The Holiday and Travel Magazine

Exciting News! The readership of this Magazine has recently passed 8 million. An innovative new way of promoting tourism in the Hunter Valley region of New South Wales in Australia, selected Australian cities and featured overseas countries. Featuring MICE and Corporate Travel news, destinations, hotels, musicals and events. On the right hand side of the page you will find an index of articles by date, by world location, and by popularity. Happy reading!

Sunday, 19 January 2025

How Affluent Millennials Are Changing Travel Planning

Source: Destination NSW

Affluent young U.S. travelers are redefining the traditional travel planning process, creating ripple effects across operators, OTAs, destinations, and more. Historically, travel planning began with selecting a destination—whether it was London, St. Lucia, Hawaii, or Italy. Once the location, transportation, and accommodations were settled, travelers would then plan activities, often at the last minute or after arrival.

This conventional approach is being disrupted by affluent millennials, who are leading a shift toward passion-driven travel. These younger, affluent travelers—ages 18-44 with annual household incomes of $150,000 or more—comprise 14% of all travelers. Predominantly millennials (ages 28-43), this group also includes Gen Z adults (ages 18-27).

Turning Travel Planning on Its Head

Passion-based travel is on the rise, and affluent millennials are at its forefront. Unlike traditional travelers, this group prioritizes experiences over destinations. Research reveals that:

Younger affluent travelers are nearly twice as likely as other travelers to base their destination choice primarily on the experiences they want to have.
Three in four affluent millennials state that tours, activities, and attractions are the main drivers of their destination decisions, compared to just 41% of other travelers.

This shift has significant implications for the travel industry. These travelers do more tours and activities, visit more attractions, and spend substantially more than other groups. Additionally, they plan and book in advance, with 59% organizing all in-destination experiences before travel, compared to only 25% of other travelers.

A New Traveler Mindset

This change reflects a broader shift in traveler psychology and motivations:

Before: “I want to go there. What are the best things to do there?”
Now: “I want to do this. Where are the best places to go to do that?”

From Where to Why: Implications for the Travel Industry

The rise of experience-first travel demands strategic adjustments across the sector:

Experience Operators: Must identify target customer segments, inspire them with tailored offerings, and highlight how their passions can be fulfilled.
Destination Marketers: Should shift focus from simply filling hotel rooms to promoting in-destination experiences that attract travelers (which will, in turn, support local accommodations).
Accommodation and Transportation Providers: Need to integrate experiences into their messaging and offerings to align with the priorities of experience-first travelers.

Learn More About the Affluent Traveler

Arival’s research into affluent travelers offers detailed insights and actionable recommendations. The “Affluent Experiences Traveler” report provides a comprehensive analysis of this pivotal demographic. Available exclusively to Insider Pro Access members, this report is the latest in a series based on Arival’s U.S. consumer research.

As affluent millennials continue to prioritize experiences over destinations, the travel industry must adapt to meet their needs. This shift from “where” to “why” in travel planning represents an exciting evolution for all sectors of the travel market.