Exclusive Feature: Generation Z travellers have arrived and they are already reshaping traditional hospitality models, this is the group who have grown up with a smartphone in hand and the world (seemingly) at their fingertips.

They are digitally active, open to peer influence and seek our authentic and personalised experiences. And while Gen Z travellers may not currently have the combined buying power of older, more financially established generations of travellers, they are the future of travel and a group that hoteliers across the APAC region need to connect with.

The challenge for hoteliers is that Gen Z travellers represent a fundamentally different type of guest. They were born between the mid-1990s and early 2010s, meaning that they are the first true digital native generation who often bypass traditional advertising, reducing the effectiveness of legacy marketing and promotional activities.

Instead, Gen Zs rely on social media, peer reviews, and influencer content to shape their travel choices. This means that rather than seeing an appealing holiday package advertised in the newspaper and contacting a travel agent to make a booking, they are more likely to scroll on TikTok and Instagram for recommendations, seeking out destinations and properties that align with the experiences they desire.

Attracting Gen Z Travellers

In order to attract business, hotels need to be present where their potential guests are. More often than not, in the case of Gen Z, this is on social media. In order to build an authentic connection between a hotel and Gen Z travellers, hotels should showcase real guest experiences (promote user generated content from real guests for credibility.)

They could also consider using short-form video to highlight unique moments (like rooftop brunches, or sustainability initiatives) and partner with micro-influencers who reflect the hotel’s brand personality and who target niche audiences aligned with a hotel’s guest profile.

Unlike previous generations of travellers who more closely guarded their anonymity, Gen Z travellers expect to be known by the data left from their “digital footprints” and like businesses and brands that tailor their engagements to them. This presents hotels with opportunities to connect (and reconnect) with potential Gen Z travellers using their CRM and guest booking history data to curate marketing campaigns.

This could include sending tailored travel inspiration ideas based on past stays and ancillary spends, along with creating personalised offers and packages combined with quirky (or otherwise notable) local tours and restaurant deals – something that offers an experience beyond just a hotel room.

What Gen Z wants from their stay

Gen Z travellers not only desire unique and memorable experiences, they often also want to share their experiences online. Hotels can better cater for travellers seeking these opportunities through creating ‘Instagrammable’ spaces and moments (murals, unique architecture, themed rooms, or unexpected amenities).

Hotels that design memorable touchpoints for Gen Z guests and offer a personalised touch (like a welcome gift) increase the likelihood that their hotel will be featured positively on younger guests’ own social media accounts and secure unpaid, highly credible third party promotion.

Having grown up with technology and instant information, Gen Z guests are often charactered as seeking immediate gratification. This can mean that these guests can feel put-off by a stay in a new hotel if they encounter long check-in lines at reception, with less tolerance around hotel operational inefficiencies compared to previous generations.

Importantly, today there are innovative solutions available for a variety of guest scenarios and preferences. For younger guests that prefer not wait in line or speak with anyone to check in, there are mobile apps, keyless entry and secure payment options to achieve that.

However, just because one traveller prefers to get straight to their room this doesn’t mean all Gen Z guests want a check-in experience with a robot. A chat bot can recite breakfast hours but when a guest is looking for a unique and memorable brunch, they may want to speak with a human to get a personal recommendation, so hotels need to ensure they cater for a range of guest preferences.

Attracting the right business from Gen Z travellers

While older generations of travellers may book longer, high-end stays; Gen Z is poised to travel more frequently, with decisions influenced by value, experience, and convenience. For hoteliers, the long-term revenue opportunity associated with Gen Z travellers lies not only in their growing purchasing power but in their lifetime value as repeat guests.

Advanced revenue management systems (RMS), like IDeaS G3 RMS, can make a significant difference with attracting the right business from Gen Z travellers. Data analytics and pricing optimisation tools in an RMS allow hoteliers to move beyond static rate strategies and instead tailor room pricing, packages, and promotions based on emerging generational preferences.

For example, an RMS can help identify when and where Gen Z guests are most likely to book, what room types and ancillary offers they gravitate toward, and how price-sensitive they are during specific times of year.

Personalisation, driven by data, is also critical. Revenue managers can build tailored offers that combine rooms with experience-based elements (such as tickets to local events, late check-out, or F&B credits) designed specifically for experience-seeking Gen Z travellers. By aligning pricing and packaging with what this group values most, hotels can not only increase bookings but also drive revenue through upsells and ancillary services.

Building loyalty with Gen Z guests

Historically, creating loyal guests involved a membership points program that grows over time and eventually rewards people with complementary hotel stays. But traditional loyalty programs may feel too slow for many Gen Z travellers. Will digitally savvy guests continue to shop around despite accumulating loyalty points with a hotel group? Perhaps instead an instant gratification discount attracts them for the long-term?

One thing is clear, socially connected Gen Z travellers are increasingly seeking to create unique experiences, ones that create memories and opportunities for them to share them with their various networks. A discount may get them in the door but a personalised experience will get them talking about the hotel and its service.

These are important considerations when building a loyalty initiative that will encourage return patronage of younger travellers. What hotels should also consider is what their initiative includes, who they are targeting and how do they entice those guests with the greatest lifetime value.

As an example: Guest A is a seasoned business traveller toward the end of their career, loyal to a hotel brand. They book their business trips directly with the hotel and then leverage their various loyalty benefits to also book direct for personal vacations. Since this traveller has very little, if any, price sensitivity, what benefit does a hotel or this guest have in receiving an additional 10% off their stay and are they even aware they are receiving it?

Guest B is the up-and-coming Gen Z traveller. They are in the infancy of a career that will end up spanning decades of business travel. The lifetime value of this guest is extraordinary, making them an ideal long-term consumer if a hotel can create a connection and offer the right incentive to attract return patronage.

For more information on how your hotel can attract business from Gen Z travellers, please visit: www.ideas.com

Written by Murphy Mathew, APAC solutions engineer, IDeaS

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