The New Group That Is Currently Dominating Business Travel And Its Implications

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PCLN
Priceline Group

A new report called the Portrait of Business Travelers published by MMGY Global indicates that the millennials are the group predominating the set of business travelers currently. Their patterns of buying also varies distinctly from those of the older generation. The growth is due to the rise of a younger workforce in the U.S. and in many other important regions of the world. However, this implies that online travel companies need to keep this populace in mind and customize their offerings to gain a competitive advantage in the industry.

  • The report indicated that millennials engaged in around 7.4 business trips in 2015, as compared to 6.4 and 6.3 for Gen Xers and Baby Boomers.
  • Unlike the previous generation, it was found that the millennials are not lured by loyalty points and based their preference for air travel and such activities on their previous experiences with a  provider. Since loyalty programs are a major selling points for airlines, maybe the time has come for the industry to think about other alternatives to attract travelers.
  • Finally, roomshare services such as the ones provided by Airbnb are a preferred option for millennials. Also sharing a ride is a popular concept among them rather than hiring a cab of their own.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Priceline and Expedia

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