Experiences are now the first consideration for Millennials and Gen Zs in Asia Pacific, and they are willing to spend on it, according to a survey conducted by travel and experiences platform Klook.
The study says one in three millennial and Gen Z travelers are willing to spend more than double of the average monthly income in Asia ($1,069) on their next holiday, which amounts to $2,000 and more.
Eric Gnock Fah, chief operating officer and co-founder of Klook, said that in the new era of travel, experiences emerged as a new coveted currency for the next generation of travelers, particularly among Millennials and Gen Zs.
“Unique experiences and activities take precedence in their travel plans as the first thing they look at, with 85 percent of travelers willing to invest in experiences during their holidays. This remarkable shift is a testament to their increasing desire for authentic experiences, with their decisions fueled by social media over traditional sources like search engines and travel guides before embarking on their next travel adventure,” he said.
As travel becomes more intentional, a majority of travelers are also prioritizing experiences and making them a focal point of their trip, with 63 percent booking their experiences before they fly.
More than 90 percent of Millennials and Gen Zs place importance on unique and memorable experiences during their travels, with 85 percent signaling a willingness to invest in them during their holiday.
“Notably, 89 percent of travelers from the Philippines have a strong desire to spend more on nature and outdoor experiences like island tours and canyoneering, water activities like whale shark watching and parasailing and sightseeing experiences through cruises,” according to the study.
Gen Zs, who are just beginning to embark on their careers, are not far behind their Millennial counterparts in splurging on travel. One in five Gen Zs are reportedly willing to spend over $3,000, slightly trailing one in four Millennials who share the same sentiment.
The biggest spenders across Asia Pacific emerge from Mainland China (58 percent) and Hong Kong (39 percent), taking the top spots in willingness to spend beyond $3,000 on their next holiday.
More price-conscious travelers originate from India and Vietnam (willing to spend below $2,000) and the Philippines (willing to spend only less than $1,000), still more than double their average monthly income.