Millennials are opening up the travel industry to a serious shake-up. Here’s how!
The millennial. We know… and it’s a term we won’t use lightly, but sometimes it’s impossible to avoid! Because, despite how often we might read about them, ‘millennials’ are so much more than a buzzword. As the first generation of ‘digital natives’, the world is watching how this impacts their interactions with, well… everything — which, so far, hasn’t exactly been boring! Retail and gaming are just two examples of industries that are changing considerably under the influence of Generation Y — and now the travel industry is set for a serious shake-up too. Vado explains how.
Businesses have a keen eye on millennials for good reason. In addition to leading the charge for greater digitalisation, 22–37 year olds are now also the fastest growing consumer demographic, spending around 600 billion US dollars a year. This translates to 33 per cent of all daily spend per person globally — and across almost every consumer market. For the travel industry, the stakes are even higher: millennials equate to a market of more than 200 billion US dollars annually, and they’re 23 per cent more likely to travel abroad than any other generation*.
Growing up on social media, surrounded by aspirational snap shots of inspiring places and people, millennials are more likely to find their motivation from acquiring experiences over tangible assets — which travel can offer above all else. However, this is also a generation that demands a quick and quality customer experience, accessible anywhere at any time; millennials might be a growing consumer demographic in the travel industry, but the industry has, so far, seemed ill-equipped to meet their expectations.
Cause and effect
It’s one of the largest economic sectors in the world, and yet Travel & Tourism has, until recently, been largely immune to undergoing too much change. Despite appearances, it’s actually a highly centralised industry, predominantly controlled by just two companies via a number of online travel agencies. As such, there is little incentive for innovation, or opportunity for innovative competition. Any changes that do take place tend to focus at the front end — on the marketing and packaging. User-generated online content, for example, has been a big focus for travel companies.
But as the origin and authenticity of online articles and reviews increasingly come under question as a result, it’s perhaps no surprise that a generation raised on social media is returning to online communities — and the people they know and trust — for their travel needs instead. After all, more than 97 per cent of millennials are found to share their photos and experiences online when travelling*, and 87% of millennials on Facebook, for example, say they use social media as a source of travel inspiration too**.
The rise of smart devices has also helped to establish an online community that can be constantly connected. And when it comes to mobile engagement, apps rule. In 2017 alone, global mobile app revenue amounted to 90 billion US dollars, and within the travel industry, 60 per cent of all bookings now take place via mobile apps***. It’s a rising trend — and one that has cleared a path for innovative growth in the apps market and travel industry combined.
For more on the state of travel , read our blog: ‘The future of online travel: Balancing a broken ecosystem’
Technology is bringing together new ways of engaging with Travel & Tourism-related content, while millennials represent a large audience just waiting for what the industry has to offer next. This is creating opportunities and opening doors for innovative new technology companies, like Vado, to enter.
Millennials have grown up on social media, and yet, despite their keen interest in travel, there is no one place online for them to engage with like-minded travellers, organise their trips, share itineraries with friends, or simply store all the places they’d like to visit. Instagram snaps, magazine images, articles and reviews — travel inspiration is all around us, and yet, when it actually comes to booking that trip or sending a recommendation to a friend, what options were there to help remember them all?
There are numerous apps that enable users to make to-do lists, write notes or set alerts, but few that do so at the required level of integration with social media, so that users have complete control over the content they include and where they source it from. Vado is set to change all of this, providing a single source for users to discover new places, share travel experiences, store inspiring places, plan their trips, and engage with friends, family and those with similar interests. What’s more, as a blockchain-based travel technology, Vado will enable direct access to all kinds of travel-related businesses without the use of intermediaries; leading to a more level playing field of trustworthy information, lower costs, and greater value — that’s of benefit to everyone!
To follow the development of the Vado app and the journey towards our Beta launch –coming soon — follow our blog and join Vado on Instagram (@vadoapp), Facebook and Twitter. Send us your thoughts and feedback — or share with us your favourites places to feature using #VadoTravel.