How technology and hybrid work drive the Digital Nomad trend
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You’ve likely seen Digital Nomads on social media or heard about them in the news. They share pictures from the beach, laptop resting on their legs, palms trees swaying in the background. Or maybe they’re at a campsite, working out of the back of a remodeled van, strings of twinkling lights overhead as they join a video meeting.
You’ve also probably wondered, “Who are these people who travel all the time while working, and how do they do it?”
Digital Nomadism explained
Thanks in part to the pandemic and the hybrid online lives to which we’ve adapted, Digital Nomadism is a growing trend, and an interesting and valuable audience marketers are starting to consider. Digital Nomads are location-independent people who make a living working online. Because they work 100% remotely, they can constantly move from place to place while staying connected to the office (if there’s an internet connection). They’re working in coffee shops, temporary rentals, recreational vehicles, and modified vans. They work from beaches, farms, suburban homes, temporary apartments, boats, campsites, adapted busses, and other places. Unique dwellings (think treehouses and castles) are something of a trend, too: Airbnb reported a 1,055% increase in searches for “farm stays” in the first quarter of 2021 compared to 2019.
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Digital Nomad demographics, by the numbers
The perception of Digital Nomads might be that they are all young, but that’s not the case. Many retirees and others in between are embracing this lifestyle. Investopedia research found:
- The average Nomad is about 35 years old, and more than half are single.
- 59% of Digital Nomads are men, and 41% are women.
- About 57% have a college degree or higher (versus 35% for Americans), and 24% report having an advanced degree (versus 13% for Americans).
- Income skews higher than average, with 38% earning $75,000 or more and about 26% earning less than $25,000 per year.
- Many Nomads travel with pets, dogs especially. Airbnb says usage of the “allow pets” filter on their service jumped 90% compared to last year.
Hybrid Digital Nomads
Nomads may move around weekly, monthly, yearly, or on some undefined cadence according to visa restrictions and other reasons. Because their jobs don’t require them to be in an office, their physical location doesn’t matter if they meet their job requirements.
The hybrid Digital Nomad doesn’t move around as often but spends extended periods in vacation homes and rentals while maintaining a home base. Some even become hybrid Nomads specifically to explore and find a new place to live.
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Because of the nature of shipping and the delays within the supply chain, many Nomads are starting to search for products and services by location first, using map features.
It’s an opportunity for businesses to use location targeting and update Bing Places for Business to ensure Nomads will find them online.
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How Nomads shop and buy
Because of their frequent travels, Digital Nomads use online research perhaps more than any other consumer group. They are repeatedly looking for housing and transportation and all the needs, services, and amenities accompanying daily life.
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Pandemic-driven digital transformation makes Digital Nomad dreams achievable
The Digital Nomad lifestyle has been made possible through the digital transformation of office work, the gig economy, and the increase of remote work overall. Since the pandemic, the number of people working remotely has increased for the first time. Another 19 million American adults plan to start the lifestyle over the next 2-3 years, and 45 million are considering it.
To capitalize on this behavior, dozens of temporary housing rental apps have sprung up to meet increasing demand and opportunity. These include VRBO, which was purchased by travel booking company Expedia Group. Now, on Expedia.com, you can find homes and rooms for rent, as well as the hotels and motels they traditionally offered. HometoGo, Flipkey by Tripadvisor, and Homes & Villas by Mariott are a few more popular short-term rental options.
RVshare was one of the first RV rental marketplaces to emerge. They enable more than 100,000 owners to rent out their RVs to travelers across the U.S.
Airbnb has even adjusted its marketing efforts to cater to Digital Nomads. They now feature monthly stays and search options that include phrases like “live anywhere,” “pets allowed,” and “wanderlust.” They’re reporting stays of 28 days or longer as one of their fastest-growing rental segments and expect this trend to continue to accelerate.
These people may be full-time or hybrid Digital Nomads, but many of their traveling behaviors are consistent. Now, brands, businesses, and even some countries are finding ways to profit from the Digital Nomad lifestyle.
Digital Nomadism offers economic opportunities for travel advertisers and governments
The economic impact of Digital Nomads is currently being studied. Still, many cities, states, and countries are creating marketing plans to attract them, especially during low tourism seasons.
Because tourist visas usually expire after 30-90 days, many countries such as Antigua, Bali, Barbados, Croatia, and others have created Digital Nomad visas. These allow Nomads to stay for up to a year without paying income tax.
Scale-Up for Europe, a group of 150 European Union investors, researchers, business leaders, and civil servants, have recommended a Digital Nomad visa to allow Nomads to work legally anywhere across the European Union on a remote basis. However, due to current complications with travel restrictions, the nomadic trend is most significant in the United States.
A remote work and travel survey by Outsite found that only one of four American Digital Nomads said they plan to travel internationally over the next year. Instead, 76% said they are exploring the U.S.; of those, 52% also report they plan to visit fewer locations and spend more time at each stop.
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Still, with the potential economic incentives tied to this group of travelers, you can expect more businesses and even countries to develop marketing programs to incentivize long-term visitation.
Digital Nomadism is here to stay
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If we’ve learned anything during the pandemic, it’s that life isn’t going back to “normal.” Hybrid work-life and Digital Nomads are here to stay and will continue to grow. Businesses that understand how these audiences search and find locations, products, amenities, and activities will be two steps ahead toward earning their business.