How do corporate travel spending habits differ among millennials?

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One of the main reasons why Travel Management Companies (TMCs) are always having to update their service offerings is the fact that consumer habits are always changing.

Generational shifts are a key driver of this evolution, and there have been few transitions that have had more impact in this regard than the ascendancy of the so-called millennials, a generation of consumers whose approach to technology use and brand engagement has transformed corporate travel.

The difference in millennial spending habits were recently underlined by a report from Concur, which analysed $36 billion (£27.95 billion) in dining, entertainment and hotel expenses processed via Concur Technologies between Q1 2015 and Q1 2017 according to the age of the users.

It showed that employees aged 36 to 65 still account for 80 per cent of dining, entertainment and hotel transactions, with total expenses per employee in this age range are 66 per cent more than for millennials, but also suggested that the habits of millennials are different enough from their older counterparts than new strategies may soon be needed.

For example, millennials spend 18 per cent less than employees aged 36 to 65 on dining and entertainment, but three per cent more on hotel-related expenses, including amenities for their rooms, parking, Wi-Fi access and room service.

The biggest differences between what senior colleagues and millennials spend were seen in Asia Pacific, Europe and the Middle East, suggesting that TMCs operating in these territories in particular need to work to develop specific approaches to targeting millennial customers.

The report noted: "As the workforce evolves, employee spend patterns is one of many factors companies should consider to make sure travel, expense and invoice management programs meet their changing needs."

For information on how your TMC can automate its mid and back-office systems with ProTAS, contact ProCon Solution now.

 
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