How Values and Tech are Reshaping Travel in 2025 and Beyond

Gen Z and Millennials spearhead a significant shift in the travel industry. They demonstrate how values and tech are reshaping travel in 2025 and beyond. Understanding the evolving travel trends of Gen Z, which are driving this change, is therefore crucial for the industry. These digital natives seek identity-forming, authentic experiences. Traditional holidays are not enough. Instead, technology, particularly social media, fuels their travel intent. Central to this evolution are Gen Z’s unique values. A focus on purpose and spontaneity, for instance, consistently drives their decisions. Their inherent digital fluency, combined with these essential factors, is poised to transform global travel in remarkable ways. This upcoming shift will likely shape 2025 and beyond, setting a new course for the years to come.

Takeaways

Values First: Gen Z seeks authentic experiences, growth, sustainability, and connection over material travel perks.

Tech’s Influence: Social media (especially TikTok) inspires Gen Z, while AI personalizes their travel experiences.

Key Gen Z Trends: Set jetting, gig tripping, short breaks, food travel, and off-grid exploration are rising.

Smart Spending: Gen Z travellers are budget-conscious, prioritizing funds for unique activities over lavish stays.

Essential Adaptation: Industry must balance tech with human touch, maintain trust, and embrace responsible practices.

The ascent of a new traveller cohort

The travel industry is witnessing a seismic shift. Gen Z, those aged between 18 and 27 in 2025, and Millennials, aged 28 to 43, are now the most influential travel demographics globally. Their approach to travel diverges sharply from traditional tourism models. They are not passive tourists. Instead, they are active participants in their journeys. For them, travel is an extension of their identity. Consequently, it is deeply intertwined with self-discovery and global connection. Technology is not just a tool for this cohort; it is an integral part of their travel DNA. Social media, in particular, acts as a primary catalyst, shaping desires and decisions. This dynamic demands a fresh perspective from hospitality providers. Adapting to their unique values and tech-savviness is paramount.

Experiences over possessions

For Gen Z, the value of travel lies in experiences, not souvenirs. Travel is far more than a mere break from routine. It is an essential component of their personal growth. Furthermore, it helps them connect with the world and understand their place in it. They actively prioritize experiences over material goods. This quest for meaning translates into a desire for travel that is both enriching and transformative. Hotels, therefore, need to focus on curating unique and memorable experiences. These experiences should resonate with Gen Z’s search for personal development and social connection.

Authenticity and novelty

Predictability is the enemy of the Gen Z traveller. They actively seek spontaneity and adventure. This generation yearns for personal growth through their journeys. As a result, they are drawn to unique, authentic, and culturally rich experiences. Lesser-known destinations often hold more appeal than crowded tourist hotspots. Indeed, a significant 68% of Gen Z travellers prioritize destinations where they can “discover something new.” This preference often leads them to explore “dupe destinations” or off-beat locations. They are not just visiting; they are exploring and engaging. Thus, hotels and travel companies should highlight the unique cultural fabric of their locations.

Purposeful and conscious travel

Today’s younger travellers are increasingly conscious of their impact. They are evolving from passive consumers into active participants in sustainable tourism. This includes engaging in conservation projects. It might also involve participating in community programs or seeking genuine cultural exchanges. Consequently, the younger population will likely avoid destinations perceived as harmful to the climate. They also shun places lacking a regenerative or responsible tourism component. Travel in 2025 is becoming more deliberate and introspective. It has a strong focus on safety, sustainability, and profound experiences. Therefore, demonstrating a genuine commitment to sustainability is vital for attracting this demographic.

Affordability and savvy budgeting strategies

Affordability is a key factor for Gen Z travellers, who prioritize exploration despite rising travel costs. They often make sacrifices in other areas to fund their adventures and practice responsible consumption. Many pool resources with friends, utilize group discounts, and choose shared accommodations to stretch their budgets. A significant 72% of Gen Z and Millennial travellers prefer affordable hotels, allowing them to spend more on experiences. Hotels that provide value without sacrificing quality will succeed.

The desire for connection and community

“Tribe Travel” Paradoxically, despite being hyper-connected online, Gen Z and Millennials report rising levels of loneliness. This fuels a fundamental human desire for genuine communion and community during their travels. “Tribe Travel” is a significant motivating factor for 2025. This trend emphasizes forming strong bonds and creating lasting memories. They travel with family and loved ones. Consequently, accommodations and experiences that facilitate group interaction and shared moments will resonate deeply. This could include communal spaces, group-friendly activities, and tailored family packages.

The new travel currency: Gen Z and Millennials prioritize creating and sharing memorable experiences, from scenic road trips to unique dining, all fueled by social media.

The new search engine and inspiration hub

The way Gen Z discovers and plans travel has been revolutionized by social media. Platforms like TikTok are no longer just for entertainment.

• TikTok’s dominance: TikTok has emerged as a primary tool for product discovery and travel inspiration. An estimated 40% of Gen Z consumers prefer TikTok over established search engines, such as Google. They use it for finding hotels, tours, or travel hacks. Astonishingly, 72% of Gen Z consider “Googling” to be synonymous with searching on TikTok.
• Authenticity and real-time glimpses: Unlike the often carefully curated feeds on Instagram, TikTok offers unfiltered, real-time glimpses into destinations. This content frequently comes from locals or fellow travellers. This raw authenticity strongly appeals to Gen Z’s desire for genuine experiences.
• Influencer marketing and social shopping: Social media platforms are now integral to travel inspiration. About 17% of travellers cite TikTok as their primary source of inspiration. Instagram influences 27% of people when choosing destinations. Furthermore, half of all consumers have felt compelled to book a trip they saw on social media. Travel brands are adapting rapidly. For example, Expedia’s “Travel Shops” allow direct booking of creator-curated trips.
• Content creation and engagement: Social media platforms shape the culture and preferences of this generation. Brands are increasingly collaborating with micro and nano creators. These creators share authentic, on-the-ground content on platforms like TikTok. This inspires the “I want to go there” travel intent. Gen Z uses social media significantly more for product research (+22 percentage points compared to the overall average).

AI, the planning and experience enhancer

Artificial Intelligence is rapidly transforming the travel landscape. It impacts how travellers plan, book, and experience their journeys.

• Transforming operations and customer experience: AI is set to reshape business operations within the travel industry. It promises to significantly improve the customer experience. Moreover, it can drive sustainable growth.
• Personalization and efficiency: AI-powered assistants and personalized itineraries will mark a significant leap into a high-tech travel future in 2025. Leading companies like Marriott Bonvoy and Alaska Airlines are already using AI for sophisticated trip planners. AI voice assistants are also expected to become a core part of travel and dining booking processes. This level of personalization directly appeals to Gen Z’s desire for tailored experiences.
• Operational streamlining: Businesses are leveraging AI to dramatically slash product development times. They are also using it to streamline production capabilities and cut operational costs. However, this rapid market entry facilitated by AI also comes with increased business risks that need careful management.
• Future adaptability: It is crucial for travel companies to ensure they are well-positioned. They must adapt to increasingly smart personal assistant technology. This technology will likely become central to how Gen Z manages their travel.

Bridging the digital divide thoughtfully

While Gen Z and Millennials are deeply immersed in the digital world, a digital divide still exists. There is a significant opportunity for travel companies to tailor experiences. They can close this gap for older generations. Simultaneously, they can super-serve the younger, tech-savvy early adopters. This means offering intuitive digital tools for Gen Z. It also means providing alternative, more traditional service options for those less comfortable with technology.

Maintaining trust in a digital age of scrutiny

Online trust is increasingly under scrutiny. This directly affects consumer behaviour towards businesses, including travel providers. Brands must proactively address data privacy concerns. This is especially critical with the increased adoption of AI and personalized services. Transparency in data usage and robust security measures are essential for building and maintaining Gen Z’s trust.

Adapting continuously to evolving demands and expectations

The preferences of Gen Z and Millennials are not static. They demand active, spontaneous, and transformative travel experiences. Therefore, the travel industry must commit to continuous innovation and adaptation. This means staying agile, embracing new technologies thoughtfully, and constantly seeking feedback from these younger cohorts to refine offerings.

The dawn of a new travel era

Gen Z and Millennials are transforming the travel industry with their demand for authentic and purposeful experiences, driven by technology. To succeed, the travel sector must focus on intentional, responsible, and sustainable travel while leveraging smart, human-centric technology. Understanding Gen Z travel trends is essential for adapting to this dynamic landscape and ensuring long-term growth.