Targeting Gen Z is nothing new, but their preferences now challenge travel and loyalty infrastructure optimised over decades for previous generations. This is the inflection point: operators must substantially adapt products, pricing and loyalty to Gen Z’s selective, experience-first mindset, or risk missing the growth opportunity as expectations increasingly diverge from what legacy models deliver.
Delivery
This report comes in PPT.
Key findings
Generations now define travel value in sharply different ways
Gen Z will pay a premium for distinctive, culturally immersive and sustainable travel, and are twice as likely as Millennials to choose alternative accommodation, while Millennials organise around partners, children, convenience and practical rewards. Baby Boomers and Gen X come with their own set of expectations. One-size-fits-all strategies leave share of wallet on the table.
AI has moved from inspiration into the booking itself
Digital engagement is now the baseline, with two thirds of consumers using technology to improve daily life and 31% of Gen Z already using generative AI to plan trips. Discovery has shifted onto social platforms, and operators making planning hyper-personalised and context-aware turn inspiration into conversion rather than losing it to friction.
Travellers trade down on basics to trade up on meaning
Younger travellers will economise on interchangeable components to upgrade the moments that carry emotional and social payoff. Flexible booking, a smooth mobile experience, transparent pricing and curated bundles together capture that selective trade-off, while rigidity or excessive choice suppresses perceived value.
Loyalty is shifting from points towards access and experiences
Eight of the top 10 travel loyalty programmes now offer experiential rewards, and Gen Z consumers join these for exclusive access, immersive experiences and in-person events at nearly double the rate of Baby Boomers. Transactional points and status tiers alone no longer earn loyalty from the next generations driving growth.
Gen Alpha is already shaping tomorrow’s travel expectations
Gen Alpha already influences family travel and will expect personalisation, seamless booking and immersive experiences as standard. Operators should involve children in trip planning, connect digital engagement with real-world experiences, and build loyalty that can transition from family accounts to independent membership.
Why read this report?
Key findings
Gen Z and the new travel value equation
Rethinking 30 years of industry optimisation
A closer look at the relationship between experiences and value
Travel appeals across generations, but spending priorities differ
A more modern travel value equation
Higher perceived value, higher pricing power
Critical differences in generational preferences in 2026
The lodging example: Protecting pricing power as preferences shift
Delta Air Lines: Premium brand commanding 20% more per seat
Gen Z: More cost aware, more willing to spend well where it counts
Survey deep dive: Where Gen Z over-indexes
Three white spaces that resonate with Gen Z beyond price
Gen Z: The AI booking pioneers
Loyalty programmes need to deliver more than points
Asia Pacific is already living the market’s next chapter
Gen Alpha raises the floor, not the bar
Gen Z and the new travel equation: How to win
What is the future of Gen Z and the new travel value equation?
Evolution of Gen Z and the new travel value equation
Questions we are asking
Travel
Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.
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