As CEO and Managing Partner of Eurotrips, a pioneering travel company focused on reinventing the European travel experience for young adventurers, I have witnessed firsthand the major changes shaping the industry.
Compared to millennials, Gen Z has a more adventurous spirit and a stronger desire to be immersed in authentic culture. Whereas millennials paved the way for prioritizing travel as a lifestyle choice, Gen Z seeks out off-the-beaten-path experiences and meaningful connections with locals. They are also more likely to prioritize sustainability and social responsibility when making travel decisions, signaling a shift towards more conscious and ethical tourism practices.
Millennial travel statistics also show some interesting trends. Though they travel more per year, they aren't by far the biggest spenders, with an average budget of $1,373 for a summer vacation, excluding airfare. In contrast, Baby Boomers spend $1,865 and Gen Xers spend $2,628 on their summer vacation. Interestingly, Gen Z allocates an average of $2,788 for travel expenses, suggesting a significant portion of their budget is dedicated to exploring the world.
The travel industry is at a crossroads amid the ongoing war between Russia and Ukraine and the aftermath of a global pandemic. As restrictions ease and borders reopen, a new generation of travelers is emerging with fresh perspectives and unique priorities. Gen Z, born between the mid-1990s and early 2010s, is redefining how we explore the world, seeking authentic experiences, sustainable practices, and meaningful connections. Delving into the complexities of this paradigm shift reveals challenges and opportunities for innovation and growth.
Let’s explore how Gen Z is changing travel trends, how their tendencies differ from millennials, and how companies can adjust to deliver better travel experiences.
Embrace change
A shocking 73% of Gen Z say they've felt lonely – the highest percentage of any generation. This statistic highlights the outsized impact of loneliness in the travel community and prompts a reevaluation of traditional travel norms. For Gen Z, traveling isn't just about checking off bucket lists; it's about making genuine connections, immersing yourself in local culture, and creating unforgettable memories. So businesses must adjust their offerings to meet these changing needs, prioritizing experiences that foster camaraderie and a sense of belonging.
More than half of Gen Z adults are already considered frequent travelers. “Millennials paved the way, creating the idea that travel is a right, not a privilege,” says travel analyst Lindsay Roeschke. Gen Z is building on this mindset, prioritizing travel over traditional methods. While other generations tend to wait until they reach a certain income level before spending money on travel, Bankrate research shows that 61% of Gen Z travelers earn less than $50,000 a year.
As a result, businesses must adapt their offerings to meet these changing needs and prioritize experiences that foster a sense of camaraderie and belonging.
Overcoming challenges
The growing trend of solo travel and the desire for unique experiences away from typical tourist destinations brings challenges and opportunities to the travel industry. Solo travel offers unparalleled freedom and opportunities for personal growth, but also poses safety and logistical challenges, especially for younger travelers. Companies must balance independence with support, ensuring solo travelers have the support and guidance to feel confident and ready to venture out on their own.
Embrace innovation
Innovation is key in redefining European travel. As the travel industry evolves, it's important to recognize the changing preferences and priorities of younger generations. Gen Z is reshaping group travel, seeking more authentic experiences and meaningful connections. 79% of Gen Z and Millennials want to experience local life for a day when they travel. By focusing on cultural experiences, adventure and fostering community, companies can better address the needs of this generation. Embracing technology, sustainability and immersive activities will be key to meeting the expectations of modern travelers.
Gen Z is more likely to study how a company treats its employees and its approach to sustainability, and these considerations influence their purchasing decisions. This generation tends to prioritize adventure, mental health benefits, and cultural experiences. This attitude makes them more likely to visit new places and travel for extended periods of time.
While some of this is age-specific rather than generation-specific, for young people travel has become established as a way to connect with nature, different cultures and with themselves.
Future outlook
Together, we can reinvent travel in Europe and inspire curiosity, compassion and courage in a new generation of explorers.
Based on years of experience, we have identified the following fundamental principles for travel:
We organize travellers' experiences in a better way than they could do it themselves. We treat our travellers like family. We introduce new and important people into our travellers' lives. We help our travellers create core memories and share them with like-minded people. We ensure that traveling with us is beneficial for our travellers.
Although the uncertainty has caused a drop in demand this season (spring/summer), we expect significant growth next season. We expect a surge in demand from students taking a gap year next year. Once everyone adapts to the changes, we can expect rapid growth as Gen Z lives by the principle of “if not now, when” and prioritizes rich, emotional experiences and memories over stability.
In conclusion, the rise of Gen Z is significantly changing the travel industry, demanding that companies adapt and evolve to meet the changing needs and expectations of today’s travelers.
Get ready to capture Gen Z's attention and wallet share in the travel and hospitality industry. This powerful generation of digital natives and savvy enthusiasts demands authenticity and uniqueness in their adventures. Gen Z seeks customized experiences that resonate with their values. This shift in consumer behavior highlights the importance of innovation and personalized service in the travel sector and reinforces the need for companies to continually adapt to the changing preferences of this influential demographic.
Dmytro Yaremkovych is CEO and Managing Partner of Eurotrips.
