ASIA PACIFIC. Experiences are the factor most likely to influence the travel plans of millennials and Gen Zs, according to a new survey from travel and leisure online platform Klook that offers important findings for travel retail.
The Klook Travel Pulse survey was conducted in July through market research firm Milieu. It involved 2,400 respondents across 12 markets including Hong Kong, Taiwan, Singapore, Malaysia, Philippines, Thailand, Vietnam, South Korea, Japan, Australia, Mainland China and India.
The new generation of travellers is willing to spend more for interesting experiences over accommodation and flight options, the survey found.
According to the study, one in three millennial and Gen Z travellers are willing to spend more than double the average monthly income in Asia (US$1,069) on their next holiday, which amounts to US$2,000 and more.
Klook COO and co-founder Eric Gnock Fah said: “Embracing a new era of travel, experiences have emerged as a new coveted currency for the next generation of travellers, particularly among millennials and Gen Zs.
“Unique experiences and activities take precedence in their travel plans as the first thing they look at, with 85% of travellers willing to invest in experiences during their holidays. This remarkable shift is a testament to their increasing desire for authentic experiences, with their decisions fueled by social media over traditional sources like search engines and travel guides before embarking on their next travel adventure.”
Experiences are the new travel currency for millennials and Gen Zs
The survey suggests that millennials and Gen Zs consider experiences as the highlight of their journey, with 63% of the respondents booking their experiences prior to their trip.
More than 90% of the respondents from the two groups prioritise unique and memorable experiences during their travels, with 85% indicating a willingness to invest in them during their holiday.
Among the respondents from Asia Pacific, those from Thailand, Vietnam, Mainland China and India are most likely to spend more on nature and outdoor experiences such as island tours and cultural experiences such as visiting historical sites.
The survey found that Gen Zs who are mostly starting their careers are splurging on travel, nearly as millennial travellers spend. One in five Gen Z travellers is willing to spend more than US$3,000, while one in four millennials agree with this idea.
The biggest spenders across Asia Pacific are from Mainland China (58%) and Hong Kong (39%), and they are the most eager to spend beyond US$3,000 on their next holiday. More price-conscious travellers come from India, Vietnam and the Philippines, with the majority willing to keep their travel budget below US$2,000, still more than double their average monthly income.
Social media will soon overtake traditional sources as the #1 holiday inspiration tool for millennials and Gen Zs
The survey also underlines how social media is influencing the way travellers search for information.
Most Gen Z travellers prefer to discover new travel destinations and experiences through social media platforms over search engines and travel guides. Millennials still mostly rely on search engines (59%), while some of them browse through social media (55%).
The survey found that nine out of ten millennials and Gen Z travellers check online reviews before making a booking. They also seek out travel content recommendations on social media when planning holidays.
These groups of travellers agree that producing social media-worthy content is a very important part of their trip. A large majority of travellers (87%) especially from India, the Philippines and Mainland China consider this as one of the main reasons for travel.
Fah said: “The rise of social media as a travel inspiration and planning tool is largely due to their interactive nature, especially with short-form videos and mobile apps. It has undeniably become a powerful and dynamic source of travel inspiration among millennials and Gen Zs.
“This lies in its ability to offer authentic storytelling and personalised real-time recommendations. This paradigm shift is indicative for the demographic’s desire for meaningful connections and seamless exploration.”
Millennials and Gen Zs are organised planners, opting for more intentional short-haul trips
As international travel demand continues to rise, the majority of millennials and Gen Zs across Asia Pacific are becoming “intentional travel planners.”
The study shows that 65% of them make their travel preparations at least two to six months in advance. Travellers ranking highest in this bracket come from Singapore (74%) and Australia (57%), while nearly half of travellers from Mainland China, Vietnam and Thailand plan their holidays in less than two months.
Additionally, millennials and Gen Zs are increasingly opting to travel closer to home domestically (60%) and within Asia Pacific (30%).
The top three destinations on the travel wish list are Japan, Thailand and Singapore. These findings indicate a rising trend of younger explorers putting focus on the desire to explore and seek new experiences over the actual destination itself. ✈
