Demographics and Travel: Age Groups

DESTEP - MACRO level

Demographic: Age

• Younger generations tend to travel more often than older generations
• Millennials average 35 vacation days per year
• Generation Z averages 29 vacation days
• Baby Boomers average 27 vacation days
• Generation X averages 26 vacation days
• In 2018, 15.5% of Britons aged 55-64 and 18.6% of those 65+ took a trip
• 46% of Europeans aged 65+ reported not travelling for health reasons
• Older generations have obligations like work and family, while younger individuals and students have more free time
• The youngest group tends to travel the least because of limited financial resources
• Younger travellers commonly travel to Rio de Janeiro, Tokyo, Sydney, and Buenos Aires
• Older travellers commonly travel to France, Spain, Italy, and Portugal
• American baby boomers commonly travel to the Caribbean, Mexico, and the British Isles
• American baby boomers also travel to California and Florida
• Baby boomers take longer and more relaxed trips
• Younger travellers seek adventure and excitement, often booking all-inclusive vacations
• There has been a 42% increase in solo bookings recently
• 58% of millennials prefer to travel alone
• 47% of older generations prefer to travel alone
• The tendency for millennials to travel alone reflects a love for new experiences and the YOLO mindset
• Younger generations seek adventure and unique experiences
• Older travellers tend to favor relaxation and familiar locations
• Each generation grows the travel and tourism sector through luxury vacations, quick spontaneous trips or long stays

Demographic: Gender

• Men and women often vary in travel preferences and spending habits
• Women are more likely to plan and book trips
• Men may prioritize adventure-based experiences
• Gender influences the activities and accommodations people choose

Demographic: Income

• Individuals in higher income brackets are more likely to afford luxury travel
• Those in higher income brackets are more likely to stay in five-star accommodations
• Middle and lower-income travelers seek budget-friendly options
• Designer hotels, private resorts, and high-end cruises cater to wealthier travellers
• Budget airlines and affordable vacation packages appeal to those with more limited financial resources

Demographic: Education

• Higher education levels often lead to greater cultural awareness
• Higher education levels often lead to a stronger interest in historical, educational, or eco-friendly tourism
• Well-educated travellers may visit museums and heritage sites
• People with higher education may engage in experiential learning activities

Demographic: Marital Status

• Married couples and families typically prefer family-friendly locations
• Single travellers commonly seek adventure tourism, solo travel experiences, or social trips with friends
• Honeymoon tourism caters specifically to newlyweds

Demographic: Mobility

• Older adults or individuals with disabilities may need wheelchair-accessible accommodations or transportation
• Younger and more mobile travellers may prefer backpacking, hiking, or other demanding travel experiences

Demographic: Social Class

• Social class, defined by income, education, and occupation, influences travel choices
• People from higher social classes can travel often and choose premium services
• Individuals from lower social classes may opt for shorter, budget-friendly vacations
• People from all social classes seek unique and aspirational experiences

Demographic: Occupation

• Certain jobs, like remote work or international business, allow individuals to travel more frequently
• Business professionals may prioritize corporate travel
• Seasonal workers or freelancers might have more flexibility to take extended vacations

Demographic: Regional & Cultural Factors

• Language, shared borders, and regional alliances influence tourism demand
• European Union countries have high levels of intra-regional tourism due to easy travel across borders
• Shared languages can make certain destinations more appealing to travellers

Overview: Demographic Factors

• Age is a major determinant of travel behaviour
• Other demographic factors include gender, income, education, marital status, mobility, social class, occupation, and regional influences
• Businesses tailor their services to different markets
• This ensures tourism continues to thrive across consumer groups

Economical: Inflation and cost of living

• Rising inflation and cost of living is one of the biggest economic factors that influence tourism
• Increasing everyday expenses results in travellers looking for more budget-friendly ways to explore destinations
• Flights and car rentals have become increasingly expensive
• Buses have become an attractive alternative
• Affordable bus services like FlixBus and Eurolines have gained popularity
• Baby boomers are the largest travel spenders, with an annual average of $6,600 dedicated to trips
• Millennials spend around $5,000 per year on trips
• Generation Z averages $2,628 per year on travel

Economical: Rise of remote work and digital nomadism

• Another shift is the rise of remote work and digital nomadism
• More companies are embracing remote work from home policies
• More employees are choosing to work and travelling simultaneously
• This fuels demand for affordable long-distance travel options
• Buses have become an essential part of this movement

Economical: Growth of the sharing economy

• Growth of the sharing economy has transformed how people approach travel
• Travellers are increasingly using platforms like Airbnb and ride-sharing apps to find cheaper and more flexible options
• There are more companies offering on-demand and app-based services for buses
• Passengers can book seats in real-time, similar to how Uber operates
• This can make bus travel more affordable, convenient and accessible

Economical: Fluctuation of Exchange Rates

• Fluctuations in exchange rates has played a crucial role in travel trends
• Travellers adjust destinations based on affordability when currencies strengthen or weaken
• Travellers are likely to visit locations where their money goes further if the dollar or euro strengthens
• Cross-border bus travel increases
• Budget-friendly getaways to Eastern Europe and long-distance bus routes to cities like Budapest, Prague and Kraków increases

Economical: Overview

• Economic trends are reshaping tourism
• As prices rise, work becomes more flexible, and technology transforms transportation
• Buses are no longer just a local transport option
• Buses are becoming a key and more affordable player

Socio-Cultural: Solo Female Travel

• Solo female travel has gained popularity in recent years.
• 87% of women who travel alone state that their primary reason is to avoid compromises and do what they want.
• 83% of respondents stated their primary travel reason motivation is escaping routine and everyday pressures.
• 79% of women are looking to unwind on solo trips
• Women with challenging jobs, family responsibilities, or other responsibilities want to prioritise well-being.
• 74% women travel alone to challenge themselves
• 58% seek chances for self-growth
• Solo travel encourages personal development and empowerment
• A 2024 survey showed 66% of solo female travellers worry about their safety
• travellers who have made more than ten trips report a significantly lower concern (55%)
• The 66% security concern compares to 77% security concerns in those with fewer than six trips
• 17% of solo female travellers carry self-defence items
• 37% of women using anti-theft bags
• Older travellers are more likely to use anti-theft bags (53%)
• Younger travellers are less likely to use anti-theft bags (25%)
• Online communities in are significant for solo female travel
• 81% of respondents trust Solo female travel Facebook groups
• 72% of respondents trust advice from friends and family members with solo travel experience
• 71% of travelers said one factor stopping booking is travel costs
• 59% of travelers said another factor stopping booking travel is security concerns
• The cost and security concerns are overcome through small group travel, apps and online communities

Socio-Cultural: Social Media's Influence

• Crucial for travellers in choosing destinations and sharing travel experiences
• Social media influencers, user-generated content, and real-time updates shape decisions
• 43% of people would not consider a destination unless they have seen it on social media
• Instagram has 624 million posts related to travel
• The “travel” hashtag has 74.4 billion views on TikTok
• Younger generations heavily rely on social media for inspiration for travel
• The "Instagrammability” of a destination is often a key motivator in travel destination choice
• Almost every stage of travel is handled through social media platforms
• 34% of travellers book hotels after seeing them in user-generated content on social media
• 70% of travel companies use influencers to promote their services
• Social media companies provide 24/7 customer support and platforms
• Twitter, Facebook, and Instagram offer businesses a direct communication channel with customers
• Travellers can connect with locals and fellow travellers through Facebook groups, travel forums, and Instagram

Technological: AI in Tourism

• Creates personalized experiences tailored to customers
• Deep integrations into tourism sector to improve customer satisfaction and operational efficiency

Technological: Customized Travel Recommendations

• Offers customized trips by analyzing datasets
• Analyzes recent trips, search history, or social media activity
• Suggests routes, activities, and hotels
• This saves customers from searching thousands of possibilities

Technological: Dynamic Pricing

• Analyzes variables like demand, time of booking, local events, weather patterns, and competitor pricing
• Calculates the most optimal price
• Customers receive the best possible price
• Companies benefit from more profit and equally divided bookings

Technological: Customer Support

• AI-powered chatbots are part of many stakeholder websites
• They answer frequently asked questions about anything in seconds, 24/7
• Chatbots reduces operational costs for companies increasing profitability
• Many users complain about the Chatbot's limited answers
• It is difficult to reach an actual person for complicated questions or for those who who want person to person communication

Technological: Operational Efficiency

• AI systems optimize routes, reducing travel time, and predict demand
• Predictive maintenance schedules vehicle maintenance based on its usage
• Predicting customer demand is used to maximize capacity

Technological: The Future

• AI will become more accessible
• AI will personalize the traveler experience to a greater degree
• This will improve and become more accessible over time
• AI provides smarter customized experiences

Technological: Conclusion

• Recommendations of personalized itineraries happen through optimization of pricing strategies
• Improvement of customer service
• AI makes travel more efficient and enjoyable for both travellers and businesses
• Still limits, but AI systems are constantly evolving

Ecological: Strict Environmental Regulations

• The European Union wants to cut emissions by 55% by 2030
• The European Union wants to reach zero emissions by 2050
• Diesel buses must follow Euro 6 standards so harmful chemicals are lowered
• Low-Emission Zones in cities restrict specific buses to lower certain pollutants

Ecological: Shift Toward Electrification

• Cities are moving to all-electric fleets to decrease carbon emissions
• Hydrogen Fuel Cell Buses is being researched to use hydrogen as fuel
• Biofuels & Synthetic Fuel uses biofuels as a step towards fully green transport

Ecological: Public and Private Investments

• EU provides funding programs through the Connecting Europe Facility and the Clean Hydrogen Partnership
• Infrastructure Expansion is providing networks across Europe for green buses

Ecological: Rising Consumer Demand

• Passengers and businesses are aiming for carbon neutrality
• Passengers and businesses are affecting transport service choices

Ecological: Circular Economy & Sustainable Manufacturing

• Recycling bus parts and batteries for second-life usage
• Lightweight Materials use sustainable materials to save energy

Ecological: Conclusion

• Ecological factors affect European bus industry
• Ecological factors cause changes in technology, regulations, and customer expectations
• Aligning with green policies and investing in low-carbon solutions necessary to remain competitive

Political: Impact of War and Covid on Tourism

• Before the Russo-Ukrainian war, Ukraine's tourism industry was booming
• In 2019, Ukraine saw 30 million outbound tourists
• After 2014, there was a fall in domestic tourism of 54.06% due to the annexation of Crimea
• COVID-19 worsened things; foreign visitors fell from 13.7 million in 2019 to 3.4 million in 2020
• Outbound travel decreased by 61%
• Domestic tourism increased by 45.8% as people explored their own country
• Russia launched its large-scale invasion on February 24, 2022
• The Ukrainian tourism sector collapsed overnight in 2022
• Inbound tourism disappeared completely
• Domestic travel became a movement of displaced people
• The war has requires great investments

Political: Closed Ukrainian Travel

• Ukraine's skies are closed
• Infrastructure in ruins
• Security risks are extremely prevalent
• Few foreigners are entering (journalists, diplomats, and volunteers)
• Travel abroad has been severely affected
• Financial problems, the devaluation of the hryvnia, and restrictions on men
• 1.58 million are in Poland
• 20.42 million people crossed Ukraine’s borders between February 2022 and April 2023
• Most of the border crossers or returns are temporary
• As of now everything is considered unpredictable

Political: Strict EU border control

• EU is set to revolutionize its border control mechanisms in 2025
• A new Entry/Exit System (EES)
• EES replaces traditional passport stamping with a biometrics-based approach
• EES captures fingerprints and facial scans of non-EU travelers
• The primary goal of the EES is to enhance security within the Schengen Zone
• EES monitors and records the entry and exit of third-country nationals
• Biometric data will address challenges like visa overstays and the use of fraudulent documentation
• The new automated process is much more efficient compared to manual passport checks
• For travelers from countries like the United States, United Kingdom, and Canada, the EES is a shift towards digital border management
• Travelers will need to undergo biometric data collection
• This will lead to longer processing times during the initial phase of implementation

Meso: Demographic Challenges

• The bus industry faces problems with an aging workforce
• Bus drivers are old and near retirement
• As a result the industry has difficulty finding new employees
• The work is fairly labor intensive
• Requires long hours and some weekend work

Meso: Low attractiveness of New Bus Employment

• The job is demanding
• The work is discouraging to older individuals
• Training is very lengthy

Meso: Solutions for Bus Employee Attraction

• More appealing jobs in the bus industry are required
• Better pay and health insurance is needed
• Companies need to value opportunity and community relations

Meso: Passenger Demographic Transitions

• The changes can lead to bus travel improvements
• Easier accessibility for those in need of special services
• Increased city demand results in better transit

Meso: Infrastructure

• Encourage new vehicle and technology
• Improve vehicles and use new technologies
• The bus industry must invest in these areas

Meso: Repair Challenges

• Bus fleet maintenance is expensive
• Diesel buses last about 12-15 years
• Spare parts are expensive due to reliance and low labor

Meso: Cost of maintenance

• Preventive maintenance is needed
• Transit agencies must invest in facilities which can be costly

Meso: Concluding thoughts on Finances

• The industry is dealing with high fuel costs and maintenance
• Electric or hybrid buses can lower costs with investment
• Governmental funding can help the industry

Socio-Cultural: Socio Cultural Preferences

• Younger preferences are sustainability, convenience, and comfort
• Other options include trains, carpooling, or ride-sharing services as they view traditional travel as slow
• Long hall buses or other travel are other modes that wealthier folks may prefer or may consider a stigma against high end lifestyles
• In summary more transport modes reduce social competitiveness

Socio-Cultural: Accessibility

• Urban growth is needed and more central locations are needed
• Less accessible buses

Socio-Cultural: Perceptions

• They have a large long social perception
• Bad social perception impacts crime and homelessness
• There are safety concerns for women

Socio-Cultural: Cultural Expectations

• Passenger amenity expectation variation exists across cultures
• Some travellers expect onboard meals while others expect flexible tickets
• Operating companies must adapt to international clients

Socio-Cultural: Summary

• To stay competitive, bus services must cater to socio-cultural challenges
• Steps include improved accessibility, enhancing safety, ensuring stability, and adapting more

Technological: Technological Platforms

• Bus companies must merge disparate booking and operation systems
• This includes seamlessly combining data for passengers
• Ensuring system function across regions happens alongside different systems
• Preventing glitches is highly important

Technological: Digital Adoption

• A shift to digital booking provides better management
• It benefits operational efficiency and reduces manual tasks

Technological: Challenges

• Present accessibility challenges
• Some travellers struggle with mobile or computer based systems
• Digital interfaces limit customer service

Technological: Conclusion

• Overcoming accessibility will provide key improvements

Ecological: Goals

• Meet sustainability as a company
• Making sustainable travel available

Ecological: Current Challenges

• Addressing carbon emissions and improvements needs to be made
• This includes electric, biogas, or hydrogen buses

Ecological: Regulations

• The main goal of sustainability is the uniformity in different regions
• Bus routes can be impacted

Ecological: Competition

• They are relatively affordable to trains and flights
• Differentiating its sustainability

Ecological: Initiatives

• Reduce its carbon footprint
• This included solar energy panels

Ecological: Bus Manufacturing

• Biogas coaches must be planned
• Travellers can offset their emissions

Ecological: Hydrogen

• In hydrogen bus plans are being pushed
• Part of board to reduce emissions

Ecological: Infrastructure

• The lack of infrastructure is required
• This is causing problems with sustainability

Ecological: Cold Weather

• Some challenges are happening due to cold weather disruption
• Leads to reliability questions

Ecological: Industry goals

• This can lead to stronger standards of emissions
• Combustion of engines by 2035

Ecological: Scania

• This is placing the company to lead innovation

Political: Regulation Effects on Bus Companies

• Gov pressure to reduce carbon emissions is pushing companies to become sustainable
• However many companies face issues
• As policies that seek stricter emission standards, they are becoming common

Political: Regulations on fuel costs

• Converting to sustainable fuel or electric costs a lot
• Parties aren't willing to invest in sustainability
• This can frustrate many companies like Flixbus

Political: Political Tension

• Challenges buses must undergo

Political: Updated Travel Advisories

• Essential for the buses

Political: Criticism

• Flixbus started a bus service despite risks
• Despite fears Flixbus is aiming for affordable travel

Micro: Avoid Q&A

• Empty or low-occupancy trips on specific routes may be caused by some factor
• Flixbus needs to analyze data to avoid under utilization
• Reduce non-operational costs by maintaining quality

Micro: Shift Q&A

• Encourage shifts to bus travel in cities
• Market travel options while emphasizing the benefits
• Utilize travel messages

Micro: Improve Q&A

• Optimize seating and fuel capacity
• Take the steps to impact its fleet
• How to improve operations in several areas

Summary: Bus routes

• Reduce resources in various areas
• Improve scheduling