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How Gen Z Is Changing the Travel Industry — and Where They Plan to Go in 2024

Gen Z’s growing share in the travel market continues to impact the way it operates, in many ways for the better.

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Maybe it is shared climate anxiety or distrust in corporate America, but Gen Z is not waiting to see the world. They’re taking it by storm right now, and they are traveling in a way that is far different from other generations. 

In fact, more than half of Gen Z adults are already considered frequent travelers. “Millennials paved the way and created this sort of idea that travel is a right, not a privilege," says travel analyst Lindsey Roeschke , adding that Gen Z has built upon this mindset, continuing to prioritize travel above more traditional paths. While other generations are more likely to wait until they have a certain level of income before spending on trips, 61% of Gen Z travelers earn less than $50,000 annually, according to a study by Bankrate .

Alina Rudya/Bell Collective/Getty Images

Gen Z is famously skeptical, and many are hesitant to trust the long-term promises that come with traditional careers. “Jobs and job security are not promised to any of us,” says travel influencer Raimee Iacofono . With travel more accessible than ever before, many Gen-Zers prefer to start their journeys as soon as they can. 

Gen Z travelers have different priorities than older generations. 

Counter/Getty Images

While cost has traditionally steered decisions for first-time travelers, many of today's young explorers are booking based on their values. Gen Z is more likely to research how companies treat employees as well as their approach to sustainability, and these considerations impact their purchasing decisions. 

“You can’t earn brownie points with Gen Z,” says Roeschke. When it comes to the companies they support, Gen Z travelers view ethical practices as the bare minimum. 

On Southeast Asia travel, travel influencer Kayli King says: “People are becoming more conscious and you would have conversations about the exploitation of animals.” Travelers speak more openly about how they can support more ethical businesses, and Gen Z travelers are also more likely to point out which businesses still need to earn their approval. 

Beyond this, this generation is more likely to prioritize adventure, mental health benefits, and cultural experiences. This attitude makes them more likely to visit places they have never been before and travel for longer periods of time. Part of this is age-specific rather than generation-specific, but it solidifies travel as an outlet for these young adults to connect with nature, different cultures, and themselves. 

Where is Gen Z traveling next? 

According to travel app Hopper , Gen Z and Millennial travelers checked prices to destinations in Asia 50% more often in 2023 than they did pre-COVID. Kiwi Report and tour company Contiki also listed Thailand as one of the most popular destinations for Gen Z travelers in 2023. Thailand is a typical starting point for travelers embarking on a Southeast Asia tour, and it has been blowing up on social media alongside Vietnam, the Philippines, and other Southeast Asian destinations. 

Southeast Asia ticks all the typical Gen Z boxes. First of all, it is far less expensive than other popular destinations. As Kayli says, “The caliber of nature and landscape and the different things you can see for the price is honestly unbeatable.” 

There are also several notable, “Instagrammable” rites of passage, including the Ha Giang Loop, Koh Phangan’s full moon party, and the Komodo Tour. 

While Southeast Asia’s value and beauty have famously made it popular for young travelers and backpackers, it is also the culture shock that appeals to Gen Z. “Southeast Asia is a place that alters your brain chemistry," Raimee says.

Gen Z’s growing share in the travel market continues to impact the way it operates, in many ways for the better. It forces us to recognize our privilege as travelers, reevaluate the institutions we support, and enjoy travel for travel’s sake.

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How millennials and Gen Z are transforming travel and how brands can cater to them

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By Audrey Kemp, LA Reporter

July 30, 2024 | 7 min read

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The tourism industry is undergoing a profound change, driven by millennials and Gen Z and their penchant for ‘passion travel’ and ‘destination dupes.’ For our Travel & Tourism Focus , we dive into how brands should adapt to this new wave of travelers.

Young adults are reimagining travel to align with their personal passions. / Credit: Adobe Stock (created with AI)

Forget the old-school roadmap for vacations. While past generations focused on the destination, millennials and Gen Z are paving their own journeys, designing bespoke experiences that complement their interests and their pocketbooks.

Enter ‘passion travel,’ an emerging trend among Gen Z and millennials revealed by a recent survey from digital travel publication Thrillist. The study, which surveyed 2,000 people, revealed that 77% of these travelers choose experiences that reflect their interests – whether that’s food festivals, music events or eco-adventures.

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Even more telling, 72% of young adults don’t see travel as a getaway but a means of self-expression and a way to engage with their passions and discover new ones.

“The findings from [our] recent study show that young travelers are increasingly selecting destinations based on their specific interests, demonstrating a move towards more personalized and meaningful travel experiences,” explains Lindsay Schrupp, editor-in-chief at Thrillist. “Their tendency to plan activities before even booking plane tickets signals a new way of thinking about travel that has the potential to reshape the industry.”

If this trend is set to revolutionize the travel industry, how can brands stay ahead of the curve? The Drum dives into various strategies to help them keep up.

Financial priorities & hyper-personalized trips

Despite juggling student loans, soaring rents and other everyday expenses, travel remains a key financial commitment for 89% of Gen Z and 87% of millennials, per Thrillist. This is driven by the belief that experiences are more valuable than material possessions.

To appeal to these financially savvy consumers, marketers are advised to develop low-cost, high-quality options. ”Affordability should be emphasized by offering flexible payment plans and using loyalty schemes to attract this budget conscious group of experience-seeking consumers,” says Erika Pacini, travel expert and head of marketing at adventure supply store Outdoorplay.

Flexibility in booking options, such as cancelation policies and customizable travel choices, is also key. This will “cater to the varying needs and budgets of Gen Z and millennials,” suggests Julie Brinkman, chief executive of Beyond, a revenue management platform for short-term rental owners.

Pacini, agreeing with Brinkman, adds: “By emphasizing such flexibilities in marketing campaigns, businesses may get peace of mind while encouraging bookings, especially during periods of [economic] uncertainty.”

One brand that excels in demonstrating adaptability is Booking.com. Already well-known in Europe, the travel brand has captured American attention with its star-studded Super Bowl ads. This year’s commercial featured Tina Fey, Glenn Close, Jane Krakowski and Jack McBrayer , with Fey playing up the versatility of the app by imagining “whoever she wants to be” on vacation.

Social media & the road less traveled by

Social media undeniably influences the travel habits of young adults. Platforms such as Instagram and TikTok are not just sources of inspiration but also drive the quest for shareable, picture-perfect experiences.

“You cannot underestimate the power of social media in driving travel trends,” explains Steve Defontes, president of Big Idea Advertising. “People cultivate their ‘tribe’ online, following friends and influencers that share their passions. Their social feeds ... [inspire] them to recreate and share these experiences.”

Defontes advises tourism brands to enhance their strategies by moving beyond standard resort ads and embracing richer storytelling. “Influencers and user-generated content continue to be key to helping people understand how they can experience the destination from a place of authenticity and credibility,” he says.

How to be a travel brand on social that Gen Z actually likes

With that said, this generation is always hunting for hidden treasures, frequently turning to websites such as Atlas Obscura and Secret Media Network to discover off-the-beaten-path gems.

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“While [these age groups] rely on social media to find new travel destinations and experiences, they’re very aware of over-tourism and are skeptical of travel hotspots ,” notes Kevin Gonsalves, director of strategy at Dentsu’s social media agency, ICUC.social.

“To get around this, they’ve become increasingly interested in finding ‘destination dupes,’ or vacation getaways that are similar to a trending hotspot but have fewer crowds.”

To embrace this trend, Beyond’s Brinkman argues that travel brands must focus on showcasing unique aspects of destinations, such as “local culture, hidden gems and niche activities.”

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Understanding gen z travel needs and demands.

• March 27, 2024
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Introducing Gen Z

In today’s world, the population is categorised into generations, with Gen Z currently being the second-youngest. They’re born between 1997 and 2012 and the world’s first digital natives. This means they’re the first generation to grow up with the internet as part of their daily life.

Their upbringing influences their behaviour significantly. Gen Z has grown up amidst pandemic lockdowns, intensified social media usage, and increased awareness of climate change. They maintain a strong online presence and prioritise mental health and mindfulness.

Even though the overall appeal of travel is timeless, every generation possesses specific preferences and interests. Gen Zers are an interesting generation as they’re just beginning to travel on their own terms. They’re redefining what it means to travel so it’s time for a new approach!

70% of Gen Z travelers report seeking out experiences that their family and friends have likely not thought of – Forbes

6 trends and characteristics of Gen Z

Understanding Gen Z is key for the future of travel. Because of this, I’ve collected 6 main characteristics and travel trends to help you prepare and respond effectively.

• TikTok Travel trends
• Culture comes first
• Train travel
• Always connected
• Sustainable adventures

1. TikTok Travel trends

Gen Z relies heavily on social media for travel inspiration. Most of their travel inspiration comes from TikTok and Instagram , created by both influencers and travel businesses. Some Gen Zers are even using AI to receive personalised travel recommendations and combined with TikTok inspiration, they’re uncovering the hidden gems of popular destinations.

What does this mean and how to respond?

Gen Zers are looking for inspiration about destinations to travel to, where to stay, where to eat, what to do and they’re also sensitive for special offers. When you’re targeting Gen Zers, being active on TikTok and Instagram is essential. Create engaging videos showcasing destination you offer, sample itineraries, and special offers.

2. Culture comes first

Unlike earlier generations who’d travel specifically to party, for example join Full Moon parties, Gen Zers prioritise cultural experiences over party scenes. They’re avoiding alcohol to avoid unsafe situations and also feel they can spend their money better elsewhere. Gen Zers are looking for destinations that offer cultural immersion, local experiences and opportunities for self-discovery.

They’re looking for destinations where they can explore local culture, connect with local people and make memories. When targeting Gen Zers, make sure to take this into account in your product development and communication . Don’t focus on local party scenes, but more on the local cultural experiences, self-discovery and mindfulness possibilities.

3. Going solo

More and more Gen Zers are looking to travel on their own, especially women. According to a study of StudentUniverse , 58% of respondents is interested in travelling abroad by themselves. They’re looking for self-discovery, boosting self-confidence, getting out of their comfortzone, and enjoying a sense of freedom. Europe and South-East Asia are popular destinations at the moment.

They’re looking for destinations and experiences that can be explored safely as a solo (female) traveller. When targeting Gen Zers, make sure to highlight destinations that are safe to travel solo, and address this openly. Add self-discovery and ‘getting a sense of freedom’ to your online communication to attract them organically.

Nearly half (48 percent) of Gen Z respondents plan their travel within one month of departure – Priceline Generation Travel Index

4. Train travel

Gen Zers are drawn to alternative modes of transporation, especially trains, when they’re available. It’s a combination of caring about a smaller carbon footprint and the close connection with the country(side). They’re looking for slow-travel, getting to know a country better and having experiences that are not the same as anyone else.

They’re looking for destinations that can be reached by train, even though this might take them longer. When targeting Gen Zers, make sure to offer long-distance train travel and offer alternative modes of transport in your trips. Make sure to highlight the benefits of slow travel.

5. Always connected

Gen Zers spend an average 10,5 hours per day online. This makes them the most digitally connected generation. They’re relying on the internet and specific apps to plan their daily life and their trips. Gen Zers expect convenience, efficiency and automations in their interactions and trip planning.

They’re looking at digital tools and information to plan their trip. Make sure your website is mobile-friendly and maintain active on TikTok and Instagram. Implement automated or very fast customer service process to cater questions and bookings of Gen Zers.

56% of Gen Z travellers will pay more for companies and experiences that “adopt environmentally friendly philosophies and practices” – Virtuoso

6. Sustainable adventures

Gen Z cares about the environment and local population. They looking for travel businesses and experiences that preserve natural and cultural heritage. They’re not only looking for a smaller carbon footprint, but also to contribute and leave a positive impact (for example through volunteering).

They’re looking for travel businesses that care about people and the planet too, so make sure you are communicating this accordingly. Highlighting sustainability is a great strategy to attract younger clients who are looking to reduce their footprint when they travel. When it comes to volunteering, make sure to only engage in ethical volunteering, never involving wildlife or children.

Understanding Gen Z is key for the future of travel

Gen Zers are a very interesting generation and they truly are redefining travel. Attracting them to book with you includes some (digital) preparation and adaptation. They’re focused on responsible travel but combine this with social media, solo travel, self-discovery and cultural experiences.

To remain competitive in today’s market, it’s important you prepare and adapt to Gen Z preferences and travel behaviour. It’s about offering them amazing experiences, respecting their values and embracing their digital focus. Understanding their needs and demands is key for the future of travel!

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8 good tourism trends for 2024

Meeting the High Expectations of the Gen Z Traveler: New Report

Mary Ann Ha , Skift

June 21st, 2022 at 10:00 AM EDT

When predicting current and future trends, everyone in the travel industry has their eyes on Gen Z travelers, and, boy, are they demanding.

Mary Ann Ha

While the millennial traveler is the most reliable, stable target audience in the travel industry today, it won’t be long before everyone turns to the Gen Z traveler, who will lead the next generation of what’s new in the travel space. In fact, many are already turning to these younger generations, in hopes to prepare for the expectations to come .

Gen Z travelers across the globe have a sense of financial confidence for travel that is frozen in time, while their ethical and moral expectations for travel experiences have continued to rise, and their digital connectivity has intensified the desire to be a trendsetter, according to a new report by YouGov. 

“The way we start to travel is the way we form different experiences,” said Eva Stewart, YouGov’s global sector head of travel and tourism. “And the pandemic has haunted that experience. They’re not willing to compromise on what they got used to when they travel with their parents, perhaps the luxurious experiences staying at nicer places, but the point is that it’s very difficult to trade down. Gen Zs will try to do everything they can to kind of retain a similar level of travel experience as they are used to.”

The Gen Z sector presents an interesting subset of travelers. Those who come from mid-to-high income backgrounds, whose earliest travel experiences were with their families, had first impressions of traveling within experiential and financial parameters that were a lot wider than the reality of traveling as a young adult, with friends, partners, or alone. Their most formative years of travel were then influenced by a factor that none of the older sectors had to experience — a global lockdown. Now, those Gen Z travelers remain somewhat stuck in their past, in expectations that were set in their younger years, without having yet experienced the reality of what independent travel will look like. 

Therefore, whether it’s due to pent-up travel desire or high expectations left untouched, Gen Zs are most eager to spend more on travel compared to those over 25, leading the way amongst age sectors in spending more on travel this year. Overall, 21 percent of global adults intend to spend more on travel products and services in the next 12 months, while the Gen Z response rate was recorded at 26 percent with millennials following closely behind at 25 percent.

“Because they got accustomed to traveling with their families , it’s unsurprising that higher-income-Gen Z’s recent experiences have been with the luxury brands,” said Stewart. “However, the majority will still be looking at that mid-tier or value-for-money types of accomodations — it’s not to say that the entire generation is price sensitive, but four-out-of-ten will still find it prohibitive to manage the cost of travel versus their desire.”

While only some Gen Zs will attempt to retain what they’ve already experienced financially, most are asking for more in other areas. Nearly half of Gen Zs seek authentic experiences that are representative of local culture compared to their older counterparts, and despite being committed to budgeting options, they are still willing to financially support the local communities within their budgets. In fact, just over a third of global Gen Zs said they prioritize spending money on local businesses and produce when traveling, which is equally on par with global over-25-year-olds, who have more financial freedom. 

This idea of giving back translates to choice of activity as well. Gen Zs are also more likely to be interested in traveling with a purpose, such as volunteering and eco-tourism, which is again, fueled by the desire to do something meaningful and give back to the community. YouGov’s Global Travel Profiles showed that Gen Z travelers in particular have a passion for understanding more about other cultures and building “real life experiences” during their travels, such as connecting with the local heritage and people. They also have higher expectations for unique adventurous experiences such as remote destinations away from crowds or mental and physical challenges in unfamiliar places.

In addition to experiences that give back, Gen Z travelers, who grew up with heightened awareness of climate change and global crises, are also looking for newer experiences that are in tune with their environment, like eco-friendly accommodation options. Thirty-eight percent of Gen Zs across the world would consider staying in a green accommodation on their next holiday, compared to the 33 percent response rate of those over 25. In addition to accommodation options, over a third of Gen Zs are also open to search for sustainable travel offers, which is 6 percentage points above the over 25 cohort.

“The biggest difference is that younger generations are also willing to take action on it,” adds Stewart. “Concern levels vary amongst generations but Gen Zs actually want to do something. They are open to potentially paying a little bit more for greener flights, and are actively looking to stay in eco-friendly accommodation more than any other generation. The more that they learn about how they can be responsible, they form new habits that become good habits and easy to follow.”

The desire amongst Gen Z travelers to seek new experiences also leads to a stronger curiosity of growing concepts in marketing , such as cryptocurrency or the metaverse. In fact, Gen Z’s tendency to be more experimental could position the metaverse as a potentially exciting place to explore “dream” travel experiences. 

“It’s unsurprising that a lot of different brands are already investing in advertising themselves in the online space,” said Stewart, “but the metaverse will be an interesting place to market destinations , as Gen Zs wouldn’t mind exploring places online that they’ve never visited. For example, younger people are very curious about certain hotel brands and would be able to see what the design and experience is like in the areas which were typically reserved for the paying guests. It’s an aspirational type of travel in its own sense.”

Awareness levels of the metaverse is currently highest among US and UK consumers, and this is particularly true for Gen Z consumers. As brands are increasingly investing in the metaverse, this will enable travelers to aspire, explore, and plan for a destination in detail.

This ties back to Gen Z’s generally low and skeptical attitude towards typical travel advertising. Nowadays, advertising requires an additional point of reassurance, and although recommendations from family and friends is the most powerful tool of influence to go to a destination, reviews found on social media are critical in Gen Z’s final decision-making.

“That is where social media is at now, perhaps less of an inspiration and more to verify that what’s been advertised to them is accurate and will match their expectations once they arrive,” said Stewart. “Many Gen Zs might find a hotel online or through an (online travel agency) OTA, but they will then go and verify whether people who stayed in the hotel enjoyed their experience, looking for that verification on Tiktok or Instagram, rather than a travel review website.” 

Because Gen Z is the first generation to have 24/7 access to the internet and digital connectivity since birth, they see the physical and digital worlds as a seamless continuum of experiences. Despite 63 percent of global Gen Zs worrying about how long they spend on social media, they still acknowledge their deeper connection and reliance on social media, which in turn affects their expectations around the desire for seamless connectivity at home and whilst traveling.

In addition, as a hyperconnected generation, global Gen Zs are more likely to be aware of new and emerging events. Therefore, sharing their new social experiences and adventures with their peers is a high priority, especially if they feel like they’ve discovered things first, as they often desire to feel like they are ahead of the curve in knowing trends.

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Tags: cryptocurrencies , destination marketing , financials , gen z , generation z , metaverse , social media , spending , Travel Advertising

Business travel becomes a top priority of Gen Z professionals in 2023: survey

In the midst of growing economic uncertainty, a recent survey conducted by American Express Canada highlights prevailing attitudes towards the return to business travel.

According to the survey, professionals born between the late 1990s and mid-2000s are more likely to take the lead in reviving business travel, as 64 per cent of them stated business travel will be a “top” or “high” priority for them in 2023.

This is a notably higher percentage compared to other generations, including millennials, with 39 per cent who feel the same way.

The survey also found that 58 per cent of Gen Z respondents said they plan to travel more for work in 2023 than they did in 2022. Since January 2022, they have traveled between one and five times for business reasons.

The survey findings show that 39 per cent of Gen Z professionals traveled domestically most often for business purposes while 30 per cent said they traveled internationally for the same purpose.

For over half (52 per cent) of Gen Z respondents “meeting with clients” was the primary reason for conducting business travel. Other top reasons include knowledge building, team building, and meeting potential partners.

When it comes to Millennials, 49 per cent of them said they want to travel for work this year, while the proportion is 42 per cent in Gen X and 29 per cent for Baby Boomers.

When respondents from different age groups were asked about the significance of travel for business purposes, 75 per cent of Gen Z professionals regarded it as “extremely” or “very” important.

According to the survey, cost of travel is the primary concern for Gen Z professionals (43 per cent) followed by airport delays (36 per cent), and environmental impact (29 per cent) and it may impact their business travel decisions.

The survey findings show the majority of Gen Z respondents (88 per cent) expressed their willingness to incorporate personal vacation or personal time off into their business travel plans—75 per cent of Millennials and 62 per cent of Gen X professionals share the same intention.

Methodology

This Maru Public Opinion survey conducted on behalf of North Strategic was undertaken by the sample and data collection experts at Maru/Blue among 404 randomly selected Canadian business travelers who are Maru Voice Canada, online panelists. They were surveyed from May 12th to 17th 2023. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±5 per cent, 19 times out of 20.

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Home / Business travel becomes a top priority of Gen Z professionals in 2023: survey

Business travel becomes a top priority of Gen Z professionals in 2023: survey

Source:   Business travel becomes a top priority of Gen Z professionals in 2023: survey , Hayatullah Amanat, CTV News, June 22nd, 2023

In the midst of growing economic uncertainty, a recent survey conducted by American Express Canada highlights prevailing attitudes towards the return to business travel.

According to the survey, professionals born between the late 1990s and mid-2000s are more likely to take the lead in reviving business travel, as 64 per cent of them stated business travel will be a “top” or “high” priority for them in 2023.

This is a notably higher percentage compared to other generations, including millennials, with 39 per cent who feel the same way.

The survey also found that 58 per cent of Gen Z respondents said they plan to travel more for work in 2023 than they did in 2022. Since January 2022, they have traveled between one and five times for business reasons.

The survey findings show that 39 per cent of Gen Z professionals traveled domestically most often for business purposes while 30 per cent said they traveled internationally for the same purpose.

For over half (52 per cent) of Gen Z respondents “meeting with clients” was the primary reason for conducting business travel. Other top reasons include knowledge building, team building, and meeting potential partners.

When it comes to Millennials, 49 per cent of them said they want to travel for work this year, while the proportion is 42 per cent in Gen X and 29 per cent for Baby Boomers.

When respondents from different age groups were asked about the significance of travel for business purposes, 75 per cent of Gen Z professionals regarded it as “extremely” or “very” important.

According to the survey, cost of travel is the primary concern for Gen Z professionals (43 per cent) followed by airport delays (36 per cent), and environmental impact (29 per cent) and it may impact their business travel decisions.

The survey findings show the majority of Gen Z respondents (88 per cent) expressed their willingness to incorporate personal vacation or personal time off into their business travel plans — 75 per cent of Millennials and 62 per cent of Gen X professionals share the same intention.

Methodology

This Maru Public Opinion survey conducted on behalf of North Strategic was undertaken by the sample and data collection experts at Maru/Blue among 404 randomly selected Canadian business travelers who are Maru Voice Canada, online panelists. They were surveyed from May 12th to 17th 2023. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±5 per cent, 19 times out of 20.

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Travel and Expense

Generational perspectives on business travel and what they mean for businesses.

Do generational differences exist in the workplace, and if so, do they matter?

OK, that is a question that is far too large and complex for us to address in a single blog post. However, the results of this year’s SAP Concur Global Business Travel Survey suggest that the four primary generations comprising today’s workforce—baby boomers, Gen X, millennials, and Gen Z—may have some differing expectations regarding business travel.

Although their perspectives vary, their needs can likely be addressed with relatively wide-sweeping solutions. Here's what our survey found, and how we recommend business leaders and travel managers use this information to guide their next steps:

All generations are enthusiastic about returning to business travel and generally want to travel more

Our survey found that nearly all respondents across generations (98%) are largely willing to travel for business over the next 12 months. However, Gen Z is less likely to be “very willing” at 43%, compared to 55% of millennials, 56% of Gen X, and 55% of baby boomers.

Of note, when it comes to current business travel schedules, baby boomers are most likely to be satisfied (49%) or would prefer to travel more (45%). Only 7% of them would prefer to travel less than they are.

How to use this: Most employees, regardless of generation, are open to travel, but the amount of travel that they expect may vary. Leaders should have honest conversations with business travelers about their willingness, desired schedule, and what might be holding them back.

Health and safety expectations differ between younger and older generations

Gen Z (94%) and millennials (94%) are more likely than Gen X (86%) and baby boomers (82%) to consider some flexible travel and booking options as essential for their company to allow to protect their health and safety when they travel for business.

Additionally, the top essential requirement for health and safety generally differs by generation:

• Gen Z expect to select their preferred mode of travel (37%) and book their travel directly on supplier websites (37%), such as airlines and hotels.
• Millennials expect to select their preferred accommodations (47%).
• Both Gen X and baby boomers expect to select their preferred mode of travel (46% and 44%, respectively).

How to use this: Employee expectations will vary. Travel managers can get ahead of this by tailoring travel policies with an eye toward overall flexibility, to best address the health and safety needs of most business travelers.

Younger generations feel slightly more empowered to decline a business trip that doesn’t match their expectations

Although 91% of business travelers, regardless of generation, would consider declining a business trip, Gen Z (96%) and millennials (93%) are somewhat more likely than Gen X (88%) and baby boomers (82%).

The top reason to consider declining is having safety concerns for traveling to certain parts of the world (53%), although Gen Z (46%) and baby boomers (48%) are just slightly more willing to take the risk than millennials (55%) and Gen X (53%).

How to use this: Reasons that employees would decline a business trip span the personal (e.g., needing a break) to the global (e.g., COVID-19 concerns), and employers that remain flexible and understanding are likely to come out ahead in the competition for talent . Leaders should make this part of their conversations with business travelers and be open to assessing things on a case-by-case basis.

Sustainability matters, especially among younger employees

While sustainability is a consideration across generations, it appears most important to Gen Z and millennial business travelers. For instance:

• Gen Z (22%) and millennials (28%) are more likely than Gen X (18%) and baby boomers (12%) to consider declining a business trip if it requires using non-sustainable travel options.
• Also, 98% of Gen Z and 96% of millennials plan to take steps to reduce their environmental impact while traveling for business over the next 12 months, compared to 92% of Gen X and 80% of baby boomers.

How to use this: Offering sustainable travel options and helping employees make informed choices is rapidly becoming a requirement for businesses. On the fence? Bear in mind its importance for younger employees and the impact of losing them to competition. Sustainable practices can be both good for the planet and good for business.

Among those unhappy with their current travel schedule, Gen Z may be the one to watch

Based on our survey findings, among those who are unhappy with their current level of travel, Gen Z is the most likely to take action (63%) and the greatest flight risk (35%), compared to an average across generations of 46% and 23%, respectively.

On a related note, perhaps it’s their higher-than-average satisfaction with their current travel schedule (49% vs. 39%) or where they are in their careers, but baby boomers are slightly less likely to take a new position that requires more business travel (88% vs. an average of 97%). That said, those who would consider it are less likely to require lures like a larger salary, more vacation time, or the ability to work from home (75% vs. an average of 92%). Gen Z and millennials would largely need to be lured (both 95%).

How to use this: If looking to hire for roles that require business travel, the above considerations will be essential from an attraction standpoint. The overall benefits package will play a significant role—especially when it comes to hiring for more junior and mid-level positions.

It’s important to note that attracting and retaining employees from all generations is key to success. However, while Gen Z only comprised a 12.6 percent share of the U.S. labor force in 2020, the U.S. Bureau of Labor Statistics projects that to increase to 21.3 percent by 2030. Meanwhile, millennials’ share will largely remain the same (roughly 43.8 percent vs. 42.6 percent, respectively). Anticipating the unique perspectives and expectations of younger business travelers will give companies a competitive edge in the years ahead.

For more business traveler responses to our fourth annual Global Business Travel Survey, access the broader findings in the global whitepaper .

The SAP Concur Global Business Traveler Survey was conducted by Wakefield Research between April 28 and May 23, 2022, among 3,850 business travelers, defined as those who traveled for business three-plus times in the past 24 months, in 25 markets: U.S., Canada, Brazil, Mexico, LAC (Colombia, Chile, Peru, and Argentina), UK, France, Germany, ANZ region (Australia and New Zealand), SEA region (Singapore and Malaysia), China, Hong Kong, Taiwan, Japan, India, Korea, Italy, Spain, Dubai, Benelux (Belgium, Netherlands, and Luxembourg), South Africa, Sweden, Denmark, Norway, and Finland. Data has been weighted to facilitate tracking.

Why travel is important to Generation Z

Nov 26, 2020 • 6 min read

Gabby Beckford's work with the Young Travelers Network has given her unique insight into why travel is so important to Generation Z © Courtesy of Gabby Beckford

Move over, millennials, there’s a new generation on the block. On track to be the largest, most well-educated generation yet, Generation Z is quickly moving toward adulthood. Born loosely between 1995 and 2010, many Gen Zers are barely old enough to vote, while others are finishing college and entering careers. But as the generation faces current and looming global catastrophes like the COVID-19 pandemic, climate change and historic income inequality, Gen Z has come of age looking toward an uncertain future.

As the founder and operator of the Young Travelers Network Facebook group and blog series, I’ve spoken intimately to this up-and-coming generation about how the world is changing them while also preparing them to change the world. Here’s why travel is so important to this generation.

I am the founder and operator of the Young Travelers Network (YTN) Facebook group and blog series, which bolsters the voices of and provides community for young travelers. We have 19-year-olds who have skipped college to become Arctic photographers, as well as chronic backpackers who hostel hop all over the world. I speak directly to this up-and-coming generation – particularly in what ways the world is changing them, while also preparing them to change the world. Here’s why travel is so important to this generation.

New experiences over traditional expectations

The first truly digitally native generation, Generation Z was born in the midst of the information age. With the internet at their fingertips from their earliest memories, members of the Gen Z cohort have a strong appetite for personal choice – and sometimes that means subverting traditional expectations.

“Growing up in Nebraska, I hadn’t met many avid travelers,” says Rachel Taylor, now a 24-year-old service coordinator. “My first ever trip abroad was to South Korea and Vietnam at 16 after graduating high school early.”

In the following two years, she traveled to South Korea, and Peru while getting her college degree. But when it came time to job search, she just couldn’t settle down.

“Graduating from college at 19, I couldn’t bring myself to start a job with two weeks of vacation per year. So I went to Spain and Portugal, and ultimately I found a job as an au pair in Turkey, and continue on traveling.”

Empathy, diversity and inclusion

According to my recently published 2020 Gen Z Travel Report , more than 70.8% of Gen Z travelers found diversity and inclusion to be moderately to extremely important to them in areas like race, age, gender, body-type, religion, etc. Many refuse to think in black and white, and instead prefer to celebrate all shades of people and cultures.

Sarah Krieger, who currently works as a nanny, says exploring the world and meeting new people has given her a better understanding of other life experiences and circumstances.

“I recognize it is important to acknowledge every individual’s unique experience and how they are affected by the world around them,” the 25-year-old says. “I am conscious to take a step back and think about how others’ life situations affect their experiences and external interactions.”

“It is my job to continuously work to expand my bubble of awareness to incorporate everyone, everywhere,” she adds.

They know before they go

“My family will book a trip that has everything included, even if it is more expensive, just for the sake of simplicity,” says Poppy Higgins a 21-year-old student from England.

While Baby Boomers tend to find the seemingly infinite number of booking sites and travel options overwhelming – Gen Z travelers find it exciting. Their digital literacy means they tend to be skeptical of information found on the internet.

Gez Z travelers prefer to do a little more digging to find a truly good deal than accept the more obvious option. Instead of defaulting to a locations most popular hotel or tour package, Poppy says travel has taught her the joys of scrolling through different options like Airbnb or Couchsurfing.

 “I’ve learned that there is always another option,” she says. “I’ve been able to apply this to my everyday life, using critical thinking to look for alternatives... I no longer accept things at face value and in that way, travel has made me a better Gen Z.”

Awareness of racial and ethnic issues

Twenty-year-old student Christina Presmy believes that traveling as a Gen Z-er has given her a different perspective on her home country, the United States.

“Out of all the countries I have visited, I have yet to experience anyone being rude to me when I tried to speak their native language and couldn’t. I wish I could say Americans were the same,” she says.

For any age of traveler, seeing the world can give you a new view of the place you called home for so long. The things you once considered inevitable, no longer seem acceptable. 

The Gen Z traveler thinks: “We don’t have to do things this way.”

By traveling we see alternative ways of life – and seeing these alternatives at such a young age like many Gen Z travelers, can have a profound effect. This new generation has taken hold of the spirit of activism and equality like many young generations do, and in 2020, Sarah feels these vocal critiques are more needed than ever.

“Travel [has shown] me how ‘in my face’ these racial and ethnic issues are in my own home country.” she says. “As I continue to explore the world around me and immerse myself into various cultures, I become more vocal about the need for Americans to change and become more accepting of other cultures and people that vary from their own.”

The importance of giving back

A survey of Gen Zers by Booking.com found that more than half of respondents believe the environmental impact traveling has on destinations is a major factor in choosing where to go. And that sentiment extends throughout their travel plans.

“Even with domestic travel, I can think more consciously about my actions to see how the travel industry impacts communities that rely on it,” says Khadijah Williams, a 21-year-old student from Missouri .

On a trip to Rocheport, Missouri, Khadijah visited a 7th-generation business that relied on the local tourism economy. And she saw what a fragile ecosystem that was in the face of events like COVID-19.

“I want to know how my actions and economic resources can help communities that I will travel to while being more conscious of the social-economic aspects of the industry,” she says.

Khadijah is careful to point out that she’s not just doing it for herself.

“My personal growth will lay a foundation to become aware of my impact on the world and those who I share this planet with to make a change for the next generation.”

Whether it's making their positions known in elections, fighting for policy reform in climate activism, Gen Z will change the world. And through travel, young people will carry that message around the globe. 

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This article was first published Oct 31, 2020 and updated Nov 26, 2020.

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How Gen Z Is Changing Business and the Workplace

Unlock the secrets to attracting, hiring, and retaining gen z employees..

Posted August 8, 2024 | Reviewed by Jessica Schrader

• What Is a Career
• Take our Procrastination Test
• Find a career counselor near me
• Gen Z is rapidly entering the workforce and businesses need to understand their unique needs and concerns.
• Gen Z employees often want clear communication, mental health support, and social responsibility.
• Organizations can develop strategies to attract, hire, retain, and engage Gen Z to benefit the business.

As the first true digital natives enter the workforce, employers face the challenge of understanding and meeting the unique psychological needs and expectations of Generation (Gen) Z. According to the Pew Research Center, Gen Z includes those born between 1997 and 2012, many of whom are entering the workforce today.

A greater understanding of the unique needs of Gen Z can help organizations develop strategies to attract, hire, retain, and engage this up-and-coming generation. For example, as I discuss in my latest book, Experiential Intelligence , engaging in diverse life experiences not only develops new skills but also fosters resilience and agility—traits crucial for future personal and business success. Gen Z intuitively understands this; 90% of Gen Z want to participate in internships, and 70% consider certification courses outside traditional college as a viable path for professional development.

These statistics and more come from a recent survey of over 10,000 students across all 50 U.S. states by the National Society of High School Scholars (NSHSS), which revealed that:

• A majority (59%) of youth believe AI will negatively impact society over the next decade. More than half (55%) are highly concerned about AI’s impact on personal privacy, and 62% worry about job displacement .
• Student debt remains a significant concern, with one-quarter of students expecting to incur $10,000 to $50,000 in debt, but only 14% anticipate family financial assistance
• Preferred employers include Google, Amazon, and Apple, yet health care and STEM fields remain top job targets.
• Nearly half (48%) of Gen Z prioritize clear communication skills in an employer.
• Two-thirds (66%) plan to live at home when starting their first job, with 73% intending to stay for one to two years.

So, how can employers effectively engage this next-generation workforce?

• Communicate Clearly. Transparency and straightforward communication are crucial for Gen Z. Nearly half of respondents ranked clear communication as the top employer quality. Organizations should ensure job descriptions, role expectations, and growth opportunities are transparent.
• Provide Financial Guidance. Gen Z faces unprecedented financial pressures, with many expecting significant student debt and limited family assistance. Employers can differentiate themselves by offering robust financial benefits. Forty-four percent of Gen Z expect employers to help with student loan repayment. Financial wellness programs, tuition reimbursement, and clear career advancement paths can make an organization more appealing to debt-burdened graduates.
• Promote Social Responsibility. Social responsibility and fairness are paramount to Gen Z. Organizations must cultivate inclusive cultures where everyone’s contributions are recognized and valued. Engaging in corporate social responsibility (CSR) initiatives and providing volunteer opportunities can enhance employer attractiveness . Ensuring workplace policies reflect a commitment to fairness and social responsibility can resonate deeply with Gen Z values.
• Offer Hybrid Work. While Gen Z values flexibility, they also seek in-person interactions. Despite the rise of remote work, only 23% consider remote work options very important. Offering a hybrid work environment that balances remote flexibility with opportunities for in-person collaboration and community building is essential. Investing in modern office spaces that foster collaboration and innovation can also be beneficial.
• Foster Development and Recognition. Continuous learning and development are critical for Gen Z retention. They value in-person training and opportunities to develop skills. Implementing structured development programs with mentoring, workshops, and clear career pathways can keep Gen Z employees engaged. Recognition programs, such as employee awards, can also boost morale and retention.
• Support Mental Health and Well-Being. Gen Z is highly aware of mental health issues, partly due to their experiences during the pandemic. Offering mental health resources, promoting work-life balance, and creating supportive environments can significantly impact retention and engagement.
• Leverage Technology. Gen Z grew up with and relies heavily on technology. Employers should use technology to enhance engagement, streamline processes, and personalize work experiences. AI-driven onboarding, personalized learning platforms, and digital collaboration tools can make the work environment more appealing to tech-savvy employees.

High performance and solid results come from organizational cultures that foster inclusion, engagement, and collaboration. By understanding and addressing Gen Z’s nuanced preferences and concerns, employers can create a workplace environment that not only attracts but also retains and engages Gen Z employees. In a very real sense, Gen Z is the future of work.

2024 Career Interest Survey , The National Society of High School Scholars (NSHSS).

Dimock, M. (2019, January 17). Defining Generations: Where Millennials end and Generation Z begins . Pew Research Center.

Kaplan, S. (2023). Experiential intelligence: Harness the power of experience for personal and business breakthroughs. (Matt Holt Books).

Soren Kaplan, Ph.D. , is an author, keynote speaker, leadership development consultant, and affiliate at the Center for Effective Organizations at the University of Southern California.

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How to make your hotel more attractive to Gen Z guests

Click. Magazine writer

Gen Z travelers between the ages of 18 and 27 now make up a large portion of travel demand, so appealing to this demographic will be important as their spending power continues to grow.

Our 2024 Travel Trends survey covered 6,457 Gen Z respondents across 32 markets, giving you insights on what Gen Z guests expect from a hotel. According to the research, travelers in the 18–27 age group are more likely to stay in a hotel than in any other type of accommodation, so it’s helpful to know what these guests are looking for in particular.

AC is cool, and 24-hour check-in checks all their boxes

When it comes to amenities, staying cool is the top priority for Gen Z guests. 68% of travelers between the ages of 18 and 27 rated air conditioning as the first thing they look for in a hotel when booking, both in terms of the accommodation as a whole and in individual rooms. If your rooms have AC, make this clear in your marketing materials and your property listing .

The second biggest priority for Gen Z guests when they get to a hotel is flexibility. In today’s 24/7 society, it’s no surprise that 61% of respondents in this age bracket expect a 24-hour check-in service. This doesn’t mean you have to have a staff member at reception at all times. You could automate your check-in process with a key safe or smart locks operated by a phone app – especially for guests arriving late at night or in the early hours of the morning. 

Tip: Set guest expectations by clearly  communicating the fees for late check-outs and early check-ins in advance.

Breakfast and spa facilities are worth a little extra

It’s also worth knowing that there are several amenities and services that these guests are prepared to pay more for. The service that Gen Z guests are most willing to pay extra for (46%) is breakfast, with access to spa and sauna facilities (31%) coming in as a close second. A bit of pampering is very important to younger travelers, so adding a sauna, hot tub, or other spa treatments could be a great way to attract more Gen Z guests. If you don’t have on-site spa facilities, you could partner with local masseurs and beauty therapists and have them visit your hotel to treat guests.

Tip: Highlight the breakfast options you offer—from breakfast in the room to special diet menus— on the Extranet . You can also indicate what you serve for breakfast and when it’s available. We’ll then showcase these details on your property page.

Gen Z guests look to social media for travel inspiration 

In terms of travel inspiration for Gen Z, social media (58%) is by far the most important source. Their next most popular sources for recommendations are friends/family and travel booking websites like Booking.com. There’s a clear opportunity for you to attract more Gen Z travelers by advertising your property on social media platforms like Instagram and  TikTok , and  optimizing your property’s profile on Booking.com and other sites.

Tip: Invest in high-quality professional photography to make your property stand out on social media and travel booking websites.

Family-friendly fun and facilities will be appealing 

When it comes to picking their travel partners, Gen Z likes to keep it in the family. According to our survey, they prefer to go on vacation with family members (58%), parents (47%), and partners (41%), followed closely by friends and siblings. You can turn this to your advantage by clearly advertising facilities, tours, and activities that would appeal to a family dynamic. Partner with local businesses that offer bike rentals, sports facilities, food experiences, or anything else that would provide Gen Z guests and their companions with the opportunity to make special memories.

Satisfy their appetite for thrills and shopping

Although their top three vacation types are beach, city, and nature trips, Gen Z is also the traveler demographic that loves high-adrenaline fun along with millennials, with 24% aiming to visit a theme park and 23% planning an active trip like hiking, skiing, or fishing. 

In terms of planned activities, Gen Z guests love to go shopping, with 43% making it their top priority and ranking it higher than any other age group. Providing information on local malls and boutiques could tap into their enthusiasm for retail therapy and enhance their experience.

Tip:  Offering discounts on theme park tickets or partnering with local businesses that offer hiking, biking, watersports, or other adventurous activities could be a great way to appeal to younger travelers. You might not be able to provide all the amenities and services that Gen Z travelers are looking for, but clearly advertising the ones you do have is a great way to attract guests in this age bracket and give them a memorable experience that encourages them to return.

Check out our article on the extra services that guests are willing to pay more for during their stays – and discover how you can start earning more revenue.

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Gareth Cook

• Air conditioning is the most sought-after amenity among Gen Z hotel guests, with 68% scoring it highest in our survey
• Check-in flexibility is also very important, with 61% citing 24-hour check-in as a key factor when booking a hotel
• Breakfast (46%) and spa/sauna facilities (31%) are the most popular add-ons for Gen Z, with guests saying they’d be willing to pay extra for these services
• Advertising on social media is a great way to attract Gen Z guests, who are most heavily influenced by social media when it comes to planning trips
• Gen Z has an appetite for high-adrenaline activities – partnering with local businesses that provide active trips will add to your appeal

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Millennial and Gen Z retirements might actually be OK while boomers and Gen X could struggle. It's due to how savings have changed over time.

• Morningstar found a higher share of boomers and Gen X are at risk of retirement shortfalls.
• This is largely due to the different types of retirement accounts that didn't exist for older adults.
• Pensions have been on the decline while savings accounts like 401(k)s have been boosted in recent decades.

Retirement isn't looking too hot for boomers and Gen Xers — but younger generations just might be OK.

Financial services company Morningstar released its July 2024 report on the state of retirement in the US , which, among other results, examined the likelihood that different generations will have sufficient savings as they enter retirement.

It found that millennials and Gen Zers are at lower risk of having a savings shortfall in retirement than Gen X and boomers, due in large part to major changes over the last several decades in how retirement benefits are structured. Assuming no changes to Social Security benefits, 37% of Gen Z and 44% of millennials could experience retirement shortfalls, coming in below 47% of Gen X and 52% of boomers.

These findings are based on Morningstar's model of US retirement outcomes, which simulates whether Americans will have sufficient income in retirement based on a representative sample of US households using 2022 Survey of Consumer Finances data.

Older Americans are increasingly struggling to stay financially afloat as they enter retirement. The issue is especially prevalent for the younger cohorts of the baby boomers — over 30 million of them born between 1959 and 1964 are starting to turn 65 this year, and a recent report from the Alliance for Lifetime Income's Retirement Income Institute found that 52.5% of them have $250,000 or less in assets. Additionally, many of them did not have the same types of retirement accounts that now exist for younger generations, meaning they'll have to drain their savings and rely on Social Security to get by in retirement.

One 68-year-old previously told BI that she cannot afford to retire and is living off her Social Security and salary. "I used to say this all the time as a joke, I'm going to have to work until the day I die because I can't possibly ever afford to retire," she said.

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Spencer Look, associate director of retirement studies at Morningstar Retirement and one of the report's authors, said Morningstar defined retirement shortfalls as "cases where the household was not able to fund typical expenses and long term supports and services costs throughout retirement."

Look told Business Insider that millennials and Gen Z benefit from a range of products that didn't exist for older generations previously, including auto-enrollment in savings accounts and diffenrent types of retirement funds.

The report said, "Baby boomers and Gen Xers may have lower levels of retirement savings because they were impacted by the transition from" a defined-benefit-dominant system, which includes pensions, to one that's dominated by defined contribution accounts, such as 401(k) plans.

Pensions — or payouts employers offer to former employees — have dwindled in the US over recent years. The more popular form of savings is 401(k)s, in which workers and their employers contribute to the funds while employed to bolster their savings once they retire.

But those who spent large parts of their careers between those two systems may not gain the benefits of either. "Having that uncertainty and that transition, it definitely shows up because the results in our model are much more driven by current levels of savings because these folks have less time left in their working years," Look said about boomers and Gen X.

"If folks just really don't think their finances will be enough to sustain the lifestyle they want in retirement, I know it's not something people want to hear, but working a little bit longer or working part time, that can go a long way," Look said.

Look added that while he knows delaying retirement isn't a possible situation for all, he pointed out it could help prevent those shortfalls. According to the report, only around 28% of US households would face retirement shortfalls if they retire at 70. Meanwhile, this figure was 54% for age 62, 45% at Morningstar's baseline retirement age of 65, and 38% for retiring at 67.

It "can make a really big difference," Look said about delaying retirement age.

"You not only have more time accumulating your assets and hopefully growing with the capital markets," Look said. "You can delay claiming Social Security and get a bigger benefit and inflation-adjusted benefit."

How are you making or planning to make ends meet in retirement? Reach out to these reporters at [email protected] and [email protected] .

Watch: Millions of homes could flood the US housing market thanks to boomers

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