Generation Z is changing the rules of travel, while tourism brands are still looking for the right response
Generation Z is no longer merely the future audience of the tourism industry, but a group of travelers that is already changing the way travel is planned, sold and experienced. This is a generation that grew up with smartphones, social networks, quick price comparisons and constant access to reviews, so traditional messages from tourism brands often do not see them as a sufficient reason to buy. For hotels, airlines, destination organizations and travel platforms, the problem is not only how to attract younger travelers, but how to retain them in an environment in which inspiration, decision and criticism can happen on the same day.
According to Deloitte's global survey for 2025, Generation Z and millennials increasingly connect consumption, work and life decisions with three values: money, meaning and well-being. Although Deloitte's research primarily tracks the work and social attitudes of younger generations, the same pattern is becoming increasingly visible in tourism. Travel is not seen only as a vacation, but as an investment in experience, personal identity, mental respite and social connection. That is precisely why tourism brands that rely only on discounts, generic slogans and embellished photographs are finding it increasingly difficult to reach younger travelers.
The tourism industry is meanwhile operating in a period of recovery and strong competition. According to UN Tourism data, international tourism in 2024 almost returned to its pre-pandemic level, with around 1.4 billion international tourist arrivals. The organization expected further growth in international arrivals of three to five percent in 2025, provided that economic and geopolitical circumstances became more stable. This means that the fight for travelers is not taking place in an empty space: demand exists, but younger travelers choose differently, react faster and change brand loyalty more easily.
The problem is not a lack of interest, but a change in expectations
A frequent mistake by tourism brands is the assumption that Generation Z is less interested in travel because it is more cautious with money. Available data show a more complex picture. McKinsey stated in an analysis of traveler habits that younger travelers often have a strong desire to travel, but are more willing to accept compromises if these enable them to achieve better overall value. For example, in McKinsey's research, 37 percent of Generation Z members said they would accept a cheaper flight, even if it included a less convenient departure time or a layover, while 22 percent of baby boomers accepted such a compromise.
That difference shows why the question of value is more important than the question of the lowest price. Generation Z is not necessarily looking for the cheapest product, but for the feeling that money has been spent wisely. A hotel that offers a basic room without local context may be less attractive than more modest but better-positioned accommodation in a neighborhood with good food, public transport and authentic content. The same applies to destinations: a large promotional video can attract attention, but the actual decision is often driven by concrete suggestions, reviews, short videos and recommendations from other travelers.
Expedia Group stated in its Unpack '25 report that the attitude of younger travelers toward all-inclusive offers is also changing. According to Expedia's announcement, one third of Generation Z travelers said their perception of all-inclusive hotels had changed for the better, and 42 percent said an all-inclusive resort would be their preferred hotel type. This is not a return to the old model of mass holidays without individuality, but a signal that young travelers value predictable costs, simplicity of booking and less stress, especially in circumstances of higher prices and more uncertain household budgets.
For brands, this is an important lesson. Generation Z can simultaneously seek freedom, spontaneity and control over costs. Travelers may want a personalized experience, but also a package in which key expenses are clear in advance. They may be open to technology, but extremely sensitive to inauthentic communication. It is precisely in these tensions that the problem arises for travel brands: old segmentation models, in which younger travelers were automatically considered an audience for cheap hostels, entertainment and quick social media campaigns, are no longer precise enough.
Social networks are not just a promotion channel
For Generation Z, social networks are not an addition to travel, but part of the entire process: from inspiration and comparison of options to checking reputation and sharing the experience after returning. A tourism brand that treats social networks only as advertising space misses an essential change. Younger travelers often do not look for perfectly staged advertisements, but for proof that a destination or service works in real life. A short video from a local restaurant, an honest accommodation review or a post by a traveler showing public transport can have greater persuasiveness than an official campaign.
Booking.com stated in its travel predictions for 2025 that travelers are increasingly looking for authentic experiences, personal growth, more meaningful connections and a departure from usual holiday patterns. Although these predictions do not refer exclusively to Generation Z, they fit well with the habits of younger travelers who increasingly connect travel with identity and social signals. Brands therefore cannot rely only on the visual appeal of a destination. They must show what a visitor can truly experience there, how accessible the experience is, how locally grounded it is and what kind of mark it leaves on the community.
The problem arises when brands try to fake spontaneity. Generation Z very quickly recognizes messages that sound like a marketing imitation of internet language. A campaign that mechanically uses TikTok trends, without a real understanding of the destination and audience, can produce the opposite effect. In tourism this is especially risky because travel involves high costs, logistics, expectations and limited free time. If the digital message promises one thing, and the on-site experience shows another, disappointment becomes public and spreads quickly through reviews and social networks.
Authenticity, sustainability and price often collide
One of the biggest challenges for tourism brands is the fact that Generation Z often simultaneously expresses high expectations and financial limitations. Young travelers may prefer more sustainable options, local experiences and more ethical consumption, but they remain price-sensitive. Deloitte's research shows that younger generations are focused on meaning and well-being, but also on financial security. In tourism, this means that sustainability cannot be offered only as an expensive add-on for a narrow segment of travelers.
Booking.com has emphasized in reports on trends the growing importance of sustainability and awareness of tourism's impact on local communities. But for brands it is not enough to claim they are sustainable. Travelers increasingly expect concrete, understandable and verifiable information: how waste is reduced, how energy consumption is managed, how much the local community benefits from tourism and whether employees in the destination are treated fairly. General green claims without evidence can look like greenwashing, especially to an audience accustomed to quickly checking information.
On the other hand, some travelers will still choose the cheaper option if the price difference is large. This does not mean that sustainability is unimportant, but that it must be integrated into the basic value of the product. For example, public transport to attractions, the possibility of refilling a water bottle, recommendations of local crafts, flexible bookings and the reduction of hidden fees can be just as important as major environmental declarations. For Generation Z, sustainability is often not a separate category, but part of the overall feeling that the journey is fair, meaningful and smartly organized.
Tourist destinations have an additional responsibility here. Overtourism, pressure on housing and tensions between visitors and local residents are becoming an increasingly important part of public debate in popular European cities. If a destination simultaneously invites young travelers to an "authentic experience", while the local community feels that tourism is worsening quality of life, the brand message becomes unconvincing. Younger travelers may not always choose the most sustainable option, but they increasingly notice the mismatch between official communication and reality on the ground.
Technology must simplify travel, not replace trust
Artificial intelligence, personalized recommendations and automated tools are increasingly present in travel planning. American Express Travel stated in its 2025 report that travelers, especially millennials and Generation Z, increasingly use technology in planning, but still seek more meaningful and more thoughtful vacations. This is an important difference. Technology can speed up search, suggest an itinerary and compare options, but it does not remove the need for clear terms, customer support and credible information.
For tourism brands, this means that digital transformation must not end with a chatbot and automated recommendations. If a user receives a personalized offer and then encounters hidden costs, unclear baggage terms or slow support, the technological impression quickly disappears. Generation Z is used to fast digital services, but that does not mean it accepts a poor experience just because the process is modern. On the contrary, high digital expectations often mean less patience for outdated booking systems and inconsistent information.
McKinsey emphasized in an analysis of the tourism sector that travelers value the ratio of price to value received most when choosing a booking channel. This is especially important for platforms and intermediaries, because younger users easily move from one service to another if they find a better combination of price, flexibility and trust. Loyalty is increasingly less based on cards and points, and increasingly more on consistent experience. A loyalty program can help, but it cannot compensate for a poorly resolved refund, unclear customer support or the feeling that the brand does not understand travelers' needs.
Technology also changes expectations toward personalization. Younger travelers do not always want a standard package of seven nights and several usual excursions. They want the ability to adapt travel to budget, interests, dietary habits, mode of transport, rhythm of remote work or the need for a break from screens. Brands that offer modular, clear and flexible products have an advantage over those that still sell travel as a static catalogue.
Travel brands must learn to talk less and prove more
The key problem between Generation Z and travel brands can be summed up in the question of trust. Younger travelers are not necessarily against large brands, package arrangements or classic tourism products. Expedia's data on all-inclusive hotels show precisely the opposite: if a product solves a real problem, such as stress, price and simplicity, it can become attractive even to a generation that is often described as highly individualized. But the brand must clearly show why the offer is valuable, who it is intended for and what the traveler truly receives.
This requires a change in marketing approach. Instead of campaigns that try to look young, it is more important to offer content that is useful: real itinerary examples, transparent costs, public transport advice, information on seasonal crowds, local rules of behavior and recommendations that do not seem paid or generic. Instead of excessive reliance on influencers, brands should build a broader network of credible voices, including local guides, small entrepreneurs, hotel employees and travelers themselves.
In practice this also means more courage in segmentation. Generation Z is not a single mass. Some travelers seek festival and concert trips, some wellness and rest, some affordable city breaks, some nature and silence, and some luxury justified by a special experience. One message cannot convince everyone. Brands that reduce younger travelers to memes, short videos and discounts miss the fact that behind digital behavior lie very different life circumstances, incomes, interests and values.
The tourism industry therefore does not have to invent a completely new language, but it must connect promise and execution more precisely. If authenticity is advertised, the experience must include genuine local content. If sustainability is mentioned, claims must be measurable. If flexibility is offered, conditions must be clear before payment. If artificial intelligence is used, it must make the user's decision easier, not conceal a lack of support. Generation Z does not seek perfect brands, but it quickly punishes inconsistency between message and experience.
The stakes are bigger than one generation
Although the debate is often conducted under the label of Generation Z, the changes it accelerates are already affecting the broader market. Older travelers also use social networks, compare prices, seek flexible terms and increasingly expect personalization. What is today seen as a demand of younger travelers may tomorrow become the standard for everyone. That is why tourism brands that now learn to combine transparency, good technology, local context and real value will gain not only access to one age group, but a more resilient business model.
UN Tourism's data on the recovery of international travel show that the market has returned to a growth phase, but growth alone does not guarantee loyalty. In the competition among destinations, platforms and accommodation models, Generation Z behaves as an early indicator of new expectations. It seeks travel that is accessible, more meaningful, visually appealing, digitally simple and socially convincing. That is a demanding set of criteria, but not an impossible one.
For tourism brands, the most important conclusion is not that they must constantly follow every new trend, but that they must understand why trends emerge. Short trips, the all-inclusive comeback, local experiences, sustainability, digital planning and the search for authenticity are not separate phenomena. They all point to the same need: the traveler wants to reduce risk, increase value and get an experience that can be justified with their own money, time and values. Brands that understand this will have an advantage over those that still see Generation Z as an audience for whom it is enough to offer a beautiful photograph and a short slogan.
Sources:
- Deloitte Global – announcement on the 2025 Gen Z and Millennial Survey and the values of younger generations (link)
- McKinsey & Company – analysis of the habits of younger and older travelers and compromises in travel planning (link)
- UN Tourism – data on the recovery of international tourism in 2024 and projections for 2025 (link)
- Expedia Group – Unpack '25 report and data on the change in perception of all-inclusive hotels among Generation Z travelers (link)
- Booking.com – travel trend predictions for 2025, including authentic experiences, sustainability and more meaningful travel (link)
- Travel Weekly – overview of findings from the American Express Travel 2025 Global Travel Trends Report on traveler motivations and the role of technology (link)