Marriott Bonvoy conducted a survey of 1,000 participants across 10 different markets in the APEC region 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 are actively enrolled in loyalty programs, the vast majority (57%) of survey participants said they are always looking for a program that truly meets all their travel needs to be a loyal member in the context of many loyalty programs currently available in the market.
The survey also identified a new advanced traveler segment in the APEC region called “Smart Travelers” – a group of value-driven, highly motivated travelers who are passionate about travel, always looking to maximize their travel dollars and enhance their unique travel experiences.
Travel in 2024 is a top priority for Gen Zs and Millennials: 73% intend to take at least two trips in the next 12 months, and 91% plan to spend the same, if not more, on their trips than they did last year. Travel is considered an essential part of their lifestyle, and most are willing to reduce their daily spending, such as eating out (60%), shopping sprees (57%), and daily coffee (54%), to be able to spend more on vacation.
“The survey results show that Generation Z and Millennials in the APEC region have a clear vision to move value from their everyday spending into rewarding 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, Chief Marketing and Sales Officer, APEC region (excluding China), Marriott International.
Travel in 2024 is a top priority for Gen Zs and Millennials
“As a testament to the appeal of Marriott Bonvoy, membership in the APEC region has increased by more than 50% since 2019. What is even more encouraging is that our members are very active in participating, accumulating and using their membership. Members earned 40% more points in 2023 than in 2022 and are using their points effectively, with service points redeemed in benefits increasing by more than 55% year-on-year,” added John Toomey.
The trend of greater member growth and activity extends to membership engagement through the Marriott Bonvoy app. APEC member enrollments through digital channels have increased by more than 25%, with mobile app downloads and active users more than doubling by 2023 compared to pre-pandemic levels.
The regional survey also uncovered several notable trends among Gen Zs and Millennials across 10 APEC countries. Market-specific trends can be found in Appendix A.
Travel is considered an essential part of lifestyle.
Travel value is assessed through daily spending
Through their everyday spending, Savvy Explorers show that they are thoughtful, seeking out different ways and experiences to get the real value out of travel. With their familiarity with loyalty programs, APEC’s Gen Z and Millennials use a variety of methods to maximize their travel rewards: 4 in 5 of them say they prefer to use travel-linked credit cards for everyday purchases, and 67% actively use travel loyalty program benefits to book and redeem experiences and staycations.
This trend is clearly visible and supported by the perks usage of Marriott Bonvoy members in APEC. Members have been earning points from stays and everyday spending at more than 8,800 Marriott International hotels globally. Hotel stay redemptions in 2023 have increased 130% compared to pre-pandemic levels, accounting for the majority of redemptions, followed by points-to-mile conversions on partner airlines.
APEC Generation Z and Millennials Use Different Ways to Maximize Their Travel Rewards
Hotels become important destinations to explore
99% of respondents believe that their hotel choice influences the quality of their stay, and that hotel experiences are key to winning the hearts and spending decisions of Gen Z and Millennials. Hotels are also increasingly seen as a key element to satisfy the need to explore, moving beyond the concept of just “accommodation” or “a place to sleep” when traveling. Nearly four-fifths of respondents expect destination hotels to offer well-curated local experiences and programs, while 84% of survey respondents said they prefer to stay at hotels whose design and operations clearly reflect the destination.
A prime example of this trend is the recent launch of the Moxy Hotels brand in several key markets in the APEC region. Moxy is a brand with a youthful vibe, innovative design and modern amenities, the launch of this brand demonstrates Marriott International’s commitment to continuously bring new experiences to travelers.
While there is still a desire to maximize travel budgets where possible, hotels are considered one of the most important and essential factors that Generation Z and Millennials in the APEC region are willing to spend more money on. The top motivators for millennial travelers to spend on each trip are hotel room deals (48%) and hotel location (42%), respectively. While amenities remain key concerns, these travelers value a seamless travel experience, with mobile-first customer service (61%), reliable Wi-Fi (68%) and flexible check-out (64%) far surpassing traditional benefits like lounge access (42%).
The top motivators for millennial travelers to spend on each trip include hotel room deals (48%) and hotel location (42%) respectively.
“Similar” destinations drive demand for tourism in neighboring areas
International travel is back, but APEC’s Gen Z and Millennials remain committed to destinations closer to home. While iconic vacation spots like the Swiss Alps and Bora Bora remain a draw, 55% are choosing similar destinations in the immediate vicinity that offer similar experiences. These so-called “like-it-all” destinations are quickly gaining traction, allowing Gen Zs and Millennials to spend more on travel (69%), explore something new (63%), and are easily accessible (62%).
Reflecting the strong demand for tourism in the surrounding region, by 2023, Marriott International's records show that more than 60% of room bookings at its APEC hotel system will come from tourists from this region itself.
Business travelers return
Gen Zs and Millennials are also taking the initiative to design and enhance leisure travel by taking the opportunity of a business trip to take multi-destination trips. In addition to expanding their travel plans (68%), 84% of them said they plan to explore neighboring cities and countries as part of their after-work itineraries.
To meet this need, Marriott International offers customers a wide range of business and leisure options with more than 560 hotels and resorts across 24 brands in 22 APEC countries and territories to choose from.
Off-peak travel maximizes destination experience
The survey also found that Gen Z and Millennials also value careful planning when traveling to maximize their trip experience. The majority (71%) of Gen Z and Millennials said they would choose to travel during off-peak seasons to avoid crowds and get more out of their trip. 67% felt they could get more done during off-peak seasons, and 77% ended their vacation feeling relaxed and recharged.
Gen Zs and Millennials are also proactively designing and elevating leisure travel by taking the opportunity from a business trip to take multi-destination trips.
Marriott Bonvoy can take you anywhere
Marriott Bonvoy allows members to earn more when they stay or spend across Marriott International’s growing portfolio of more than 30 brands, across 139 countries and territories and at more than 8,800 properties. In the APEC region, members can benefit from key strategic partnerships such as Singapore Airlines and co-branded credit cards in Japan, Korea and India. With Marriott Bonvoy Moments, members can access once-in-a-lifetime experiences, such as getting up close and personal with the Mercedes-AMG PETRONAS Formula 1 Team at the Singapore Grand Prix.
