Gen Z on the Move

As the travel industry moves deeper into 2025, one thing is crystal clear: Gen Z is no longer a niche market; it’s the driving force behind tourism’s evolution. Born between the mid-1990s and early 2010s, these digital natives are shaping how destinations, hotels, and tour operators design, market, and deliver experiences.

Unlike previous generations, Gen Z prioritizes affordability, authenticity, and sustainability over luxury and status. They’re savvy, adventurous, and highly influenced by digital platforms. For hospitality businesses, understanding these shifting behaviors isn’t just an advantage; it’s essential.

One of the most defining characteristics of Gen Z travel is its budget-conscious nature. With student loans, rising living costs, and an uncertain economy, young travelers are pragmatic with their money. Over 82 percent say affordability is their top priority when planning a trip. Yet saving money does not mean sacrificing experiences. “I love finding hidden gems and exploring destinations through social media inspiration,” says Jake, a 24-year-old traveler. “I’d rather stay in a hostel or home rental than spend money on a fancy hotel.” For operators, the opportunity lies in creating affordable yet immersive packages that combine value with authenticity. Locally led tours, cultural cooking classes, or community-based homestays fit the bill perfectly.

Sustainability, too, is now an expectation rather than an add-on. More than half of Gen Z travelers choose destinations with strong environmental practices, and they actively support businesses that demonstrate ethical values. Countries like Costa Rica and Norway, with carbon-neutral hotels and wildlife conservation programs, are emerging as role models. For the hospitality industry, promoting eco-friendly practices, reducing single-use plastics, and highlighting ethical partnerships are becoming critical differentiators in winning the loyalty of these travelers.

Equally important is the influence of social media. Gen Z spends nearly three hours daily on platforms like TikTok, Instagram, and YouTube, and they treat these channels as their primary source of travel inspiration. In fact, 84 percent rely on influencers when shaping itineraries, trusting digital creators over traditional advertising. Campaigns like Iceland’s viral Inspired by Iceland initiative demonstrate the sheer power of online buzz, which can shift global search trends overnight. For tourism and hospitality businesses, this means investing in influencer collaborations and designing experiences that are visually shareable and social-first.

When it comes to what they seek on the ground, Gen Z prefers adventure and immersion over predictability. A recent study revealed that 68 percent of them favor adventure-based vacations, ranging from hiking and backpacking to scuba diving and surfing. Ana, a 22-year-old traveler, recalls skipping the tourist trail last summer. “Backpacking through the Dolomites gave me everything—culture, challenge, and community. It wasn’t just travel, it was transformation.” This appetite for spontaneity and culturally rich experiences means brands that offer flexible, off-the-beaten-path itineraries will resonate deeply with this generation.

Not all trends are on the rise, however. Big-budget, long-haul travel is becoming less common, with many Gen Z travelers opting for road trips, short breaks, or budget-friendly domestic getaways. Extended vacations are also rare, often replaced by micro-cations, three to four-day escapes, or bleisure trips that blend work with leisure. Safety and security play a growing role in destination choice, with global instability pushing younger travelers to favor destinations they perceive as safe, stable, and welcoming.

Some destinations are emerging as Gen Z favorites. Bali continues to attract visitors with its affordability, vibrant nightlife, and thriving digital nomad community. Lisbon has become a hub for sustainable travel and remote work, while Tokyo appeals with its combination of tech-driven experiences and cultural immersion. Tulum is thriving as a wellness and self-care destination, thanks to its eco-conscious resorts. Reykjavik rounds out the list as a prime spot for adventure seekers with a strong emphasis on sustainability.

For hospitality brands, the challenge and the opportunity lie in adapting to these new priorities. Offering affordable yet authentic experiences will be key, as will creating itineraries and moments that lend themselves to sharing online. Seamless technology is another essential, with Gen Z expecting mobile-first booking, digital wallets, AI-driven recommendations, and even cryptocurrency-friendly transactions. At the same time, businesses must demonstrate meaningful commitment to sustainability, not just as a marketing message but as a measurable reality.

The message for the industry is clear: Gen Z travelers are not only reshaping travel preferences but redefining what it means to host, explore, and experience the world. Those who align with their values of affordability, sustainability, adventure, and digital fluency will not only win their business but also earn their trust and loyalty for years to come.