In the first of a two-part series, Laurenz Koehler, managing partner, Duxton Consulting, offers insights into the minds of Millennials
Here’s what Millennials think of the travel industry, according to a Duxton Consulting Singapore study:
• does not pay well
• requires no brains, smarts
• does not value education and skills
• low-status jobs
• does not project a professional image
Perception versus reality
The perception that Millennials have of the industry doesn’t reflect its reality. The travel industry requires brains and talent, and hence offers well-paid and high-status jobs as most other service industries do.
To my understanding, the travel industry is today more sophisticated and, marketing-wise, much better thought out than before. Given the amount of money spent on travel, expected growth of new and emerging markets as well as new budget airlines and much cheaper access to travel, the travel industry should hold better and wider opportunities for Millennials.
Plus travel is still very aspirational for most Asians since working in the travel industry is perceived to offer easier access to more and better travel options. In the eyes of Millennials, the travel industry is still attractive for the sheer fact that they are able to meet their aspiration to travel and see the world as well as meet and deal with diverse people from different international backgrounds.
However, the issue is that their perception is stuck at the low-end of the market: Millennials don’t see a clear path to progress or how they can move up the ladder. Even if entry-level jobs are indeed very hard and low-paying, Millennials would put up with this if they see the proverbial light at the end of the tunnel. But they don’t – they perceive the entire industry as low paying and are not interested in it.
Limitations of our study
Our fieldwork was done in Singapore only, so we cannot claim the findings to be true for regional or global Millennials. However, based on similar projects we have undertaken in Malaysia and other countries, we believe this mindset would be found across the region and maybe even globally.
Why they think that way
First of all, Millennials’ perception of the industry requiring low educational skills is formed by interacting mainly with lower-end personnel of the travel and tourism market.
Secondly, Millennials are very self-confident and believe they can tackle almost any challenge and opportunity due to their upbringing in the Internet age. They believe they are able to develop solutions for almost any problem when they graduate from college or university. However, they face problems adjusting to the reality of entry-level jobs where they tackle very simple challenges and adapt to a job scope they feel is undervaluing their skills. Unless they have a very good manager and/or a clear path of career progression that allows them to advance within the company or industry, they get fed up very easily. Millennials quit much faster once they feel stuck in a role with no immediate perspective to gain momentum for their career again.
What’s being done wrong
Employer brand/image: most travel-related companies don’t have a very friendly and interesting employer brand or image. Many companies are seen to exploit talent and to be interested in the cheapest labour possible. Compared with the PR-driven employer brands the likes of Google and eBay, travel-related companies are perceived to have nothing to offer because just offering a job or a salary is simply not enough.
Career path: there is no clear outlook on how Millennials can develop, gain new knowledge and advance in their career. Also, there are minimal feedback mechanisms from their superiors and no real interest to invest in Millennials via training that goes beyond the basics.
Rigid job scope: there are very strict and boxed-up job descriptions in the industry, and not much leeway for an individual to make his/her own decisions and contribute beyond just fulfilling a simple task.
Look out for the second part of this series, where Koehler offers tips on how the industry can overcome these challenges and rebrand itself as an employer of choice.
By Laurenz Koehler, managing partner, Duxton Consulting
