Speaking at the World Aviation Festival this year, Cover Genius, SVP of Travel, Ticketing and Mobility, Peter Smith, claimed that, “One thing is clear, Gen Z will be a key demographic for the travel industry over the next 10 years.” During his presentation, he highlighted the importance of catering to this particular demographic, how they come with a new set of expectations that are redefining the industry, and how travel brands are responding.
His thoughts about catering to this growing demographic of travelers are below.
High Expectations, Responsibly
Gen Z is known for their high expectations when it comes to customer service and product quality. It’s a generation that has grown up with social media and content specifically tailored to their interests. As such, they expect the same experience when dealing with brands online. When these expectations are not met, it’s easier than ever to find an alternative choice that can cater to their needs in a seamless way. According to research, 57% of Gen Z in the US are less loyal to brands now than they were pre-pandemic. This should serve as a wake-up call for travel companies to step up their game and deliver on offering more tailored offerings that add value to their overall travel experience.
Anxiety and Risk-Awareness
Gen Z is also touted as the most anxious generation, with more than 60% of Gen Zers diagnosed with anxiety or depression. This anxiety is fueled by social media, the pandemic and environmental issues, among other concerns. Travel companies can help alleviate this anxiety and help Gen Z shield themselves of risk by providing tailored tools for peace of mind. For example, travel protection to safeguard their purchase, flexible booking options, and personalized travel plans.
Hyper-Personalization: The Key to Loyalty
Gen Z grew up with smartphones, apps, and content tailored specifically to them. As such, they expect the same level of personalization from the companies they choose to entrust with their travel. Hyper-personalization is key to driving loyalty, and it’s not just about offering bespoke options. It’s about providing unique experiences informed by data. Travel companies can use data to create personalized travel plans, unique experiences, and accessible destinations that cater to the specific needs of Gen Z travelers. With that data, they can also recommend ancillary offerings that are tailored to those specific needs. For example, an older traveler with their family will have very different needs for a two-week holiday than a Gen Z solo traveler extending their business trip to work remotely for a month.
Flexibility Over Luxury
Gen Z values flexibility over luxury. They want flexible travel planning, unique experiences, and accessible destinations. According to Skift research, 75% of Gen Z took two or more trips in the past year. As this significant segment of consumers ramps up the amount they spend on travel and the number of trips they book each year, travel companies need to respond with specific, personalized options.
For Gen Z, personalisation is about flexibility. They don’t want a one-size-fits-all policy that will cover them for everything – they want unbundled options that fit their every purchase and lifestyle choice. This flexibility is key to driving loyalty and repeat bookings.
Bleisure Travel: Work from Anywhere
In addition to personal travel, Bleisure travel has grown in popularity in recent years, especially among younger generations. Hilton’s 2024 Trends Report found that more than one-third of Gen Z and millennial business travelers globally plan to extend a business trip this year to enjoy leisure time before or after their work obligations. This is another example of the need for flexibility. These travelers have a different set of needs than purely leisure travelers which requires brands to find new personalized options for them. The customized approach, with unbundled options they can choose from can help travel brands set themselves apart from competitors.
Sustainability
Gen Z is eco-conscious and values sustainability. Intermodality, or traveling via multiple modes of transport to be more eco-conscious, has been gaining traction in recent years. Travel companies can offer intermodal agreements that allow passengers to book connecting itineraries across different modes of transport, providing a seamless experience and reducing the carbon footprint of travel. Different protection options for those travelers could be offered through a single provider, seamlessly through their purchase journey.
Conclusion
In conclusion, Gen Z’s expectations are redefining the travel industry. They want flexibility, personalization, and sustainability. Travel companies need to work with partners to help them adapt to these demands by providing bespoke options, unique experiences, and accessible destinations through technology, like insurtech. By embedding protection and providing tools, seamlessly, for peace of mind, travel companies can drive loyalty and revenue. The future of travel in today’s unpredictable world is all about flexibility and personalization.
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