Generation Z and Millennials in the Asia Pacific region love minimalism and exploring how to maximize their travel experiences.

Marriott Bonvoy conducted a survey of 1,000 participants across 10 different APEC markets to better understand the changing travel habits and behaviors of Millennials and Generation Z. While 60% of Generation Z and Millennials in the APEC region actively subscribe to loyalty programs, the vast majority (57%) of survey participants indicated they are always looking for a program that truly meets all their travel needs to become loyal members, given the many existing loyalty programs on the market.

The survey also identified a new, sophisticated travel segment in the APEC region called "Smart Explorers"—a group focused on genuine travel values, highly oriented as avid travelers, always striving to maximize their travel value and enhance their unique travel experiences.

Travel in 2024 is a top priority for Gen Z and Millennials: Accordingly, 73% intend to take at least two trips in the next 12 months and 91% plan to spend the same, if not more, on travel than the previous year. Travel is considered an essential part of their lifestyle and most are willing to cut back on daily expenses such as eating out (60%), convenience shopping (57%), and daily coffee (54%) in order to spend more on vacation.

“The survey results show that Generation Z and Millennials in the APEC region are clearly shifting their values ​​from everyday spending to enriching travel experiences. They also want to participate in a single travel loyalty program that meets most of their needs. To achieve this goal, Marriott Bonvoy – which gives members access to more than 30 brands in 10,000 destinations – is well-positioned to deliver greater value and open up more exciting travel experiences for Generation Z and Millennials,” said John Toomey, Director of Marketing and Sales for APEC (excluding China) at Marriott International.

“As proof of the Marriott Bonvoy program’s appeal, membership numbers in the APEC region have increased by more than 50% since 2019. Even more encouraging is the active participation, accumulation, and utilization of our membership benefits. Members earned 40% more points in 2023 than in 2022 and are using their points effectively, with service redemption points increasing by more than 55% year-on-year,” added John Toomey.

The trend of growth and greater membership activity also extends to membership registrations through the Marriott Bonvoy app. The number of APEC membership registrations through digital channels increased by more than 25%, and mobile app downloads and active users more than doubled in 2023 compared to pre-pandemic levels.

The regional survey also uncovered several notable trends among Gen Zs and Millennials across 10 APEC countries. Specific market trends can be found in Appendix A.

The value of tourism is assessed through daily spending.

Through their daily spending, the "Savvy Explorers" group of travelers demonstrates a thoughtful approach to exploring different ways and experiences to truly capitalize on travel value. Familiar with loyalty programs, APEC's Generation Z and Millennials utilize various methods to maximize their travel rewards: 4 out of 5 report prioritizing travel-linked credit cards for everyday purchases, and 67% actively leverage loyalty program benefits to book and redeem staycation experiences.

This trend is clearly evident and supported by the habit of Marriott Bonvoy members utilizing their privileges within APEC. Members have accumulated points from stays and through daily spending at more than 8,800 Marriott International hotels worldwide. The rate of redemption through hotel stays in 2023 increased by 130% compared to pre-pandemic levels, accounting for the majority of redemptions, followed by the conversion of points to miles on partner airlines.

The hotel has become an important destination to explore.

Ninety-nine percent of respondents believe their hotel choices impact the quality of their vacation, and the hotel experience is key to winning over Gen Z and Millennials and influencing their spending decisions. Hotels are also increasingly seen as crucial for fulfilling the need for exploration, going beyond simply being a "place to stay" or "a place to sleep" when traveling. Nearly four-fifths of respondents expect destination hotels to offer curated local programs and experiences, while 84 percent stated they prefer hotels with designs and activities that clearly reflect the destination.

A prime example of this trend is the recent launch of the Moxy Hotels brand in several key APEC markets. Moxy is a brand with a youthful vibe, innovative design, and modern amenities; its launch demonstrates Marriott International's commitment to continuously delivering new experiences for travelers.

While maximizing travel budgets is still a desire, hotels are considered one of the key and essential factors that Generation Z and Millennials in the APEC region are willing to invest more in for their travels. The top motivators for spending on each trip by these new-generation travelers include hotel room packages (48%) and hotel location (42%). Although amenities remain a primary concern, these travelers value seamless travel experiences, with mobile-first customer service (61%), reliable Wi-Fi (68%), and flexible check-out options (64%) outweighing traditional benefits such as access to lounges (42%).

"Similar" destinations boost demand for tourism in the surrounding area.

International travel has returned, but APEC's Gen Z and Millennials remain committed to closer destinations. While iconic holiday destinations like the Swiss Alps and Bora Bora maintain their appeal, 55% are opting for similar destinations in the immediate vicinity that offer a similar experience. These so-called “similar destinations” are rapidly gaining traction, allowing Gen Z and Millennials to increase their spending on travel (69%), explore something new (63%), and be easily accessible (62%).

Reflecting the surge in demand for tourism in the surrounding region, Marriott International recorded that in 2023, more than 60% of bookings at APEC-owned hotels came from tourists within the region itself.

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Gen Z travelers are willing to spend generously on their trips.

Business travelers are returning.

Gen Z and Millennials are also actively designing and elevating leisure travel by leveraging opportunities from business trips to undertake multi-destination vacations. In addition to expanding their travel plans (68%), 84% of them indicated plans to explore nearby cities and countries as part of their after-work itineraries.

To meet this need, Marriott International offers customers a myriad of business-and-leisure options with over 560 hotels and resorts across 24 brands in 22 APEC countries and territories to choose from.

Traveling outside of peak season maximizes the destination experience.

The survey also revealed that Gen Z and Millennials place great importance on careful travel planning to maximize their travel experiences. A majority (71%) of Gen Z and Millennials stated they would choose to travel during off-seasons to avoid crowds and get more out of their trips. 67% felt they could accomplish more during off-seasons, and 77% ended their vacations feeling relaxed and recharged.

Marriott Bonvoy can take you anywhere.

Marriott Bonvoy allows members to enjoy enhanced benefits when staying or spending at Marriott International's growing network of over 30 flagship hotels across 139 countries and territories, and at more than 8,800 locations. Within the APEC region, members can benefit from key strategic partnerships such as with Singapore Airlines and co-branded credit cards in Japan, South Korea, and India. With Marriott Bonvoy Moments, members can access once-in-a-lifetime experiences, such as the chance to get up close to the F1 racetrack with the Mercedes-AMG PETRONAS Formula 1 team at the Singapore Grand Prix.

Phuong Mai is a reporter for Travellive Magazine in Hanoi.

Phuong Mai