Mittuniversitetet

In this paper the question if travel agencies still have value in the digitally oriended world of Generation Y has been researched. At first former research has been analysed to create an overview of the data that has already been created by other researchers. Thereafter, theory about the digitalisation of the travel market, generational cohorts, future traveller behaviour and the function of intermediaries are used to create the theoretical framework. Based on this theory, propositions are formed that cover the most relevant and important information regarding the research question. These propositions are tested with qualitative interviews, whereby 10 Western European Generation Y travelers explained their way of travelling and travel planning, vision about the travel market, the role of travel agencies, the importance of internet and social media and the way travel agencies can contribute to the travels of Generation Y.The results show that Generation Y backpackers are highly focussed on their budget. Internet has offered people the ability to arrange every aspect of travel themselves, without help from a mediator. They do not feel connected to any companies, but search for the best price/quality ratio. They approach their trips systematic and the result must be as efficient as possible. Travel agencies are only used when they can add value to the trip or when they offer package deals that are cheaper as when the traveller arranges this independent from the agency. There is a contradiction between actions and motives of Generation Y backpackers. They approach trips as business,while they plan these trips to escape daily habits, discover new cultures and learn by challenging themselves. Pretending to be perfect and being admired by their social network seems more important than personal goals.This research shows that Generation Y is highly dependent on internet. Every stage of their trip is carefully prepared with information they found online. Travel agencies are not essential anymore and they must adapt to the digital market and the individual needs of Generation Y. They should work more efficient and offer their customers service that the internet cannot offer. Generation Y’s scepticism should be beaten and agencies must show them that they are trustworthy and add value to their trips. Lastly, they should realise that Generation Y uses a business approach during trip planning and to be successful, they need to be better and cheaper than their competitors. This study aims to create an image about the visions of some Generation Y travellers.