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Millennials in the Hospitality, Aviation and Business Travel Industry

World Tourism Forum Lucerne 18 April 2013

Charles Donkor, Partner PwC

Who the heck is Generation (wh)Y?

PwC

Key Findings of Millennial Study

Graduates are more ambitious in their career ambitions than young professionals Millennials are loyal to a job and/or manager rather than to an employer Career growth, development opportunities and salary expectations are main drivers for employer attractiveness Perfect boss is described more as a mentor/coach who cares and supports rather than a top-down instructor Millennials expect more frequent feedback and regard it as a way of recognition

Generation Y Study World Tourism Forum Lucerne PwC

April 2013 Slide 3

2/3 of Gen Y graduates think they have the potential to become CEO
What is your ultimate career aspiration?
General Manager/ CEO Entrepreneur/ owner Functional manager Dont know yet Senior consultant Non-managerial position Other 0% 5% 10% Graduates 15% 20% 25% 30% 35%

Young Professionals

Career expectations differ between graduates and young professionals Graduates have more ambitious (over-ambitious?) career aspirations Gen Y expects to attain leadership positions within 3-5 years after graduation
n (Graduates) = 354; n (Young Professionals) = 640

Generation Y Study World Tourism Forum Lucerne PwC

April 2013 Slide 4

Graduates and young professionals have similar professional goals

Graduates Young Professionals

Most important

1. Being in an environment that helps me to continuously develop and learn. 2. Being in a high-paying career or profession 3. Being able to ideally balance my work/life 3. Working with a great team and supportive leaders

Graduates
1. Being responsible for a large number of employees 2. Working in a prestigious industry 3. Working for a company with a very high reputation

Young Professionals
1. Pursuing an international career in a multicultural 2. Being responsible for a large number of employees 3. Working in a prestigious industry

Least important

Generation Y Study World Tourism Forum Lucerne PwC

April 2013 Slide 5

Gen Y feel loyal to a job and/or leader but not necessarily to a company

For how many different employers/ companies do you expect/ have been working during the first 10 years after graduation?
60% 50% 40% 30% 20% 10% 0% 1 to 2 3 to 4 Graduates 5 to 6 Young professionals 7 or more

Graduates expect to work for more employers than young professionals On average 50% of young professionals expect to stay less than 2 years per employer for the first 10 years 40% of young professionals expect to work for at least 5 employers during their professional career

n (Graduates) = 354; n (Young Professionals) = 640

Generation Y Study World Tourism Forum Lucerne PwC

April 2013 Slide 6

Graduates and young professionals agree on the top 3 characteristics of the perfect boss, but prioritize these differently
Graduates
1. Understanding and caring (i.e. respects/ values/ appreciates employees)

Young Professionals
1. Supporting my professional growth/ development

Most important

2. Supporting my professional growth/development

2. Having a clear vision and strategy

3. Having a clear vision and strategy

3. Understanding and caring (i.e. respects/ values/ appreciates employees)

n (Graduates) = 317; n (Young Professionals) = 594

Generation Y Study World Tourism Forum Lucerne PwC

April 2013 Slide 7

Watch out Millennials may turn your companys hierarchy upside-down

With Generation Y coming into the business, hierarchies have to disappear. Generation Y expects to work in communities of mutual interest and passion not structured hierarchies. People management strategies will have to change so that they look more like Facebook and less like the pyramid structures that we are used to.
Vineet Nayar CEO HCL Technologies

Generation Y Study World Tourism Forum Lucerne PwC

April 2013 Slide 8