Travel Agents Should Target Millennial Families, MMGY Survey Suggests

by Richard D'Ambrosio
Travel Agents Should Target Millennial Families, MMGY Survey Suggests

Photo: Robert Couse-Baker

The recent boom in leisure travel may be slowing, but Millennial families continue to increase their vacation spending, and a leading research report suggests travel agents would best focus their efforts on helping them.

American travelers spent an average of $4,833 on vacations in a recent 12-month period, down from $5,048 in the year prior, according to new research from travel marketing firm MMGY. Travelers also report they intend to spend slightly less ($18) on travel than they did during the previous year.

MMGY survey responses indicate that Generation X members and Baby Boomers will spend 3% less, while Matures will spend 11% less.

Spending 19% more
On a more positive note, MMGY found that 9.5 million Millennial families continue to value and invest heavily in leisure travel. Millennial families intend to spend 19% more on vacations during the next 12 months than they did in the previous year, Steve Cohen, MMGY vice president of insights, said during a media event this week.

Millennial families, including married or unmarried couples living together with children aged 17 or under, make up 16% of all American travelers, according to the MMGY Portrait of American Travelers 2017 survey, which is in its 27th year.

These families went on a combined 36.9 million vacations and spent $50.4 billion on leisure travel during the past 12 months.

‘Driving force’
MMGY considers Millennial families a “driving force” behind growth in travel this year. It found that they will spend, on average, $6,282 this year on vacations, up from $5,295 in the prior 12 months. The average American household will only spend $4,945 on leisure travel trips in the next 12 months.

In fact, Millennial families intend to spend 38% more than Millennial couples on vacation and 88% more than Millennial singles in 2017. These families are expected to choose international destinations 26% of the time, compared to 20% for Millennial couples and or singles.

Cohen and MMGY believe this is the case because 83% of Millennial families consider themselves optimistic about their own future.

Great target for agents
Cohen said Millennial families remain a great target for travel agents who develop a relationship with them.

Millennials “want someone they can trust,” Cohen said. “We asked during the qualitative, ‘Do you trust the Trivago guy?’ Their answer is ‘No, I don’t trust him.’ Travel agents needs to build that trust. That is how you are going to get that repeat business.”

Terrorism brings vacations closer to home
The research also found that the string of international terrorism incidents has increased Americans’ desire to travel closer to home. Domestic vacations will account for 85% of trips, MMGY respondents said, up from 78% last year.

“It is unfortunate that rising safety and political concerns are affecting travel abroad,” said Julie Freeman, executive vice president and managing director of Nancy J. Friedman Public Relations, an MMGY Global company. “However it is affording the opportunity for a variety of domestic destinations to shine and see a surge in bookings, especially some of the up-and-coming destinations.”

MMGY will be disclosing further data from the survey as the summer progresses, with reports on how road trips are increasingly popular with American travelers and on segmentation of the luxury market.

The nationally representative survey of 2,902 U.S. adults who have taken at least one overnight trip of 75 miles or more from home during the previous 12 months included households with annual incomes of at least $50,000. Data was collected in February 2017.

TMR Recommendations
Top Stories
With Political Unrest Growing, What Protection Does Travel Insurance Offer?

Recent civil unrest in Puerto Rico and Hong Kong once again raised the issue about what insurance travelers should purchase for the best protection.

What Advisors Should Know About Succession Planning for a Small Business


The existence of an estate plan that provides for proper handling of the business in the event of the death of the owner is an essential legal document to put in place.

Travel Agent Popularity on the Rise Yet Again

MMGY study shows travel agent popularity is again on the rise as more consumers seek them out for their international expertise and knowledge of tours and lodging.

Look-a-Like Travel Booking Websites Could Cost Consumers

Legitimate looking websites appear to represent popular airlines and hotel chains, but they are costing travelers money and creating customer service nightmares.

Low Unemployment Impacts Travel Advisor Hiring

As Americans find jobs in other industries, it’s getting harder and harder to attract quality leisure travel agents and in states with high travel agent populations, unemployment hovered at all-time lows this summer.

Southwest Airlines Opens Booking Access to Business Travel Managers

The new agreement will enable travel managers to book Southwest Airlines travel through their preferred channel.

News Briefs
Tip of the Day

As travel advisors, we have to be curious. Curiosity leads to impactful connections that pave our road to success. - Jenn Lee, VP of Sales and Marketing, Travel Planners International

Daily Top List

Tips for Reaching $1 Million in Sales

1. Be consistent in your marketing.

2. Create systems and follow them.

3. Use your consortium’s marketing services.

4. Listen for personal details and use them.

5. Leverage your CRM.

Source: TMR

TMR Outlooks
Advertiser's Voice
AmaWaterways - Christmas Markets