Gen Z is most influenced by social media apps such as TikTok when booking travel, delegates heard at the TTG Luxury Travel Summit this week.
Senior content editor at brand consultancy firm Pion Alexandra Haider shared a number of insights which could help travel companies understand and connect with this younger cohort.
“Gen Z might not be your target audience now, but they will be,” she told attendees of the summit at Kimpton Fitzroy London.
“Gen Z spend more per capita than any other generation”
“They spend more per capita than any other generation and, despite the cost of living, they’re predicted to become the largest and wealthiest generation yet.” Adding that 40% of consumers will be Gen Z by 2030, Haider urged travel companies to invest in targeting younger consumers sooner rather than later.
We’ve rounded up the key takeaways from Haider’s presentation to help the industry more effectively market to this 2 billion segment of the population as they mature into luxury customers.
TikTok Rules
TikTok reigns as the favourite source of travel inspiration for Gen Z, with over half of people aged between 12 and 27 choosing their holidays based on what they see from creators. The video-sharing app is also extremely powerful for this group as a research tool; many use it to browse destinations and properties before booking.
“TikTok is the new Trip Advisor for young consumers,” Haider says, adding that 80% would try a brand if it went viral on social media. Now the most popular search platform for Gen Z, it’s crucial that travel companies build a presence on TikTok if they want to target this demographic.
Be Real
Authenticity is extremely important to Gen Z, with many younger consumers preferring to learn about new products through familiar faces rather than traditional advertising.
Research shows that 50% of travellers in this age group are choosing destinations based on recommendations from creators and influencers, who can promote the product in a way that feels natural and trustworthy.
“Gen Z don’t like being sold to, so tell your story through creators on Instagram and TikTok,” Haider said, before adding the important caveat that these creators, regardless of their following’s size, must align with your brand image.
“If you are a company focused on sustainability, make sure your creator also embodies these values. Gen Z can smell inauthenticity a mile away,” she warned.
A successful example of this was Virgin Voyages’ collaboration with The Influence Room in 2022, which saw the adults-only cruise line invite a diverse group of macro and micro influencers onto its Valiant Lady ship. The partnership resulted in the mass generation of promotional content in a short space of time, resulting in the brand reaching a staggering 22 million people.
“Gen Z can smell inauthenticity a mile away”
Experiences over price
While they may not (yet) be the wealthiest generation, Gen Z are more than willing to splash out on travel - especially for unique experiences.
In fact, 54% of consumers born after 1997 say they would spend outside their budget for a once-in-a-lifetime opportunity. Haider said that “after losing formative years to the Covid-19 pandemic”, Gen Z are “hungry for experiences and they are prepared to pay a premium for it”.
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