A survey by
While 60% of APEC Gen Zs and Millennials are actively subscribed to loyalty programs, the challenge of juggling several loyalty programs has led most (57%) to seek out one program that meets all their travel needs.
Travel in 2024 is a priority for Gen Zs and Millennials: 73% report their intentions to take at least two trips in the next 12 months and 91% plan to spend the same, if not more, on their trips compared to the year before. Travel is viewed as an essential lifestyle component, and most are willing to reduce everyday spending on dining out (60%), shopping sprees (57%) and their daily coffee (54%) so as to spend more on a holiday.
Survey results suggest that Gen Zs and Millennials in APEC are purposefully strategizing how they can channel value from their everyday spend toward rewarding travel experiences. They also prefer to be part of only one all-encompassing loyalty travel program which fulfills their needs. To this end,
As testament to the program's appeal, we have seen
The trend of greater member growth and activity extends to the
The regional survey also uncovered notable trends amongst Gen Zs and Millennials across the 10 APEC countries. Market-specific trends can be found in Annex A.
Travel value unlocked through everyday spend
Savvy Explorers take considered steps to unlock travel value through everyday spend. Leveraging on their familiarity with loyalty programs, APEC's Gen Z and Millennials employ varied tactics to maximize their travel rewards: four in five say they have gone out of their way to use a travel-linked credit card for everyday purchases, and 67% actively use a travel loyalty program to book and redeem local experiences and staycations.
This trend is supported by usage behaviors of
Hotels become a key destination to explore
Hotel experience is key to winning the hearts and dollars of the Gen Z and Millennial segment, with 99% of respondents believing their hotel choice can make or break their holiday. Hotels are also increasingly viewed as a key destination for exploration, going beyond the role of 'accommodation'. Nearly four in five respondents expect their hotel to provide curated local programming and experiences, whilst 84% prefer to stay at a hotel with designs and activities reflective of its destination.
The recent debut of
Despite a desire to maximize their travel budgets where they can, their hotel is one area that APEC's Gen Z and Millennials are willing to invest extra travel dollars towards. Top motivations for new-generation travelers to splurge include the hotel's room offerings (48%) and location (42%). Whilst amenities remain key considerations, these guests value a seamless travel experience, with mobile-first customer service (61%), reliable WiFi (68%) and flexible check-out (64%) outpacing traditional benefits like lounge access (42%).
Destination 'dupes' fuel intra-regional travel demand
International travel has returned but APEC's Gen Z and Millennials remain committed to destinations closer to home. While iconic holiday locations like the Swiss Alps and
As a reflection of robust intra-regional travel demand in 2023,
Corporate backpackers on the rise
Gen Zs and Millennials are also taking bleisure travel up a notch by capitalizing on the opportunity of a business trip to embark on multi-destination tours. In addition to extending their travel plans (68%), 84% plan to explore nearby cities and countries as part of their post-work itinerary.
With more than 560 properties across 24 brands in 22 countries and territories in APEC to choose from,
Off-peak travel maximizes destination experience
Gen Zs and Millennials are also carefully planning when to travel to maximize their trip experience. The majority (71%) of Gen Z and Millennials say they would opt to travel during off-peak seasons so as to beat the crowds and get more out of their trip. 67% feel they can do more during low-peak seasons, and 77% leave their holidays feeling more relaxed and rejuvenated.
Where
Findings are from a commissioned survey by
The term 'Savvy Explorers' refers to Gen Z and millennial travelers who continue to prioritize travel as a key part of their lifestyle and are always on the lookout for ways in which they can maximize and value add to their planned trips through curated accommodations, key experiences and new destinations.
Refer to Annex A for additional data on the preferences of new generation travelers across the APEC region.
Annex A: 10 Fun Facts About New-generation Travelers Across the
Most likely to sacrifice dining out for a holiday are Australian (76%), Japanese (74%) and Indonesian (68%) travelers. Despite their renown for culinary diversity, majority would prefer to reduce eating out over giving up other everyday luxuries like monthly subscriptions.
Most frequent travelers in APEC are
Top intra-regional travelers are Japanese (71%), Thai (69%) and South Korean (66%) Gen Z and Millennials who prefer holidaying closer to home. However, bucking the trend are Indian and Filipino travelers, with over 60% opting for faraway destinations.
Top off-peak travelers are Japanese (87%), Australian (81%) and Singaporean (79%) Millennials and Gen Zs. Interestingly, set to drive the high seasons are Indian travelers, with 58% preferring to travel during peak periods.
Most discerning when choosing their hotel are Indonesian, Thai and Vietnamese Gen Z and Millennials, with an overwhelming 90% preferring hotel programming and design that are reflective of the local destination and/or are environmentally friendly.
Top motivators to splurge on travel for Australian, Indonesian and Singaporean Gen Z and Millennials are quality factors such as hotel reputation and location. In contrast, Japanese and Vietnamese travelers place greater weightage on experiences such as in-hotel dining (
Top countries for business travel include
Most valuable travel benefits to APEC's Gen Z and Millennials are elevated hotel experiences like complimentary dining, spa and room upgrades. Nearly two in three Indian travelers (67%) were also likely to redeem unique travel experiences, whilst over half of Thai travelers (51%) would prefer to receive exclusive merchandise.
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