In five to ten years millennials will be entering their peak earning, spending and travelling years. What do airlines need to do in order to create an experience for the modern traveller?
This will be true for both business and leisure travels. By 2020 they will represent 50% of the business travel spending, and will continue to do so for 15 years after that. Most likely Baby boomers (born between 1946 and 1964) currently make up your biggest customers group, but their spending will drop to around 16% of the total reported spending on business flights by 2020, and to 11% by 2025.
This means that while millennials might not be getting your full attention yet, they are already engaging with brands, forming habits and preferences. Younger millennials are reported to have strong brand loyalty compared to non-millennials and are also inclined to share brand preferences in their social groups. When it comes to making reservations they already have a clear opinion: it’s burdensome and should be more efficient.
Airlines and travel agents have a lot to gain by developing strategies for, and learn to understand, the modern traveller in order to win their business.