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Marriott Bonvoy‘s survey in the Asia Pacific region, excluding China, reveals that a significant majority of Gen Zs and Millennials prefer the simplicity of being part of a single comprehensive loyalty travel program. Among APEC Gen Zs and Millennials, 60% actively engage in loyalty programs. However, the complexity of managing multiple programs has prompted 57% of them to seek a single program that fulfills all their travel requirements.
The survey, conducted by Marriott Bonvoy across ten APEC markets with 1,000 respondents, aims to grasp the evolving attitudes and travel behaviors of Millennials and Gen Zs. It pinpoints a new breed of travel enthusiasts called “Savvy Explorers” within APEC, characterized by their focus on maximizing travel value and seeking unique experiences.
In 2024, travel holds great importance for Gen Zs and Millennials, with 73% planning to embark on at least two trips in the coming year. Furthermore, 91% intend to maintain or increase their travel expenditure compared to the previous year. This underscores the significance of travel as a vital aspect of their lifestyle, with many willing to cut back on daily expenses like dining out (60%), shopping (57%), and even their daily coffee (54%) to allocate more funds toward holiday experiences.
“Survey results suggest that Gen Zs and Millennials in APEC are purposefully strategizing 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 program 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 program’s appeal, we have seen Marriott Bonvoy’s membership base in APEC grow by more than 50% since 2019. What’s more encouraging is that our members are highly active. They earned 40% more points in 2023 compared to 2022, and are putting their points to good use, with points redemptions increasing by more than 55% in the same period,” he reveals.
The Marriott Bonvoy app has seen a significant increase in member growth and activity, particularly within the APEC region. Enrollment of APEC members through digital channels has surged by more than 25%, accompanied by a doubling in mobile app downloads and active users in 2023 compared to pre-pandemic levels.
A recent regional survey delved into the travel habits of Gen Zs and Millennials across the 10 APEC countries, revealing intriguing trends outlined in Annex A.
One notable trend is the strategic use of everyday spending by Savvy Explorers to unlock travel value. These younger generations, well-versed in loyalty programs, employ diverse strategies to maximize their travel rewards. For instance, four out of five have intentionally used a travel-linked credit card for everyday purchases, while 67% actively utilize travel loyalty programs for booking local experiences and staycations.
This trend is mirrored in the behavior of Marriott Bonvoy members in APEC, who earned points not just from stays at over 8,800 Marriott International properties worldwide but also from everyday spending. In 2023, the redemption of points for hotel stays saw a remarkable 130% increase compared to pre-pandemic times, with hotel stays constituting the majority of redemptions, followed by points-to-miles conversions with partner airlines.
Hotels have become more than mere accommodations for Gen Zs and Millennials; they are now key destinations for exploration. A whopping 99% of respondents believe that their hotel choice can significantly impact their holiday experience. Moreover, hotels are increasingly expected to offer curated local programming and experiences, with 84% preferring hotels that reflect the culture and activities of their destinations.
Marriott International’s introduction of Moxy Hotels in key APEC markets underscores their commitment to providing innovative hospitality experiences tailored to modern travelers’ preferences.
Despite a focus on maximizing travel budgets, APEC’s Gen Zs and Millennials are willing to invest extra in their hotel experience. Top reasons for spending include room offerings and location. Furthermore, they prioritize modern conveniences like mobile-first customer service, reliable WiFi, and flexible check-out over traditional benefits like lounge access.
While international travel has resumed, many of APEC’s younger travelers are opting for destinations closer to home, referred to as “destination dupes,” which offer similar experiences and cost-saving opportunities. This preference is reflected in Marriott International’s booking trends, with over 60% of bookings in APEC originating from within the region in 2023.
Additionally, Gen Zs and Millennials are increasingly blending business with leisure travel, extending business trips to explore multiple destinations. With Marriott International’s extensive portfolio of properties across APEC, travelers have ample options to mix work and pleasure seamlessly.
Lastly, these younger travelers are strategic about when they travel, often choosing off-peak seasons to avoid crowds and enhance their overall experience. This planning approach has proven successful, with the majority reporting feeling more relaxed and rejuvenated after off-peak trips.
Marriott Bonvoy offers members the opportunity to earn rewards across a vast network of properties and partners, enhancing their travel experiences with exclusive benefits and access to unique opportunities like the Mercedes-AMG PETRONAS Formula One Team participating in the Singapore Grand Prix.
The post Marriott Bonvoy’s survey highlights Gen Z and Millennials preference for simplified loyalty programs in China and across the Asia Pacific appeared first on Travel And Tour World.
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