As travel and tourism brands try to keep up with customer preferences, understanding the needs and behaviors of modern travelers is key. Millennials and Gen Z are spearheading the emergence of new trends fueled by technology, sustainability and a desire for meaningful experiences.
Understanding the needs and behaviors of these influential generations is crucial for travel brands aiming to provide excellent customer experiences and stay ahead in an increasingly competitive market.
Understanding the modern traveler
According to GetYourGuide, the modern traveler seeks deep immersion in local cultures, enjoys exploring new destinations and delights in the research process of discovering unique experiences. However, despite this desire for enrichment, travelers often encounter significant obstacles, and the ideal trip frequently falls short of expectations.
Common challenges such as schedule changes, delays and cancellations can cause stress and anxiety, preventing travelers from fully enjoying their journeys. Some of the top pain points according to Skift include:
- Inflexible rescheduling: “I can’t reschedule if my plans change.”
- Last-minute cancellation restrictions: “I can’t cancel last minute.”
- Limited online booking management: “I can’t manage my booking online.”
- Lack of feedback and reviews: “It has no ratings or customer reviews.”
- Price comparison challenge: “I found a similar tour for a cheaper price.”
Embracing “Generation GenAI”
A new generation of travelers, known as “Gen GenAI,” is emerging, characterized by their demand for seamless, personalized services powered by artificial intelligence. These travelers expect experiences that adapt effortlessly to their changing plans and preferences. By leveraging AI, travel brands can offer enhanced booking flexibility, real-time updates and customized recommendations tailored to individual profiles. In the future, brands that integrate AI into their operations will meet the expectations of GenAI travelers and set new industry standards for convenience, personalization and customer satisfaction.
Millennials and Gen Z: Meeting and exceeding customer expectations in travel and tourism
Millennials and Gen Z are at the forefront of travel trends, with a focus on technology, sustainability and unique experiences. Recent research highlights the distinctive preferences of these generations across various aspects of travel.
Regional travel preferences:
- United States: Half of U.S. Millennials prefer domestic travel, exploring the country’s diverse landscapes.
- United Kingdom and Germany: Travelers from these regions are more adventurous, taking more vacation days and often seeking international destinations.
Economic factors such as airfare costs and international tariffs influence these travel behaviors. For instance, U.S. Gen Z travelers tend to favor domestic travel due to these considerations. Understanding these influential generations is crucial for travel brands aiming to meet and exceed customer expectations in travel and tourism, providing excellent customer experiences and staying ahead in an increasingly competitive market.
The impact of digital platforms
Digital platforms are integral to travel planning for Millennials and Gen Z. A substantial 57% of people depend on social media for travel ideas, with Instagram, YouTube and Facebook being the main platforms. Gen Z particularly gravitates towards TikTok and Snapchat for their travel planning.
Sustainable and unique experiences
Millennial and Gen Z travelers prioritize wellness activities and seek tourism operators that adhere to social and environmental standards. There’s a growing demand for sustainable travel practices, and a notable trend towards “tour tourism,” where travelers plan trips around concerts and events.
Loyalty programs and technology
Millennials exhibit a stronger preference for airline loyalty programs compared to Gen Z, though both generations actively use loyalty points to offset travel costs. Millennials also frequently engage in “blended travel” or “bleisure,” where they extend business trips for leisure.
Future trends and considerations
Looking to the future, several key trends will shape the travel industry over the next decade. Travel brands should anticipate and adapt to what will excite future travelers:
- Quicker travel to destinations
- More vivid ways to remember trips
- Environmentally friendly travel options
- Technological advancements to reduce travel issues
- Affordable and diverse payment methods
Travel and tourism brands that prioritize sustainable, meaningful and technology-driven experiences will be well-positioned for meeting and exceeding customer expectations in travel and tourism, securing loyalty from future generations of travelers.
Discover more trends and effective methods for delivering memorable guest experiences in our best practice guide “Travel & hospitality CX: Crafting unforgettable guest journeys.”