Gen Z is the next largest generation of travelers and is said to be one of the most valuable in the industry (Hopper). With their spending power due to increase by 48% by the end of this decade, capturing this market should be a priority for travel companies.
Gen Z spends on average 10.6 hours online a day, they are the most digitally savvy generation. TikTok is driving travel inspiration with 40% of Gen Z booking a vacation as a direct result of TikTok content, and 77% of users inspired to visit a destination or purchase a travel-related product, after discovering it on TikTok. They value spending on travel and experiences over traditional goods and services, with 61% prioritizing travel plans that include wellness experiences. Travel companies should make it a priority to tailor their marketing strategies to this generation!
65% of Gen Z rank travel and seeing the world as the most important way to spend their money.
More than 80% of American Gen Z travelers look for unique experiences when booking a vacation.
70% use TikTok as a trip-planning tool.
Gen Z is more likely to vacation somewhere unorthodox.
Self-care is a significant focus for Gen Z travelers, with 61% prioritizing travel plans that include wellness experiences.
56% of Gen Zers say they would pay more to book with a travel provider that displays environmental responsibility, compared to 48% of Millennials.
51% trust travel itineraries generated by an AI.
21% have used chatbots to build an itinerary.
The #1 reason Gen Z travel is to see sights and experience different cultures.
In the US, Gen Z's spending power is predicted to increase by 48% by the end of this decade.
52% of Gen Z adults are considered frequent travelers, taking at least three leisure trips over the previous year.
31% of Gen Z prioritize social media responses over authentic experiences.
43% actively seeking experiences that provide engaging content for their social media platforms.
43% of Gen Z taking a summer vacation this year said they would visit the beach.
32% said they would take a staycation.
Contiki listed Thailand as one of the most popular destinations for Gen Z travelers in 2023.
Gen Z travelers checked prices to destinations in Asia 50% more often in 2023 than they did pre-COVID.
31% of Gen Z adults have taken an overnight trip outside of their local area for leisure in 2023.
Gen Z on average travel for more than 29 days a year.
46% of Gen Z adults were the most likely to visit an international destination in the next 12 months, followed closely by Millennials (43%).
15% of Gen Z travelers said their next leisure trip will last longer than two weeks.
42% of Gen Z travel to spend time with family or friends.
60% of Gen Z planned to travel by air in 2023.
73% of Gen Z are “vacation deprived”, which means they work too much and have too little time off.
30% of Gen Z were more excited about travel in 2023 than they were before the pandemic.
70% of Gen Z travelers actively look for travel experiences off the beaten path that their family and friends have not heard of.
Gen Zers are traveling more than previous generations, with the pandemic playing a role and motivating their need for future travel. With the changes in flexible working also a result of the pandemic, more than 50% of Gen Z say remote working has changed the way they plan their vacations. Gen Z are looking for meaningful experiences and are more motivated by sustainable choices. They want off the beaten path experiences, and Thailand was rated as one of the most popular destinations among Gen Z in 2023.
Sources: Travel & Leisure, Bankrate, Travel Agent Central, Cythe World, Pumpitup
13% of Gen Z indicated they will no longer travel by plane due to emissions.
21% of Gen Z say they know someone who will not travel by air.
23% of Gen Z say they would be willing to pay an optional carbon offset fee when booking air travel.
51% of global travelers of all ages would choose to reduce their carbon footprint by limiting the distance traveled.
50% say they will prioritize booking through a platform with strong green credentials.
Booking.com research reveals that 37% of Gen Z is the generation most likely to volunteer when traveling.
44% of Gen Z stated that they believe it is important to them to give back to the local community when traveling.
49% of Gen Z believe it makes a trip more authentic as they get to meet local people and feel like they’ve made a difference.
52% of Gen Z travelers say they plan to visit lesser-known destinations over popular ones if it has less of an impact on the environment.
63% of Gen Z would consider not visiting a destination if they knew it was threatened to be damaged due to over-tourism.
Six in ten (63%) look to use more environmentally friendly means of transport once they have arrived at their destination.
56% of Gen Z travelers want to stay in a green/eco-friendly accommodation.
56% of Gen Zs will pay more for travel companies with environmentally friendly philosophies and practices.
Gen Z are traveling more than previous generations, but they are more concerned about the impact on the environment. They value sustainability and according to Booking.com, this demographic is more likely to choose eco-friendly and sustainable travel options over any other generation.
Along with preferring to book through a platform with strong green credentials, 63% of Gen Z travelers state they would opt for using environmentally friendly means of transportation, such as hybrid / electric rental cars, public transport, walking or biking, once they are at their destination. They also value experiences, and volunteering as it allows them to give something back to the destination they’ve travelled to and immerse themselves in the local culture.
Sources: Fast Company, CNBC, Booking.com, Forbes, Timeout, Travelage West
93% of Gen Z agreed that travel experiences can positively impact their mental health.
89% reported that returning from a vacation leaves them feeling less anxious and more positive.
73% of respondents said they planned holidays and leisure trips to improve their mental, physical and emotional health.
Gen Z travelers are also interested in “dry vacations”—alcohol-free travel—rather than the booze-filled vacations favored by previous generations.
Gen Z drinks 20% less alcohol than millennials and prefers sightseeing and cultural experiences to clubbing and heavy drinking while on vacation.
With 9 out of 10 Gen Z individuals diagnosed with anxiety, and 8 out of 10 having depression, traveling to improve mental health is important for Gen Z: An overwhelming majority (93%) of respondents agree that travel experiences can positively impact emotional well-being. They enjoy off the beaten path destinations, and like to incorporate wellness activities into their trip, this could be yoga classes, cooking sessions or mindfulness retreats. With the stresses of daily life, travel gives Gen Z the chance to unwind and improve their wellbeing.
Sources: National Library of Medicine, Premier Inn
68% of Gen Z are interested in experiencing a new culture, while only 21% are in search of nightlife and clubbing.
82% said a country’s approach to issues like LGBTQ rights would affect their decision to visit, according to StudentUniverse.
Sightseeing is the top reason to travel for 70% of Gen Zers, while experiencing a new local culture is important for 68% and trying new food 59%.
58% want to explore nature, and 37% are hoping to meet new people.
49% of Gen Z plan getaways to relax.
Culinary experiences are important to Gen Z, with 47% saying they have planned an entire trip around visiting a specific restaurant.
26% of Gen Zers want to connect with their cultural heritage when they travel.
56% of Gen Zers plan to travel to a music festival this year.
Gen Z put a lot of emphasis on sightseeing and immersing themselves in a new culture. They place a lot less importance than other generations on exploring the nightlife in a destination; in recent years there has been a decline in the raucous 18-30s travel, which focus was on partying.
Emma Brennan of the Association of British Travel Agents, says "Young people are increasingly looking for specialist trips," she says, "that could be a festival, something more adventurous, or a city break."
On the rise of social media, Ms Brennan adds: "People are more interested in the design of where they live and work and that's reflected in their holiday choices." Social media, specifically Instagram & TikTok are influencing where Gen Z is looking to travel, and visit places that are Instagrammable or offer a unique experience.
TikTok is driving travel, with 60% of Gen Z using the platform as their primary source of inspiration.
40% report they’ve booked a vacation as a direct result of TikTok content.
88% of Gen Z surveyed are following at least one travel influencer on TikTok.
25% of Gen Z spend five hours or more per day on TikTok.
Over half Gen Z women surveyed said they are interested in solo travel, with 83% of them inspired by female content creators who travel solo.
Gen Zers, in particular, scour Instagram (49%) and TikTok (44%) for inspiration.
TikTok is Gen Z’s favorite social media platform ranked as the No. 1 site for video-centric travel inspiration.
53% of Gen Z travelers use social media platforms for leisure travel recommendations.
70% of Gen Zers have been motivated to visit a destination after seeing it featured in a TV show, news source, or movie.
70% use TikTok as a trip-planning tool.
46% of Gen Z prefer to share their trips with their social media followers versus keeping them private for friends and family.
51% report they trust travel itineraries generated by an AI.
21% reporting they’ve used chatbots to build an itinerary.
Gen Z spends an average of 10.6 hours per day online, making them the most digitally connected generation and it’s evident that social media still has a big impact on travel decisions. TikTok is rising in importance for Gen Z and an American survey by Adobe found that over two in five TikTok users treat the app as a search engine and of those, 20% have searched for travel destinations or experiences. This number is higher when split into age groups. 64% of Gen Z and 49% of millennials say they have used the app as a search engine.
71% of European TikTok users intentionally search for travel content on TikTok, and 77% of users are inspired to visit a destination, or even purchase a travel-related product, after discovering it on TikTok (Stuart Flint, Head of Global Business Solutions for Europe at TikTok.)
He said that people are drawn to TikTok creators’ authenticity because they will show both the good and bad sides of a travel experience.
Sources: Euronews, Timeout, USA Today, Tripit, TravelPerk
Gen Z is more likely to book accommodations through online travel agencies (51%).
Around 80% of Gen Z travelers use their smartphones to research and book travel.
More than 50% of Gen Z said advertisements with deals or beautiful imagery can influence their decision-making process.
62% of adult Gen Zs said they use technology to help them save on travel, according to Booking.com.
Gen Z travelers are brand neutral: 59% of Gen Z surveyed are not part of any travel loyalty programs, vs. 54% of millennials, 47% of Gen X, and 46% of baby boomers.
55% of Gen Z say price is the most important consideration when choosing a travel brand.
Gen Z are happy to book last minute, with 35% confirming plans less than one month before traveling, compared with just 24% of Baby boomers.
Safety and security are more important than price to Gen Z when booking accommodation.
Gen Zers prefer accommodation providers that offer unique experiences and have positive reviews over quality.
13% of Gen Z favor vacation rentals compared to just 5% of Millennials.
When asked to rank hotel amenities, Gen Z ranked, fast & reliable Wi-Fi access as number 1.
Gen Z prefer direct online channels to book travel, with Gen Z favoring Online Travel Agencies (OTAs). They are digital natives and rely heavily on social media to research their travel plans. Travel brands should utilize channels such as TikTok to appeal to this market, and it’s recommended that businesses align their marketing strategies with trends on social platforms like TikTok. In addition to this Gen Z is motivated by travel influencers, so teaming up creators will help to increase the visibility of travel brands.
Gen Z value authenticity and transparency, travel businesses should focus on creating genuine content to reflect their brand values.
Sources: Skift, Mighty Roar, Fast Company, Forbes, FoxxComs
Gen Z is estimated to have a global spending power of $143 billion and this accounts for around 40% of all consumers.
32% of Gen Z will spend between $1,000 and $2,000 per trip.
33.6% will spend $500 to $1,000
23.4% will spend $500 or less.
Gen Z is spending an average of $11,766 on trips, surpassing all other generations for the first time in four years.
63% of Gen Z surveyed by Hopper have made travel purchases in the past 12 months.
However, 76% of Gen Z surveyed named financial costs as their biggest concern when booking travel.
46% said they expect to get financial help from their parents.
21% of Gen Z plan to use credit card rewards to pay for some travel in the future.
Gen Zs’ average spending per purchase decreased for fashion (7%), tech (6%) and food (12%), while their travel purchases surged 60%.
24% of Gen Z travelers planned to spend less on trips this year compared to last year due to economic concerns.
Gen Z travelers checked the price of their domestic trip an average of 16 times before booking last year, a 33% increase vs to 2019.
47% of Gen Z who aren’t taking a summer vacation this year said it is because they can’t afford it.
61% of Gen Zers who took three or more leisure trips over the previous 12 months come from households with earnings below $50,000 annually.
29% of summer travelers report choosing less expensive accommodations.
28% are engaging in cheaper activities
26% are driving instead of flying to help manage the increasing prices.
21% of Gen Z travelers say they will spend more on leisure travel in 2023 than 2022.
8% of Gen Z travelers are willing to go into debt — or add to their existing debt — for leisure travel this year.
87% of Gen Z travelers are more willing to pay extra for travel protections (such as travel insurance or refundable booking options) compared to other generations.
Gen Z is spending almost half of their disposable income on travel. With travel being a priority among this generation, but with the rising cost of living Gen Z are looking for cheaper alternatives for means of travel and accommodation. 21% of Gen Z are planning to use credit card rewards to pay for travel and 46% are willing to borrow money from parents. Where they are cashing in their credit card reward points, they are reluctant to go into too much debt and look for other cost-cutting solutions.
Average spending per purchase decreased for fashion (7%), tech (6%) and food (12%), while their travel purchases surged (60%). It suggests Gen Z is making sacrifices on material purchases in favour of travel experiences.
Sources: Bankrate, Allied Global Marketing, Forbes, Fast Company, CNBC, Hopper, Thrillest
More than 95% of Gen Zers own a smartphone, 83% own a laptop, and 78% own an internet-connected gaming console.
Gen Zers had their own phones by the time they were 12.
The average Gen Z spends 3.4 hours per day streaming videos.
Only 39% of Gen Z internet users trust a brand to keep their data safe.
48% of Gen Z value brands that don’t classify their products as male or female.
Nearly 40% of Gen Zers put a large emphasis on work-life balance when choosing where to work.
Around 46% of Gen Zers over the age of 18 have a side hustle.
36% of Gen Zs aged 18-22 report that they never drink alcohol.
Gen Zs who reported buying snack foods monthly decreased from 54% to 50%.
Gen Zs are spending more on beauty and skincare products, reflecting their more wholistic view of “self-care”.
They’re 11% more likely than average to be purchasing skincare products.
The statistics speak for themselves, Gen Z is the most digitally connected generation, and their habits reflect this. They spend hours online but suffer with loneliness and more anxiety and depression than any other generation. They look to travel to boost their mental health and are much more focused on their overall health and wellbeing than other generations. They value experiences over material possessions and are willing to opt for cheaper alternatives when traveling if it means they can get away. With the cost of living increasing, 46% of Gen Z focus on a side hustle to pay bills and prefer to have an overall work-life balance.
Brands should ensure they’re capitalising on TikTok to reach this market, jumping on TikTok trends and working with influencers to showcase their offering.
Sources: Exploding Topics, Martech Series