Future-Proof Your Property: Why the Slow Travel Trend is Here to Stay
Embracing the slow travel trend is not just a passing fad; it's a strategic move to future-proof your property. Airbnb reports that over 25% of their bookings were for stays of 28 days or more and innovative brands like Selina are leveraging the increasing interest in long-term stays by offering a unique blend of accommodation, coworking spaces, and social experiences. It's clear that the demand for slow travel experiences is on the rise. In this article, we explore why the slow travel trend is here to stay and how you can capitalize on this flourishing market.
Changing Demographics
At 72 million, Millenial’s have recently surpassed boomers as the largest generation in the US. Despite the perceptions of many, Millennials are not so young. A true Millennial was born between 1981 and 1996, making the average age 34. In the mid-stage of their career, they are nearing the peak of their purchasing power and it’s estimated that their per capita spending power will increase 10% over the next 5 years.
While the travel industry will have to adapt to this surge in Millennial spending, a younger cohort is also on the rise. Gen Z’s purchasing power is set to rise by a whopping 70% over the next 5 years, all while spending by Gen X and Boomers will shrink. Even when Gen-Z isn’t directly controlling the coin purse, they still have influence—80% of parents of teens (gen z) report that their children influence household spending.
What does this mean for hotelier’s and property managers? While Millennials and Gen-Zs aren’t identical in terms of consumer behavior, there is enough crossover to make some safe assumptions concerning their impact on the travel and hospitality industries. We’ll expand on these below.
Health and Wellness
Millennials and Gen-Z travelers report having the same top two priorities as other cohorts—to relax, and to escape or get away. However, these younger travelers have a different idea of what it means to relax and get away. They are leading a wellness revolution in the travel industry, seeking experiences that prioritize health and well-being.
They embrace mindful travel, seeking relaxation and rejuvenation through yoga retreats and spa treatments and they prioritize nutritious meals and active adventures. They may “escape” to undergo a digital detox or nurture their mental well-being, appreciating destinations that offer tranquility and spaces for reflection. Here are some insights worth considering:
72% report that they are more focused on self-care compared to one year ago
57% report that they plan to take an extended vacation for the purpose of wellness
75% report planning to decrease screen time while traveling with the intention of focusing on mental health
68% report a desire to surround themselves with nature to focus on mental clarity
Desire for Deeper Cultural Immersion
Millennials and Gen Z travelers have a strong desire for deeper cultural immersion during their getaways. They seek authentic experiences that allow them to connect with local communities and explore beyond the average postcard attractions. These travelers value engaging with local culture, traditions, and customs, aiming to gain a deeper understanding of the people and their values.
Hoteliers and property managers can cater to this desire by offering local experiences, partnering with community organizations, and providing recommendations for immersive cultural activities. Emphasizing the authentic local flavor and facilitating meaningful connections will resonate with these curious and culturally-minded travelers. Here’ what the data say:
47% of Gen-Z and Millennials report planning a trip around visiting a specific restaurant, and 45% have planned a trip around attending a food festival.
79% of Gen-Z and Millennials report a desire to experience a day in the life of locals.
46% of Millennials and 37% of Gen-Zs report being more likely to spend money on experiences than on consumer goods.
68% of Gen-Z said they were interested in experiencing a new culture, while only 21% were in search of nightlife and clubbing.
Sustainable and Responsible Tourism
Conscious travel has gained significant traction in recent years, with travelers showing a greater commitment to sustainability and responsible tourism practices. Extended-stay aligns with these principles by reducing the carbon emissions associated with frequent travel and supporting local economies. Slow travel enables individuals to make a positive social and environmental impact by supporting local businesses and minimizing their ecological footprint.
86% of Gen-Z and Millennials reported that they want to shop at small businesses when they travel to a new location.
69% of all respondents report that they would spend more during a vacation if they knew it supported the local community.
79% of Trip.com customers agreed that sustainable travel was “vital,” and 70% “demanded” more sustainable options.
78% of global travelers intend to stay in a sustainable property at least once in the coming year according to Booking.com’s 2022 Sustainable Travel Report.
Technology and Remote Work
The effects of remote work and technology related to connectivity are obvious to anyone who has been paying attention. But are these changes permanent, or merely a symptom of pandemic forces?
In 2019, around 5% of full-time work was done remotely. During the first few months of the pandemic in 2020, this figure swelled to over 60%–-an increase equivalent to nearly 40 years of pre-pandemic growth. While remote work has currently declined to 27%, it is expected to stabilize at about 25%, which is still 5 times higher than 2019. Here are some other important stats to consider:
Job seekers polled by ZipRecruiter say they’d take a 14% pay cut to work remotely, and parents with young children would take a 20% pay cut.
39% of new hires have jobs with a hybrid work arrangement and 18% of new jobs are fully remote, up from 28% and 12%, respectively.
Zoom saw its number of daily meeting participants increase by 2900% within months of the outbreak of COVID-19.
Nearly 1 in 2 people (48%) said that if they were no longer able to work remotely, they would start looking for another job.
Changing Travel Mindset
Traditional notions of travel, centered around ticking off popular tourist attractions in a short period, are evolving. Travelers are now prioritizing quality over quantity, focusing on meaningful experiences rather than simply collecting passport stamps. Extended travel allows individuals to delve deeper into a destination, form connections, and create lasting memories. By understanding and embracing this evolving travel mindset, businesses can capture the attention and loyalty of Millennials and Gen Z, future-proofing their properties in a dynamic and competitive industry.