Who are the millennials?
They are the major force in boosting the growth of the private holiday home rental industry. As per the report published by Airbnb, millennials and younger generations will account for 75% of all consumers and travelers by 2025*.
Millennials are very different from past generations and do have different expectations for travel brands. There is a higher demand for memorable moments and activities over material goods. This has created what is known as the experience economy, driven by the need for shared experiences which is being told every day on social media. Travel being the ultimate experience will continue and will always grow as a result.
It has made me think about this opportunity and what will truly drive the future travel consumer. I think about a traveler, who wants and seeks a little extra, a little surprise and delight to share with family and friends.
What does this mean for vacation rentals?
As we approach the tipping point of millennials encroaching on the baby boomers’ status as the industry’s highest-value audience. It is time for vacation rentals to see they are on the cusp of riding this wave of Millennials driving travel growth with a key understanding about millennials — their desire for both experiences and control.
Millennial travelers are seeking authentic local experiences, whether cultural, natural, artistic or culinary. They want to go where the locals go and do what the locals do, even if it means to “dump the Eiffel Tower visit,” like Anthony Bourdain once said.
The other important trend is sustainability. Our local tourism authorities are looking for ways to limit the impact tourists may have on the environment, heritage sites and local populations. Seasoned travelers have also become aware of this and know they have an important role and responsibility to preserve the places they are visiting.
Vacation rentals are the best positioned travel segment to do this. They are local, they are more often very authentic, they provide unique stay experiences which often can be controlled by the guest to suit their specific needs.
It’s here, I must pause and say. whilst there is great value in taking time to understand millennials now rather than later, I must reflect and say that the Millennial characteristics are not necessarily exclusive or unique. With the rise and rise of social media it has also developed a “millennial mindset” with similar interests and expectations not just to this millennial age demographic alone but to many of the Generation X and baby boomer generations as well.
For Aabode.com and millennials this means we are seeking to align our future and share the experience.
Our vision is simple. We want to be the best millennial vacation rental brand, with affordable luxury at its heart. Our purpose is to deliver a better stay experience through accommodation people love. We aim to innovate and consistently deliver a better experience for both owners and guests, while bringing people together to share in their love for a great stay experience from Aabode.com
Reading list and notes:
*A survey of 1,650 travelers found that 74% of millennial business travelers had stayed in a vacation rental, like those provided by Aabode.com, while just 38% and 20% of Generation X and baby boomer travelers had, respectively.
*Given that Millennials are the fastest-growing age group and now make up around 25% of the global population, it’s reasonable to assume they make up a similar proportion of international travelers. According to Copyrise, 200,000 million global tourists are Millennials and they spend US$180 billion on travel every year.