How millennials and Gen Z are transforming travel and how brands can cater to them

Enter ‘passion travel,’ an emerging trend among Gen Z and millennials revealed by a recent survey from digital travel publication Thrillist. The study, which surveyed 2,000 people, revealed that 77% of these travelers choose experiences that reflect their interests – whether that’s food festivals, music events or eco-adventures.

Even more telling, 72% of young adults don’t see travel as a getaway but a means of self-expression and a way to engage with their passions and discover new ones.

“The findings from [our] recent study show that young travelers are increasingly selecting destinations based on their specific interests, demonstrating a move towards more personalized and meaningful travel experiences,” explains Lindsay Schrupp, editor-in-chief at Thrillist. “Their tendency to plan activities before even booking plane tickets signals a new way of thinking about travel that has the potential to reshape the industry.”

If this trend is set to revolutionize the travel industry, how can brands stay ahead of the curve? The Drum dives into various strategies to help them keep up.

Financial priorities & hyper-personalized trips

Despite juggling student loans, soaring rents and other everyday expenses, travel remains a key financial commitment for 89% of Gen Z and 87% of millennials according to Thrillist. This is driven by the belief that experiences are more valuable than material possessions.

To appeal to these financially savvy consumers, marketers are advised to develop low-cost, high-quality options. ”Affordability should be emphasized by offering flexible payment plans and using loyalty schemes to attract this budget conscious group of experience-seeking consumers,” says Erika Pacini, travel expert and head of marketing at adventure supply store Outdoorplay.

Flexibility in booking options, such as cancelation policies and customizable travel choices, is also key. This will “cater to the varying needs and budgets of Gen Z and millennials,” suggests Julie Brinkman, chief executive of Beyond, a revenue management platform for short-term rental owners.

Pacini, agreeing with Brinkman, adds: “By emphasizing such flexibilities in marketing campaigns, businesses may get peace of mind while encouraging bookings, especially during periods of [economic] uncertainty.”

One brand that excels in demonstrating adaptability is Booking.com. Already well-known in Europe, the travel brand has captured American attention with its star-studded Super Bowl ads. This year’s commercial featured Tina Fey, Glenn Close, Jane Krakowski and Jack McBrayer, with Fey playing up the versatility of the app by imagining “whoever she wants to be” on vacation.

Social media & the road less traveled by

Social media undeniably influences the travel habits of young adults. Platforms such as Instagram and TikTok are not just sources of inspiration but also drive the quest for shareable, picture-perfect experiences.

“You cannot underestimate the power of social media in driving travel trends,” explains Steve Defontes, president of Big Idea Advertising. “People cultivate their ‘tribe’ online, following friends and influencers that share their passions. Their social feeds … [inspire] them to recreate and share these experiences.”

Defontes advises tourism brands to enhance their strategies by moving beyond standard resort ads and embracing richer storytelling. “Influencers and user-generated content continue to be key to helping people understand how they can experience the destination from a place of authenticity and credibility,” he says.

With that said, this generation is always hunting for hidden treasures, frequently turning to websites such as Atlas Obscura and Secret Media Network to discover off-the-beaten-path gems.

“While [these age groups] rely on social media to find new travel destinations and experiences, they’re very aware of over-tourism and are skeptical of travel hotspots,” notes Kevin Gonsalves, director of strategy at Dentsu’s social media agency, ICUC.social.

“To get around this, they’ve become increasingly interested in finding ‘destination dupes,’ or vacation getaways that are similar to a trending hotspot but have fewer crowds.”

To embrace this trend, Brinkman suggests that travel brands focus on showcasing unique aspects of destinations, such as “local culture, hidden gems and niche activities.”