Lea Nielsen, CTC
Introduction
Millennials represent an important, rapidly-growing market segment for travel agents. They also pose unique challenges for hiring managers in the hospitality field. If you want to reach these audiences, you’ll need staff who can speak their language.
Companies that want to provide services to millennials may have to rethink their human resource management practices and policies. Travel agents must present would-be voyagers with improved competitive offerings and staff they feel comfortable talking to. It’s important that they draw talent from within the same age groups they’re trying to target. Keep the following concerns in mind.
Defining the Millennial Market
The millennial generation includes individuals born between 1980 and 2000. [1] Some industry insiders believe this generation is one of the most likely to be in need of travel agent services. Andy Stuart, President, Norwegian Cruise Lines notes” Travel is uniquely relevant to millennials as this generation craves experiences over things, and travel, is for many the ultimate investment they can make to enrich their lives”.
One 2014 survey showed that 28 percent of millennials had used travel agents within a year. This outpaced groups like Generation X, Baby Boomers and mature travelers. Millennials were also shown to have more lifetime plans involving travel and exploration than their parents did. [2]
So what drives these voyagers in search of foreign adventure? The United Nations World Tourism Organization, or UNWTO, noted that younger people represented a fifth of the world’s 990 million international tourists in 2011. The UNWTO also highlighted emerging market growth, economic betterment and similar factors as contributing causes, but these aren’t the only trend-setting considerations. [3] According to Carnival Cruise Line VP Mike Julius, “Millennials are among the fastest growing segments of the travel industry.” Julius goes on to note that many millennials may choose travel-oriented vacation options they themselves enjoyed as children, such as cruises.
Characterizing Millennial Travel Habits
Millennials may also adopt unique approaches to travel that previous generations didn’t. The World Youth Student & Educational Travel Confederation’s New Horizons study showed that cultural tourism is a major motivator for younger travelers. [4]
The millennial generation may skip traditional tours and vacation resorts in favor of ecotourism, backpacking trips and similar excursions. Many avoid conventional accommodations, instead choosing to work and lodge at hostels, hold odd jobs in exchange for meals and bedding, and immerse themselves in the local way of life. Notably, millennials are also likely to travel for long-term periods as they seek lesser-known vistas and experiences. [5]
Immersion is a major part of the ideal millennial travel experience. John Lovell, president of Travel Leaders Franchise Group, says that instead of taking a back seat, these youthful explorers “put themselves in the middle of the action in order to live and experience the destination.” He continues by pointing out that “when younger clients approach your agency looking for similar experiences, you need millennials on staff to show them where this action is and share their own experiences.”
The Role of Technology
When most people think of millennials, they picture people who are constantly connected to technology. While the idea of people ignoring interaction because they’ve got their heads firmly buried in their phones is a common stereotype, millennials also use their tech addiction to connect to each other as they explore the world. Travel agents need to join in if they want to increase the visibility of their brands and services.
The Potential for Engagement
Don’t be discouraged by the fact that at least a third of millennials used smartphones to book travel in 2014. [6] True, self-booking does pose some issues for cruise lines and other travel operators, but this near-universal connectivity also represents numerous opportunities for agents.
According to USA TODAY, millennial travelers aren’t just prone to use technology to find great travel deals and unique accommodations. [7] They also love communicating about travel opportunities. In some years, statistics showed that travelers under the age of 34 were nearly twice as likely as older travelers to post negative reviews online. A whopping 80 percent of millennials admitted that reading online reviews was an important part of their travel preparation.
Along with their increased tendency to research specific travel agents, accommodations and trip packages using online reviews, millennials are prone to sign up for loyalty programs and mix pleasure travel with business trips. If your travel company can leverage its online presence, social media and unique web content to cater to these habits, you stand to position yourself for lucrative, ongoing relationships with travelers who aren’t afraid to spend.
The Challenges of Forging Connections
Obviously, modern travel agents need to build and maintain functional interfaces that serve the millennial market. For many agencies, the obvious answer is to hire millennial talent and use their innate knowledge of their peer groups to provide better services. Of course, this may not always be a simple task. MSC Cruises Executive VP Ken Muskat admits that to many, “the travel agent career is perceived as older, diminishing and low paying,” and he highlights the importance of demonstrating that instead, “the career path is cool, offers incredible travel perks and can be high paying.”
Why Bother with Millennial Workers?
Millennial travel consumers want to work with someone they feel understands their unique interests. For instance, a traveler planning a one-way cruise that ends with a few months’ occupancy at a monastery or a year helping a charitable organization might prefer to book with an agent who has tried something similar. While your top veteran seller may have done something similar back in the 1970s or 1980s, it’s important that your customers feel like they’re talking to someone they can connect with.
The other major benefit of millennial travel agents is that they’re familiar with the lucrative avenues of social media. Because they’re instinctively familiar with how to utilize Facebook, Twitter and other platforms, they’re more likely to engage with users in a natural manner. When your marketing outreach efforts incorporate natural, free-flowing interactions between your staff and your audiences, you’re more likely to retain attention. Also remember that the fact that most millennials already have established social-media profiles may increase the likelihood that consumers will regard them as legitimate sources.
Millennial workers also have fresh perspectives on selling techniques. As the travel market changes, it may become essential for companies to completely rework their marketing practices to keep pace. This is especially relevant when you consider the fact that many travelers can self-book entire trips. Hiring millennials who understand why this option is so appealing is the best way to imbue your services with attractive benefits that can compete.
Building a Youthful Workforce
When it comes to career development, millennials are generally disillusioned, and the trend doesn’t only impact those in the U.S. One Belgian study reported by the European Observatory of Working Life, or EurWORK, showed that influences like economic recession led to this age group being less optimistic about careers. [8] This study also determined that employers needed to offer careers that featured:
- Ample opportunities for acquiring job skills,
- Work that has meaning, contributes to the growth of a company or facilitates the expansion of an employment position, and
- Creative chances for career development and lateral moves as alternatives to linear promotion and traditional corporate education.
Notably, the EurWORK study’s authors also declared that these employees may be more willing to invest extra time and effort into helping their employers survive tough times. [9] One writer for Entrepreneur magazine noted that even though millennials were mostly unhappy with their employment prospects in 2014, the common belief that they should follow their passions inspired many to innovate new careers. Such trends could prove very handy for travel companies that want to tap new markets.
Sweetening the Pot
Millennials are also widely aware of the growing occurrence of corporations spending less on their employees and more on lavish CEO salaries. Whether or not you believe in the idea of income disparity, it’s impossible to ignore the fact that your employees most likely do. Travel industry employers need to offer compensation that actually makes careers appealing and shows young workers that their efforts are valued. Failing to do so may convince millennials that they’re better off working for themselves.
Although 2014 Bureau of Labor Statistics data showed that median pay for travel agents was only slightly below the median pay for all occupations in the U.S., the lowest 10 percent of earners made under $19,680, and the highest 10 percent made more than $59,070. [11] Such disparities could make it difficult to attract employees from a group that was hit harder by post-recession economics than any other.
Decision makers who want to invite millennial talent need to consider the factors that drive their search for employment. Through no fault of their own, many millennials are fighting against increased competition from elderly professionals reentering the workforce, mismatched skill sets and other important career factors. To many, uncertain career prospects represent an unacceptable risk. In short, travel agency CEOs may find that the classic commission model isn’t quite as attractive to someone who’s buried in student loan debt that forces them to live with their parents.
Marketing to Workers
Millennials are known for their willingness to work full time and keep unconventional employment hours. Employers who take advantage of this eagerness need to reward their staff accordingly. Some potential strategies may include the following:
Facilitate Freedom of Travel
If an agent performs well and brings you a lot of business, they should receive more than just a commission or your well-intentioned thanks. Why not demonstrate your gratitude by letting them travel to the areas they commonly send your customers to? This could also increase their knowledge and allow them to serve millennial customers with much-valued authenticity.
You may even choose to partially or fully compensate staff for such vacations if they spend part of the time scouting local hospitality services that you end up partnering with in the future. Offering ongoing commissions for profits that arise from these new business relationships is a great incentive.
The same wanderlust that drives millennials to trek around the globe could make generous vacation plans and flexible scheduling attractive employment factors. For instance, Vicki Freed, Royal Caribbean International SVP, points to the travel agent/advisor profession as being “very rewarding and allowing the millennials who step into this career to have flexibility in their day, a wide variety of job experience and continuous learning with the added bonuses of experience and ability to travel the world.” Like other experts, Freed maintains that general misconceptions about how the travel industry functions pose some of the biggest challenges to recruitment. In short, it would behoove you to rethink how you advertise the career opportunities you provide.
Build a Rewarding Corporate Culture
It’s not much of an exaggeration to say that most people would like to work in an iconic startup environment. Part of the reason companies like Google attract so much fresh talent is that they offer perks like casual workplace structures, free meals and a range of other benefits. You may not choose to invite a Yoga instructor to the conference room for Monday-morning fitness sessions, but building a working environment that millennials can feel passionate about is a must.
Be Social Media-Aware
Also remember that the youthful tendency to take to online review platforms is a double-edged sword. No company is immune to being called out in a public forum.
For instance, in early 2016, review service Yelp was exposed in an open letter written by one of its workers over its compensation practices.[12] Many people saw this as a simple example of an entitled individual complaining. On the other hand, Yelp’s choice to handle the situation by firing the 25-year-old was reported in enough online news outlets that it’s sure to affect how job-seeking millennials approach the company in the future.
Although instituting policies governing employee social media usage may seem like a solution to such issues, these restrictive remedies may be illegal under labor laws. In addition to dealing with current millennial employees openly, it’s important to reach out to potential new hires using LinkedIn, Twitter and other platforms. In short, show them that working for you won’t be like dealing with a dinosaur or an autocratic leader.
Improve Compensation
No millennial wants to work for a company whose CEO gets rich while they spend years struggling with basic living expenses. Recognize the cost of living in your area, and make appropriate employment offers. Higher base pay incentives and larger commission percentages cost more, but these changes are often worth it in the long run.
The prevalence of the rags-to-riches story is an important side effect of the Information Age. Millennials who are familiar with the history of once-small firms, like Apple or Facebook, want to work for companies they can grow with. They also understand the value of employment networking, so if you want to retain these workers, you’d be well-advised to implement compensation terms that keep your staff happy where they are.
Pursue Non-Traditional Hiring
Millennial workers aren’t necessarily hunting for 9 to 5 jobs in boring office environments. This especially true of the many skilled professionals who create vital services that travel agencies rely on to reach millennials.
For instance, if you were hiring a freshly-graduated web designer to create a corporate portal or seeking a social-media manager, you should probably be understanding of their requests for unique schedule accommodations. Such arrangements are only fair; being lenient compensates for the fact that these kinds of professionals are almost always on call.
The same goes for travel agents who interact with potential clients online, respond to inquiries and support requests from different time zones, and perform other duties that force them to work outside of normal hours. Compromise with your employees so that they don’t get overwhelmed by millennial customers who demand instant interaction and assistance.
Also remember that some of the millennials you hire may not stick around forever. These professionals value career mobility, so they desire positions that permit them to develop vital skills. When posting job listings online, communicate the fact that you’re looking for devoted team members, but also make it clear that you hope to help people advance even if their path eventually takes them elsewhere.
Can Travel Agents Survive Without Millennial Help?
Hiring millennials doesn’t just help a travel agency market to people in the same age group. Building a youthful workforce can also provide a valuable link to the future.
Today’s generation is growing up even more connected than millennials. They’re heavily immersed in media, and many can’t remember a time when the Internet wasn’t immediately accessible via smart devices. Generation X, on the other hand, grew up before such technology was widespread and certainly before it was used to book travel.
In essence, millennials are uniquely poised between two generations with drastically opposed world views. This makes them key human elements for transitioning your company forward. Even if you’re able to scratch out a living by hanging on to the dying matures and Baby Boomer markets, it can’t last forever. True growth requires a willingness to evolve.
Charting an Effective Course
Hiring millennials is no longer optional for travel agencies. It’s a modern necessity. Although this segment of the workforce presents HR managers and staffing personnel with unique concerns, their potential to drive profits and make customers feel welcome is unparalleled. Travel companies that reach out to millennials and accommodate their needs will be better positioned for sustainable success.
Source
[1] Strauss, W., & Howe, N. (1991). Generations: The history of America’s future, 1584 to 2069. New York: Quill. Retrieved February 28, 2016 from https://books.google.com/books?id=FTGY-uoCCCoC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false
[2] Rice, K. (2015, March 02). Millennials: The generation most likely to hire an agent: Travel Weekly. Retrieved February 28, 2016, from http://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Millennials-The-generation-most-likely-to-hire-an-agent
[3] United Nations World Tourism Organization. (2012, September 25). UNWTO and WYSE Travel Confederation Launch Global Declaration to Promote Youth Travel [Press release]. Retrieved February 28, 2016, from http://media.unwto.org/en/press-release/2012-09-25/unwto-and-wyse-travel-confederation-launch-global-declaration-promote-youth
[4] New Horizons. (n.d.). Retrieved February 28, 2016, from https://www.wysetc.org/research/publications/new-horizons/
[5] Machado, A. (2014, June 18). How Millennials Are Changing Travel. Retrieved February 28, 2016, from http://www.theatlantic.com/international/archive/2014/06/how-millennials-are-changing-international-travel/373007/
[6] Sheivachman, A. (2014, July 8). Analyst: Millennials a Challenge for Cruise Industry. Retrieved February 28, 2016, from http://www.travelmarketreport.com/articles/Analyst-Millennials-a-Challenge-for-Cruise-Industry
[7] Trejos, N. (2013, October 14). Millennial travelers spend more, complain more. Retrieved February 28, 2016, from http://www.usatoday.com/story/travel/2013/10/14/millenials-expedia-travel/2966959/
[8] Eurofound. (2010, October 18). Retrieved February 28, 2016, from http://www.eurofound.europa.eu/observatories/eurwork/articles/quality-of-life-working-conditions/impact-of-recession-on-millennials-career-expectations
[9] De Vos, A. and De Hauw, S., Do different times call for different measures? The psychological contract of the Millennial generation in times of economic recession, Vlerick Leuven Gent Working Paper Series 2010/02, Gent and Leuven, Vlerick Leuven Gent Management School, 2010, available online at http://www.vlerick.com/en/12961-VLK/version/default/part/AttachmentData/data/vlgms-wp-2010-02.pdf
[10] Juergen, M. (2013, November 19). Employment Trend for 2014: Miserable Millennials. Retrieved February 28, 2016, from http://www.entrepreneur.com/article/229848
[11] Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2016-17 Edition, Travel Agents, Retrieved February 27, 2016 from http://www.bls.gov/ooh/sales/travel-agents.htm
[12] Cowan, S. (2016, February 22). ‘I can’t afford to buy groceries’: Yelp employee fired for public letter to the CEO. Retrieved February 28, 2016, from http://mashable.com/2016/02/22/yelp-fired-low-pay/
