Airport Experience® News - ACDBE & Small Business Issue 2024

DATA CHECK

Younger Generations Show Signi cant, Growing Interest in Travel

Share of respondents reporting increased interest in travel,% 1

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic travel spending. But some new locales are gaining traction.

Strongly agree

Agree

Gen Zers (age 18 to 25)

41

35

Millennials (age 26 to 41)

37

35

Gen Xers (age 42 to 57)

28

36

Baby boomers (age 58+)

22

33

Overall

31

35

1 Question: Do you agree or disagree with the following statement: “I am more interested in travel than I used to be”? Respondents who answered “neither agree nor disagree,” “disagree,” “strongly disagree,” or “don’t know/no answer” not shown. Gen Zers, n = 396; millennials, n = 2,037; Gen Xers, n = 1,660; and baby boomers, n = 968. Source: McKinsey State of Travel Survey, Feb 27–Mar 11, 2024 (n = 5,061)

Younger Generations Take Nearly as Many International Trips as Domestic Trips

Gen Zers (age 18 to 25)

Millennials (age 26 to 41)

Gen Xers (age 42 to 57)

Baby boomers (age 58+)

Average number of trips taken in the past year, by trip type

Overall

–9%

–16%

–26%

–71%

–23%

Domestic

2.7

International

2.4

2.3

2.3

2.3

2.2

2.1

Prioritizing Travel The State of Tourism and Hospitality 2024 report also contends that travelers increasingly prioritize travel but they are no longer content with a one-size-fits-all experience. “Individual personalization might not always be practical, but savvy industry players can use segmentation and hypothesis-driven testing to improve their value propositions,” the report noted. “Those that fail to articulate target customer segments and adapt their offerings accordingly risk getting left behind.” Sixty-six percent of the travelers surveyed by McKinsey said they’re more interested in travel now than they were before the pandemic. Travel continues to be one of the fastest growing consumer spending areas, rising 6% over a recent 12-month period in the United States, even when adjusted for inflation, the report noted. And in the February 2024 McKinsey

1.9

1.7

1.1

Note: Gen Zers, n = 396; millennials, n = 2,037; Gen Xers, n = 1,660; and baby boomers, n = 968. Source: McKinsey State of Travel Survey, Feb 27–Mar 11, 2024 (n = 5,061)

ConsumerWise Global Sentiment Survey of more than 4,000 participants, 33% of consumers said they planned to splurge on travel, ranking it the third most-popular splurge category—trailing only eating at home and eating out at restaurants. Younger travelers are most likely to venture abroad, the report noted. Gen Z and Millennial survey respondents were planning a nearly equal number of international and domestic trips in

2024, no matter their country of origin, whereas older generations were planning to take roughly twice as many domestic trips. Millennials (now age 26-41) are the most travel-minded, with the survey showing they planned to take an average of five trips this year. Gen Z plans were nearly as prolific, with an average 4.4 trips planned. Gen X respondents planned an average 3.9 trips this year while Baby Boomers anticipated an average 3.4 trips.

7

AX NEWS JULY/AUGUST 2024