Return to Travel: What do Gen Z, Millennials and Gen X Expect?

A travel industry report by Publicis Sapient

THE FUTURE OF TRAVEL IS NOW

Since the onset of COVID-19, the travel and hospitality industry has been forced to adapt to rapidly changing safety guidelines and consumer behaviors. While travel rates are returning to pre-pandemic levels, our survey shows that this return looks quite different across countries and age groups, highlighting a crucial need for personalized offerings from travel brands.

Despite travel and hospitality companies working overtime amidst economic uncertainty, our survey results reveal that most travelers still have frustrations with trip planning, the booking process, and more. Industry leaders can use the findings in this report to understand the most important travel trends across generations—and how to meet changing consumer needs.

Key Findings

Travel priorities: Among Gen Z respondents, a “once-in-a-lifetime experience” is the top priority. For Millennials, it’s safe and secure trips, and Gen X is disproportionately looking for value for the money.
Sustainability in travel: Millennials are slightly more likely than Gen Z and Gen X to say that sustainability plays a vital role in where they travel, with two-thirds agreeing, versus 64% of Gen Z and 54% of Gen X.
Digital versus concierge: Gen Z was more likely than other generations to prefer the help of a human being—such as a concierge, customer service, or a travel agent—when researching certain travel experiences.
Top travel concerns: The top concern for respondents planning a trip is cost. Other concerns include safety, restrictions on travel, health concerns related to the pandemic, booking flexibility, and sustainability.
VR/AR travel planning: More than half of respondents are somewhat or very interested in VR/AR experiences to preview a destination before going, with Millennials being the most interested compared to Gen X and Gen Z.

BY THE NUMBERS: GENERATIONAL DIFFERENCES IN TRAVEL

Trip Length

Gen Z: Shorter trip length
Millennials: In the middle
Gen X: Longer trip length

Length of next vacation (percentages by group):

1 or 2 days: Total 12%, Gen Z 18%, Millennials 10%, Gen X 10%
3 or 4 days: Total 26%, Gen Z 27%, Millennials 26%, Gen X 25%
5 or 6 days: Total 21%, Gen Z 22%, Millennials 22%, Gen X 18%
7 or more days: Total 41%, Gen Z 33%, Millennials 41%, Gen X 46%

Travel Distance

Gen Z: Least likely to travel domestic
Millennials: In the middle
Gen X: More likely to travel domestic

Destination Preferences (percentages by group):

North America: Gen Z 32%, Millennials 28%, Gen X 32%
Central America/Caribbean: Gen Z 10%, Millennials 10%, Gen X 8%
South America: Gen Z 7%, Millennials 9%, Gen X 3%
Europe: Gen Z 40%, Millennials 45%, Gen X 42%
Middle East: Gen Z 13%, Millennials 23%, Gen X 13%
Africa: Gen Z 8%, Millennials 10%, Gen X 6%
Asia: Gen Z 23%, Millennials 31%, Gen X 18%
Australia/Pacific Islands: Gen Z 6%, Millennials 7%, Gen X 4%
Domestic travel within my country: Gen Z 24%, Millennials 29%, Gen X 39%

Travel Companions

Gen Z: More likely to travel with friends
Millennials and Gen X: More likely to travel with family or partner

Travel Motivations

Gen Z: A once-in-a-lifetime experience
Millennials: Specific leisure events, new cultures, new destinations
Gen X: A destination they’ve been to previously

Quarantine Concerns

Gen Z: More willing to quarantine or test
Millennials: In the middle
Gen X: Less willing to quarantine or test

Openness to New Payment and Planning Options

Paying with crypto: Millennials most open, Gen Z in the middle, Gen X least open
Previewing a destination with AR/VR: Millennials most open, Gen Z in the middle, Gen X least open
Travel subscription: Millennials most open, Gen Z in the middle, Gen X least open

GEN Z: TRAVEL HABITS AND COVID-19 ATTITUDES

Ages 18-25
50% live with parents, 25% live with partner
More likely to travel with friends
Motivated by once-in-a-lifetime experiences
More willing to quarantine or test for travel

MILLENNIALS: THE TRAVEL GENERATION

Ages 26-40
62% live with spouse/partner, 50% live with children under 18
Most likely to be frequent travelers (20% report 4+ trips in the upcoming year)
Adventurous: prefer new destinations, cultures, and events
Most impacted by COVID-19 (64% had to cancel a trip)
Health and safety are top priorities
43% strongly agree that travel is an integral part of their identity
More open to using AR/VR and cryptocurrency for travel
Slightly more likely to prioritize sustainability

GEN X: TRAVEL HABITS AND COVID-19 ATTITUDES

Ages 41-57
63% live with spouse/partner, 63% live with children
Prefer tried-and-true travel experiences and value for money
More likely to travel with family, take longer vacations (46% plan 7+ days)
Less likely to travel for new cultures, more likely to return to familiar destinations
35% would not travel where COVID testing/quarantine is required
More likely to travel domestically (39%)
Least open to crypto and AR/VR travel options

AGE IMPACTS TRAVEL MOTIVATIONS

Top Motivations (Total/US/UK/UAE):

Need for relaxation and well-being: 70%/47%/46%/44%
Need to get away: 47%/44%/34%/34%
Visiting friends and family: 44%/34%/20%/20%
To visit a destination I’ve always wanted to visit: 34%/20%/20%/13%
To experience a new culture: 20%/20%/13%/9%
Specific leisure events: 9%/3%/0%/0%
To return to a destination I’ve visited previously: 3%/0%/0%/0%

Each generation values something different:

Gen Z: Once-in-a-lifetime experiences
Millennials: Safe and secure destinations
Gen X: Value for money

TRAVEL BOOKING: WHAT MAKES PLANNING SEAMLESS?

All generations prefer booking travel online, but with some hesitation
62% use search engines and/or talk to friends and family to plan a trip
YouTube is a growing platform for travel research (34%), along with travel review sites (47%) and travel apps (37%)
Gen Z and Millennials are more likely to use social media (YouTube, Instagram, TikTok) for travel research; Gen X prefers search engines and review sites
Gen Z is more likely to speak to a professional (30%) compared to Millennials (24%) and Gen X (20%)

Biggest Frustrations with Online Booking:

Trusting they get what they pay for (44%)
Difficulty booking travel/accommodations (23%)
Managing reservations with multiple companies (13%)
Difficulty using travel websites/apps (8%)
Lack of personalized recommendations (7%)
Applying loyalty programs (4%)

Hotel and Flight Preferences:

Free Wi-Fi, complimentary breakfast, and all-inclusive options are top motivators for hotel choice
For airlines, in-flight Wi-Fi (54%) and entertainment (46%) are most motivating, followed by health checks for employees
Modern tech options (digital check-in, personalized app offers) are popular; 30% want to use their phone to check in and get offers
Millennials are most receptive to futuristic booking options like crypto and AR/VR

GEN Z LEADS IN SOCIAL MEDIA TRAVEL PLANNING

Channel Usage by Generation (approximate %):

Search engines: Gen Z 60, Millennials 62, Gen X 65
Friends/family: Gen Z 45, Millennials 48, Gen X 50
Travel review sites: Gen Z 40, Millennials 50, Gen X 55
Travel apps: Gen Z 35, Millennials 40, Gen X 35
YouTube: Gen Z 40, Millennials 35, Gen X 25
Instagram: Gen Z 35, Millennials 30, Gen X 15
Facebook: Gen Z 20, Millennials 30, Gen X 25
TikTok: Gen Z 28, Millennials 15, Gen X 5

VR/AR AND CRYPTO TRAVEL OPTIONS

Interest in using cryptocurrency to pay for travel:

Total: 18% very interested, 20% somewhat interested, 17% neither, 8% somewhat uninterested, 38% not interested
Gen Z: 15% very interested, 26% somewhat interested, 21% neither, 10% somewhat uninterested, 29% not interested
Millennials: 23% very interested, 21% somewhat interested, 16% neither, 6% somewhat uninterested, 34% not interested
Gen X: 11% very interested, 12% somewhat interested, 15% neither, 9% somewhat uninterested, 54% not interested

Interest in using AR/VR to preview destinations:

Total: 21% very interested, 32% somewhat interested, 18% neither, 8% somewhat uninterested, 21% not interested
Gen Z: 19% very interested, 33% somewhat interested, 23% neither, 8% somewhat uninterested, 17% not interested
Millennials: 26% very interested, 33% somewhat interested, 18% neither, 7% somewhat uninterested, 19% not interested
Gen X: 16% very interested, 28% somewhat interested, 18% neither, 10% somewhat uninterested, 28% not interested

Interest in travel subscription services:

Total: 27% very interested, 31% somewhat interested, 19% neither, 7% somewhat uninterested, 15% not interested
Gen Z: 26% very interested, 36% somewhat interested, 22% neither, 7% somewhat uninterested, 10% not interested
Millennials: 34% very interested, 31% somewhat interested, 17% neither, 6% somewhat uninterested, 13% not interested
Gen X: 19% very interested, 29% somewhat interested, 19% neither, 9% somewhat uninterested, 25% not interested

CULTURE IMPACTS TRAVEL: COUNTRY COMPARISONS

UAE travelers have the most trips planned for 2022 (2.6 trips on average), compared to U.S. (2.2) and U.K. (2.3)
UAE residents travel further and for longer (over half take trips of 7+ days)
72% of UAE respondents canceled a trip due to COVID-19, compared to 54% in the U.K. and 42% in the U.S.
UAE travelers are more likely to travel intercontinentally (73%), while U.S. (42%) and U.K. (39%) are less so
U.S. and U.K. travelers are motivated by the need to get away and relaxation; UAE travelers are more likely to travel to visit friends/family or for work

Average trip length for next vacation:

U.S.: 1-2 days (27%), 3-4 days (34%), 5-6 days (23%), 7+ days (16%)
U.K.: 1-2 days (12%), 3-4 days (28%), 5-6 days (16%), 7+ days (44%)
UAE: 1-2 days (9%), 3-4 days (16%), 5-6 days (23%), 7+ days (51%)

POST-COVID: CHANGES IN TRAVEL

Leisure travel is back, but travelers are more budget-conscious
60% are more likely to find affordable accommodations or have a staycation
54% are more likely to travel within their own country
50% may skip or delay travel to save money
Cost is the biggest trip-planning concern (especially in the U.S. at 66%)
Most travelers (56%) had to cancel or delay a trip due to COVID-19
85% of respondents are vaccinated (74% in the U.S., 95% in the UAE)

Willingness to travel to destinations with restrictions:

Total: 31% yes, 43% depends, 26% no
Gen Z: 38% yes, 43% depends, 19% no
Millennials: 33% yes, 43% depends, 23% no
Gen X: 21% yes, 43% depends, 35% no

Willingness to quarantine (days):

1-2 days: Gen Z 31%, Millennials 41%, Gen X 46%
3-4 days: Gen Z 33%, Millennials 29%, Gen X 24%
5-6 days: Gen Z 16%, Millennials 14%, Gen X 13%
7+ days: Gen Z 20%, Millennials 16%, Gen X 16%

BUDGET-FRIENDLY, DOMESTIC TRAVEL IS THE NEW NORM

59% more likely to find affordable accommodations
59% more likely to have a staycation
54% more likely to travel domestically
50% more likely to skip or delay travel to save money
37% more likely to fly to visit family/friends
30% more likely to travel abroad (but 48% less likely)

HOW TRAVEL COMPANIES CAN REGAIN DIGITAL TRUST

Develop a Customer Data Platform (CDP) to target each customer differently. A CDP can help travel brands see a consumer’s entire history of interactions, from social media to hotel stays, and personalize offers accordingly.
Promote data-informed, personalized travel offers. Cost is a top priority, but generic discounts aren’t effective. Automating test-and-learn marketing campaigns ensures calls-to-action keep up with customer needs.
Communicate transparently with consumers online. Trust is the #1 issue with online booking. Transparent communication and easy-to-digest, detailed information about every offering help build trust and loyalty.

Travel brands can compete with third-party websites by offering trustworthy, seamless booking options for transportation, lodging, dining, and activities all in one place. Incorporating AR/VR virtual tours can help customers preview experiences, and providing clear, targeted communication will help brands stand out as reliable and regain loyalty across demographics.

Contact:

Jagdish Ghanshani, Managing Partner, Global Client Partner, Travel & Hospitality, North America (jagdish.ghanshani@publicissapient.com)
Nick Shay, Group Vice President, Travel & Hospitality, International Markets (nick.shay@publicissapient.com)

About Publicis Sapient

Publicis Sapient is a digital transformation partner helping established organizations get to their future, digitally-enabled state, both in the way they work and the way they serve their customers. We help unlock value through a startup mindset and modern methods, fusing strategy, consulting and customer experience with agile engineering and problem-solving creativity. As digital pioneers with 20,000 people and 53 offices around the globe, our experience spanning technology, data sciences, consulting and customer obsession—combined with our culture of curiosity and relentlessness—enables us to accelerate our clients’ businesses through designing the products and services their customers truly value. Publicis Sapient is the digital business transformation hub of Publicis Groupe. For more information, visit publicissapient.com.