For Millennials and Gen Zs in the Asia Pacific region, travel has evolved beyond simply visiting destinations on a list. When arranging vacations, prioritising experiences has become the leading factor, outweighing the significance of lodging and flight selections. Furthermore, are also prepared to invest financially in these experiences.
GLOBased on a survey conducted by travel and experiences platform Klook, travelers are prepared to make substantial expenditures on their journeys. Approximately one in three Millennial and Gen Z travelers are willing to spend more than twice the average monthly income in Asia (USD 1,069) on their next holiday, which could amount to USD 2,000 or even more.
According to Eric Gnock Fah, Klook’s COO and co-founder, a new era of travel is emerging where experiences have become a highly valued currency for the next generation of travelers, particularly among Millennials and Gen Zs. The emphasis on unique experiences and activities takes precedence in their travel plans, with 85% of travelers willing to invest in such experiences during their vacations. This significant shift reflects their growing desire for authentic experiences, driven by social media rather than traditional sources like search engines and travel guides.
As travel becomes more intentional, a majority of travelers prioritize experiences, with 63% booking their activities before departing on their trips.
The Klook Travel Pulse survey, conducted in July 2023 with 2,400 respondents across 12 markets including Hong Kong, Taiwan, Singapore, Malaysia, Philippines, Thailand, Vietnam, South Korea, Japan, Australia, Mainland China, and India, found that over 90% of Millennials and Gen Zs place great emphasis on unique and memorable experiences during their travels. Notably, travelers from Thailand, Vietnam, Mainland China, and India express a strong desire to spend more on nature and outdoor experiences like island tours and cultural activities such as visiting historical sites.
Interestingly, even Gen Z travelers who are at the early stages of their careers are not far behind Millennials when it comes to splurging on travel. One in five Gen Zs is willing to spend over USD 3,000, slightly trailing behind one in four Millennials who share the same sentiment. The willingness to spend beyond USD 3,000 on their next holiday is particularly high among travelers from Mainland China and Hong Kong.
Across the Asia Pacific, the trend of do-it-yourself travel planning is on the rise among Millennials and Gen Zs, with 65% planning their trips at least two to six months in advance. While travelers from Singapore and Australia rank high in this aspect, nearly half of Mainland China, Vietnam, and Thailand travelers prefer planning their holidays in less than two months.
Furthermore, Millennials and Gen Zs are increasingly choosing to explore destinations closer to home, both domestically (60%) and within the Asia Pacific region (30%). The top three desired destinations are Japan, Thailand, and Singapore, indicating a rising trend of younger explorers focusing on the desire to seek new experiences over the specific destination itself.
(Source: Klook)
