VTB and Tutu detailed their expenses and relaxation locations
Young Travelers Are On The Move: Exploring the Preferences of Gen Z & Millennials
It's clear that the young guns are taking over the travel scene! Over the past year, Russians aged 18 to 35 have significantly increased their travel frequency by 11%. According to a joint study by VTB and travel service Tutu, popular expenditure categories include supermarkets, transport, cafes and restaurants[1].
Let's delve deeper into the travel preferences of Generation Z (Gen Z) and Millennials, the key players currently shaping the travel market.
Where They Roam: Top Destinations
When it comes to domestic destinations, Moscow (20%), Krasnodar Krai (10%), and St. Petersburg (8%) are firm favorites, while Rostov (4%) and Sverdlovsk (2%) regions are gaining popularity[1]. Additionally, Tula, Kostroma, and Vologda regions have emerged as up-and-coming choices.
As for international destinations, Belarus (35%), Uzbekistan (19%), Tajikistan, Kazakhstan, and Kyrgyzstan (7% each) are at the top of the list. Notably, the popularity of Japan and Vietnam has culturally exploded[1].
Olga Kotelnikova, head of marketing analysis at Tutu travel service, highlights the distinct trends within each generation: "This year, young people have been traveling more frequently. Gen Z accounts for 60% of domestic trips and 51% of international ones. Gen Z is noticeably more likely to visit Adygea (73% of all young travelers to Adygea) and the Karachay-Cherkess Republic (68%). In contrast, millennials prefer exploratory and expeditionary tourism in Kamchatka (61%). Among international destinations, Gen Z favors South Africa (73%), Morocco (61%), and Kazakhstan (60%), while millennials lean towards Sri Lanka (73%), the Maldives (70%), and Azerbaijan (64%)[1]."
Crunching the Numbers: RTB Insights
According to VTB data, users aged 18 to 35 demonstrate a rise in both the total amount spent and the number of purchases. Clients aged 18 to 25 tend to favor popular expenditure categories such as supermarkets, cafes and restaurants, transport, hobbies, clothing, and footwear. On the other hand, clients aged 26 to 35 show a notable 7% increase in their average transaction value, indicating increased transactional activity among this age group[1].
Digging Deeper: Enrichment Insights
According to research[2][3][4][5], the travel preferences of Gen Z and Millennials reveal distinct patterns when comparing domestic and international destinations, shaped by lifestyle, income, technology use, and experience-seeking behavior.
- Domestic Travel Preference and Confidence: Younger travelers are increasingly engaged in both domestic and international travel, yet confidence and readiness to travel favor wealthier and better-educated individuals, often allowing for international travel[2].
- Experience-Seeking and Travel Types: Gen Z and Millennials prioritize diverse and bundled trip experiences, including vacation rentals, cruises, and flexible payment options[3][4]. They tend to seek immersive experiences, such as sports events, filming locations, and unique venues worldwide[1][2].
- Technology and Booking Preferences: Both generations heavily rely on digital tools for travel planning, preferring websites and mobile apps for booking, with a predicted rise in mobile app adoption in the future[1][2]. This technological approach facilitates the booking of diverse domestic and international destinations easily.
In conclusion, Gen Z and Millennials' dynamic and growing travel appetite blends domestic and international destinations. Influenced by factors such as income, experience interests, and technology adoption, their preference for unique experiences and bundled flexible options shapes travel loyalty strategies moving forward[2][4]. Domestic travel benefits from convenience and family factors, while international travel is driven by experience and affordability among the more affluent within these age groups.
Financing travel is essential for these young, adventurous travelers, as they allocate their expenditure towards various categories such as supermarkets, transport, cafes, and restaurants, both domestically and internationally. Moreover, the lifestyle preferences of Generation Z and Millennials greatly impact their travel choices, with a strong tendency towards experiencing diverse destinations, immersive events, and utilizing digital tools for planning and booking.
