Young travelers in Asia-Pacific seek enhanced experience with loyalty program: Marriott Bonvoy

Marriott Bonvoy surveyed 1,000 people across 10 markets to better understand the shifting attitudes of Millennials and Gen Zs and their travel behaviors.

While 60% of the respondents are actively subscribed to loyalty programs, the challenge of juggling several loyalty programs has led most (57%) to seek out one program that meets all their travel needs.

The survey identified an emerging generation of travel-focused, value-driven "Savvy Explorers" in the region who seek to maximize their travel dollars and unique travel experiences.

Travel in 2024 is a priority for Gen Zs and Millennials. The result shows that 73% report their intentions to take at least two trips in the next 12 months, and 91% plan to spend the same, if not more, on their trips compared to the year before.

Marriott Bonvoy survey reveals 57% of Millennials and Gen Zs seek a single loyalty program, with 73% planning two trips in 2024, offering access to 30 brands in 10,000 destinations. Photo courtesy of Marriott Bonvoy

Travel is viewed as an essential lifestyle component, and most are willing to reduce their everyday spending on dining out (60%), shopping (57%), and coffee (54%), so as to spend more on a holiday.

According to John Toomey, Marriott International’s Chief Sales and Marketing Officer, Asia Pacific, excluding China, the survey results suggest that Gen Zs and Millennials in the region are purposefully strategizing how they can channel value from their everyday spending toward rewarding travel experiences.

They also prefer to be part of only one all-encompassing loyalty travel program that 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, Toomey says.

He reveals that, as a testament to the program’s appeal, Marriott Bonvoy has seen its membership base in APEC grow by more than 50% since 2019.

What’s more encouraging is that its members are highly active. They earned 40% more points in 2023 compared to 2022 and are putting their points to good use, with point redemptions increasing by more than 55% in the same period.

The trend of greater member growth and activity extends to the Marriott Bonvoy app.

APEC member enrollment via digital channels grew by more than 25%, 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.

Marriott Bonvoy app member activity increased by 40% in 2023, with redemptions increasing by 55%. Digital enrollment grew by 25%, with active users doubling in 2023. Photo courtesy of Marriott Bonvoy

Travel value unlocked through everyday spend

Savvy Explorers take considered steps to unlock travel value through everyday spending.

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 the 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 spending.

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: a key destination to explore

Hotel experience is key to winning the hearts and dollars of the Gen Z and Millennial segments, with 99% of respondents believing their hotel choice can make or break their holiday.

Hotels are 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, while 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 put extra travel dollars in.

Top motivations for new-generation travelers to splurge include the hotel’s room offerings (48%) and location (42%).

While 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

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 be easily accessible (62%).

As a reflection of robust intra-regional travel demand in 2023, Marriott International saw over 60% of bookings in APEC come from within the region.

Corporate backpackers on the rise

Gen Zs and Millennials are also taking luxury travel up a notch by capitalizing on the opportunity of a business trip to embark on multi-destination tours.

In addition to extending their travel plans (68%), 84% plan to explore nearby cities and countries as part of their post-work itinerary.

With more than 560 properties across 24 brands in 22 countries and territories in APEC to choose from, Marriott International offers customers a myriad of options to mix work with pleasure.

People are usually incorporating luxury travel into their business trips, with 68% planning to extend their travel plans and 84% exploring nearby cities and countries. Photo courtesy of Marriott Bonvoy

Off-peak travel maximizes destination experience

Gen Zs and Millennials are also carefully planning when to travel to maximize their trip experience.

The majority (71%) of Gen Z and Millennials say they would opt to travel during off-peak seasons so as to beat the crowds and get more out of their trip.

67% feel they can do more during low-peak seasons, and 77% leave their holidays feeling more relaxed and rejuvenated.

Marriott Bonvoy allows members to earn points when they stay or spend at Marriott International’s portfolio of 31 brands across 139 countries and territories and in over 8,800 properties.

In APEC, members can benefit from the program’s key strategic partnerships with Singapore Airlines and co-branded credit cards in Japan, Korea, and India.

Young travelers are planning trips during off-peak seasons to maximize experience, with 71% opting for off-peak seasons. Photo courtesy of Marriott Bonvoy

With Marriott Bonvoy Moments, members can get access to once-in-a-lifetime experiences, such as the opportunity to get closer to the action with the Mercedes-AMG Petronas Formula One Team at the Singapore Grand Prix.

Members can earn points for stays at hotels and resorts, including all-inclusive resorts and premium home rentals, and through everyday purchases with co-branded credit cards.

You can also redeem your points for experiences, including future stays, Marriott Bonvoy Moments, or through partners for luxurious products from Marriott Bonvoy Boutiques.

To enroll for free or for more information about Marriott Bonvoy, see here.