How Tour Operators Can Connect with Millennials

Posted by Peter Hilliard on July 22nd, 2016

How Tour Operators Can Connect with Millennials

Millennials are quickly becoming the key purchasers across a wide range of industries – including travel. Their purchasing power already exceeds $200 billion per year, and this generation hasn’t even reached its peak.

In addition to buying more, millennials are also transforming the dynamics of the marketplaces they operate in. Tour operators need to have the right tools and software to let them adapt to these changes and make the most of them.

Boxever recently released results from a survey of 500 people, which focused on how the travel industry can evolve to reach an increasingly connected customer. We’ve highlighted some of their findings here for you:

What Stands in the Way of Tour Operators Connecting with Millennials?

One of the biggest issues facing the travel industry – including tour operators – is customer mistrust. Although 49% of respondents believed companies in general would use their personal information to create better buying experiences, only 27% expressed the same sentiment about the travel industry.

Some of the most consistent complaints revolved around bad ads:

  • More than half of people surveyed shop online a few times per month.
  • 95% reported seeing the same ads at least once per week.
  • 72% said they saw the same ads 5-10 times per week.
  • 74% still see ads for products they’ve already purchased.

The good news for tour operators is that millennials demonstrate a more open attitude towards personalization, believing that giving brands access to their personal information will benefit them and lead to more valuable and engaging purchasing experiences.

How Can Tour Operators Gain Ground with Millennials?

The key for tour operators is to truly understand their customer, especially what they want and expect from brands they interact with:

  • Email is still how people would prefer to receive offers, with 68% of respondents choosing that option over mobile, social, or others.
  • Direct mail remains popular. 30% said they favour direct mailings, suggesting a healthy proportion of people want tactile communications.
  • Social media and mobile channels made a leap. Consumers in 2016 are 4 times more likely to want offers on their mobile devices than in 2015, though social and mobile still account for only 11-15% of the overall total.

Perhaps not surprisingly, millennials continue to embrace digital faster than any other segment – especially when you compare 2016 numbers against those from 2015. The preference among millennials for social engagement jumped by 21%, while mobile grew in popularity by 14%.

To continue boosting visibility and customer appeal, tour operators need to focus on:

  • Offering quality service and tours, as great experiences produce dedicated customers. 63% of travellers surveyed said the reason they remain loyal to a given travel brand is the level of attention and service they consistently enjoy.
  • Using the right channels. Company websites and OTAs are still the main source people go to when looking for options, but other avenues like Google are rapidly gaining ground – especially with millennials. 32% of general respondents said they start their search with Google, compared to 46% of millennials.
  • Integrating a seamless booking software and platform. Millennial or otherwise, most people still prefer to book travel on their own. While only 20% of people are willing to buy a car without human interaction, 73% are ready to book a flight without speaking to a person. For tour operators, making sure getting tickets is straightforward and simple is a key part of attracting and retaining customers.

As marketplace dynamics continue to evolve for travel providers – being driven by demands from consumers for more valuable, knowledge-based personalization – tour operators need to remain one step ahead. Choosing the right tour booking solutions and booking software will help you increase brand awareness, maximize productivity, and grow sales.

At DataTrax, our automated booking solutions are designed by tour operators for tour operators. Contact us today to learn how our products and services will make it easier to run and grow your business! 

Do you want to discover risk-free how DataTrax’s solutions will benefit your business? Click here to start your free demo! 

You may also like:

Peter Hilliard

About Peter Hilliard

Peter Hilliard is the Founder, President, and CEO of DataTrax. He began his career as a tour bus operator with a single bus, until he realized that a better solution was needed for automating and tracking ticket sales. Led by Peter’s expertise in the tour industry and ticketing automation technologies, DataTrax has grown over the past 20+ years into an international leader in ticketing solutions.