Active experiences, not passive visitation

Shifting generational preferences call for new approaches to incentive travel, says Pádraic Gilligan SITE Chief Marketing Officer. Recent research from McKinsey, ‘The way we travel now’, is crammed with actionable insights for organisers of incentive travel programmes. I pulled out three takeaways for organisers of incentive travel programmes: Overarching takeaway: The Widening Generational gap One overarching takeaway from the McKinsey research is the widening gap between the generations, with boomers and millennials at opposite ends of the travel preference spectrum. Given the changes in workplace demographics, this research could be taken as a handbook on programme design for the next generations of incentive travel qualifiers. So, what’s in the report? 1. Make it international – NextGen wants to travel far Incentive travel rebounded spectacularly post-Covid but the rebound involved a double down on national and regional travel and an avoidance of long haul travel. The McKinsey report, however, highlights how younger travellers are particularly excited about international travel, planning a nearly equal number of international and domestic trips in 2024, no matter their country of origin, whereas boomers are planning to take roughly twice as many domestic trips. Gen Y and Z have seen more places by the time they join the workforce than previous generations and are unlikely to be massively motivated by a domestic travel reward as they’ve ‘Done that, seen that’. They want to visit Bhutan or Zanzibar. But, more, they want experiences, not superficial visitation. 2. Make it authentic – NextGen wants experiences Young travellers will try to save money on transport, shopping, even food but they won’t economise on ‘experiences’. Their travel is defined by meaningful connections with the places they visit. Such an experience might involve an edgy boutique hotel, taking a cookery class, or attending a local festival. Experiences involve engagement and opportunities for learning and personal growth, forging indelible memories. 3. Make it personal – NextGen wants to craft its own trips Travellers today are delighting in crafting their own trips – and this phenomenon is shared across the entire age spectrum. Among the 5,000 individuals who responded to the survey, less than 1 in 5 of had any use for a travel advisor. The reason? Control. The second-most-cited reason? They simply enjoy the planning process. According to McKinsey: Today’s travellers pride themselves at finding treasure all along the way in terms of the coffee shops and restaurants they book, the experiences they take, the cool places they find to stay in. And when it comes to sources of inspiration for trips, the ‘personal’ plays out strongest with word of mouth from family/friends twice as important as, say, a destination’s website. Implications for planners The first two takeaways are easily implemented in planning. Clearly, when dealing with younger demographics, be sure to build the programme inclusions with the local knowledge and insight of a professional DMC. The third takeaway is more challenging. At present our approach to incentive travel is to make programme execution seamless and frictionless. But is that truly motivating for NextGen qualifiers? Do they want sand, sea and sunshine, or, as the research seems to indicate, the destination to impact on them deeply leaving its mark emotionally? They don’t want passive visitation, they want active experiences.