Millennials (born 1981-1996) already represent the largest travel spending segment. Gen Z (born 1997-2012) is the fastest-growing. Together, they'll account for over 70% of travel spending by 2030. Their preferences, expectations, and buying behaviour are fundamentally different from previous generations — and travel businesses that don't adapt will lose market share.
The Data: How Younger Generations Travel Differently
Spending Patterns
| Metric | Gen Z | Millennials | Gen X | Boomers |
|---|---|---|---|---|
| Annual travel spend (avg) | £2,200-£3,500 | £3,800-£5,500 | £4,000-£5,200 | £3,500-£4,800 |
| % of income on travel | 14-18% | 12-16% | 8-12% | 6-10% |
| Trips per year (avg) | 3-5 | 3-4 | 2-3 | 2-3 |
| Average trip length | 5-7 nights | 7-10 nights | 8-12 nights | 10-14 nights |
| Booking lead time | 2-6 weeks | 4-10 weeks | 8-16 weeks | 12-20 weeks |
Source: Skift Research, ABTA Holiday Habits Report
Key insight: Younger generations travel more frequently but for shorter durations, book closer to departure, and allocate a higher percentage of their income to travel. They treat travel as a regular life activity, not a special annual event.
Discovery and Booking Channels
| Channel | Gen Z | Millennials | Gen X | Boomers |
|---|---|---|---|---|
| Instagram/TikTok | 65% | 42% | 18% | 5% |
| Google search | 58% | 62% | 68% | 55% |
| OTA (Booking.com, Expedia) | 52% | 55% | 48% | 35% |
| Direct supplier website | 28% | 38% | 42% | 45% |
| Travel agent | 18% | 28% | 35% | 42% |
| Word of mouth | 45% | 48% | 40% | 52% |
| Travel blogs/vlogs | 42% | 35% | 15% | 8% |
Source: Phocuswright European Consumer Travel Report
Key insight: Social media has replaced traditional discovery channels for younger travellers. But travel agents remain relevant — particularly for complex, high-value, or first-time experiences. The agents who reach younger customers meet them on their channels.
What They Value
| Preference | Gen Z Priority | Millennial Priority |
|---|---|---|
| Unique experiences | #1 | #2 |
| Value for money | #2 | #3 |
| Sustainability | #3 | #5 |
| Instagram-worthy | #4 | #6 |
| Authenticity | #5 | #1 |
| Comfort and luxury | #8 | #4 |
| Safety | #6 | #7 |
| Convenience | #7 | #8 |
Harris Group research confirms that 78% of millennials prefer spending on experiences over material goods — and this preference extends even more strongly to Gen Z.
What This Means for Travel Businesses
Product Design
| Traditional Product Design | What Younger Travellers Want |
|---|---|
| Standard packages (flight + hotel) | Flexible, modular experiences |
| Beach/pool resort focus | Experiential and activity-based |
| All-inclusive buffets | Local food experiences and culinary tours |
| Coach tours with fixed itineraries | Self-guided with flexible highlights |
| Tourist attractions | Off-the-beaten-track discoveries |
| Luxury measured by thread count | Luxury measured by uniqueness and story |
Tour operators and hoteliers need to rethink product design for these preferences — and train agents to sell experiences differently.
Selling Approach
The traditional travel sales conversation doesn't resonate with younger buyers:
| Traditional Selling | Younger Traveller Response |
|---|---|
| "This hotel is 5-star with a spa" | "So are hundreds of others" |
| "The price includes flights and transfers" | "I can price that myself on Skyscanner" |
| "It's very popular with families" | "I don't want to go where everyone goes" |
| "Let me show you the brochure" | "I've already seen 200 photos on Instagram" |
Agents need to sell differently:
| Effective Approach for Younger Travellers | Example |
|---|---|
| Story-led | "The chef at this riad learned to cook from her grandmother — she teaches guests her family recipes" |
| Experience-focused | "You can kayak to a hidden beach that most tourists never find" |
| Social proof via UGC | "Here's what recent guests posted — unfiltered, real experiences" |
| Value-articulated | "The included experiences are worth £800 if booked separately" |
| Sustainability-aware | "This lodge supports a local conservation project" |
AI roleplay can train agents on these modern selling approaches, practising with virtual customers who respond like real Gen Z and Millennial buyers.
Technology Expectations
| Expectation | What It Means for Travel Businesses |
|---|---|
| Mobile-first | Booking, communication, and training must work perfectly on smartphones |
| Instant response | 24/7 availability via chat, not business-hours-only phone |
| Self-service | Ability to research, customise, and modify without calling |
| Visual content | Video, photos, and virtual tours — not PDF brochures |
| Seamless digital | Contactless check-in, digital keys, app-based everything |
| Personalisation | Recommendations based on their preferences, not generic offers |
Social Media as Distribution
For younger travellers, social media isn't just inspiration — it's increasingly a booking channel:
| Platform | Travel Use | Business Implication |
|---|---|---|
| TikTok | Destination discovery via short-form video | Create snackable destination content |
| Inspiration and visual research | Invest in visual content quality | |
| YouTube | Detailed research and reviews | Long-form destination guides |
| Trip planning and saving | Create pinnable itinerary content | |
| Authentic reviews and advice | Monitor and participate in travel subreddits |
Adapting Your Business
For Tour Operators
| Adaptation | Implementation |
|---|---|
| Modular product design | Create mix-and-match experiences, not rigid packages |
| Experience-led marketing | Lead with activities and stories, not hotel specifications |
| Social-first content | Short-form video, UGC partnerships, influencer collaborations |
| Agent training on younger demographics | Roleplay practice selling to Gen Z/Millennial customers |
| Flexible booking policies | Easy amendments, last-minute booking, BNPL options |
For Travel Agencies
| Adaptation | Implementation |
|---|---|
| Multi-channel presence | Active on Instagram, TikTok, WhatsApp — not just email and phone |
| Specialist positioning | Niche expertise (adventure, wellness, food tourism) attracts younger clients |
| Modern selling skills | Train on consultative, experience-focused selling |
| Technology adoption | CRM, online booking, AI tools — match customer tech expectations |
| Advisor branding | Position agents as travel experts and creators, not order-takers |
For Hotels
| Adaptation | Implementation |
|---|---|
| Experience programming | Curated local experiences, classes, and activities |
| Design-forward spaces | Instagram-worthy common areas and rooms |
| Technology integration | Mobile check-in, keyless entry, app-based services |
| Local authenticity | Partner with local businesses, artisans, and restaurants |
| Sustainability visible | Show don't tell — compost gardens, solar panels, community projects |
| Staff training | Train on younger guest expectations and communication styles |
For DMOs
| Adaptation | Implementation |
|---|---|
| Content creator partnerships | Invest in creator economy, not just traditional PR |
| Experience packaging | Highlight unique experiences, not just landmarks |
| Agent training on destination | Train agents to sell destination to younger demographics |
| Digital-first marketing | Video, social, influencer — reduce print |
| Sustainability storytelling | Demonstrate destination's sustainability commitment |
The Agent Opportunity
Despite digital nativity, younger travellers still use travel agents — especially for:
| Scenario | Why Agents Are Valued |
|---|---|
| First long-haul trip | Complexity and uncertainty drive professional advice seeking |
| Honeymoon/anniversary | High-stakes occasion requires expertise |
| Multi-destination | Logistics of complex itineraries benefit from professional planning |
| Adventure/activity | Safety, suitability, and logistics need expert guidance |
| Group travel | Coordination complexity exceeds DIY capability |
The 18-28% of younger travellers using agents represents a significant and growing market — provided agents adapt their approach, their channels, and their selling skills to match these customers' expectations.
Train your team for the next generation of travellers →
This article is part of our Travel Industry Trends series. Related reading:
