In a year of projected slowdown for travel, millennial families in the United States are going to spend more and travel more than all other generational segments, according to MMGY Global’s Portrait of American Travelers survey.
This year’s study predicts that the approximately 60 million traveling households in the U.S. will spend up to US$5 billion less on leisure travel, which shows a less than 1% dip from its eight-year high in 2016. The 9.5 million households that are millennial families, however, intend to spend 19% more on vacations during the next 12 months and intend to travel 35% more than the previous year.
The study includes responses from 2,902 U.S. adults surveyed this year who have taken at least one overnight trip a minimum of 75 miles from home in the past 12 months. The study measures over 2,000 variables, thoroughly analyzing and revealing American travelers’ perceptions of travel, planning priorities and emerging vacation behaviors and inclinations.
“Travel marketers should view millennial families as an opportunity segment, not only because of their size and purchasing power, but because that segment is only going to expand,” said Clayton Reid, president and CEO of MMGY Global.
The following are topline results from the first of four research publications that will be released this year as part of the MMGY study:
Millennial families primary drivers of growth in travel
Millennial families, which are married or unmarried couples living together with children aged 17 or under currently in the household, make up 16% of all American travelers. They went on a combined 36.9 million vacations and spent US$50.4 billion on leisure travel during the past 12 months and they are the driving force behind growth in travel this year.
- While U.S. travelers only intend to travel 6% more this year, millennial families intend to travel 35% more.
- Millennial families intend to spend 38% more than millennial couples on vacation and 88% more than millennial singles.
- 26% of millennial family vacations are to international destinations compared to less than 20% of couples or singles, possibly because three-quarters of millennial families consider themselves happy, optimistic about their own future (83%) and the future of the world (62%).
Instability turning Americans toward domestic trip
In 2017, travelers reported spending an average of US$4,833 on vacations during the previous 12 months, a significant drop from US$5,048 the year prior. And, for the first time since 2013, travelers report an intention to spend less (US$18) on travel than they did during the previous year. With half of travelers saying they are optimistic about the future of America and the world, travelers’ preferences are shifting toward domestic rather than international destinations.
- Domestic vacations now make up 85% of American vacations, up 7 points from last year. 13.9 million more vacations were taken within the U.S. compared to outside the country.
- Two-thirds of travelers reported being happy, which represents a drop of 9 points from last year and a five-year low. Two-thirds of travelers are currently optimistic about their future employment, which is a 7-point decrease from last year.
- 40% of domestic vacations will be to new destinations, up from 34% last year.
- 79% of millennial travelers’ vacations were to domestic destinations in 2016; the same applies to 85% of Gen Xers, 90% of baby boomers, and 88% of mature travelers.
- In the last 12 months, 39% of vacations taken by American travelers were road trips, up significantly from 22% the year prior.
Attractions influencing vacation
Over two-thirds of travelers visited at least one attraction while on vacation and these approximately 41.5 million households took a combined 150.9 million vacations and spent US$306.1 billion on leisure travel during the past 12 months.
- 53% of all vacations include at least one visit to an attraction.
- 68% of travelers chose the majority of attractions they would visit before the vacation began.
- Top-ranking attractions showcase an interest in education and culture with art and history museums (65%), aquariums (59%) and science museums (56%) coming before theme parks (55%).
- 57% of millennials visited at least one attraction on vacation during the last 12 months, while 53% of Xers, 49% of Boomers and 46% of Matures did.