How will be the impact of the millennials in the corporate travel segment?
According to the Boston Consulting Group's predictions, millennials will account for almost 50% of spending with trips up to 2020
By Victoria Gorzio, Head of Business Travel, LATAM
Such figures highlight the need for travel industry actors to learn how to meet the particular travel needs of the millennials, in order to take advantage of this great potential for profitability. Although embracing the new technology is crucial to serve the ever-connected millennials, a deeper understanding of what drives this important demographic is critical to maintaining relevance in this changing environment.
Technology is the way to success
The image of the millennial cell phone addict has become an exaggerated cliché, however, is based on reality, announcing a transformation in travel habits. According to GSMA data, in 2018 Latin America had 442 million mobile users, which represents 68% of the total population of the region. This increase in the use of smartphones has been driven by millennials. By translating this into travel terms, we are faced with a generation that demands a highly fluid and personalized experience, driven by technology.
Benefits of work
90% of millennials see travel as a job benefit, and 39% say they would not accept a job that does not offer travel opportunities . These figures highlight the importance of corporate travel policies in the current scenario. However, simply offering more travel opportunities will not be enough to meet the needs of millennial employees. According to the research "Future Traveler Tribes 2030", commissioned by Amadeus, millennials put a greater emphasis on a healthy balance between work and life, compared to their older colleagues. While the welfare of the traveler emerges as a central pillar of a coherent travel policy, companies have to show a duty of care towards their travelers if they hope to keep their young recruits. Such measures may include granting access to the airport lounge, travel recovery time and disruption management.
A single model will not work for everyone
Having grown up in a world of digital empowerment, millennials have a greater desire to be recognized as individuals. When it comes to travel is not different, which leads this generation to demand a flexible reservation process, which gives them control to create a personalized travel experience. Therefore, millennials are challenging the limits of corporate travel, and want more options for lodging, fast entry, priority boarding, waiting options and on-board Wi-Fi. Thanks to investment in technology, travel providers can offer valuable trips tailored to the needs of these customers.
The 'bleisure' trend is being anchored in the climate of individualized travel experiences. In keeping with their desire to travel, millennials are eager to take advantage of their time abroad by adding a couple of days of leisure to their trip. The face of corporate travel is changing, as the line between business and leisure is blurring more and more. By granting this increased flexibility in travel policy, companies can expect a higher level of employee welfare as stress levels decrease and travel satisfaction increases. In short, taking a well-planned and strategic attitude towards the management of the well-being of the traveler will train better employees and bring more compelling results.
Millennials in Latin America
In Latin America, the generation of millennials is greater than that of the Baby Boomers or Generation X. According to Oracle, Latin America is home to 176 million millennials, with 30% of the population of the region among the 18 and 34 years old. These young adults will continue to change the way brands do business and relate to their customers. A recent Mastercard study on the behavior of millennials in Latin America found that 64% adopt new behaviors and are people who are constantly challenging the status quo.
According to a report by IPK International, presented at the ITB in Berlin in 2018, tourism grew 13% in Latin America and corporate travel grew around 9% throughout the region. We listen to travelers and observe trends and behaviors to develop technologies that benefit them.