Instagram is the New Guidebook - Meet Gen Z, the Travel Transformers Julie Hoffmann | Global Head of Industry Strategy, Travel & Hospitality
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Instagram is the New Guidebook Meet Gen Z, the Travel Transformers Julie Hoffmann | Global Head of Industry Strategy, Travel & Hospitality © 2019 Adobe. All Rights Reserved. Adobe Confidential. 1
Julie Hoffmann
This consumer based research was designed to support
Travel Brands globally by understanding critical shifts in
both “customer mindset and behaviors”.
Although this research is focused on Generation Z, we
designed our full research around all of the generations for
context: Boomer, Gen X, Millennials and Gen Z.
If you would like to hear more about consumer habits and
behaviors for what matters throughout the Travel
Customer Journey, please reach out, we’re here to help.
Global Head of Industry Strategy, Travel & Hospitality
Adobe
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 2
Overview
Introduction
Meet the Travel Transformers
Leaders
Industries Setting the Bar
5 Unique Traits of Gen Z
Challenges & Opportunities
4 Mindset Shifts To Make
To Evolve
Industry Response
Within Travel & Hospitality
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 3
Meet Zoey.
She views the world through a social lens. She’s never
disconnected, tapping into the outside world for
spontaneous ideas and inspiration in the moment.
Adventure
2x & Novelty 41.6 %
Blend business Travel Social media
& leisure motivations To choose destinations
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 4
Understanding Zoey
Zoey grew up with easier, She’s never known a world With distant places feeling
more accessible travel without mobile phones, so she so close, she’s eager to
options. feels comfortable, safe, and optimize her desire to explore
A flight to Europe easily replaced connected while traveling by expanding business trips
the cramped family road trips of internationally and solo. and seeking flexible options.
past cohorts.
1994 1995 1996 2007 2008 2017
First travel First Gen Z First OTA Apple releases Airbnb hosts Hilton unveils
website born launches first iPhone first guest smart rooms
launches
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 5
Customer mindset shift and climbing expectations set the Bar High
Addressing expectations of the younger generation honed from retail, transportation
and lifestyle branding
ALREADY EXPERIENCED NOW EXPECTED FROM T&H
Customer Mindset Shift - Booking Capabilities that consider:
RETAIL & Retail is Setting the Bar through •
•
Travel History
Preferences and Behaviors
PERSONALIZATION Highly Relevant Content to • Suggestions for relevant new
Individual Consumers (Know Me) destinations and activities
Relevance Took on New Meaning - Embracing decision-making:
SHARED ECONOMY Experiences Centered on •
•
In the Moment
On the Go
Convenience and Enabled by
& MOBILE Mobile through Context (Location)
• With Quick and Simple Bookings
“whenever/wherever”
Integrated Loyalty and Service - Brands with a lifestyle emphasis, that:
LIFESTYLE BRANDS Retailers are Creating Experiences
•
•
“Get” the Younger Generation
Inspire Self-expression/ID
& LOYALTY that Deliver Value and Build • Beyond traditional loyalty to
experiential & integrated rewards
Brand Loyalty (ex. Nike) (Customer Centric View)
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 6PRE-TRIP • IN-TRIP • POST-TRIP Return to desktop While researching travel options, she immerses herself on desktop to explore images, videos, and reviews. 43% On desktop pre-trip © 2019 Adobe. All Rights Reserved. Adobe Confidential. 7
PRE-TRIP • IN-TRIP • POST-TRIP Mobile & in-the-moment She expects highly personalized, immediate experiences and is most likely to upgrade or change her accommodations, transportation, and itinerary in-trip. 65% “Always” on mobile while traveling © 2019 Adobe. All Rights Reserved. Adobe Confidential. 8
PRE-TRIP • IN-TRIP • POST-TRIP Organize via mobile She uses mobile to organize photos and videos of her experience and connect her travel experience with her world– and the world at large. 62% On mobile post-trip © 2019 Adobe. All Rights Reserved. Adobe Confidential. 9
Loyalty Program So far, the travel industry’s lagged behind on engaging crucial change-makers like her, which is why fewer than 25% opt in to traditional loyalty programs. © 2019 Adobe. All Rights Reserved. Adobe Confidential.
Other industries set the bar high for
personalized, connected, and immersive experiences.
SHARED ECONOMY LIFESTYLE RETAIL
Offers flexible & seamless Rooted in identity for Leverages personalization
journey management authentic alignment to drive loyalty
© 2019 Adobe. All Rights Reserved. Adobe Confidential.How is Zoey different?
5 UNIQUE TRAITS OF GEN Z
1. They don’t plan ahead
2. They reject your categorization
and rewards
3. They’re impatient
4. They’re broadcasters
5. They’re identity-based
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 121 She doesn’t plan ahead. 55%
She expects to discover, search, and book More likely than other
through her phone. generations to change
itinerary on the go
2 She’s not enticed by your 62%
categorization & rewards. vs. 73% overall
Desire traditional
She doesn’t fit into traditional marketing
points & rewards
segments and has no patience for slowly
earning rewards.
3 She’s impatient. 69%
If you’re not immediately visible or vs. 45% overall
matching her pace, you’ve already lost her. Consider mobile & wi-fi
“essential” to travel
5 UNIQUE TRAITS OF GEN Z | CHALLENGES
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 134 She’s a broadcaster. 66%
Everything she does is shared live. Share via social
She’s hungry for immersive experiences while traveling
and content to inspire her.
5 She’s identity-based. 2x
She actively seeks authentic experiences and is More likely to belong to
eager to build meaningful relationships with niche loyalty programs
brands that get her.
5 UNIQUE TRAITS OF GEN Z | OPPORTUNITIES
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 14Compared to other generation
Zoey’s worldview and motivations
represent a tremendous shift.
How they plan
Rewards they value
Their pace of life
How they connect socially
What they prioritize
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 15The Opportunity?
Travel is
part of her being.
In a connected world, flying to
Europe feels as comfortable
and easy as flying to New York.
2x to combine
business &
more likely leisure travel
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 16How can you help make
the travel she craves accessible?
We’ve identified four major mindset shifts
you’ll need to make to connect with Gen Z
and be prepared for the travel transformation.
SHIFT #1 SHIFT #2 SHIFT #3 SHIFT #4
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 17SHIFT #1
T
Think beyond transactions –
build informed relationships.
Zoey’s investing in an Leverage multiple data
experience, not a streams to learn about her
commodity – so don’t and help craft her
treat her like one. experience.
60% 58%
Seek new destinations Seek variety at destination
vs. 52% overall vs. 44% overall
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 18SHIFT #2
T
Forget planning –
deliver in the moment.
Zoey’s used to a Learn from ride-sharing apps, who
connected world with deliver convenience & flexibility.
contextual options.
Anticipate her needs through
Screens are her real- invisible personalization and
time map, travel enable spontaneity in discovering
agent, guidebook, & and managing her trip.
photo album to
discover, book,
navigate, and share.
Interested in: GEN Z OVERALL
Location-based
notifications 50% 34%
of discounts and activities
Tools & apps
to plan, manage, and
50% 30%
organize trips
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 19SHIFT #3
T
Reconsider your identity –
embody her lifestyle.
Highly-visual and Cruise lines and OTAs see the
lifestyle-based, highest loyalty program
Zoey seeks out engagement, providing identity-
inspirational based lifestyle packages.
experiences as the
backdrop to and story Evaluate your brand image across
of her life. physical and digital spaces and ask
yourself – is it time for a refresh?
Gen Z
Overall
18% 52%
42% 43%
Choose destination Trip plan via
with social media desktop
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 20SHIFT #4
T
Abandon tiers and traditions –
embrace service & earn loyalty.
Zoey isn’t waiting to earn Offer value-based services tailored
rewards on your schedule. to their needs and meaningful,
exclusive rewards that don’t take
You earn her loyalty – years to earn.
she doesn’t earn yours.
SERVICE INTERESTS
46% Book, manage, & plan trip
Over-indexed 55% Budgeting
30% Trip baggage concierge
on future service
offerings overall 24% Hotel chat concierge
24% Travel skills for smart speaker
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 21What’s Different About Gen Z …and How to Win Them.
1. They don’t plan ahead 1. Build informed relationships
2. They reject your categorization 2. Deliver in the moment
and rewards
3. Embody their lifestyle
3. They’re impatient
4. Embrace service to earn loyalty
4. They’re broadcasters
5. They’re identity-based
© 2019 Adobe. All Rights Reserved. Adobe Confidential.Travel and hospitality players are responding,
but not fast enough.
CAR VACATION
OTAS AIRLINES RESTAURANTS HOTELS
RENTALS RENTALS
TRANSACTIONAL EXPERIENTIAL
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 23Travel & Hospitality Leaders
RESTAURANTS HOTELS VACATION RENTALS
Leveraging digital experience Integrating technology through smart Challenging hotels through
through local delivery and social rooms and mobile-first booking for digital-first approach and
media-optimized environment seamless, connected experiences. immersive, authentic experiences.
and presentation.
© 2019 Adobe. All Rights Reserved. Adobe Confidential.Potential for impact
Fostering personalized, connected,
relevant experiences holds
tremendous potential to
transform the way you relate
to customers from all cohorts.
© 2019 Adobe. All Rights Reserved. Adobe Confidential.Start transforming your
experience today.
If you want to learn more about how
Adobe can help you level up your
customer experience programs, or the
full generational consumer research
insights get in touch.
877-722-7088, option 2
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 26You can also read
