Darryl is the founder and CEO of LFG, which is like the "Spotify for travel" and is an Antler program grad.
Previously he held positions in Grab and was Chief of Staff at Quqo.
Guest Author: Darryl Han
A new era has dawned. The era of Gen Z consumerism.
And the travel industry is reaping benefits of young consumers today.
For younger generations, travel isn’t just an occasional indulgence – it’s a top priority.
According to a recent McKinsey survey, 66% of travelers are now more interested in travel than they were before the COVID-19 pandemic. And this surge in interest is particularly strong among Gen Zs and Millennials.
And they’re not just talking about it – they’re making it happen. In fact they are planning more trips in 2024 than they did in 2023.
In 2023, they took an average of nearly five trips each, outpacing Gen Xs and Baby Boomers, who took fewer than four.
Travel for Gen Zs and Millennials is more than just ticking off destinations on a map; it’s about creating memorable experiences, discovering new cultures, and sharing these moments on social media.
This shift in travel preferences and behaviors is becoming more and more prevelant.
Experience Over Expenses
For Gen Z and Millennial travelers, it’s all about the experience.
A McKinsey’s survey, revealed that 33% of consumers plan to splurge on travel, making it the third most popular splurge category (behind eating at home and eating out). And of these consumers, younger generations are more willing to devote significant spend towards travel experiences, compared to other generations.
These younger generations prioritize immersive experiences, cultural encounters, and Instagram-worthy moments over the cost of their trips. They’re willing to splurge over $2,000 to make their travel dreams a reality, and create meaningful adventures.
And for those who splurge on travel, they’re determined to cut costs in other areas before trimming their spending on travel experiences. They’re willing to save on flights and local transportation, but when it comes to unique and memorable experiences, they’re all in.
Social Media Influence
The influence of social media creators is massive. Around 80% of travel bookings are now influenced by their recommendations.
Travel content creators make destinations come alive with authentic, personal stories that feel more relatable than traditional ads.
They highlight not just the must-see sights but also the little-known gems, making followers feel like they’re getting tips from a local friend; and in turn, driving FOMO (fear of missing out) of course.
Take TikTok for example. TikTok has completely changed the game for travel inspiration. With a whopping over 443 million views on #travel content, TikTok is one of the key channels where young travelers turn for fresh ideas and hidden gems.
The power of TikTok lies in its ability to deliver bite-sized, visually compelling content that captures the imagination and sparks wanderlust in seconds. It is the ultimate match for content consumption habits of the younger generation.
Intentional Travel Planners
Contrary to the stereotype of spontaneous youth, Gen Z and Millennial travelers are becoming more intentional planners, with 65% of them organizing their trips 2-6 months in advance.
This trend highlights their independent travel habits, centered around their desire for control, flexibility, and maximizing their travel experiences.
These young travelers love the pre-trip planning process. It’s part of the excitement, the buildup to the adventure. This intentional approach ensures they get the most out of their travel experiences, balancing spontaneity with a well-thought-out plan.
What next…
Gen Z and Millennials are redefining travel. They’re not just tourists; they’re explorers, planners, and storytellers, shaping the future of travel with their passion for meaningful, well-crafted adventures.
The travel industry must adapt to these shifting preferences, catering to the experiential demands of these next-gen travelers. By understanding their priorities and behaviors, travel businesses can curate tailored experiences, leveraging social media influencers and intentional planning to stay ahead in the game.
