In recent years, the service and marketing industries have shifted their focus from accommodating Millennials as the 'future generation' to now integrating Gen Z and Gen Alpha. Born from the late 1990s to early 2010s, Gen Z and the children of Millennials, known as Gen Alpha, are already making significant impacts and are considered the true 'travellers of the future'.
The industry is set on capturing the attention – and spending power – of these up-and-coming demographics of jetsetters, which makes sense given that Gen Z have risen to represent around one third of the global population.
A recent study by the European Travel Commission revealed that younger travellers are more likely to:
It should be noted that Gen Z is currently one of the highest spending demographics in the travel sector. Despite not being individually wealthy, their collective spending power heavily contributes to their travel experiences. This generation's strong alignment between their values and consumer behaviors further solidifies their influence in the market.
Let’s take a look at how the ‘travellers of the future’ are changing the landscape of travel and tourism.
Did you know that Gen Z alone constitutes a spending power of around global spending power of $143 billion (a figure that is only increasing) and accounts for about 40% of all consumers? Or that Millennials and Gen Z consumers will make up 45% of luxury sales by 2025?
The upbringing of Gen Z and Gen A in a digital era has resulted in their development during crucial formative years, constantly exposed to evolving and easily accessible technologies.
In terms of seeking out assistance from a travel provider, rather than doing things themselves, the likelihood of Gen Z doing so is influenced by various factors. However, among them all, Gen Z tends to prioritize technology integration, easy booking procedures, social environments that encourage connections with fellow guests, interactive communication with service providers, and personalized experiences.
In light of Gen Z's ability to meet their own needs through their technological proficiency, it is crucial for travel providers to find ways to engage with this constantly connected generation, such as through Online Travel Agencies (OTAs).
How to attract and accommodate ‘digital-native’ travellers:
Gen Z spends an average of 10.6 hours per day online, making them the most digitally connected generation, and in 2023, around 29% of Gen Zers were inspired to travel to a destination by TikTok. Meanwhile, around 54% of parents say their Gen Alpha child spends up to four hours a day on social media.
Many members of Generation Z and Millennials, more than their Gen X counterparts, find travel inspiration predominantly through online platforms. Social media, with its use of hashtags, geotags, and content sharing, provides a convenient way for users to discover and explore various destinations, attractions, and experiences worldwide. Travel businesses and influencers play vital roles in showcasing these destinations through engaging content, essentially serving as virtual tour guides for their audiences.
A recent study discovered that approximately 75% of travelers in the UK, US, Australia, China, and Japan utilize social media for travel inspiration. Leading the pack are platforms like TikTok, Instagram, and Pinterest. Interestingly, 48% of travelers end up visiting destinations they stumble upon or are intrigued by on social media.
Notably, during their searches, many users actively seek out new destinations, hidden gems, and unique travel experiences.
Research indicates that the largest source of inspiration for young travelers is television, news outlets, or movies at 64%, followed closely by recommendations from friends and family at 47%. These findings highlight the significant impact of social media on the preferences of the younger generation of travelers, surpassing even the influence of personal recommendations.
And considering the prevalence and importance of social media in their travel-making decisions, it’s fair to say that Gen Z – and even Millennials - are travel influencers too.
It is important to note that for every interaction your Gen Z customers have with your customer service, booking, pre-and post-travel experiences, they are highly likely to share their feedback online, whether positive or negative. Therefore, social media plays a crucial role in the success or failure of travel companies.
A large proportion of Millennial travellers seek culturally immersive, experiential travel – a chance to ‘get under the skin’ of their destination and create personally fulfilling experiences.
Generation Z is known for seeking unique experiences, and as the first digitally native generation, their travel preferences reflect a technology-first approach from the start of trip planning all the way to sharing experiences during and after their travels.
Most of all, both demographics are proven (find stats) to want and prioritise:
The Gen Z demographic is increasingly showing a preference for authenticity in destination experiences. This shift towards experiential travel reflects a desire for bespoke, tailor-made travel experiences rather than the traditional 'one-size-fits-all' approach. Building on the cultural immersion focus of Millennials, Gen Z is leading the way in seeking experiences that align with their values. The trend is towards personalized, unique travel experiences that cater to the individual preferences of this generation.
From ‘set-jetting’ travel to luxury culinary tourism, solo travel and wellness tourism, such as ‘silent travel’, there’s no denying the fact that as well as being motivated by a desire for self-discovery, cultural immersion, and localised experiences, Gen Z are just as inspired by ‘on-screen’ destinations, social media and a keen social and environmental awareness.
In order to appeal to this future-focused generation of travelers, it is important to stay up-to-date on popular culture knowledge and have environmentally friendly recommendations readily available.
See our top 2024 travel trends here!
As evidenced by recent data, sustainable travel is a top priority for Millennials and Generation Z travelers. 82% of Millennials have expressed a strong desire for travel options that are environmentally friendly.
Conscious travel is top of the demands list for many younger travellers, from sustainable travel practices and experiences that benefit local communities, to voluntourism and regenerative travel, alongside their undercurrent of desire for unique experiences.
Discover more about overtourism, and the importance of promoting sustainable tourism here.
The growing utilization of travel technology and enhancements in travel accessibility across various demographics worldwide have created new opportunities for younger generations to travel more easily and affordably. This shift is transforming the expectations of younger travelers as travel becomes more convenient and economical, especially in regions with advanced travel infrastructures.
Given this, Gen A is expected to be the most mobile traveller yet.
This not only affects the future travel patterns of Generation A, but also their current impact on modern family travel. In fact, approximately 43% of families with Generation A children are influenced or inspired by them when planning a trip.
Although the older generations still play a key role in decision-making due to their ability to book trips, Gen A is actively sharing travel-related content on social media and indirectly influencing family travel decisions. Use this insight to provide experience-led recommendations to families with Gen A children.
A high number of families are prioritising inter-generational experiences and the needs of the family over the destination itself. Tech-inspired holidays are ideal for family and intergenerational travel as these experiences are engaging, accessible, sustainable, and memorable. Immersive experiential travel is fun for the whole family no matter the season.
While this is by no means an exhaustive list or overview of the impact of younger generations on travel, travel trends, and even wider traveller behaviour, it's certainly food for thought when you're considering how to attract, appeal and retain these all important travellers of the future.
Here’s what you can expect in our guide to trending travel in 2024:
⭐ The latest health and wellness travel preferences.
⭐ Why ‘set-jetting’ and ‘retailtainment’ are some of the top upcoming experience tourism trends.
⭐ How travel technology continues to shape the industry.
⭐ What tomorrow’s luxury traveller is looking for.
⭐ How Generation Alpha is driving the shape of modern familial travel.
and more