Gen Z Travel is about transformation, but marketers still have to make the math work

Gen Z wants to travel, and they are willing to prioritize it. But strong demand doesn’t mean that younger travelers have unlimited budgets.

Some 93% of Gen Z respondents either had a summer trip planned or intended to take one in 2026, according to Bank of America Institute data. Gen Z travel spending was also up roughly 8.5% YoY through June, per Bank of America, outpacing growth among other generations’ travel-related expenditures.

But there is an important caveat: Hotel transaction growth has stalled despite spending increases, according to Bank of America. This suggests that higher prices, rather than a spike in travelling, are responsible for at least some of that growth.

For travel marketers, that creates a complicated opportunity for the rest of the year and 2027. Gen Z is highly motivated to travel and increasingly sees experiences as expenditures worth prioritizing, but brands still have to offer a compelling reason to spend.

Gen Z wants more than a destination

Travel has become a faster-moving cultural category for Gen Z, according to Nic Chidiac, chief strategy officer at global digital marketing agency Razorfish.

“Destinations can rise to global prominence almost overnight through social media, creators, and entertainment,” said Chidiac, pointing to the impact shows like "The White Lotus" can have on travel interest.

But the bigger difference may be what Gen Z wants to get out of a trip.

Previous generations often approached travel as something to collect, Chidiac said. For Gen Z, simply being able to say “I went” represents the lowest form of travel value.

“Above that is 'I felt,' where travel becomes emotional and experiential," said Chidiac. "At the highest level and top driver of travel is transformation: travel that changes how they see themselves.”

That helps explain younger traveler’s interest in local food, hands-on activities, adventure, and experiences that can become stories long after the trip has ended. So much so that millennials and Gen Zers are keen on milestone trips, local experiences, and activities that offer something more memorable than traditional sightseeing, according to American Express Travel’s 2026 Global Travel Trends Report.

What this means for marketers: Travel brands should think beyond selling the destination or the booking itself.

For a hotel, the room may not be the primary reason a Gen Z traveler chooses a property. Seemingly, more important matters could include location, access to local experiences, or ability to serve as a launching point for the rest of the trip.

That creates an opportunity for hotels, airlines, and travel platforms to market the experiences surrounding their products. Neighborhood guides, local partnerships, bookable activities, and curated itineraries can become just as important as highlighting amenities.

Reviews over reputation

Gen Z’s approach to choosing travel brands also reflects a broader shift in how the generation thinks about brand loyalty.

Hilton leads hotel consideration among Gen Z travelers, according to YouGov. But compared to older generations, Gen Z is less concerned with some of the traditional signals associated with established hospitality brands.

Instead, younger travelers place greater importance on ratings and reviews when deciding where to stay, a trend that Chidiac sees across industries.

“Gen Z may buy repeatedly, but they're far less committed to brands than previous generations,” Chidiac said. “For Gen Z, [brand] loyalty isn't about legacy; it's about continual proof of value.”

Chidiac added that Gen Z has grown accustomed to evaluating unfamiliar options with reviews, algorithms, creators, and even AI to reduce the risk of trying a new brand.

What this means for marketers: Repeat customers should not be mistaken for permanently loyal customers.

Travel brands need to continually prove their value at every stage of the journey, from discovery and research to booking the trip itself. A loyalty program may help retain customers, but it will not necessarily stop them from switching if another brand has better reviews, stronger social testimony, or a more compelling offer.

That makes review management and discoverability crucial. Travel marketers should consider how their brands appear not just in traditional search, but in social feeds, creator content, review platforms, and AI-powered recommendation tools.

Travel aspirations still have to fit the budget

Gen Z’s zeal for travel brushes shoulders with real financial constraints, as the generation has the lowest median savings-to-spending ratio of any generation, per Bank of America Institute, even as discretionary spending has remained resilient.

Some young consumers are even finding additional income to fund their priorities. Twenty-seven percent of Gen Z respondents said they were already taking on or planned to take on extra work or a side gig to help afford travel and live entertainment.

What this means for marketers: Gen Z’s willingness to prioritize travel should not be confused with an ability to spend freely.

Marketers should separate the aspiration from the price point. That could mean promoting shorter trips, off-peak travel, under-the-radar destinations, or modular experiences that allow travelers to choose where they really want to splurge.

The opportunity is to make a trip feel more meaningful without requiring consumers to spend beyond their means.

Gen Z may want travel that changes how they see themselves. But getting them to book still comes down to a much more practical question: Is this experience worth what they're giving up to afford it?

This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

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