UK 2015 Travel Report

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UK 2015 TRAVEL REPORT UNLOCKING THE UK MILLENNIAL TRAVELLER OPPORTUNITY Digital natives. Mobile-first consumers. The Millennial Generation, born between 1980 and 1999, demands more from their technology to empower incredible travel experiences than any other generation. By 2025, Millennials are expected to comprise 75% of the British workforce1 with more earning power and greater ability to travel than ever before. Identifying the white space between technology and travel, for brands seeking to effectively market their products, services and destinations to Millennials, is essential for gaining a competitive advantage. MWW PR provides insights into the travel habits of Millennials and identifies engagement opportunities for travel brands looking to gather affinities amongst millennial customers. 1. Big Demands and High Expectations, the Deloitte Millennial Report (2014, January). Retrieved from http://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-dttl-2014millennial-survey-report.pdf 2 © MWW GROUP, ALL RIGHTS RESERVED

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TRAVEL LIKE A (MILLENNIAL) ROCKSTAR Authenticity, storytelling, spontaneity and bragging rights are the dynamics that millennials seek whilst travelling. Brands that meet them mid-way with personalisation, loyalty incentives and business-to-leisure directives align themselves with the attitudes and values of millenials. They prefer efficient brands and services, have high expectations and are most likely to ‘payback’ via reviews and content creation within the sharing economy. GLOBALLY THE UNDER-30S TRAVEL MORE FOR BUSINESS THAN OTHER AGE GROUP: 4.2 X COMPARED TO 2.9 OF 30-45 YEAR-OLDS 2 UK MILLENNIALS SAID THEY WILL BE SPENDING 30% MORE ON HOLIDAYS IN 2015 3 MILLENNIALS ARE MORE LIKELY TO BOOK A TRIP ON THEIR PERSONAL DEVICE THAN OTHER PLATFORMS 4 56% OF BRITISH MILLENNIALS HAVE NO QUALMS ABOUT EXTENDING A BUSINESS TRIP FOR LEISURE 5 2. Myers, P. (10/27/13). [Millennials in Profiles]. Retrieved from http://www.expediablog.co.uk/millennials-in-profile 3. ABTA Consumer Holiday Trends Report (2014, September 22). Retrieved from http://abta. com/resource-zone/publication/the-consumer-holiday-trends-report-2014 4. Meet Your Lucrative Millennial Traveller; (7/9/14) Retrieved from http://www.tripadvisor.co.uk/TripAdvisorInsights/n2357/meet-yourlucrative-millennial-traveller 5. Myers, P. (10/27/13). [Millennials in Profiles]. Retrieved from http://www.expediablog.co.uk/millennials-in-profile © MWW GROUP, ALL RIGHTS RESERVED 3

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UK 2015 TRAVEL REPORT THE SHARING ECONOMY TAKES FLIGHT MARKETING OPPORTUNITY #1 With an upsurge in growth of the peer-to-peer economy, brand marketers need to respond to a connected generation that seek new unique travel experiences and is eager to share their opinions with their respective social networks. Millennials generate positive and negative reviews across social platforms. Social content monitoring is a smart way for brands to begin an effective conversation with consumers. Leading brands are aware that capitalising on growth of reviews and social media via word-of-mouth marketing champions transparency, inspires loyalty and drives down customer acquisition costs. 4 © MWW GROUP, ALL RIGHTS RESERVED 82% OF MILLENNIALS RATE REVIEWS AS VERY IMPORTANT FOR LEISURE TRAVEL 6 PLAYERS ARE EMERGING TO CAPITALISE UPON THE ON-DEMAND MARKET – A COMPANY CALLED TRAVTAR COLLATES UNUSED HOTEL BOOKINGS THAT CUSTOMERS BUY AND SELL LIKE CONCERT TICKETS 7 HOTELS ARE EXPECTED TO EXPERIENCE A 10% DOWNTURN IN BOOKINGS IN CITIES WITH AIRBNB PRESENCE IN 2016 8 40% OF MILLENNIALS WILL SHARE THEIR TRIP ON SOCIAL NETWORKS COMPARED TO 23% OF 46-65 YEAR-OLDS 9 6. Myers, P. (10/27/13). [Millennials in Profiles]. Retrieved from http://www.expediablog.co.uk/ millennials-in-profile 7. McCue, TJ. (5/31/14) [Stop Losing Money When You Have To Cancel Hotel Reservations] retrieved from: http://www.forbes.com/sites/tjmccue/2014/03/31/stop-losing-moneywhen-you-have-to-cancel-hotel-reservations 8. Room For All, For Now (4/26/14) retrieved from: http://www.economist.com/news/business/21601259-there-are-signs-sharing-site-startingthreaten-budget-hotels-room-all 9. Bergman, B. (10/29/14) [Millennials are Influencing Digital Travel Trends More Than Ever] retrieved from: http://www.forbes.com/sites/theyec/2014/10/29/ millennials-are-influencing-digital-travel-trends-more-than-ever/

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AUTHENTIC & LOYAL Imagine a device with access to vast sets of data and services that can lead the customer through their experience. Now that GPSenabled apps have altered how we interact with our environment, hyperlocality is the buzzword among millennial travellers. Hotels outsource products to local suppliers and highlight events in the surrounding area. MARKETING OPPORTUNITY #2 Real-time awareness of a person’s location allows local brands to deliver content that is relevant and timely. This local community trend sits at an authentic focal point in the landscape of millennial travel. “ALTHOUGH THEY SPEND MORE ON TRAVEL, MILLENNIALS WILL COMPROMISE ON COSTS SUCH AS TRANSPORT OPTIONS, ACCOMMODATION AND MEALS FOR EXPERIENTIAL MOMENTS; TO IMMERSE THEMSELVES IN THE CULTURE AS WELL AS ‘GIVE BACK’ TO THE COMMUNITY.” LONDON’S PUNCHDRUNK THEATRE ARE SAID TO BE CURATING JOURNEY-BASED PERFORMANCES THAT START AT THE AIRPORT 10 UK-BASED DISCOVER&DELIVER CAN LOCATE OBJECTS SEEN IN HOTEL INTERIORS SO THE MEMORIES LINGER FOREVER 11 10. Izzi, T. (1/23/15) [Punchdrunk’s Felix Barrett Brings Theater to Life, Literally] retrirved from: http://www.fastcocreate. com/1679201/punchdrunks-felix-barrett-brings-theater-to-life-literally11. Ho, L. (5/9/12) ]Discover & Deliver: a New Website That Brings the Hotel to Your Home] retrieved from: http://www.wallpaper.com/travel/discover-deliver-a-new-website-that-brings-thehotel-to-your-home/5774 © MWW GROUP, ALL RIGHTS RESERVED 5

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UK 2015 TRAVEL REPORT EPIC EXPERIENCES POWERED BY DATA Watch keenly as millennials glide swiftly through airport checkpoints with e-passports and smart visas while personal mobile devices monitor their transit. Speed, ease and convenience are essential to this group, so brands now focus on automation, where a single mobile device can store boarding passes, real-time timetables and check-in information. The responsibility of facilitating the customer experience now lies solely with the brand or business. From booking through all journey stages, new technology is powering youthful spontaneity. Mobile apps speed things up by enabling high-tech services, such as fingerprint payment and digital bag tags, as well as facilitating virtual shopping walls, such as those at Gatwick Airport. Intelligent analytics add value to the experience, and in some cases can truly save the day. As such, with the collaborative datasharing trend, some businesses are privy to an entire travel itinerary and liaise with each other to ensure the schedule runs smoothly. So if there’s a flight delay, a device can inform a car-hire supplier to extend pickup time, the hotel to expect a late check-in and so on. 6 © MWW GROUP, ALL RIGHTS RESERVED Spontaneous travelers start their search process when their plane hits the runway so providers can engage them instantly through all available platforms, using GPS to deliver offerings at opportune moments. Less likely to book before arrival, millennials look down at their mobiles for accommodation and services via peer-to-peer sharing apps. MARKETING OPPORTUNITY #3 Capturing customer data offers opportunities for personalisation and customisation tailored to loyal customers. What better than a hotel recalling how you take your coffee or the ability to convey preferences prior to arrival regarding lighting, temperature and in-room entertainment choice? MILLENNIALS ARE 2-3X MORE LIKELY TO START PLANNING JUST 2 WEEKS PRIOR TO DEPARTURE 12 86% OF UK MILLENNIALS PREFER TO STORE ADDITIONAL INFORMATION IN RETURN FOR LOYALTY REWARDS 13 MILLENNIALS ARE 4X MORE LIKELY TO PURCHASE INFLIGHT WIFI THAN OLDER SEGMENTS 14 12. Lee, T. (1/7/14) [Segmenting Millennial Travelers Business vs. Leisure] retrieved from: http://www.hvs.com/article/6737/segmentingmillennial-travelers-business-vs-leisure 13. Expedia: Future of Travel Report (10/14/13) retrieved from: www.expediablog.co.uk/ The-Future-of-Travel 14. Lee, T. (1/7/14) [Segmenting Millennial Travelers Business vs. Leisure] retrieved from: http://www.hvs.com/ article/6737/segmenting-millennial-travelers-business-vs-leisure

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CONCLUSIONS The future of travel, pioneered by the Millennial Generation, can now be viewed in terms of co-curation, adaptability and customisation. Lending a DIY ethos, inspiration and experiences are mere clicks away on a personal device. The Millennial traveller seeks a satisfying experiential trip, looping in a wide audience across social networks, from the booking stage to the stuff of happy memory making. Opportunities though current travel trends suggest a fragmenting along the path to purchase, MWW understands how brands can rise to meet customer expectation – and market these new or improved offerings to consumers and the many channels that influence them. For more, or to discover how our recommendations will boldly take you exactly where your PR wants to go, contact us. © MWW GROUP, ALL RIGHTS RESERVED 7

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For additional information about MWW’s proprietary research and insights, please feel free to contact us: PADDY HERRIDGE JESS SEILHEIMER UK MANAGING DIRECTOR CHIEF STRATEGY OFFICER +44 207 046 6080 | pherridge@mww.com +1 646.841.1356 | jseilheimer@mww.com MWW MWW 56a Poland Street, Soho, London, W1F 7NN MWW.COM 304 Park Ave South New York, NY 10010 MWW.COM LOS ANGELES/ NEW YORK / SAN FRANCISCO / LONDON / CHICAGO WASHINGTON DC / DALLAS / EAST RUTHERFORD / TRENTON

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