Travel is no longer about crossing destinations off a checklist for Millennials and Gen Zs in Asia Pacific. Experiences are now the first consideration factor when planning for a holiday, trumping accommodation and flight options for this group, and they’re willing to spend on it too.
According to a survey conducted by travel and experiences platform Klook, travelers are ready to spend big on travel. 1 in 3 Millennial and Gen Z travelers are willing to spend more than double of the average monthly income in Asia (US$1,069) on their next holiday, which amounts to US$2,000 and more.
Eric Gnock Fah, COO and co-founder of Klook, says “Embracing a new era of travel, experiences have emerged as a new coveted currency for the next generation of travelers, particularly among Millennials and Gen Zs. Unique experiences and activities take precedence in their travel plans as the first thing they look at, with 85% of travelers willing to invest in experiences during their holidays. This remarkable shift is a testament to their increasing desire for authentic experiences, with their decisions fueled by social media over traditional sources like search engines and travel guides before embarking on their next travel adventure.”
Experiences are Millennials’ and Gen Zs’ new travel currency
As travel becomes more intentional, a majority of travelers are also prioritizing experiences and making them a focal point of their trip, with 63% booking their experiences before they fly.
The Klook Travel Pulse survey was conducted in July 2023 through Milieu with a total of 2,400 respondents across 12 markets including Hong Kong, Taiwan, Singapore, Malaysia, Philippines, Thailand, Vietnam, South Korea, Japan, Australia, Mainland China and India. More than 90% of Millennials and Gen Zs place importance on unique and memorable experiences during their travels, with 85% signaling a willingness to invest in them during their holiday. Notably, travelers from Thailand, Vietnam, Mainland China, and India lead the pack across Asia Pacific, with a strong desire to spend more on nature and outdoor experiences like island tours, and cultural experiences such as visiting historical sites.
Surprisingly, Gen Zs, who are just beginning to embark on their careers, are not far behind their Millennial counterparts in splurging on travel. 1 in 5 Gen Zs are willing to spend over US$3,000, slightly trailing 1 in 4 Millennials who share the same sentiment. The biggest spenders across Asia Pacific emerge from Mainland China (58%) and Hong Kong (39%), taking the top spots in willingness to spend beyond US$3,000 on their next holiday. More price-conscious travelers originate from India, Vietnam, and the Philippines with the majority willing to spend below US$2,000, still more than double their average monthly income.
Social media will soon overtake traditional sources as the #1 holiday inspiration tool for Millennials and Gen Zs
Social media is the top inspiration tool for Gen Z travelers, with more than half using the platform to discover new destinations and experiences, favoring it over search engines and travel guides. While Millennials still prefer to use search engines (59%), social media comes a very close second (55%) indicating its rising influence over how travelers seek out information.
In fact, 9 out of 10 millennials and Gen Zs check online reviews before making their bookings, and rely on travel content recommendations on social media when planning holidays. Findings show that creating social media-worthy content is of utmost importance for a large majority of travelers (87%) especially for travelers from India, the Philippines and Mainland China, and one of the main reasons for travel.
“The rise of social media as a travel inspiration and planning tool is largely due to their interactive nature, especially with short-form videos and mobile apps,” says Eric Gnock Fah. “It has undeniably become a powerful and dynamic source of travel inspiration among Millennials and Gen Zs. This lies in its ability to offer authentic storytelling and personalized real-time recommendations. This paradigm shift is indicative for the demographic’s desire for meaningful connections and seamless exploration.”
Millennials and Gen Zs are organized planners, opting for more intentional short-haul trips Majority of Millennials and Gen Zs across Asia Pacific are becoming more intentional travel planners, with 65% planning their holidays at least two to six months in advance. Travelers ranking highest among this bracket come from Singapore (74%) and Australia (57%), while nearly half of travelers from Mainland China, Vietnam, and Thailand prefer to make holiday plans in less than two months.
Additionally, Millennials and Gen Zs are increasingly opting to travel closer to home domestically (60%) and within Asia Pacific (30%). The top 3 destinations on the travel wish list are Japan, Thailand and Singapore. These findings indicate a rising trend of younger explorers putting focus on the desire to explore and seek new experiences over the actual destination itself.
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