As the travel and tourism industry continues to evolve, Gen Z is emerging as a key demographic shaping global travel trends. Representing nearly one-third of the global population with an estimated spending power of USD 143 billion, Gen Z plays a significant role in shaping the market and driving new trends in the travel industry.
A recent survey by Agoda highlights key travel trends among Gen Z across Asia, revealing that social media plays a crucial role in shaping their travel choices. TikTok (20%) and Instagram (14%) are the leading sources of travel recommendations and inspiration. However, personal recommendations still hold significant influence, ranking second at 17%. Additionally, last-minute travel has become a defining characteristic of Gen Z travelers, with 20% booking flights less than a week in advance—outpacing Millennials, Gen X, and Baby Boomers. This spontaneity extends to accommodations, as one in four Gen Z travelers books their stays at the last minute. The survey also found that 38% of Gen Z travelers prefer to explore destinations with a partner. Cost-consciousness is another defining trait, with 56% opting for accommodations under USD 50 per night, while 32% are willing to spend between USD 51 and USD 100 per person per night. Travel enthusiasm remains strong, with nearly half of Gen Z and Millennials planning 1–3 trips in 2025, and a third aiming for 4–6.
This trend is reinforced by McKinsey’s 2024 research, which found that Gen Z and Millennials allocated an average of 29% of their incomes to travel in 2023. Additionally, younger generations prioritize travel experiences over material possessions—52% of Gen Z respondents reported splurging on experiences, compared to just 29% of Baby Boomers.
Airbnb's data further indicates Gen Z’s preference for nature and cultural explorations, with Thailand emerging as one of the top winter destinations based on search results. Meanwhile, all-inclusive packages are gaining traction among younger travelers. A joint survey by Expedia, Hotels.com, and Vrbo found that 41% of Gen Z respondents prefer all-inclusive resorts. The top reasons cited were minimal stress (41%), ease of booking (39%), and a sense of luxury (38%). In this context, hotel experiences play a crucial role in Gen Z’s travel decisions. A survey by Marriott International found that 99% of respondents believe their hotel choice can make or break their holiday. This reflects a broader trend where hotels are increasingly seen as more than just a place to stay, but as destinations for exploration.
Several of these trends—cost-consciousness and a preference for cultural and nature-based experiences—align with Southeast Asia’s tourism offerings, which provide exotic and nature-rich experiences at relatively affordable prices. As Gen Z continues to shape the travel landscape, this evolving demographic presents new opportunities for Southeast Asia’s tourism industry to expand by offering tailored experiences that cater to their preferences.
