A231 GHOA1013 INTRODUCTION TO HOSPITALITY

(GROUP A)

GROUP PROJECT :
GEN Z TRAVELLERS: UNDERSTANDING THEIR CHARACTERISTICS,
PROSPECTS, ISSUES AND CHALLENGES

PREPARED FOR:
PROF. MADYA DR. ROZILA BINTI AHMAD

PREPARED BY: GROUP 14

NAME NO. MATRIC

LIM XIN JOE (L) 278391

MUSTIKA BINTI MISNARI 296140

NUR ALIA BINTI MAT RAIS 298018

WAN MUHAMMAD AMIR IRFAN BIN WAN 298130

ROSLAN

MUHAMMAD NABIL BIN AHMAD JEFRI 298163

SUBMITTED DATE: 11th DECEMBER 2023

1.0 Introduction
Since the first generation was born at the period when the internet was extensively
utilized, Gen Z, the second-youngest generation, is formed by their upbringing. By 2025, the
so-called "digital natives" are predicted to account for 25% of the population in the Asia-
Pacific area. The Gen Z generation is the first to truly be digital natives, having grown up
entirely dependent on technology and with little memories of a world without cell phones.
They have resorted to anonymous social media platforms like Whisper and Snapchat, which
let users choose who they may communicate and make communications vanish after they are
viewed. (Eldridge, A., 2023).

In the hotel industry, travellers born between 1997 and 2012 are referred to as Gen Z
travellers. They prefer travelling to new areas and are inclined to return to those that provide
better value, and technology plays a big part in helping them find these locations and make
travel plans. Travel enthusiasts of Gen Z are bargain hunters who adore finding cheap flights,
hotels, and travel packages. They also choose longer vacations whenever they can. In
conclusion, they also appear to be more at ease travelling and extending their horizons than
earlier generations, which makes logical given that the internet significantly increased global
knowledge soon before their birth.

2.0 Characteristics
Gen Z travellers were conceived pretty much somewhere in the range of 1997 and 2012.
Likewise called Gen Z or Gen Zers, they`re viewed as the up and coming age of travellers in the
friendliness area. They most likely won't have a ton of money to spend on expensive trips, but they
will probably respond more favorably to arguments that are more valuable.There are many
characteristics that encourage Gen Z to travel. The first characteristic is Budget-Conscious. This
generation frequently puts experiences ahead of material possessions. They are tech-savvy
people who use a variety of online resources, apps, and platforms to find low-cost lodging
and transportation options. With a powerful urge to investigate and share encounters, they
look for reasonable yet extraordinary objections and exercises, embracing choices like
spending plan well disposed facilities like inns, homestays, or in any event, sharing economy
choices like Airbnb.Gen Z tourists are also known for being willing to forego luxury in
favour of authenticity. They are looking for n authentic cultural experiences and local
interactions that are both engrossing and affordable. Their frugal nature doesn't mean
thinking twice about encounters but instead tracking down imaginative ways of expanding
esteem while setting out on significant excursions. Furthermore, tech-savvy is also one of the
characteristics of the Gen Z travellers. Gen Z individuals are computerised locals, profoundly
capable in utilising innovation. They depend vigorously on cell phones, web-based
entertainment, and different applications for movement research, booking facilities, route,
and sharing their encounters on the web. They rush to adjust to new travel innovations and
patterns. For example,smartphones are one of the main keys to the movement encounters of
Gen Z. They utilise their gadgets for different purposes, including exploring objections,
booking facilities, exploring new spots by means of guides and GPS, tracking down
neighbourhood attractions and cafés, and sharing their encounters via online entertainment
continuously. Furthermore, technology is also one of the main causes that encourage Gen Z
to travel. This is because Gen Z are active users of online entertainment stages like
Instagram,TikTok, Snapchat, and YouTube. They utilise these stages not exclusively to
record their movements yet in addition to look for motivation, suggestions, and audits from
individual voyagers and powerhouses. Virtual entertainment intensely impacts their
movement choices. Besides, Gen Z travellers are also flexible and independant. They
explorers esteem adaptability in their itinerary items. They are more disposed towards
unconstrained outings, last-minute appointments, and adaptable agendas. Many are happy
with travelling alone for example, many Gen Z explorers are choosing solo undertakings for
self-disclosure and self-improvement. They consider solo travel to be a chance to get out of
their usual ranges of familiarity, gain certainty, and find out about themselves while
exploring new conditions freely. They also embrace the diverse experience which means they
are available to assorted encounters and are less limited by customary travel standards. They
could blend relaxation travel with work or volunteer open doors, embracing a mix of
experience, learning, and social drenching in their excursions. Gen Z explorers reflect their
versatile and confident way to deal with movement. The adaptable and autonomous nature of
Gen Z voyagers permits them to move toward movement with a feeling of experience,
versatility, and a readiness to investigate different encounters while embracing the
opportunity to shape their own movement stories.The next characteristic is adventure
seeking. They are attracted to adrenaline-syphoning exercises like climbing, outrageous
games, chipping in for protection projects, or investigating eccentric objections.besides, Gen
Z are also willing to explore unconventional destinations.Gen Z explorers frequently look for
outside of what might be expected objections. They are interested in investigating less
popular areas, distant towns, or districts that offer exceptional scenes or social encounters.
The characteristics of looking for experience in Gen Z explorers reflect their longing for different,
exciting, and vivid encounters that go past customary touring. They look for experience for the rush as
well as for the chance to learn, develop, and make significant associations with their general
surroundings. Last but not least, the last characteristics are culturally diverse and inclusive.
This means that Gen Z travellers really appriciate social variety and inclusivity. They are
bound to help objections that celebrate variety, advance balance, and regard various societies,
convictions, and personalities. They are also interested in cultural exchange. They participate
in discussion with local people, share their own social foundations, and are available to gain
from others, cultivating common comprehension and associations across various societies.
Gen Z are also effectively looking for opportunities for social trade. They participate in
discussions with local people, share their own social foundations, and are available to gain
from others, cultivating common comprehension and associations across various
societies.socially assorted and comprehensive attribute of Gen Z voyagers mirrors their
regard for various societies, their energy to participate in significant social trades, and their
inclination for movement encounters that commend the wealth of worldwide variety.

3.0 Prospects

Generation Z is a group of travellers who have distinct characteristics and preferences

when it comes to exploring the world. They have different prospects and trends when it
comes to travel.

3.1 Tech-Savvy Travelers

Tech-savvy travel is a style of travelling that heavily relies on and integrates

technology to planning, booking, and enhancing Various facets of the travel experience. This
encompasses the use of smartphones, apps, websites, and various digital tools to conduct
research on destinations, book accommodations and flights, navigate unfamiliar areas, and
share experiences on social media to stay connected with the broader travel community.
Tech-savvy travelers’ leverage technology to streamline and enhance every stage of their
journey. Key aspects of tech-savvy travel in the online travel trends industry encompass
digital travel trends and travel booking platforms.

Travel booking platforms incorporate elements for both mobile and desktop devices.
An investigation into conversion rates on these platforms reveals that mobile rates,
encompassing browse abandonment and online traffic, significantly surpass desktop figures.
This discrepancy may be attributed to the dynamic nature of mobile shopping across the
majority of e-commerce platforms. Mobile devices offer greater flexibility, allowing users to
open and close windows with ease, Enhancing the noted elevated rates.

However, when it comes to making significant travel e-commerce purchases, it's

evident that these shoppers tend to prefer using desktops. This is emphasised by the fact that
only desktop results exhibit a higher percentage of consumers, reaching 62.5%. From this
Report, we have also gathered that 58% of all Airline sales are purchased on desktop.

Source:Digital Trends in the Travel Industry: 12 Fascinating Stats (salecycle.com)

In previous and current customer behaviour reports, a consistent trend has emerged.
Consumers exhibit greater comfort when purchasing substantial items, such as flights or
holidays, using larger screens. This stands in contrast to other e-commerce sectors like retail
and fashion, where mobile sales constitute a higher percentage of 56.06%.

For one, it can be easier to navigate a website and access crucial information on a
larger screen. As a result, some shoppers may initially browse and research online travel on a
mobile device but choose to make a decision later. Moreover, when purchases involve greater
complexity, such as travel arrangements, people are more inclined to make the final
transaction on a desktop. So, travel purchases align with this concept.
 3.2 Budgets Travel

The definition of budget travel is a style of travel where individuals or travellers

prioritise cost-saving strategies, seek affordable options, and aim to make the most of their
travel experiences while adhering to a limited budget. Budget travel is also known as
independent travel and backpacking. In essence, the vacation is planned based on a
predefined budget set by an individual.

Generational fears with debt or no saving for the future are intriguing. For example,
33% of the millennial generation express more fear of credit card debt than death or war.
Conversely, Gen Z seems unafraid of spending.Visa discovered that this cohort is the sole age
group consistently spending more each month over the past 2.5 years compared to the
previous year.

Instead, today's youth seem most fearful of not allocating their money to the right
things.Gen Z individuals aren't postponing travel until they secure high-paying jobs or
accumulate substantial savings. Alternatively, as outlined in Morning Consult's report on Gen
Z travel trends, they are integrating travel into their current budgets. The report reveals that
only 11% of frequent Gen Z travellers belong to households with an annual income of
$100,000 or more. The majority (61%) state that they earn less than $50,000 per year.

However, this doesn't imply that Gen Z individuals are unconcerned Regarding travel
expenses, a survey involving four thousand full-time students aged 18 to 25 unveiled that
76% identified financial costs as their foremost concern when it comes to travel. Published in
March by the Travel Tech Company StudentUniverse, the survey revealed that almost two-
thirds of Gen Zs actively seek the most economical travel options, with 46% expressing the
expectation of receiving financial assistance from their parents.
 Source: https://blog.gwi.com/trends/travelers-budget/

When making vacation bookings, the majority of consumers typically lean towards
more affordable or reasonably priced options, rather than opting for a luxurious experience.
Travellers who rely on online searches as their primary source of information are more likely
to be drawn to budget-friendly options. This suggests their willingness to dedicate time to
research in order to secure the best deals.

Price comparison platforms such as Skyscanner Ltd ease the process of finding the
most competitive travel prices with just a few clicks. For Generation Z, utilising such sources
to find the most economical deals is second nature, as they are the generation most inclined to
seek budget options when planning international travel.

The conventional wisdom that booking in advance results in lower prices prompts
consideration of how this influences travellers' booking behaviour. Those who book
transportation for shorter vacations six to nine months in advance are 56% more likely to
prioritise affordability. However, individuals who spontaneously book trips within a month
are 46% more inclined to choose premium choices.

The budget trend aligns with the preferences of many younger consumers who
prioritise planning ahead and participating in cost-effective activities, rather than opting for a
high-end excursion.78% of Gen Z individuals have indicated that they plan their vacation
activities earlier than individuals from other generations. Hence, this demographic emerges as
a key audience for apps such as GetYourGuide, which provide a variety of affordably priced
activities.

3.3 Sustainability and Eco-Friendly

 Sustainability and eco-friendly travel refer to the concept of travelling in a way that
minimises the negative impact on the environment, supports local communities, and
promotes the preservation of natural resources like outdoor activities such as wildlife tours,
hiking and diving.

Based on research, Germany emerges as the frontrunner in sustainability and eco-

friendly travel. 21% of the German’s travellers surveyed met our criteria for “green
travellers”.Additionally, France, Spain, and the United Kingdom ranked among the top five
countries with the highest percentage of green travellers.

The study reveals that Gen Z are becoming more cognizant of the pressing need for a
shift in travel behaviour, a trend corroborated by insights from other research. According to a
survey conducted by Criteo, an online advertising company, 62% of individuals who have
cancelled a trip in the past six months belong to the Gen Z demographic.

Source: Criteo Travel Study, May-June 2019. N=13,188 — Green Travelers: N=783

Based on the research of the Booking.com website, 54% of Gen Z takes into account the
environmental impact of travelling to destinations, a crucial factor in their decision-making
process when booking trips. Additionally, 56% express a preference for staying in green or
eco-friendly accommodations.

Contrary to some perceptions, Morning Consult Company’s survey reveals that the
top three motivators for American Gen Z travellers align with those of other generations,
including relaxation, escapism, and spending quality time with friends and family. However,
the data indicates that Gen Z is more inclined than older generations to be motivated by
adventure, mental health considerations, and cultural experiences when it comes to travel.

.
4.0 Issues

Financial challenges

The Gen Z generation is not just entering the travel industry gradually but rather
rapidly. According to Morning Consult, a data research organisation, over half of American
Gen Z adults travel frequently, having taken three or more leisure trips in the past year,
despite their youth and relative lack of wealth. According to Lindsey Roeschke, a travel and
hospitality analyst at Morning Consult, this is because travel has become more popular in
general and Gen Zs are frequently exposed to travel inspiration via social media.

For those from generation z, budgeting for travel might be challenging due to high
student loan debt and a competitive employment market. It may be challenging to save
money for trip expenditures because of these issues. They have big plans, but with the little
money that they have, their travel planning may require them to be more resourceful and
economical. In Roeschke's view, Gen Z was born in 1997 and 2012, similar to young people
that are now the focus of this industry. They've also travelled a lot more than Gen Xers and
Baby Boomers.
Source : Pitrelli, M. (2023, April 17). Gen Zs don’t have a lot of money, but they’re traveling
anyway.CNBC.https://www.cnbc.com/2023/04/17/gen-z-travel-trends-travel-often-save-
money-and-seek-adventure-.html

However, in contrast to previous generations, Gen Zers are not delaying travel until
they have well-paying employment or a sizable bank account. It is crucial to remember that
despite these difficulties, some members of Generation Z love to travel and come up with
innovative solutions to get around them. Some of these solutions include budgeting, looking
for grants or scholarships for travel, or looking into more reasonably priced travel
possibilities.As stated in Morning Consult's analysis on Gen Z travel trends, "they are finding
ways to fit it into their budgets now." According to Morning Consult, just 11% of Gen Zs
who travel frequently come from households that make $100,000 or more a year. According
to the data, the majority (61%) say they make less than $50,000 annually.

Source : Pitrelli, M. (2023, April 17). Gen Zs don’t have a lot of money, but they’re traveling
anyway.CNBC.https://www.cnbc.com/2023/04/17/gen-z-travel-trends-travel-often-save-
money-and-seek-adventure-.html

However, this does not imply that Gen Zers are unafraid of travel costs.
Approximately 76% of the 4,000 full-time students, ages 18 to 25, who participated in the
poll stated that their top travel worry was money. According to a March survey by travel tech
business Student Universe, almost half (46%) of Gen Z respondents stated they anticipate
receiving financial assistance from their parents, and nearly two out of every three of them
search for the lowest prices when travelling. According to a survey released in March by the
Gen Z media company Student Beans, they are also prepared to reduce their discretionary
expenditures in order to finance their travel plans. In this survey, 83% of young adults
expressed their intention to scale back on non-essential spending. A guide published by
Student Beans highlights a trend in Gen Z's spending habits from 2021 to 2022. During this
period, Gen Zs decreased their average spending per purchase by 7% on fashion, 6% on tech,
and 12% on food. In contrast, their expenditures on travel saw a remarkable increase of 60%.

Thus, the report confidently states that regardless of the existence of a cost-of-living
crisis, nothing will deter Gen Z from enjoying a well-deserved vacation.

Digital Reliances

Several members of Generation z are highly dependent on their cellphones and other
gadgets. Even though technology can be a useful tool for travellers, spending too much time
on screens can ruin the trip and make people feel disconnected from reality. This is because
there is so much travel information available online, Generation Z may become paralyzed by
analysis and find it difficult to decide what to do, where to go, or where to stay when they are
travelling. Much like most other industries, travel has seen some incredibly convenient
technology-based innovations in recent years.

Gen Z consumers are likely to make up a significant share of regular users of any app
that facilitates travel. With the aid of technology, they are arranging their lodging, monitoring
their flights, and discovering fantastic travel discounts. This emphasis on technology ought to
serve as a cue to other sectors to follow suit. The company will lose out on Gen Z customers
if it still lacks an app or has a shaky website. Since they are constantly on their devices, you
have to go where they are. You ought to be developing your online persona across multiple
social media networks. It is imperative to optimise all content for mobile devices. Despite
that, Gen Z can continue to enjoy an authentic travel experience by balancing digital
engagement with offline experiences. Travel is shaped in a new way by each generation. The
influence of Gen Z in travel will also increase as their habits and preferences evolve, which is
expected to alter business over the next few years. You may be in a better position now, if
you're paying attention.

5.0 Challenges

5.1 Political policies

 Visa restrictions, the changes in visa policies, such as stricter requirements or reduced
visa durations. Visa is an official document that allows the bearer to legally enter a foreign
country. The visa is usually stamped or glued into the bearer’s passport. There are several
different types of visas such as travel visa, work visa, business visa, student visa, and so
forth. Each of which afford the bearer different rights in the host country (Arton, 2022).

Visa policies is a rule that states who may or may not enter the country. For example,
visa policies in the United States have a complex visa system with different categories such
as tourist visas (B-2), work visas (H-1B), and student visas (F-1). Citizens of certain
countries can travel to the U.S. for short stays without a visa through the Visa Waiver
Program (VWP), but they still need to obtain approval through the Electronic System for
Travel Authorization (ESTA) before boarding (Arton, 2022).

In addition, visa restrictions happen to protect their national security interests. This
can avoid individuals with potential ties to criminal or terrorist organisations from entering
the country. In the end, the changes in visa policies can impact Gen Z travellers' ability to
visit certain countries and obtaining visas may become more complex or costly, resultantly
affecting travel plans.

5.2 Exchange rate fluctuations

Exchange rate fluctuations give an unpredictable budgeting to Gen Z travellers.

Market rates and rates you receive, it's important to note that the rate you get when
exchanging currency may not be the same as the market rate. Currency exchange services
often charge a fee or offer rates slightly less favourable than the market rate, and this is how
they make a profit. Example for exchange rate is, one of the most commonly quoted currency
pairs is GBP/USD the British pound and the US dollar. If the market exchange rate for
GBP/USD is 1.25, it means that you do get US$ 1.25 for each £1, alternatively you can say
that the US dollar is worth 0.80 British pound 1/1.25 dollars, you exchange assuming you get
the market rate, and excluding any fees.

Exchange rate fluctuations can happen because of multifarious factors and one of
them is, advances in technology, including high-frequency trading, have increased the speed
and volume of transactions in the foreign exchange market, contributing to short-term
volatility. Accordingly, fluctuating exchange rates can make it challenging for Gen Z
travellers to accurately budget for their trips. What might have been an affordable destination
at one point may become more expensive due to currency depreciation.

5.3 Inflation

Simply put, inflation is a continuous increase in prices and happens when the inflation rate is
above 4% and absolute inflation that occurs in a country will cause the price of goods and
market price to become expensive. For example, the annual inflation in Angola, a Southern
African nation, for the 6th straight month to a near one-year low of 15.01% at September 2023
(Instituto Nacional de Estatistica, Angola). So, from that we can see the increased cost of
living in one country who had the higher inflation can give a challenge to Gen Z travellers.
For example, accommodation, meals, transportation and some activities become more
expensive and surely putting a strain on the budgets of Gen Z travellers.

Furthermore, reduced purchasing power, as the value of money decreases due to

inflation, Gen Z travellers may find that their purchasing power is diminished. This can limit
their ability to afford certain experiences, accommodations, or activities that they may have
budgeted for before the inflationary period.

In any case, Gen Z travellers who do not want their budget wasted on an inflationary
country should research destinations and consider destinations where the cost of living is
relatively stable or lower.

CURRENCY EXCHANGE RATE

RINGGIT MALAYSIA (MYR) ANGOLA KWANZA (AOA)
5.00 558.0
10.00 1115.9
20.00 2231.8
50.00 5579.6
100.00 11, 159.2

Source: CoinMill, “Angola Kwanza (AOA) and Ringgit Malaysia (MYR) Currency
Exchange Rate calculator.” Menukar Angola Kwanza (AOA) dan Ringgit Malaysia (MYR) :
Penukaran Mata Wang Kadar Pertukaran Kalkulator (coinmill.com)

Table 1: Currency exchange rate between (MYR) and (AOA)

Referring table 1, the currency exchange rate between RM 5 and 558.0 AOA shows
us that Ringgit Malaysia depreciated due to inflation at Angola. This is the evidence where
Gen Z travellers need to prepare and be a double checking person before deciding to travel to
another country.

5.4 Student loan and debt

Gen Z is burdened by student loan and debt around RM20K above for just their
education without adding another loan and debt such as car loan, housing loan, personal loan,
credit card loan and so on. After finishing their studies, Nor Rashidah Zainal and Norlia
Ismail from Faculty of Business Management from UITM Shah Alam found, 91% working
full-time, 4% working part-time, 2% working full-time and part-time and the other 3% are
unemployed. Due to this, we will see the other 6% Gen Z is challenged to do their travels
because of the commitment they give into their works to support their expenses.

However the other 94% of Gen Z have their own cons and pros. The cons are working
full-time, you may find it difficult balancing your personal life, so as Gen Z travellers it is
impossible if you do not find the balance between a productive and effective working life.
The pros of full-time working, you will earn a steady income because full-time employment
contracts include an obligation to pay you an agreed, protected and legally binding amount
every month, so as Gen Z travellers you may find your way to planning your expenses to
travel every single world.

Education Loan Debt Overall Mean Overall Median:

RM 36, 864 RM 23, 000

Debt By Type of Institution Min (RM) Max (RM) Mean (RM)

Public university 10,000 80,000 23,735

Private university 7,500 100,000 31,324

Public college 9,000 70,000 27,000

Private college 20,000 80,000 53,750

Source: ScienceDirect, Procedia-Social and Behavioral Sciences 36 (2012) 280-286, “Debt

Conference on Environment-Behaviour Studies, Savoy Homann Bidakara Bandung Hotel,
Bandung, Indonesia, 15-17 June 2011.”https://pdf.sciencedirectassets.com/

Table 2: Debt by type of institution

Referring to table 2, even public university education loan debt reaches RM 10 000
minimum they need to pay. This shows us, Gen Z travellers get the challenge to divide their
salary between loan pay and travel to the country they very want to go. But if their
consistency and smartness save up there are no obstacles to let them travel every year.

5.5 Language barriers

Absolutely, travelling to other countries we know there are many languages in the
world. When travelling to a country with a language different from your own, it is a challenge
to Gen Z who might be low in English, the most spoken language in the world. Beside
English there are 9 more the most spoken languages in the world and it is mandarin Chinese
with 1, 117 M speakers. Though Mandarin Chinese and English have a similar number of
speakers, far more people have adopted English as a second language.

Next, Hindi with 615 M speakers because Hindi is the lingua franca of Northern India
and has the largest population in the world with a population of 1.43 billion until 2023.
Spanish at 4rd ranking with 534 M speakers and French at 5rd with 280 M speakers. Due to
demographic shifts in Africa, the total numbers of French speakers could surpass 700 million
by 2050. Other than that, five below are Russian, Portuguese, standard Arabic, Bengali and
lastly is Indonesian (Carmen Ang, 2020). Gen Z travellers will face a language barrier if they
do not master even the basics of English in their lives to travel to every single country in the
world.
Source: DataStream, Carmen Ang, “The World’s Top 10 Most Spoken
Languages.”https://www.berlitz.com/blog/most-spoken-languages-world

Figure 1: The top 10 most spoken language worldwide

5.6 Food

Every country in the world preparing assorted luxury and local food attracts people
from various countries and absolutely gen z travellers will be attracted to this kind of food
and will try all of it. But not Muslim Gen Z travellers who might be limited to trying all food
because in Islam there is certain is forbidden in their religion such as pork and food with an
alcohol ingredient.

Also, there will be challenges to Muslim Gen Z travellers because there are some
restaurants whose labels are HALAL but they still use alcohol or other ingredients like pork
stoke, bacon, lard, tonkatsu, renin and so on in their menu (Jumada al-Ula, 2023). The
conclusion from that is that Gen Z travellers need to find a travel agency which can be trusted
that can show you the exact HALAL restaurant or stalls selling much local food especially
for Muslim travellers.

6.0 Conclusion

Ultimately, over half of American adults travel often, indicating that Gen Z, a tech-
savvy, adventurous, and culturally diverse age, is quickly gaining traction in the tourism
sector. Budget-friendly travel, adventure, environmentalism, mental wellness, and cultural
encounters are among their top priorities. With 2 out of every 3 Gen Z members looking for
the best deals and 46% anticipating financial aid from their parents, Gen Z is heavily reliant
on technology. However, Gen Z encounters difficulties abroad due to governmental
regulations, volatile currency rates, inflation, debt from college loans, difficulty
communicating in other languages, and dietary limitations. Gen Z travelers should choose
reliable travel companies that can assist them in locating local dining alternatives to
overcome these obstacles.
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