According to a recent survey commissioned by IBS Software, which provides SaaS solutions for the travel industry, travel advisor use is on the rise. A record 47% of respondents say they are using in-person or online travel agents (OTAs) to book their holiday vacations, with younger generations in particular leaning into conventional advisor services.
In fact, 38% of millennials and Gen Z are opting to use traditional travel agents (as opposed to booking digitally). Surprisingly, this percentage is far greater than among their Gen X and Baby Boomer counterparts, only 12% and 2% of which (respectively) say they use the services of a traditional travel advisor, with Gen X preferring to book through OTAs (35%). When it comes to direct bookings, only 22% of respondents like to book hotel stays or airline tickets through vendor websites, most of which (63%) are Boomers.
“The most surprising finding from our survey was the fact that younger travelers, millennials and Gen Z, prefer to book with traditional travel advisors at a higher rate than the older Gen X cohorts,” said Steffan Berelowitz, vice president and head of IBS Software Hospitality Business. “We all think of younger travelers as digital natives, wedded to their phones and social media, and yet counterintuitively, they’re seeking more personal connection. There’s an important lesson there for us to question these stereotypes; we plan to invest a great deal more in understanding the needs of this future generation of travelers.”
We all think of younger travelers as digital natives, wedded to their phones and social media, and yet counterintuitively, they’re seeking more personal connection.
More Findings From the Study: Holiday Travel Plans
The survey also looked at holiday plans among travelers, finding that 92% plan to spend the same amount or more on holiday travel this year. Reasons for increased spending range from longer trips (46%) to splurging on hotels (43%) and upgrading their transportation (43%).
In terms of how they are booking this holiday season, looking for savings is a key factor across age groups. Gen X (52%) and Gen Z (36%) say their choice of where to book is based on where they can get the best deal (such as through bundled packages that travel advisors and OTAs can provide), while 66% of Boomers prefer booking directly on airline and hotel websites to take advantage of savings earned through loyalty programs.
Most holiday travel plans do not include New Year’s Eve, with only 17% planning to take a trip for New Year’s. Among those who are traveling, however, the most popular destinations include New York City (24%) and Las Vegas (21%) — and Vegas’ appeal is even higher among Gen Z, with 31% reporting it as their top choice.
Reasons for holiday travel include family vacations (51% of Boomers and 30% of Gen X), theme parks (23% of millennials), ski trips (29% of Gen Z and 26% of all surveyed groups).
Those who booked their holiday travel early include Boomers and Gen X, who tended to book in September and October, compared to millennials, 61% of which put off booking until November or December.
Hotel Preferences
The survey also revealed some of the factors that most influence hotel booking decisions. Sixty percent of Boomers, for instance, prioritize the location of their hotels. Across U.S. travelers, reviews and recommendations from friends (39%) and family (35%) are deciding factors, as well as brand loyalty (35%). A hotel’s amenities are also an important consideration for 41% of respondents. Cleanliness, however, ranked as the most crucial factor for all age groups.
