Agoda: Hotels need to embrace Gen Z-driven travel trends

A new report from online travel platform Agoda points out the need for hoteliers to get with the times in terms of travel trends spearheaded by Gen Z travellers.

According to researchers, embracing such trends is a great way by which hotel management companies can future-proof their businesses.

This latest report features the top five travel habits of Asian Gen Z, outlining a generation that finds inspiration in the digital realm, embraces spontaneity, and values shared experiences.

As Agoda senior vice-president for supply Andrew Smith puts it: “It’s hard to understate the importance of Gen Z in determining the future of travel. This is the first generation never to have known the world without the internet and one that is developing increasing spending power, with Nielsen’s Spend Z report expecting US$12 trillion growth by 2030. It is no surprise that they place a premium on opportunities to capture instaworthy content and are constantly looking for unforgettable experiences. The most forward-thinking hotels are those adapting their marketing strategies to thoughtfully cater to this group.” 

Relevant findings

The survey highlights the unique ways travelers aged 18 to 27, more commonly known as Gen Z, are shaping the future of travel in Asia with a fresh perspective, not only by influencing travel trends but also by setting the stage for future generations to explore the world in innovative ways. 

Getting inspiration from TikTok and other social media platforms 

Gen Z is blazing a trail on social media, with TikTok leading the way as their top source for travel inspiration. 

While Millennials lean on friends and family as their preferred source of recommendations, 20 percent of Gen Z is scrolling through TikTok and another 14 percent through Instagram to discover their next adventure. 

Despite the digital influence, personal recommendations remain a close second at 17 percent, proving that word-of-mouth still holds sway. 

The spontaneous thrill of last-minute bookings

In a world where plans can change in an instant, Gen Z embraces the thrill of last-minute travel more than any other generation. 

20 percent of Gen Z say they book flights less than a week in advance, outpacing Millennials, Gen X, and Boomers. 

Accommodations follow suit, with one in four Gen Z travelers reporting they make bookings at the eleventh hour, showcasing their penchant for spontaneity. 

Travelling in twos > travelling solo

For Gen Z, travel is a shared experience, with 38 percent preferring to explore the world with a partner. 

Group trips with friends and family vacations also rank high, highlighting the importance of connection and companionship in their journeys. 

Millennials, on the other hand, prioritise family trips, reflecting a generational shift in travel dynamics. 

Everyone is now more cost-conscious when it comes to travel 

When it comes to travel spending, Gen Z and Millennials are on the same page. 

Both generations prefer to keep accommodation costs under USD 50 per person per night, with Gen Z more inclined to do so at 56 percent than their Millennial counterparts who clock in with 44 percent. 

Meanwhile, 32 percent of Gen Z plan to spend between US$51 to US$100 per person per night compared to 41 percent of Millennials. 

This trend underscores a shared commitment to affordable travel without compromising on experiences. 

United by wanderlust

Despite differing preferences in where different generations find travel inspiration, when they book their travels, and who they go with, the desire to explore the world is universal. 

Nearly half of Gen Z and Millennials plan to embark on one to three trips this year, while a third are aiming for four to six adventures at most. 

This shared wanderlust bridges generational gaps, proving that the love for travel knows no bounds. 

How hotels can attract Gen Z travellers

The Agoda study also presented several key ways by which hoteliers can draw in younger travellers into their establishments.

There include:

• Instagrammable Spaces: Create and encourage instaworthy photo opportunities throughout the accommodation with visible / topical hashtags that relate back to the property;
• Live Events: Stay alert to upcoming concerts and festivals and start working them into marketing strategies at an early stage;
• Themed Experiences: Capitalize on opportunities that link the hotel with famous media moments in a meaningful way such as launching White Lotus dinner menus in Thailand;
• Social Media Influencers: Invite influencers to visit the property and ensure they can capture unforgettable experiences that can draw others;
• Social Media Trends: Keep abreast of TikTok trends and seek to replicate them at the hotel to drive more experience-driven travelers; and
• Personalisation: Keep the experience as personal as possible to ensure Gen Z leave positive reviews in line with their focus on developing themselves.