SINGAPORE, 10 August 2023: Travel is no longer about crossing destinations off a checklist for Millennials and Gen Zs in Asia Pacific.
Experiences are now the first consideration factor when planning a holiday, trumping accommodation and flight options for this group, and they’re willing to spend on it too.
According to a survey by the travel and experiences platform Klook, travellers are ready to spend big on travel. One in three Millennial and Gen Z travellers will spend more than double the average monthly income in Asia (USD1,069)2 on their next holiday, which amounts to USD2,000 and more.
Klook COO and co-founder Eric Gnock Fah said: “Embracing a new era of travel, experiences have emerged as a new coveted currency for the next generation of travellers, particularly among Millennials and Gen Zs. Unique experiences and activities take precedence in their travel plans as the first thing they look at, with 85% of travellers willing to invest in experiences during their holidays. This remarkable shift is a testament to their increasing desire for authentic experiences, with their decisions fueled by social media over traditional sources like search engines and travel guides before embarking on their next travel adventure.”
Focus on experience
As travel becomes more intentional, most travellers also prioritise experiences and make them a focal point of their trip, with 63% booking their experiences before they fly.
The Klook Travel Pulse survey was conducted in July 2023 through Milieu with a total of 2,400 respondents across 12 markets, including Hong Kong, Taiwan, Singapore, Malaysia, Philippines, Thailand, Vietnam, South Korea, Japan, Australia, Mainland China and India.
More than 90% of Millennials and Gen Zs emphasise unique and memorable experiences during their travels, with 85% signalling a willingness to invest in them during their holiday.
Notably, travellers from Thailand, Vietnam, Mainland China, and India lead the pack across the Asia Pacific, with a strong desire to spend more on nature and outdoor experiences like island tours and cultural experiences such as visiting historical sites.
Splurge big on travel
Surprisingly, Gen Zs are just beginning to embark on their careers and are not far behind their Millennial counterparts in splurging on travel. One in five Gen Zs are willing to spend over USD3,000, slightly trailing one in four Millennials who share the same sentiment. The biggest spenders across the Asia Pacific emerge from Mainland China (58%) and Hong Kong (39%), taking the top spots in willingness to spend beyond USD3,000 on their next holiday.
More price-conscious travellers originate from India, Vietnam, and the Philippines, with the majority willing to spend below USD2,000, still more than double their average monthly income.
Do-it-yourself travel planning
Most Millennials and Gen Zs across the Asia Pacific are becoming do-it-yourself travel planners, with 65% planning their holidays at least two to six months in advance. Travellers ranking highest in this bracket come from Singapore (74%) and Australia (57%). In contrast, nearly half of Mainland China, Vietnam, and Thailand travellers prefer to make holiday plans in less than two months.
Millennials and Gen Zs increasingly opt to travel closer to home domestically (60%) and within Asia Pacific (30%). The top three destinations on the travel wish list are Japan, Thailand and Singapore. These findings indicate a rising trend of younger explorers focusing on the desire to explore and seek new experiences over the actual destination itself.
(Source: Klook)
