Travel marketers are in for a rethink in order to address the demands of the Generation Z cohort, which is now entering the work (and leisure) space.
Research from Expedia Group Media Solutions reveals they take about three trips a year for longer-than-average durations.
The study - How Younger Generations are Shaping the Future of Travel - highlights that this will be the largest population in the United States by 2020.
There’s good news for marketers in that two-thirds of them are largely undecided about where they want to go, which means there are lots of opportunity to inspire them.
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However, travel companies need to be mindful of elements such as budget and when they’re interested in buying certain elements of the trip.
According to the research, Gen Z travelers like family trips and relaxing and they rank activities and once-in-a-lifetime experiences ahead of deals.
Expedia Group Media Solutions vice president of product management Lisa Lindberg says the key to providing them with relevant activities and experiences is using its data to watch for patterns on where they are going and what they like and ensuring it keeps an eye on what’s in the market and what’s upcoming.
Expedia’s advertising arm also says the starting point for Gen Z is “How am I going to get the best from my travel?” and that puts activities and experiences at the heart of what might inspire them.
Grabbing eyeballs
When it comes to getting their attention, the research says Gen Z travelers are influenced by social channels, and that advertisements can influence them, too.
Despite fears that traditional advertising means don’t resonate because younger generations use ad-blocking technology, Lindberg says it’s about targeting them in different ways at different times.
She highlights sponsored placements, which can be placed within search results, as often effective.
“What they start to understand is that the strongest brands invest in sponsored content to be relevant to customers and continue to build that trust.”
Lindberg adds that one of the biggest challenges for Expedia’s advertising arm is to continue to find ways to help brands and partners get their message across.
“Native advertising is an emerging trend; it’s really intuitive and has a high match rate.”
The study reveals almost 70% of Gen Z travelers use their smartphone when seeking travel inspiration, and 84% say social media can be influential, especially deals and images and videos from friends.
The findings were also combined with some research on combined business and leisure travel among Gen Z to reveal that 66% of the cohort will tag extra days onto business travel if given the chance. The research also shows that the length of a trip can nearly double as a result.
Lindberg says that travel is part of this generation’s “DNA” so they don’t necessarily separate business and leisure travel in the way that other generations might.
She adds that this will make targeting them at the right place with the right message even more crucial.