Millennial and Gen Z travellers in Asia-Pacific are drawn to varied destination experiences away from the crowds, and their desires are encouraging meaningful tourism developments
Asia-Pacific is the most youthful region in the world, with Gen Z people (born between 1996 and 2012) and the millennials (born between 1980 and 1995) each making up a quarter of the population.
These population segments are one to watch, as their spending habits will impact businesses – including that of travel and tourism companies – around the world. Studies on these travellers by various organisations have identified unique characteristics that could drive meaningful tourism development.
Global management consulting firm Kearney’s recent report on the Asia-Pacific travel retail industry found that millennial and Gen Z travellers value experiences over material possessions or purchases.
“For many of them, travel is seen as a gateway to unlock a multitude of experiences. As such, they are likely to spend more on travel than the older population, making them an attractive target segment for businesses to curate unique travel experiences that meet their evolving expectations,” shared Siddharth Pathak, senior partner, head of consumer industries and retail for Asia-Pacific at Kearney.
Pathak shared that these travellers are also looking for wide and varied travel experiences. To be able to successfully tap this market, businesses need to hone a greater understanding of what these experiences entail and execute accordingly.
He also pointed out that young travellers are more budget conscious, necessitating pricing adjustments to eliminate unsustainable price points.
Rhydian James, chief commercial officer at Discova, agreed that young travellers are value-driven rather than price-driven.
He shared: “They are willing to spend more if they perceive value, differentiation, and personalisation in their package. As young millennials enter their 30s and 40s, they will generally have more disposable income and young families. They seek opportunities to teach and learn, not just to see. When travelling with families, they often prefer private experiences tailored to their circumstances.”
James described Gen Z travellers as being digitally connected, experience-driven, and adventurous.
Banyan Group’s senior vice president, head of regional operations and group specialist services and deputy managing director of hospitality management, Philip Lim, echoed these observations. Banyan Group’s long-held strategy of incorporating local culture into the guest experience has earned it a place in the hearts of millennials and Gen Z travellers.
Citing examples of such experiences, Lim said: “At Garrya Nijo Castle Kyoto and Dhawa Yura Kyoto (both in Japan), our guests can participate in kintsugi (art of mending pottery with lacquer and powdered gold, silver, or platinum) workshops and zen meditation sessions with local monks. These experiences not only enrich their stay, but also foster a deep connection with the destination, aligning perfectly with the experiential priorities of these travellers.”
The group is also leveraging artificial intelligence to tailor marketing and personalise travel experiences for its millennial and Gen Z guests.
The hunger for unique experiences has led to growing attention on off-the-beaten-path destinations.
Booking.com listed Jozankei in Japan, Ella in Sri Lanka, and Mui Né in Vietnam as trending destinations for 2024.
Its managing director APAC, Laura Houldsworth, said: “Promoting lesser-known destinations not only fulfills the wanderlust of these travellers but also supports millennials and Gen Zers’ sustainable travel ambitions by diverting attention away from over-touristed areas.”
However, promoting off-the-beaten-path destinations comes with challenges. Houldsworth explained that one of the main obstacles is the perception that such destinations lack the necessary infrastructure and amenities that travellers expect.
“First-time travellers may feel apprehensive about visiting lesser-known places. Additionally, raising awareness about the unique attractions and experiences these destinations offer requires targeted marketing efforts and partnerships with local tourism boards.”
Bearing in mind that the influential generation is generally environmentally conscious, Hyatt is bringing more attention to its properties’ sustainable efforts.
Carina Chorengel, senior vice president – commercial, Asia-Pacific at Hyatt, shared: “We are increasingly creating opportunities to directly engage guests and involve them in this sustainable journey. For example, Hyatt Regency Phuket Resort is home to a Marine Biological Center that educates guests about marine life at the resort’s house reef, elevating the guest experience beyond traditional recreation offerings.”
