Generation Z, defined as those born between 1997 and 2012, is a significant market for the travel industry. Skift Research revealed that 75% of Gen Z travelers in the U.S., U.K., and Germany had taken two or more trips in the previous 12 months. A key finding is that Gen Z travelers are spending a significant amount on travel, particularly on hotels, with brands like Generator and Freehand seeing revenue increases and booking growth in key markets. Many Gen Z travelers are prioritizing travel over other expenditures and are willing to cut back on dining out, shopping, and other expenses to maintain their travel budgets.
Gen Z travelers value flexibility, unique experiences, and accessible destinations in their travel choices. They show a preference for experiences over luxury goods, with a survey revealing that 79% of Gen Z respondents believe leisure travel is a vital part of their budget allocation. Despite their enthusiasm for travel, only a limited percentage of Gen Z travelers appear open to long-haul flights on budget carriers. This highlights the importance for businesses in the travel industry to offer unique experiences, flexibility, and affordable options to cater to the preferences of Gen Z travelers.
TikTok has emerged as an important trip-planning tool for Gen Z travelers, with a survey showing that 89% of 18- to 25-year olds in several countries have discovered new destinations through the platform. Younger travelers are also looking to avoid alcohol on vacation, prioritizing experiencing new cultures and sightseeing over traditional partying. Popular destinations among Gen Z travelers include Italy and Japan, which are seen as more cultural places than traditional party spots. Furthermore, Gen Z travelers are placing a greater emphasis on sustainable travel, with half prioritizing booking with environmentally friendly companies and a percentage willing to pay more for sustainable options.
In summary, Gen Z travelers are showing significant impact on the travel industry, demonstrating key habits such as high spending on travel, prioritizing travel over other expenditures, valuing flexibility and unique experiences, preferring experiences over luxury goods, and being open to long-haul, low-cost travel. They are utilizing platforms like TikTok for trip planning, looking to avoid alcohol on vacation, and showing interest in cultural destinations such as Italy and Japan. Additionally, Gen Z travelers are placing a greater emphasis on sustainable travel practices, with a significant portion prioritizing booking with environmentally friendly companies and being willing to pay more for sustainable options.
