Travel value unlocked through everyday spend
Savvy Explorers take considered steps to unlock travel value through everyday spend. Leveraging on their familiarity with loyalty programs, APEC’s Gen Z and Millennials employ varied tactics to maximize their travel rewards: four in five say they have gone out of their way to use a travel-linked credit card for everyday purchases, and 67% actively use a travel loyalty program 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% 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
Hotel experience is key to winning the hearts and dollars of the Gen Z and Millennial segment, with 99% 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% prefer to stay at a hotel with designs and activities reflective of its destination.
The recent debut of Moxy Hotels – noted for its hallmark playful nature, innovative design and contemporary amenities – in key APEC markets exemplifies Marriott International’s commitment to continuously bring new hospitality experiences to the region.
Despite a desire to maximize 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 travelers to splurge include the hotel’s room offerings (48%) and location (42%).
Whilst amenities remain key considerations, these guests value a seamless travel experience, with mobile-first customer service (61%), reliable WiFi (68%) and flexible check-out (64%) outpacing traditional benefits like lounge access (42%).
Destination ‘dupes’ fuel intra-regional travel demand
International travel has returned but APEC’s Gen Z and Millennials remain committed to destinations closer to home. While iconic holiday locations like the Swiss Alps and Bora Bora maintain their appeal, 55% are opting for destinations within the region that provide a similar experience.
These so-called “destination dupes” are fast gaining traction amongst this segment because they allow Gen Zs and Millennials to stretch their travel expenses (69%), discover something new (63%) and are easily accessible (62%).
As a reflection of robust intra-regional travel demand in 2023, Marriott International saw over 60% of bookings in APEC coming from within the region.
