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Travel App

Attracting Millennials to San Francisco

Submitted to

Chamber of Commerce of San Francisco

By

Susanna Contadini,

Brand Resonance

March 28, 2020

Table of Contents

• Executive Summary..........................................................................................................................................
• 1. Purpose Statement.......................................................................................................................................
• 2. Problem........................................................................................................................................................
  • 2.1 Analysis of Millennials Travel Trends......................................................................................................
  • 2.2 Booking on Internet................................................................................................................................
• 3. Solution.........................................................................................................................................................
  • 3.1 App Design..............................................................................................................................................
  • 3.2 Additional Tools......................................................................................................................................
• 4. Costs and Benefits........................................................................................................................................
  • 4.1 Costs, Settings and Time.........................................................................................................................
  • 4.2 Analysis of Benefits.................................................................................................................................
• 5. Conclusion....................................................................................................................................................
• References........................................................................................................................................................

1. Purpose Statement

Recently, the Chamber of Commerce of San Francisco has detected a decrease in the number of millennials choosing the city as the destination of their trips. This decline is leading to a loss of membership for the Chamber because the members think that the Chambers should support them in this area. Consequently, the Chamber’s reputation is at risk. A travel app designed to attract millennials to this destination will sort out the problem posed by the present members of the Chamber, improve the reputation of the Chamber of Commerce itself and result in a wave of new membership. This solution will improve the reputation of the Chamber of Commerce and strengthen its position as the main supporter and promoter of the local travel industry.

2. Problem

Experts of the travel industry have widely investigated millennials tastes and way of living. As emerged from this analysis, the travelers belonging to this generation differ from the previous ones with respect to two different aspects: they have grown up surrounded by internet and social media and are constantly looking for new experiences. For this reason, they seem to be most willing to accept those travel offers which encompass these two constants of their lives. Millenials are influencing the travel industry imposing new standards in this field. It’s paramount for the members of the Chamber of Commerce to keep up with these new trends. Unfortunately, while other cities are proposing new rebranding strategies which succeed in attracting millennials, San Francisco has not. This is causing a decrease in the number of travelers choosing the city as their next destination and is leading to a drop in membership.

2.1 Analysis of Millennials Travel Trends

A millennial is a made-to-feel special dream kind of traveler, the endless explorer thirsty for knowledge. This means that they look for experiences which can offer them an innovative way to encourage cultural immersion and that follow at the same time the targets of sustainability and affordability. Furthermore, from the collected data came out that not only are they inclined to take extended-stay trips, but they also enjoy booking spontaneous weekend getaway whenever possible. In the following table the top 10 trip styles according to millennials are proposed:

1. Foodie Travel 16%
2. Business Travel 14%
3. Active adventures 13%
4. Island Hopping 12%
5. Sailing 11%
6. Sustainable Travel 9%
7. Music Travel 8%
8. Wildlife and safari 7%
9. Mountains and Trekking 6%
10. Spring Break 4% (Source : Sofronov, B 2018, ‘Millennials: A New Trend for the Tourism Industry’ Annals of Spiru Haret University, Economic Series, vol. 18, pp. 109-122)

2.2 Booking on Internet

Nowadays, internet plays a central role in the travel industry, more than social media in general, since it is the place where a large range of trip offers are made, all at the same time. In fact, millennial travellers seem to be more likely to be influenced by an advertising campaign than they are by a social media campaign. However, apart from the channel that get used, there is a growing tendency to employ electronic devices to book a travel rather than to consult a specialized agency.

3. Solution

According to the recollected data, the best solution is to design a travel app which will be both attracting for millennials and useful at the time of booking a trip.

3.1 App Design

Millennials seem to prefer those apps where all the information needed are easy to be found, the offers are numerous and clear, and the sources are reliable. In fact, 86 % of millennials get disappointed after bad mobile experiences and 41% joined some programs only because they were easy to use ( Internet Marketing Inc. 2016 ). Some key features of the app :

1. It includes all the members of the Chamber of Commerce of San Francisco and underlines what offers they present, and the peculiarities that make them sustainable, affordable and cultural immersive activities or business.
2. It provides users with the main contacts (telephone number, email, etc.) through which a first interaction between them and the local stakeholders can be established.
3. The most affordable rewards proposed by each business are highlighted. a. This section includes some additional website links, which present the same offers from different points of view, since 85% of millennials prefer to check multiple travel sites to make sure to get the best deal ( Internet Marketing Inc. 2016 ). b. This section is also dedicated to the feedbacks of other travelers who already benefited of the same offer to reassure millennials about the quality of the service.

3.2 Additional Tools

The section below presents some additional tools which are a must-have feature of an effective travel app :

1. A system of geolocation and navigation. Through this setting users can spot the current location and the way to get to the next destination of their daily plan ( including hotel, café, bus stop, etc.). This will avoid an unnecessary waste of time in finding places, which is according to millennials the most annoying aspect of trips.
2. A booking system to enable users to reserve their flight and accommodation with just a click. To improve this function, various secure payment options which facilitate transactions for users are also included to increase the reputation of the app as a reliable one.

4. Costs and Benefits

4.1 Costs, Settings and Time

The development costs of an app of this kind can vary according to the set of features incorporated in the program. In fact, the more you add settings, the more the number of experts necessary for the task will increase. This also affects the time required to conclude the whole project. A list follows presenting the main factors influencing the costs of an app :  Features and functionality  Customization of visual design  Platforms  Backend infrastructure and app administration  Location and structure of a development team  App maintenance costs (Source : Cleveroad 2020, ‘How much does it costs to make an app in 2020’) In the section below, a short table shows the relation between the two variables of time and cost according to the stage of development of the app : Stage of development Costs Time basic app around $25,000 500-700 hours Medium complexity app between $40,000 and $70,000 from 700 to 1000 hours complex app beyond $70,000 exceeds 1200 hours (Source : Cleveroad 2020, ‘How much does it costs to make an app in 2020’)

4.2 Analysis of Benefits

A team of experts of Brand Resonance estimated a revenue of an extra 15% over all the business belonging to the Chamber of Commerce of San Francisco only in the first half of the next year. This means that its members will cover the costs coming from the development of the travel app in a brief period of time. Furthermore, not only will the Chamber recognize an increase in the economic incomes of its members, but it will also improve its reputation as a supporter of the travel industry. This will undoubtedly encourage other local businesses which do not belong yet to this institution to become part of it. Finally, it is not hard to believe that in the near future the Chamber of Commerce of San Francisco will become a reference point for other American cities.

References

Cleveroad 2020, ‘How much does it costs to make an app in 2020’, https://www.cleveroad.com/blog/how-much-does-it-cost-to-create-an-app. Internet Marketing Inc. 2016, ‘Millennial Travel Trends: A Look at the Largest Generations’ Habits’, https://www.internetmarketinginc.com/blog/millennial-travel-trends/. Sofronov, B 2018, ‘Millennials: A New Trend for the Tourism Industry’, Economic Series, vol. 18, pp. 109-122.