Unfortunately, the world’s most internet-savvy consumers don’t trust a word we say. How can we, as an industry, transform perceptions, earn their trust, and meet the distinct needs of these budding global voyagers?
At Travelport, we’ve done extensive research to better understand this group - all 2.4 billion of them. Gen Z is defined as being born between the years of 1997 and 2012, and according to Forbes, they have an estimated spending power of $143 billion (£105 billion).
For a generation comfortable booking last minute trips, likely to work as digital nomads or even bail on their jobs to travel the world, and travel more frequently than older generations, Gen Z represents a significant opportunity for the travel industry.
However, according to our recent Trust in Travel research findings, this demographic has some trust issues. In fact, our survey revealed that only 38% of Gen Z consumers have some level of trust in travel companies – the lowest score of all age groups.
This level of distrust has had a huge impact on the way Gen Z discovers and books travel. Not only do they research travel in non-conventional ways, such as scouring TikTok for reviews and recommendations, they’re extremely wary of advertising, which makes it much harder to personalise a message or offer.
Travelport surveyed 10,000 travellers across the UK, US, Canada, Australia, New Zealand, Italy, Spain, Saudi Arabia, India and Indonesia, digging deep into various elements of trust.
To Gen Z, authenticity is key. They value recommendations from real people, and actively seek out the truth from like-minded sources. Half of Gen Z consumers trust international, full-service carriers, major international hotel chains, and major online travel agency sites, but they are skeptical about the information being told to them.
So how can our industry start to earn Gen Z’s trust?
- Always be authentic – with everything available at the click of a button, Gen Z is used to instant and immediate gratification. Reviews and crowd-sourced data allow false or disingenuous advertising to be evident instantly. This generation scours real-time customer reviews before purchasing anything – Uber driver ratings, TikTok “hauls” of online clothing purchases, and YouTube tutorials that verify brand and product legitimacy. Misinformation is a huge concern for Gen Z, and it’s made them suspicious consumers. Authenticity and genuine people are the key to earning their trust.
- Don’t hide the truth – Nearly half of all Gen Z travellers (45%) agree that “no hidden costs” is the most important factor for travel sellers, suppliers and other businesses to earn their trust. In fact, “no hidden costs” was 12% more influential on trust than long-term safety track records (33%). If trust is broken by a travel company, 68% of Gen Z travellers will share their experience with friends, family and colleagues, and 50% would also post about it on social media or a travel review site. If trust has been broken, own it and make amends. Handle complaints and customer support gracefully, and you may be able to restore their trust.
- Use real reviews, not celebrities or influencers – Gen Z gravitates towards companies and brands that are genuine. Utilise real and authentic customer reviews and ratings to promote organic endorsements rather than paying an influencer. Though they may spend a lot of time online, Gen Z doesn’t trust celebrities or social media influencers as much as some may think. Less than one-third of Gen Z views these endorsements as trustworthy sources. So spend those marketing dollars elsewhere.
According to McKinsey, Gen Z is becoming a major economic force; with these three insights, the travel industry can begin to understand this generation’s distinct needs. Gen Z may not trust us yet, but we can change that.
Jennifer Catto is Travelport’s chief marketing officer.