CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week, we’re sizing up Gen Z’s summer travel plans.

It’s April, which means we’re just a few months away from the summer travel bonanza. Last year, Gen Zers made headlines for their unapologetic globe-trotting, no matter the hit to their (digital) wallets.

This year, Zoomers are once again planning their summer itineraries, keeping experiences, authenticity, and values top of mind (not surprising for these “inclusive consumers,” as McKinsey senior partner Kelsey Robinson and colleagues refer to Gen Zers). As a result, new hot spots are emerging. Some Gen Zers have their sights set on Southeast Asian countries, such as Thailand and Vietnam, where the cost of the flight to get there from the other side of the world may be high but the cost of food, lodging, and experiences is relatively low. Thailand may also draw a subset of ink-seeking Gen Z “tattourists,” as well as those who want to feel like they’re living their on-screen fantasies IRL and those looking for eco- and cultural-tourism destinations.

Thailand also happens to be a popular travel locale among tourists from India, where the median age is about 27 years old. McKinsey research finds that there will be a wave of outbound tourism from India in the next 15 years, growing from 13 million trips in 2022 to over 80 million by 2040. These travelers will opt for destinations, such as those in other parts of South Asia and the Middle East, where they can touch down in less than four hours. 

Of course, not all Zoomers will find themselves on a flight to Koh Phi Phi this summer. Airfares (whether they get more expensive or level off) and other travel costs for international destinations are pushing some Gen Z travelers, at least those in the United States, to choose domestic destinations instead. In fact, high prices are challenging travel-hungry Gen Zers to stretch their budgets even further this year.

For much of the past year, Gen Zers ranked travel as the category in which they intended to splurge the most. That shifted earlier this year, when Z babies in our latest US consumer spending research said that they would rather splurge on groceries than on travel. (We are not going to Italy for pasta. We have pasta al limone at home!!)

That’s not to say travel is no longer important to Gen Zers—they still crave experiences, both near and far from home. But winning Gen Z’s business means the travel industry (including airlines, hotels, and booking services) will have to tailor their offerings to meet Gen Zers where they are. Here are five strategies to consider:

VISUALIZE IT

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CROSSWORD

—Edited by Alexandra Mondalek, editor, New York