How to meet the needs of Gen Z: The digital native generation

Tourism

Gen Z, the youngest of the major consumer groups, is becoming more and more influential. They have joined the workforce and decide how to spend their money. Travelling is a big priority for this group, so for local tour operators in developing countries, this creates great opportunities by preparing well and knowing how to target Gen Z.

Understanding Gen Z

Gen Z, born between 1997 and 2012, is one of the most travel-loving generations seeking:

  • Adventure;
  • Cultural immersion; and 
  • Personal growth. 

They are the first generation formed by technology. Gen Z use the internet and social media daily, spending much of their lives online: working, playing and communicating. They usually rely more on word of mouth and influencers in their decision-making than on traditional media. 

Extraordinary global events have shaped Gen Z's formative years. These include:

  • Climate change;
  • Globalisation;
  • Terrorism;
  • Global financial crises; and
  • The Covid-19 pandemic.

Still, Gen Z is open-minded and has a strong sense of responsibility for the global community and the environment. Climate change is one of this group's biggest concerns. So, they demand sustainability more and more in their travels. 

Gen Z's travel preferences 

Like millennials, Gen Z prefers travel experiences to material possessions. After the pandemic, they had a greater suppressed demand for travel than all other major consumer groups. 

According to American Express:

YouGov's research in 2022 found that British Gen Z planned to spend more on travel products and services over the next 12 months (44%) than any other country in the study, followed by Spanish and Italian Gen Z (both 34%).

Gen Z do not have large budgets because they are:

  • Still studying full-time; or 
  • At the start of their careers, so they are value-driven and budget-conscious.

But they spend a large part of their budget on travel, up to half their disposable income. As a tech-savvy generation, they are often good at finding good deals and discounts and are more likely to use:

  • Online travel agencies (OTAs);
  • Local homestays;
  • Hostels; 
  • Cheap Airbnbs; or 
  • Other sharing platforms for budget options.

Travel trends: Volunteer work with local communities

Gen Z is an exciting consumer group that influences travel trends greatly. Essential for Gen Z are:

  • Unique experiences;
  • Authenticity; and
  • Sustainability.

Sustainability can mean staying somewhere longer, travelling by local transport and meeting local people. Experiencing local culture for a longer period could include volunteering with a local community in Uganda. Here, travellers help children with English, crafts and sports, or get involved in other community projects. 

The influence of (social) media

Pop culture offers local operators another interesting way to appeal to this young market. Movies and television shows heavily influence Gen Z, and they often want to travel to places they have seen on screen. This is also known as set-jetting: this trend has been growing amongst young people for several years. 

Pop culture can create a sense of community between people with similar interests, and such experiences are often widely shared on social media. Recent popular destinations include:

  • Croatia and Ireland (Game of Thrones);
  • Seoul (Squid Game and K-pop);
  • Sicily and Hawaii (The White Lotus); and 
  • Vietnam (King Kong – Skull Island). 

Learn more

Local operators in developing countries have great opportunities to target this influential consumer group. Experiences must be immersive, sustainable, and good value to attract Gen Z.

For more information, read our studies on the opportunities on the European Gen Z tourism market.

Acorn Tourism Consulting wrote this news article for CBI.

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