennials are using agents this year than last year,” he said.
“It’s a very positive picture for the agent industry.”
Travel in general is up substantially this year over 2013, and that accounts in part for the bump in millennials’ use of agents, according to Cohen.
“But millennials are also taking some very involved trips that are difficult for them to book themselves,” he said. “‘What’s the best place to go for zip-lining or rock climbing?’ they might ask.
“This is what agents can do for them,” Cohen said. “Millennials can do their research online but there’s also that little voice that says, ‘Am I getting the best deal?’”
Agent attributes
The study bears out his statement.
When asked if they plan to use an agent during the next two years, a whopping 30% of millennials said yes, compared to 27% of matures, 19% of GenXers, and 16% of boomers.
The millennials’ reasons for working with an agent?
• 80% cited agents’ knowledge of destinations and suppliers
• 78% cited agents’ ability to take the hassle out of travel
• 77% said agents’ experience will book a better trip than one booked on their own
• 76% said having more control over booking each aspect of the trip
• 75% said the ability to provide extra service if something goes wrong.
More good news
Other findings also show positive trends for agents.
Eight percent of travelers said that, in general, they get the best travel prices over the phone from an agent – up from 4% in 2013.
Asked what’s the most convenient way to arrange travel, 10% said over the phone with an agent – up from 5% the year before.
But agents still lag in these areas.
The largest share of travelers – 45% – said they get the best travel prices from OTAs (down from 48% in 2013). That was followed by supplier websites at 41% (up from 38%). Only 6% said they get the best prices from suppliers over the phone, down from 10% in 2013.
Regarding the most convenient way to arrange travel, 46% cited supplier websites, up from 41% the year before; 38% said OTAs (down from 45%). Only 6% said suppliers over the phone, down from 9%.
Challenges all the same
Despite the rosy picture for agents, Cohen said they face several challenges.
“I don’t see agents doing a great job of making themselves known, other than those agencies, like AAA, that never went away,” he said.
“Travel is back in a big way. For the first quarter of 2014 we’re seeing numbers like never before.
“As the industry continues to recover, the agent business will improve at a commensurate level,” said Cohen. “But that’s also a challenge. Once business is back, how do you continue to gain market share as an agent?”