China’s Gen Z works to travel, not buy homes

Almost three quarters of China’s Gen Z workforce identifies travel as the main incentive of work, far outpacing traditional milestones like home ownership or family life, which many view as distant or unrealistic, finds an HSBC survey of 1,253 respondents released today. As Gen Z workers emerge as a key consumer segment in the travel sector, their preferences and priorities are reshaping how travel brands operate. Last year alone, 71 million Chinese booked trips abroad, and this number is expected to rise to around 200 million within the next four years. This outbound demographic is primarily young, female, and increasingly spontaneous, with nearly 70% booking trips less than a month in advance, according to the latest data from China Trading Desk. In the first quarter of this year, 62% of travelers were female, and 39.5% were between aged 18 and 24, with an additional 27.4% between 25 and 29. The travel industry is responding by emphasizing collaboration, authenticity, and niche experiences to align with Gen Z’s values and lifestyles. Here’s how brands are successfully meeting young travelers’ expectations through innovative approaches. Collaboration: Fusing luxury, cultural relevance Collaborations are an instant way for traditional luxury brands to find fresh innovation, connecting to pockets of young subcultures and interests in an authentic way. A notable example of late is the collaboration between The Ritz-Carlton and the Madrid-based fashion label Late Checkout, launched on October 1. The “Late Checkout: A Ritz-Carlton Story” capsule collection showcases luxe, Ivy League-style menswear essentials that subtly integrate The Ritz-Carlton’s lion and crest, blending travel and style for elevated merchandise, and combined-brand storytelling. “The juxtaposition of our timeless elegance with Late Checkout's modern, playful aesthetic creates a unique synergy," Jamie Kerr, VP and Global Brand Leader of The Ritz-Carlton said in a statement. "It allows us to offer both loyal and new guests a fresh, wearable expression of The Ritz-Carlton experience, while staying true to the craftsmanship and creativity that define our brand globally.” Similarly, Hong Kong International Airport is also deploying a Gen Z-oriented collaboration strategy with luxury brands to elevate the travel experience. "Some luxury brands do collaborate with us directly. Then, if they have events or in-store activations, we let our top-tier customers know when they fly out," Hong Kong Airport Authority Assistant General Manager Lois Chan tells Jing Daily. This targeted, tailored approach is bolstered by concierge services, enabling time-pressed travelers to make purchases with live-chat assistance, adding a personal touch that is appreciated by digital native consumers in general, particularly among newer generations of luxury fans. Authenticity: Staying true to the brand experience Authenticity remains a cornerstone for engaging with young Chinese travelers. Dale Parkington, General Manager at The Ritz-Carlton Shanghai, says that the brand’s commitment to luxury must remain consistent and constant even as it evolves to attract younger generations. “We don’t follow trends," he says. "We understand our guests ... Gen Z wants authentic experiences, and it’s important for businesses to deliver on the promises they make.” This combination of authenticity and maintaining the brand’s luxury ethos, while offering curated experiences, helps guests feel a genuine connection with the hotel. “Consumers will choose a specific brand depending on what the occasion is. And so the biggest pitfall is trying to be something else. Luxury hotels might think, 'I need a younger demographic, so I'm going to put really cool electronic music on in the club launch, because then young people will find it,' but they don't come to the Ritz-Carlton for that. They came to the Ritz-Carlton for our experience. The most important thing for any business right now is to be true to yourself,” adds Parkington. For Gen Z, an authentic travel experience is not about fitting in, but is about making meaningful memories that align with their personal values and lifestyle. Ritz-Carlton’s approach reflects this sentiment, ensuring this demographic feels both valued and inspired without sacrificing the brand’s luxury appeal. Niche brands, experiences: Tapping the unconventional Chinese Gen Z travelers seek destinations and experiences that feel unique and they are often drawn to niche brands that offer exclusive, lesser-known adventures. In Hong Kong, the perfume store Shilla at the airport embodies this shift, renovating its store to showcase niche fragrances like Creed and Byredo, appealing to travelers who appreciate curated and distinct selections. “It has put extra effort into diversifying the perfume collection,” says Chan, meeting the demand for specialized products that appeal to Gen Z’s preference for uniqueness. This trend also appears in the hospitality sector, where properties focus on personalized experiences. The Ritz-Carlton, for instance, creates “memories that kids are enjoying, that tweens are enjoying, and that 20-somethings … want to celebrate,” says Parkington. By embracing this multi-generational approach, hotels like Ritz-Carlton meet the expectations of Gen Z while remaining aspirational, encouraging travelers to return as their tastes evolve. The strategies employed by the travel industry to attract Chinese Gen Z travelers demonstrate an emphasis on collaboration, authenticity, and niche experiences, creating a brand connection that resonates deeply with this influential demographic. Whether it’s through fashion partnerships, personalized luxury services, or niche products, the industry’s innovations are aligned with Gen Z’s desire for individual expression and meaningful travel experiences.

China’s Gen Z works to travel, not buy homes

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Published October 28, 2024

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China’s Gen Z works to travel, not buy homes