Hotel experience is key to winning the hearts and dollars of the Gen Z and Millennial segment
While 60 pc of Gen Zs and Millennials in Asia Pacific Excluding China (APEC) region are actively subscribed to loyalty programmes, the challenge of juggling several programmes has led a majority of them, or 57 pc, to seek one programme that meets all their travel needs.
This is one of the findings of a survey conducted by Marriott Bonvoy, the loyalty programme of international hospitality giant Marriott International.
According to a press statement by the hotel group, Marriott Bonvoy carried out the survey of 1,000 respondents across 10 markets in APEC to better understand the shifting attitudes of Millennials and Gen Zs and their travel behaviours.
The findings have been published in a report, Savvy Explorers, which identified an emerging generation of travel-focussed, value-driven population in APEC.
The statement adds that travel in 2024 is a priority for Gen Zs and Millennials and 73 pc report their intention to take at least two trips in the next 12 months and 91 pc plan to spend the same, if not more, on their trips compared to the year before. Travel is viewed as an essential lifestyle component, and most are willing to reduce everyday spending on dining out, with 60 pc agreeing, shopping sprees for 57 pc and also cut their daily coffee for 54 pc, so as to spend more on a holiday.
John Toomey
“Survey results suggest that Gen Zs and Millennials in APEC are purposefully strategising how they can channel value from their everyday spend toward rewarding travel experiences. They also prefer to be part of only one all-encompassing loyalty travel programme which fulfills their needs. To this end, Marriott Bonvoy, which gives members access to over 30 brands in 10,000 destinations, is well positioned to deliver greater value and unlock more experiences for Gen Zs and Millennials,” says John Toomey, Marriott International’s Chief Sales and Marketing Officer, Asia Pacific Excluding China.
“As testament to the programme’s appeal, we have seen Marriott Bonvoy’s membership base in APEC grow by more than 50 pc since 2019. What’s more encouraging is that our members are highly active. They earned 40 pc more points in 2023 compared to 2022, and are putting their points to good use, with points redemptions increasing by more than 55 pc in the same period,” he reveals.
The trend of greater member growth and activity extends to the Marriott Bonvoy app. APEC member enrolment via digital channels grew by more than 25 pc, with mobile app downloads and active users more than doubling in 2023 compared to pre-pandemic levels.
The regional survey also uncovered notable trends amongst Gen Zs and Millennials across the 10 APEC countries.
Travel value unlocked through everyday spend
The statement adds that the young travellers take considered steps to unlock travel value through everyday spend. Leveraging on their familiarity with loyalty programmes, APEC’s Gen Z and Millennials employ varied tactics to maximise their travel rewards as four in five say they have gone out of their way to use a travel-linked credit card for everyday purchases, and 67 pc actively use a travel loyalty programme to book and redeem local experiences and staycations.
This trend is supported by usage behaviors of Marriott Bonvoy members in APEC. They accumulated points from stays across more than 8,800 Marriott International properties globally, and through everyday spend. Redemption for hotel stays in 2023 registered a 130 pc increase compared to pre-pandemic times, accounting for the majority of redemptions, followed by points-to-miles conversions on partner airlines.
Hotels become a key destination to explore
The statement adds that hotel experience is key to winning the hearts and dollars of the Gen Z and Millennial segment, with 99 pc of respondents believing their hotel choice can make or break their holiday. Hotels are also increasingly viewed as a key destination for exploration, going beyond the role of ‘accommodation’. Nearly four in five respondents expect their hotel to provide curated local programming and experiences, whilst 84 pc prefer to stay at a hotel with designs and activities reflective of its destination.
The recent debut of Moxy Hotels in key APEC markets exemplifies Marriott International’s commitment to continuously bring new hospitality experiences to the region, says the company.
Despite a desire to maximise their travel budgets where they can, their hotel is one area that APEC’s Gen Z and Millennials are willing to invest extra travel dollars towards. Top motivations for new-generation travellers to splurge include the hotel’s room offerings for 48 pc and location for 42 pc. Whilst amenities remain key considerations, these guests value a seamless travel experience, with mobile-first customer service for 61 pc, reliable WiFi for 68 pc and flexible check-out for 64 pc, outpacing traditional benefits like lounge access for only 42 pc.
