THE PERCEPTIONS AND MOTIVATIONS THAT IMPACT TRAVEL AND

LEISURE OF MILLENIAL GENERATIONS

An Undergraduate Study Presented to the Faculty of College

of Hospitality and Tourism Management

In Partial Fulfillmentof the Requirements for the Degree

ofBachelor of Science in Tourism Management

By:

Micah Czarina Vielle R. Namaya

Kristian Marlou G. Abiog

John Ashley S. Tomas

Rizza Mhae G. Jao

BSTM 4-2
 CHAPTER 1

THE PROBLEM AND ITS SETTING

Introduction

Travel is the movement of people between relatively

distant geographical locations, and can involve travel by

foot, bicycle, automobile, train, boat, airplane, or other

means, with or without luggage.

(https://en.m.wikipedia.org/wiki/Travel). Travel means to

go on a trip or journey (Source: Merriam- Webster’s

Learner’s Dictionary). On the other hand, leisure is the

enjoyable activities a person does when not working.

The tourism industry has a dramatic impact on the

world’s economy and development. For this reason, it is

important to study vacation traveler behavior, including

where individuals travel on vacation and what travel mode

they use to get there.

Tourism is a powerful and diverse industry that is

directly associated with most regions’ growth and economic

vitality. In fact, many countries and regions’ economies

depend significantly on tourism-generated revenue, which

exceeded $700 billion internationally in 2006. For

example, 3.9% of the United States’ GDP, 6.2% of

Switzerland’s GDP, and over 11% of the European Union’s GDP

are generated from tourism. However, the significance of

recreational and leisure tourism extends beyond simply

being a source of revenue: it provides substantial

employment opportunities, influences regional

infrastructure, supports local industry, contributes to

traffic congestion, influences freight movements, and

encourages urban development.

In an ideal world, tourism policy makers would be

proactive about the growth and preservation of their

industry. Knowing what kinds of travelers choose to

holiday in their country and why travelers made this choice

can help planners solidify demand for their current tourism

services as well as expand and adapt services to attract

new types of tourists. Unfortunately, tourism is a

competitive and perishable economic product that shifts

over time, depending on the changing values and preferences

of travelers. These shifts in traveler behavior, in turn,

make predicting tourism demand quite challenging. They also

seek to understand how and why these decisions are made.

 The travel industry is evolving and changing every

day.Nowadays, traveling became very popular because of its

cheap rates and hassle-free transactions. Several

innovations and development were made throughout the year

with the help of our modern technology. Travel preferences

vary from person to person. Many people travel to seek

adventures, experience different cultures, relax with the

scenic views, or simply to escape the polluted city life.

One of the largest target populations for travel and

leisure marketing is currently “Millenial Generations” or

the people born between the early 1980s and the early 2000s

and they are also called the “Boomerang Generations”.They

typically have expendable income and time to participate in

leisure and travel activities. Millennial generations are a

growing market for the travel and tourism industry.

This research is conducted to explore the perceptions,

motivations, and attitudes that millennial generations

have. The reason for this study is to gain knowledge about

the different travel habits and motivations for them that

will help the travel industry to cope with the current

demands of their target market.

Statement of the Problem

This research study aims to determine and discover the

various perceptions and motivations that impact travel and

leisure activities of millennial generations.

Specifically, it aims to answer the following questions:

1. How may the respondents be described in terms of:

1.1 Age;

1.2 Gender;

1.3 Civil status

1.4 Educational attainment

1.5 Occupation

1.6 Monthly income

2. How may the respondents’ perception about travel and

leisure be described in terms of:

2.1 Recreational activities

2.2 Hotel Accommodations

2.3 Food and beverage

2.4 Climate

2.5 Location
3. What are the motivational factors of the respondents

for their travel?

3.1 Educational purpose

3.2 Business purpose

3.3 Personal purpose

3.4 Family purpose

3.5 Cultural purpose

3.6 Historical purpose

3.7 Adventure purpose

4. How often do the respondents travel?

4.1 Every week

4.2 Every month

4.3 Once a year

4.4 During holidays

4.5 Occasionally

5. How do the respondents choose their desired travel

destinations?

5.1 Through internet

5.2 Through travel agency

5.3 Personal Preference

6. When respondents travel, whom are they travelling

with?

6.1 Alone

6.2 With family

6.3 With friends

6.4 With co-workers

Paradigm of the Study

Figure 1. Research Paradigm

The conceptual research paradigm on Figure 1 shows the

fundamental operations that were undertaken in the conduct

of study. It shows the relationship of socio-demographic

profile of the respondents, which includes age, sex,

highest educational attainment, occupation, and monthly

income to their perceptions about travel and leisure and

the respondents’ travel motivational factors. The model

also proposes that the respondents’ perceptions on

travel and leisure and travel motivational factors have

direct impact on travel and leisure of millennial

generations
Theoretical Framework

The approach of benefits sought or realized applies

benefit segmentation to the leisure industry to predict

future tourist behaviour. It relies on causal factors and

thus “has been noted as being better at predicting and

explaining behaviour than other measures which merely

describe it” (Kay, 2003, p.606). There are two main types

of this approach that are applicable. The first identifies

the benefits provided by the attributes of tourism services

or destination. The second measures psychological benefits

expected while experiencing the tourism product. When

applying these approaches or a combination of both to infer

travel motivation, the timing is an important factor,

differentiating between benefits which are sought prior to

the travel experience and benefits which have been actually

realized during, respectively after the travel experience

(Kay, 2003). The issue arising when applying the approach

of benefits sought respectively realized, is the usage of

provided attributes of tourism products and/or benefits

expected by the tourist, whose expectations are most likely

shaped by the advertising of tourism product providers, to

determine travel motives. Moreover, being based on provided

and/or expected attributes and features, this approach is

dealing more with travel purposes than with the ‘real’

travel motives even tourists themselves may not be aware of

(Mill & Morrison, 1985).

Significance of the Study

This study, in one way or another, is significant to

the following:

The Researchers. Through this evaluation, the

researchers became more aware of the different perceptions

and motivations that impact travel and leisure of our

generation.

TheFuture Researchers. This will serve as additional

references to the other researchers who will conduct a

similar study in the future.

The Travel Agencies. The results of this study will

serve as a guide and help the different travel agencies how

to cope and address the current demands of their target

market.

The Hospitality Industry.This evaluation can provide

the hospitality industry a greater opportunity to improve

their facilities and to give their best services to meet

the demands of their consumers.

The Practitioner in Hospitality and Tourism

Industry.This research study will be working directly with

tourists both foreign and local.

Scope and Delimitation of the Study

This research has confined itself to determine the

perceptions and motivations that impact travel and leisure

of millennial generations. It covers 100 respondents of

millennial generations that will determine their

perceptions and motivations toward travel and leisure.

The study on “The Perceptions and Motivations That

Impact Travel and Leisure of Millenial Generations” will

focus on the impacts of travel and leisure for the

millennial generation. The numbers of respondents are one-

hundred (100) who were selected randomly to answer the

self-made questionnaire.
Definition of Terms

The following terms were theoretically and

operationally defined based on how these were used in the

study:

Travel.The act or process of traveling; movement or passage

from one place to another.To go on a trip or journey,

usually over a long distance.

Leisure. It is the quality of experience or as free time.

Millennial Generation. It refers to the generation of

people born between the early 1980s and the early 2000s. It

is also known as the “Generation Y”, because it comes after

“Generation X” – those people between the early 1960s and

the 1980s.

Practitioner. A person engaged in handling tourists.

 CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature

Every year millions of dollars are spent on

international and domestic leisure and travel activities.

Motivations for travel vary from person to person and can

be tricky for marketers to keep track of. Simon (2009)

suggested that socioeconomic forces influence the travel

industry and the way people travel throughout the year. The

travel industry is evolving and changing every day. In

order to understand and make marketing decisions to best

serve the potential participants, new and viable research

is needed on a frequent basis.

One of the largest target populations for travel and

leisure marketing is currently the “MillenialGeneration.”

They typically have expendable income and time to

participate in leisure and travel activities. Marketers

have been successful with this market segment and continue

to have ample research on motivations and attitudes of this

target population. For example, Cleaver, Green, and Muller

(2000) found that the boomer generation can be segmented

based on their travel motivations, and ultimately influence

the way hospitality and tourism products are designed and

communicated. Another large and up and coming group of

travel and leisure participants is the millennial

generation. College students make up for a vast majority of

this generation, and according to McIntosh and Goeldner

they are “educated travelers that tend to appreciate a

change in scenery and do make efforts to explore the new”

(as cited in Hallab, Price, 2 Fournier, 2006, p. 138).

College students are a revenue resource for the leisure and

travel industry with growth potential.

According to Chadee and Cutler (1996), the economic

impact and potential growth of college student travel has

had little coverage in the academic press (as cited in Kim,

Oh, &Jogaratnam, 2007). This current lack in research

concerning millennial generation motivations for travel has

resulted in inadequate marketing. Travel industry promotion

and advertisement currently focus primarily on the boomer

generation with little regard toward the millennial

generation. College students don’t want to take the same

vacations as their parents or grandparents, so in order to

use time and money efficiently on marketing to this target

population, proper research must be conducted to explore

and understand their needs and wants as travel

participants. Research conducted on college student travel

motivations could be used by industry marketers, hotels,

travel destinations, tour providers, colleges and

universities, as well as any leisure service provider. This

study could also be used by other researchers working on

their own studies concerning travel by the millennial

generation. College students as a target market for travel

could provide added revenue to local, national, and

international service providers. This study will zero in on

a small segment of students at Cal Poly to explore

motivations and attitudes towards the benefit of leisure

and travel using a qualitative approach. Asking the “why”

questions in this study will help marketers and service

providers understand this generations core values and

beliefs that motivate them to choose their travel and

leisure activities. It is hoped that this study will prove

to be useful in gauging how millennial

generationsparticipate.
Local Literature

Travel statistics reveal that a customer’s generation

can play a significant role in purchase habits. For travel

suppliers, understanding the differences in Generation

Xers, baby boomers and millennials is key to effective

customer segmentation. “It’s clear that age impacts desire

and priorities,” says Travel Pulse‘s Patrick Clarke, while

admitting there are a “variety of factors” that shape

preferences for travel decisions. Regardless, generational

differences reveal a great deal about consumer behaviors

and how people should adapt to trends in customer behavior.

Millennials (1981-2000). Per Goldman Sachs, growing up

in an era of rapid technological and cultural change has

shaped a generation of millennials. Conde Nast Traveler

reports that guided by a “virtual backpack of apps,” the

youngest generations of travelers are “extremely curious”

and willing to take “educated risks” in order to explore

the world. Virtuoso travel statistics state 90 percent book

travel online, with 87 percent using digital tools to

compare options.
 Reviews are major criteria to the youngest travelers,

who are likely to rely on apps and share their experiences

digitally. A Shullman Research Center study found that 77

percent of millennial travel is for pleasure, which is a

little lower than Gen X and boomers. This generation’s

preference for authentic experiences and self-guided

booking is likely to shape the future. Providing

transparent, self-serve booking experiences can meet this

generation’s need for autonomy.

Generation X (1965-1980). Virtuoso reports that Gen

Xers spend slightly more on travel than millennials or

boomers, with 82 percent booking travel online. Some 71

percent use online travel agencies (OTAs), reviews and apps

to make purchase decisions. Seventy-nine percent of

Generation X travel is for pleasure, says Shullman, which

means they’re less likely to travel for business than

millennials, but more likely than baby boomers.

This generation’s purchase power represents 31 percent

of total income, according to OpenForum. Travel marketing

and technology tailored to this generation should focus on

practicality, including their preferences for family-

oriented travel, comfortable experiences and the ability to

unwind on the road. Create booking experiences that

emphasize efficiency, comfort, transparency and value, and

you’re more likely to win these customers.

Baby Boomers (1956-1964). As boomers quickly approach

retirement, travel for pleasure is likely a top priority.

Shullman writes that 82 percent of boomer travel is

pleasure-focused. Per Virtuoso, despite this generation’s

relative affluence and fiscal comfort, they spend less than

their younger counterparts.

Perhaps most surprisingly, technology adoption among

this segment exceeds Generation X. Per Virtuoso, 84 percent

of boomers have booked online and 72 percent compare

options online with OTAs. Research by Travel Marketing

Decisions (TMD) indicates this generation views leisure

trips as a “necessity.” By offering seamless, easy-to-use

booking experiences and fun-focused offers, travel

providers can capitalize on what TMD refers to as this

generation’s expectation of “immediate gratification.”

Generation plays a role in shaping traveler research

habits and priorities. Understanding what travel statistics

reveal about consumer behavior is an important tool when

you’re creating customized marketing messages and booking

experiences. By optimizing experiences for generations, one

can yield significant returns.

Anytime that people experience the richness of

cultures different from their own — by talking with people

of other nationalities, travelling internationally, trying

foods from other countries and embracing other educational

experiences that fall outside of their comfort zone — they

grow and change in positive ways. And this is just the kind

of personal development that can help people stand out in

the eyes of college admissions counselors and future

employers in a competitive field of other strong

candidates.
 CHAPTER 3

METHODOLOGY AND SOURCES OF DATA

This chapter discusses the method of research used,

data gathering procedures conducted, how the instrument was

validated, the procedure used in the selection and

identification of respondents and statistical treatment of

data gathered.

The Method of Research

The researchers used descriptive method of research in

this study. Descriptive research is a fact-finding with

adequate and accurate interpretation. It has something more

and beyond just data gathering that reflects thoughts to

research. The true meaning of data collected should be

reported from the time of the data point of the objectives

and the basic assumption of the project is underway.

Examples are the current practices or beliefs, situations

which are of great relevance/importance to the project.

Since the present study or investigation is concerned about

the perceptions and motivations of millennial generations,

the descriptive method is most appropriate method to use.

 The process of descriptive research goes beyond mere

gathering and tabulation of data. It involves the elements

or interpretation of the meaning or significance of what is

described.