Travel ancillaries are a major revenue generator, but increasing travel add-ons requires a targeted customer segmentation strategy. To help travel brands increase ancillary travel bookings, Connexions Loyalty partnered with Ipsos to learn what online travel purchasers think about ancillary products like hotels, rental cars, travel insurances, flight upgrades and activities.
The survey compared Millennials to Generation X and Baby Boomer customers, along with the general population, to gain insight into this demographics’ behaviors and preferences when it comes to purchasing ancillary travel services. The findings reveal key insights about Millennial purchase patterns, preferences and concerns. The study also suggests pivotal shifts in traditional thinking about flight booking and a Millennials’ path to purchase. For instance you may be surprised to learn that …
- Millennials are least concerned about convenience and most interested in exclusive opportunities.
- Forty-two percent of Millennials – more than any other demographic – say they attach flights to other travel purchases
Millennials possess some very idiosyncratic preferences that set them apart from older buyers. Most notably, the traditional method of relying on airfare to drive attachments isn’t necessarily the best way to reach this key demographic.
Communicate with purpose
Although they aren’t purchasing as many flights or rental cars as other demographics, Millennials are making far more of their travel purchases online (34 percent) than are other groups (compared to only 25.4 percent of Gen X and 18.9 percent of Baby Boomers). Even so, the survey found that Millennials have purchasing habits in some travel product areas that mirror those of other generations, while in others, there are distinct areas of difference.
The good news for marketers trying to engage Millennials is that they’re more open to ancillary travel marketing than any other demographic. But while they’re open to marketing messages, they’re not open to “spam.” Breaking through to Millennials requires marketers to create an effective segmentation and communication strategy based on customer data. One size does definitely does not fit all in the world of ancillary travel marketing.
Millennials expect marketers to know their preferences and behaviors. And those that can offer ancillary add-ons that are both relevant and timely have the best chance of winning this powerful demographic.
Drive Millennial travel attachments
To increase travel attachments among Millennial customers, brands must first truly understand the consumer, and ask: what is this group most likely to purchase, when and why? Our Millennial consumer travel ancillary study reveals:
- The booking type most likely to encourage ancillary attachment
- Marketing messages Millennials are most likely to respond to
- Timeframes in which marketers should communicate ancillary offerings
- The types of travel experiences Millennials favor most
- The major differences among Millennials, Gen Xers and Boomers in travel purchase behavior
Get started by downloading our full report – The Newest Travel Buyers: Key Insights into Millennial Behavior – with insightful Millennial travel data to help you increase ancillary travel attachment rates.