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QuMind research reveals that 42% of 18-34 year olds plan to spend more on travel and tourism next year despite heightened concerns over the cost of living crisis
Research from the customer insights platform QuMind reveals that Millennials and Gen Z are set to rescue the tourism industry in 2023 as 42% plan to increase spending on travel and tourism in 2022, compared to just 22% of over 45-year-olds.
This is despite the fact that 18-34 years olds report that concerns over the cost of living crisis have influenced their decisions to travel more than the over 55s (66% vs 52%).
Commenting on the research, Mark Ursell, CEO of QuMind, said: “Many British consumers are making serious cutbacks to their holiday spending as a way to save money in these trying times. However, younger people that may feel like they missed out on travel experiences during COVID continue to increase their spending on travel, despite heightened concerns over the cost-of-living crisis.”
“It is critical that travel and tourism companies help their price-sensitive customers’ money to stretch further. Offering deals and added incentives will be key to helping many people get away and have special and memorable experiences. However, there’s not a one-size-fits-all approach, and travel companies need to understand what makes a holiday attractive to their different customer segments and offer targeted deals and communications to reach them,” Mark continued.
Marketing holidays to Millennials and Gen Z
To make holidays more attractive to 18-34-year-olds, the research found that the top three travel offers this group are looking for are:
- Free cancellation (70%)
- Meals included (62%)
- Free hotel upgrade (58%)
The ways of marketing these deals to 18-34-year-olds differs significantly from older generations. While email deals from airlines and hotels were the top source of travel marketing communications across all age brackets, social media adverts and influencer posts were much more influential for 18-24 years olds than for the 55+ (32% vs 4% and 19% vs 1%).
Another difficult year ahead for travel & tourism
Looking more broadly, the travel and tourism industry risks a difficult year as more than half of Brits cited increased travel prices, energy prices and the cost-of-living crisis as having a direct influence on holiday planning for 2023 (59%, 51% and 56% respectively).
Almost one-third of Brits (31%) identified the overall price is the most important factor when choosing a holiday. This reflects the reduction in spending already seen in 2022, where 42% of UK consumers reported spending less on travel and tourism compared to previous years, with 39% spending an average of £500 or less for their holidays over the year.
In 2023, overall spending is predicted to fall further. While 39% of Brits expect to maintain their overall spending, 33% anticipate cutting costs further. This group anticipate spending on average 42% less.
