This is due to 18- to 34-year-olds indicating that the cost-of-living problem has affected their travel selections more than those over the age of 55 (66% vs. 52%).
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 vacations more appealing to 18- to 34-year-olds, the top three travel packages that this age group desires are:
- Free cancellation (70 percent)
- Meals provided 62%
- Free hotel upgrade (58%)
These discounts are marketed much differently to 18- to 34-year-olds than to older generations. While email bargains from airlines and hotels were the most influential source of travel marketing communications across all age groups, 18–24-year-olds were much more influenced by social media advertisements and influencer posts (32% vs. 4% and 19% vs. 1%).
In a broader sense, the travel and tourism sector fears a challenging year in 2023, as more than half of Brits identify rising travel expenses, energy prices, and the cost-of-living problem as having a direct impact on their vacation plans (59%, 51%, and 55%, respectively).
Nearly one-third of British citizens (31%) cited the total price as the most significant criterion when selecting a vacation. In 2023, funding is projected to decline further. While 39% of Britons want to keep their total expenditures, 33% plan to reduce them further. This group predicts spending 42% less on average.