As millennials and Gen Z make up the second largest group of travellers amongst all the age groups in the world, they should be the first target customers for travel companies. A study says these two groups will drive future travel demand in low-cost and off-peak segments.

GlobalData, a data and analytics company, says that millennials and Gen Z, numbering over 2 billion globally, make up the second largest group of holiday takers, after Generation X. The firm says that travel and tourism companies should offer vacations away from busy summer periods that create value for money and authentic experiences for these groups, with the emphasis on low-cost travel options tailor-made for these travellers.

The report by GlobalData says that  significant factor contributing for having so many holiday takers in this age range is their ability to travel during off-peak periods as many young millennial and Gen Z travellers have no children or major responsibilities in terms of occupational and financial obligations.

“With prices for flights and accommodation being their cheapest in times of low demand, many young travellers in Europe, for example, will often holiday internationally in March or November. If low-cost carriers (LCCs) and budget accommodation providers are offering rock bottom prices, they may even travel more than once in off-peak periods during the same year,” says Ralph Hollister, Travel and Tourism Analyst at GlobalData.

GlobalData’s Q1 2021 Consumer Survey found that 27 pc of Gen Z and 26 pc of millennials say they are ‘always’ influenced by how well a product or service is tailored to their needs and personality. These were the two highest percentages when compared to the remaining age cohorts that responded to this question.

“During peak tourism months in established destinations, visitor numbers will often outweigh the number of local residents, and all aspects of tourism infrastructure will be overcrowded. In off-peak months, travellers are more likely to have meaningful interactions with locals and experience cultural and natural attractions in a more intimate fashion due to less crowding. This allows for a better overall experience and a more positive perception of a destination,” says Hollister.

GlobalData says that with the travel recovery currently on, this is the ideal time to target the young customers and this group could help the industry speed up its recovery and also create long-term effects that would be beneficial in the long-term also. “As destinations and travel companies continue to recover from the pandemic, younger travellers that can more easily travel in off-peak months should be targeted with low cost and authentic experiences. This will reduce the impact of seasonality and boost revenue,” Hollister adds.