In its latest research, NCR Corporation [1], Duluth, Georgia, consumer transaction technologies company, found that millennial travelers are willing to spend their money while traveling if convenient digital retailing is available.
[2]This data follows NCR’s recent research reveal [3] that raises questions about the gaps and regional tendencies for consumer expectations of shopping experiences while traveling versus what is currently available to them. At the centre of both of these studies is the airline traveler.
The new data comes from a recent travel survey aimed at capturing the tendencies of airline passengers to embrace omni-commerce when they travel.
”The data bears out what you would expect, younger travelers who have embraced mobile shopping and self-service in other facets of their lives are looking for that digital shopping gratification when they are en route to their destination,” says Tyler Craig, vice-president and general manager, NCR Travel. ”Airports and airlines alike have a unique opportunity to cater to this growing demographic by allowing them to make purchases for ancillary items via their mobile devices and other opportunities through self-service kiosks.”
Based on their responses to the survey, NCR found that U.S. travelers between the ages of 18-24 have a desire to use their smart phone or tablet as a shopping conduit and even have a willingness to use frequent flyer or loyalty points for general purchases.
Referring always to these millennial travelers:
- 68% would prefer an airline that offers the ability to purchase items such as seat upgrades, checked baggage fees, inflight meals, inflight entertainment, Wi-Fi and duty free goods on their mobile devices or self-service kiosks over an airline that does not;
- 77% would like to be able to make an airport-related purchase like parking, meals, souvenirs, reading materials or spa service on their mobile device or self-service kiosk;
- 51% are willing to provide personal information in order to receive more relevant offers tailored to their location and preferences such as a discount at their favorite airport restaurants or retailer while traveling, as opposed to only 19% of travelers ages 65 plus that are willing to share this information;
- 77% of millennial travelers would like to be able to use frequent flyer or loyalty points for airport purchases;
- 70% would like to like to be able to view and purchase items from airport retailers through a self-service kiosk or mobile device and have them delivered directly to their destination.
Global consumer spending on airline amenities and ancillary fees was expected to top $42 billion in 2013. This newest information again comes from the 2014 NCR Traveler Experience Survey, an annual online survey of approximately 6,000 adult consumers in the U.S., U.K., China, U.A.E., Australia and Brazil. It was conducted by market research firm ORC International [4].