The hospitality and travel industry is undergoing yet another transformation as Gen Z, the generation born between 1997 and 2012, asserts its influence. Often bundled with millennials (the two demographics are significantly different), Gen Zs possess a unique set of values and preferences that are reshaping the landscape and ushering in new trends, while nudging businesses to adapt to meet their demands.
Tatyana Tsukanova, Research Associate at EHL Hospitality Business School, recently published an article about the unique traits of the emerging Gen Z traveller, and how this demographic is bound to steer the hospitality industry for decades to come.
Speaking to WiT, Tsukanova emphasised, “We should understand that Gen Z is the generation between the ages of 11 and 26 years old, it’s a huge span. It means that these are children who go to highschool. These are our [university] students as well. And there are many trends that are shaped by this generation and their perception of our modern world.”
During our chat with Tatyana Tsukanova to delve deeper into her article, it also became quite evident that businesses need to realign their strategies to the mindset and expectations of this tech-savvy and environmentally conscious generation.
Digital natives redefine travel experiences
Often referred to as digital natives, Gen Z has grown up in a world dominated by technology. The impact of this digital immersion is evident in their travel preferences, with virtual tourism and AI becoming increasingly popular. Online booking, smart rooms, and virtual assistants are at the forefront of their travel experience, shaping the industry’s technological evolution.
In the words of Tatyana Tsukanova, “This generation was the one generation who have been living through COVID and other crises – all sorts of political and economic crises, and they went through so much uncertainty. These external factors shaped the way they perceive our world and what they want.”
She continued, “This is the first generation born with streaming, internet access, immediate information whenever they want – they have access to all that through their smartphones. And they also expect to consume this content instantly, without any delay, having this seamless experience. They want to have more flexibility, more options, a more personalised approach to what they want to do [when travelling].”
Sustainability takes center stage
Gen Z is not just about technology; they are trailblazers in sustainability. Carefully assessing the environmental impact of their choices, including CO2 footprint, sustainable packaging, and support for local suppliers, Gen Z is prompting a shift towards more inclusive and eco-conscious tourism.
According to Tsukanova, “They have values for authenticity and transparency, and for more environmentally friendly behavior. When they make a choice about a travel destination, this impacts their decision, and they can opt for options in proximity because they care about the environment.”
Although it’s hard to paint the Gen Z population across all regions with a broad stroke, as cost is an additional factor to sustainable choices, a defining trait with this growing demographic seems to be an awareness of sustainable choices.
“They learned about the global crisis, climate change and SDGs,” Tsukanova told WiT. “And it impacts their perception of what they can sacrifice. Because of this, they are more individualistic in a way compared to other generations. They want to have flexibility, they are more creative, they are more entrepreneurial, and they are looking for a good work-life balance.”
Tatyana Tsukanova, Research Associate at EHL Hospitality Business School. Image credit: EHL Insights
Multigenerational travel and overlapping interests
While Gen Z is undeniably influential, the industry is also witnessing a rise in multigenerational travel. Brands are recognising the importance of targeting mindsets rather than specific generations, ensuring that travel experiences cater to diverse age groups with overlapping interests.
“Everyone wants to have a quality experience, good value for money and make good memories from these experiences,” says Tsukanova.
“All generations want to have easy access to checkin and checkout processes. At the same time, these elements can be customised to particular groups of people – maybe Gen X and Baby Boomers expect to have human interaction and expect people to be involved when they enter a hotel, while Gen Z may prefer contactless access. Both expect a seamless experience but the way to deliver it is different.”
Adaptation to changing budgets and priorities
Despite having lower budgets, Gen Z tends to travel more at an earlier age compared to past generations. The industry is adapting to this trend, understanding that the highest earners are not the only ones seeking leisure travel. According to Tsukanova, Gen Z’s inclination towards early travel suggests a desire to incorporate experiences into their current budget rather than waiting for a higher income.
Tsukanova notes, “They work for money and meaningful experiences with colleagues, and at the same time, they also have something else that could be developed in the future, like a venture project.”
“I think what is disappearing is printed media communication channels, and like brochures, they are not so popular among Gen Z,” she elaborates. I see that these standardised approaches are disappearing and companies in the hospitality sector are trying to find ways to collect enough data to develop a good data management system to be able to personalise experiences.”
As the world becomes increasingly digital, the hospitality sector is embracing technology and innovation to meet evolving customer expectations. Tsukanova highlights, “The development of AI is creating a new era in many industries. From smart rooms to advanced solutions for operating a hotel, AI is transforming the way we travel and think about hospitality.”
Online travel agents are also integrating virtual assistants like ChatGPT to enhance the planning and booking experience, delivering personalised and immersive journeys for customers of all ages.
Challenges and opportunities for brands
According to Tsukanova, brands looking to capture the Gen Z market must embrace digital integration, be present on social media, and provide convenient services. The challenge lies in shifting from traditional marketing strategies to more personalised, diverse, and environmentally conscious approaches.
Tsukanova notes, “The brands which feel this vibe and understand that it’s time for change can tailor their offers and marketing campaigns to a particular group, and it can help them to stay relevant.”
“They consume a lot of video content,” added Tsukanova. “They acknowledge that their travel choices are shaped by what they saw on social media on Instagram, and it brings a huge space for brands to have more information [in that space].
“So, this customer-focused mindset, I think is critical with Gen Z, and the attention to content on social media. Some of them already do it and are quite successful. Like Nike, they wanted to show that everything they produce is for everyone – everyone can can be the person wearing Nike shoes or clothes and it’s not limited to any single generation. They managed to send the message to each target audience so nobody feels like they are not seen by this brand and marketing campaign.”
However, Tsukanova does note that there is a learning curve when it comes to understanding new generations, and brands need to approach fresh demographics with an open mind. “When they think about their target customers, they used to follow particular rules and strategies. And now it’s time to change them because they have more opportunities, they can explore the opportunities provided by AI and integrate better data management systems. So they can have more information about their customers and understand better different types and different mindsets and different target audiences.”
The role of education in preparing the future of travel
Hospitality business schools play an important part in preparing future industry leaders for the interesting landscape shaped by Gen Z.
According to Tsukanova, “Integration of technology like VR is crucial because this is our reality, and our students should be familiar with the technologies. These are skills like having the ability to spot the trends, integrate them into curricula, and prepare people to be ready for the future.”
She also told WiT, “Development of soft skills, emotional intelligence and creativity agility – it is critical to be adaptable, to be more willing to change to our environment.”
