Having come of age during the pandemic, and fueled by the allure of far-off destinations showcased on social media, members of Gen Z are spending far more on travel than any previous generation. This generation, born between 1997 and 2012, currently makes up 21% of the U.S. population. As they continue to come of age, their spending power is predicted to increase by 48% by the end of this decade, according to Afterpay research cited in a new report from the travel app Hopper.
Capturing the demands of this demographic will be crucial for success in the travel industry. The report highlights that Gen Z preferences are often complex and contradictory. Here are some of the key findings:
More travel doesn’t mean less worry
Gen Zers are traveling more than previous generations, but they’re also more concerned about the environmental impact of travel: 63% of Gen Z surveyed by Hopper have made travel purchases in the past 12 months, a percentage that will increase in the coming years as the generation acquires more purchasing power.
At the same time, 67% of Gen Z surveyed by the Pew Research Center reported expressing a need for climate action in the past few weeks, compared to 61% of millennials, 53% of Gen X, and 50% of baby boomers. Ecotourism is thus expected to soar in popularity in the coming few years.
Shaped by social media but also skeptical of it
Despite increasingly relying on social media for inspiration, Gen Z values authentic experiences that are off the beaten path: The average Gen Zer spends 9 hours and 36 minutes online per day, much of which is spent on social media.
Video-based social media has been particularly influential in shaping travel decisions, with a Cisco study cited by Hopper finding that video internet traffic has increased 15 times in the past five years, accounting for 82% of all internet traffic. Twenty-five percent of Gen Z report using social media for travel plans.
Yet Gen Z is also skeptical about the artifice that social media brings, choosing “destination dupes” rather than conventional tourist attractions. Hopper reports Porto, Portugal; Málaga, Spain; and Ketchikan, Alaska, as popular destinations among Gen Z travelers.
The end of brand loyalty
Gen Z travelers are mostly brand neutral: 59% of Gen Z Hopper users are not part of any travel loyalty programs, as compared to 54% of millennials, 47% of Gen X, and 46% of baby boomers.
As a generation that tends to value authentic experiences while also being wary of the negative externalities of large travel conglomerates, Gen Z tends to choose hotels and airlines for price and uniqueness of experience rather than for the brand. Hence, travel companies may need to focus on seamlessly offering an array of alternative options on their platforms.
This story was updated with an additional citation.