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Home Travel

Asia Pacific’s Gen Z and Millennials: Travel Savvy Seek Value and Experiences

Travel loyalty programs are seeing a shift as Gen Z and Millennials in the Asia Pacific (APEC) region, excluding China, prioritize belonging to a single, comprehensive program. A recent survey by Marriott Bonvoy, the acclaimed travel program of Marriott International, revealed that while 60% of APEC’s Gen Z and Millennials actively participate in loyalty programs, managing multiple programs is a challenge. This has led a significant 57% to seek a singular program that caters to all their travel needs.

The survey, conducted across ten APEC markets with 1,000 respondents, aimed to understand the evolving travel preferences and behaviors of these younger generations. The findings paint a picture of an emerging generation of “Savvy Explorers” – travel-focused and value-driven individuals who prioritize maximizing their travel budgets and seeking unique experiences.

Asia Pacific's Gen Z and Millennials
Asia Pacific’s Gen Z and Millennials

Travel as a Lifestyle Priority

Travel remains a top priority for Gen Z and Millennials in APEC, with a remarkable 73% planning at least two trips in the coming year. Furthermore, 91% intend to maintain or even increase their travel spending compared to the previous year. Travel is viewed as an essential lifestyle component, with many willing to forego everyday indulgences like dining out (60%), shopping sprees (57%), and even their daily coffee fix (54%) to prioritize travel experiences.

“The survey results suggest a strategic approach from Gen Z and Millennials in APEC,” explains John Toomey, Chief Sales and Marketing Officer, Asia Pacific excluding China, for Marriott International. “They are actively seeking ways to leverage everyday spending for rewarding travel experiences. Additionally, they prefer a single, all-encompassing loyalty program that fulfills their needs. Marriott Bonvoy, offering access to over 30 brands across 10,000 destinations, is well-positioned to deliver greater value and unlock more experiences for Gen Z and Millennials.”

Marriott Bonvoy’s appeal is evident in its membership growth within APEC, exceeding 50% since 2019. Member engagement is also high, with a 40% increase in points earned in 2023 compared to 2022 and a significant 55% rise in points redemption during the same period. This trend extends to the Marriott Bonvoy app, where APEC member enrollment through digital channels has grown by more than 25%. Mobile app downloads and active users have more than doubled in 2023 compared to pre-pandemic levels.

Unlocking Travel Value Through Everyday Spend

Savvy Explorers in APEC are adept at maximizing travel value through everyday spending. Leveraging their understanding of loyalty programs, they employ various tactics:

Travel-linked credit cards: Four out of five respondents reported actively using travel-linked credit cards for everyday purchases.

Loyalty program utilization: Nearly 67% use a travel loyalty program to book and redeem local experiences and staycations.

Marriott Bonvoy member behavior in APEC reflects this trend. Members accumulate points not only from stays at over 8,800 Marriott International properties worldwide but also through everyday spending. Points redemption for hotel stays in 2023 saw a 130% increase compared to pre-pandemic times, followed by points-to-miles conversions with partner airlines.

Hotels as Destinations

Creating a winning experience for Gen Z and Millennials hinges on the hotel experience itself. A staggering 99% of respondents believe their hotel choice can make or break their vacation. Hotels are increasingly viewed as key destinations for exploration, transcending the role of mere “accommodation.” Nearly four out of five respondents expect curated local programming and experiences offered by their hotel, while 84% prioritize hotels with designs and activities reflecting the local culture.

Marriott International’s commitment to delivering new hospitality experiences in the region is exemplified by the recent debut of Moxy Hotels in key APEC markets. Moxy Hotels is known for its playful atmosphere, innovative design, and contemporary amenities.

While maximizing travel budgets is a priority, APEC’s Gen Z and Millennials are willing to splurge on specific hotel aspects. Top reasons for splurging include the hotel’s room offerings (48%) and location (42%). Amenities remain crucial, but these guests prioritize a seamless travel experience. Mobile-first customer service (61%), reliable WiFi (68%), and flexible check-out options (64%) take precedence over traditional benefits like lounge access (42%).

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Tags: APECAsia Pacific's Gen Z and Millennialsdestination choicesGen Zhotel experiencesloyalty pointsloyalty programsMarriott BonvoyMillennialsoff-peak traveltravel preferencestravel trends

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