Generational Differences Inform Insurance Purchase Patterns
Jun 12, 2018 | by Aon
More digitally savvy natives, America’s youngest adult generations are transforming the way people plan, purchase and experience travel. They’re not only demonstrating a desire to travel but also a propensity to invest in travel insurance to protect their plans.
A 2018 Expedia report, Generations on the Move, found that 57 percent of Americans are currently saving money specifically for travel, but that trend ticks up for Millennials, with 65 percent currently saving for travel.
“Today’s Millennial and Gen Z travelers are influencing shifts in the ways travel businesses communicate and build appeal for their services,” said Beth Godlin, president, Aon Affinity Travel Practice. “This shift has been building over time as the Millennial generation has found its footing and finances to support broad travel.”
So how else do today’s rich variety of generations differ in their travel expectations and planning styles?
- Travel Values – The same Expedia national study found Gen Z travelers, those now 21 and under, value adventure experiences more than anything else. Gen Z also wants connectivity, with one-third of respondents saying Wi-Fi is an "absolute necessity." Boomers will travel for a week or longer and prefer traditional experiences like sightseeing. Millennials and Generation X prefer more relaxing vacations, like trips to the beach or a spa.
- Passion and Purpose – But it isn’t all downtime. Millennials also view traveling as vital to the development of their personal narrative and identity according to research from Barkley. Fifty-five percent believe that travel is all about discovery and adventure, and 70 percent of Millennials want to explore and learn from the cultures and communities they visit.
- Trip Type – Trip length, and by default, trip style also varies by age, with the long weekend serving as the preferred leisure trip length for younger generations and Boomers typically traveling for longer durations. A study by Project: Time Off and GfK reports that Millennials are more likely to see themselves as “work martyrs”—meaning they’re less likely to use all their vacation time on purpose—than older generations. Nearly half (48 percent) of Millennials think it’s actually a good thing to be seen as a work martyr by their boss.
- Plan and Protect – A 2017 survey of American consumers conducted by Aon Affinity Travel Practice found that 38 percent of those 18 – 34 who say they travel for leisure have purchased travel insurance. This rate was slightly higher than the 35 – 64 age group of leisure travelers where 34 percent say they have purchased travel insurance.
- Taking Time to Travel – But all generations of Americans are failing to optimize their time off according to the U.S. Travel Association 2018 State of American Vacation report. It showed that 52 percent of U.S. workers didn't take all of their vacation last year and if Americans took all the time they're due, the nation's travel industry would get a $236 billion boost.
Despite different approaches, the outlook for travel is sunny with Expedia’s Generations on the Go report finding 74 percent of Americans, of any age, saying they prioritize experiences over material goods.
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