It seems like only yesterday that the service and marketing worlds were trying to accommodate Millennials as the ‘future generation’; now however, Gen Z and Gen Alpha are more than just entering the equation; they’re already making waves. Gen Z, born late 1990’s to early 2010’s, and Gen Alpha, born around the early 2010’s to mid 2020’s, are the true ‘travelers of the future’ that are changing the world of travel today.
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 travelers have risen to represent around one third of the global population.
A recent study by the European Travel Commission revealed that younger travelers are more likely to:
Did you know that Gen Z is one of the highest spending demographics for the travel sector?
Not only this, but their collective spending power goes directly into travel experiences, with many Gen Zers (and Millennials) suggesting that travel is an 'essential lifestyle component' that they'd be willing to cut other expenses to finance leisure travel. This, combined with the alignment between their values and consumer behaviours, makes this generation very powerful.
Let’s take a look at how the ‘travelers of the future’ are making waves in the travel industry already.
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?
These generations are driving the trends!
Growing up in a digital world has meant that both Gen Z and Gen A have been, and remain, developing in critical formative stages surrounded by accessible and rapidly-changing technologies.
When it comes to enlisting the help of a travel advisor, like yourself, how likely Gen Z are to do this depends on a number of factors. But, above all, Gen Z tend to favor: technology integration, seamless booking processes, social spaces facilitating connections with other guests during their stays, interactive communication with their service providers, and personalized experiences.
Considering that Gen Z are entirely capable of satisfying their own needs thanks to their expertise with technology, and therefore Online Travel Agencies (OTAs), for example, it’s critical that as travel providers you’re seeking ways to connect with this ‘always online’ generation.
How to attract and accommodate ‘digital-native’ travelers:
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.
For much of Gen Z, and many Millennials – more so than their Gen X counterparts – travel inspiration lives and breathes online. Through the use of hashtags, geotags, and content sharing, social media allows for the easy exploration of destinations, attractions, and experiences from all around the world. Travel businesses, and travel influencers to play crucial roles in showcasing these destinations through engaging content, acting as virtual tour guides for users.
But it isn’t just the travelers of tomorrow (and today) who are gaining their inspiration, motivating others, and offering word of mouth recommendations on social media.
Around 75% of travelers in the UK, US, Australia, China and Japan, a recent study found, rely on social media for travel inspiration. TikTok, Instagram and Pinterest are leading the way. 48% of travelers visit destinations they discover or are captured by on social media, and during their searches many users are actively looking for:
The next biggest inspiration came from television, news outlets or movies (64%) and after this came friends and family recommendations (47%). It’s clear, therefore, that social media is of utmost importance to the younger travelers of today and tomorrow – even eclipsing the recommendations of friends and family.
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.
This means that for every customer service, booking, pre-and post-travel experience any of your Gen Z customers have with you, they’re more than likely to share their opinions online – good or bad. Social media is, as a result, where many travel companies also live and die.
Discover our guide to creating travel social media posts for engagement here!
A large proportion of younger travelers seek culturally immersive, experiential travel – a chance to ‘get under the skin’ of their destination and create personally fulfilling experiences.
Gen Z are seeking authenticity in-destination, as a demographic that continues to drive a shift towards experiential travel, with a laser-focus on moving away from ‘one-size-fits-all' approach to travel to something truly bespoke. If Millennials paved the way with their focus on cultural immersion, then Gen Z are blazing a trail for tailor made experiences that align with their values.
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 localized experiences, Gen Z are just as inspired by ‘on-screen’ destinations, social media and a keen social and environmental awareness.
So, keep your popular culture knowledge sharp and environmentally friendly recommendations close to hand if you want to appeal to this forward-looking generation of travelers.
Plus, having an expansive portfolio of global travel products, including around 40,000 sustainable accommodation options, thousands of experiences, tours, tickets, transfers and car rentals doesn't hurt. Discover all this with our Bedsonline Booking Engine!
It’s certainly not – or shouldn’t be – a surprise by now that sustainable travel is the name of the game for the younger generations. Both Millennial and Gen Z travelers are leading the charge for sustainable travel options, with Gen Z much more likely to choose travel products and accommodation options that hold sustainability at their centre.
So if you’re looking to attract and retain these audiences, then your best bet is to – authentically:
Conscious travel is top of the demands list for many younger travelers, from sustainable travel practices and experiences that benefit local communities, to voluntourism and regenerative travel, alongside their undercurrent of desire for unique experiences.
Like we've mentioned before, our global portfolio also includes around 40,000 hotels which have achieved their sustainable certification from approved governing bodies around the world, such as the Hotel Sustainability Basics certificate by the World Travel and Tourism Council (WTTC) and the GSTC Industry Criteria offered by the Global Sustainable Tourism Council (GSTC).
Not to mention, a fast-growing collection of 5,500 single-use plastic-free hotels, all of whom are tackling the impact of single-use plastic pollution.
This means that, when you work with Bedsonline, you're already at an advantage when it comes to attracting the travelers of the future with eco-conscious accommodation options.
Increasing use of travel tech and improvements made to travel mobility for much of the world’s demographics has opened new avenues of travel for the younger generations. This in turn is changing the expectations of younger travelers as travel becomes ‘easier’ and ‘cheaper’ for many demographics around the world – particularly in countries with more interconnected and developed travel infrastructures.
Given this, Gen A is expected to be the most mobile traveler yet.
Not only does this impact where Gen A will go in the future, but the current influence of Gen A on modern familial travel. In fact, around 43% of families with Gen A children are influenced or inspired by them when booking a trip.
Discover more insights on how to sell family travel here!
While many of the decisions are naturally still made by the older generations, given their ability to book the trips, it still remains true that Gen A is proactively sharing travel-related content, seen on social media, to their family members and influencing those travel-decisions indirectly.
Harness this knowledge by offering experience-led recommendations to families with Gen A children!
Think destinations that offer virtual reality (VR) and augmented reality (AR) experiences, hybrid virtual and physical locations such as TeamLabs (which have specific TeamLabs FuturePark locations just for children), virtual gaming experiences complete with haptic-sensors and headsets available all around the world, to the world's first Jurassic Park VR experience in Miami Seaquarium. Plus, the ever-increasing incorporation of AR into real-life destinations and tours brings a whole new level of interaction and enjoyment for inter-generational trips!
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.
So, there you have it! While this is by no means an exhaustive list or overview of the impact of younger generations on travel, travel trends, and even wider traveler behavior, it's certainly food for thought when you're considering how to attract, appeal and retain these all important travelers of the future.
