With travel costs soaring, more tourists from Asia-Pacific are opting for intra-regional trips, particularly Gen Z and millennials, as a majority of younger adults want to save up for trips, according to Marriott International.
In 2023, more than 60% of bookings in Asia-Pacific stemmed from travellers within the region, compared with 40-50% before the pandemic, said John Toomey, chief sales and marketing officer for Asia-Pacific excluding China at Marriott International.
The company polled 1,000 travellers in April, targeting Gen Z (age 18-24) and millennials (age 25-41) in 10 countries in the region.
Mr Toomey said these two cohorts account for two-thirds of the adult population worldwide and will make up more than half of travellers in Asia-Pacific by 2025. Some 55% of respondents opted for destinations in the region that can provide a unique experience.
As the region has various destination choices, including beaches and mountains, travellers can save travel time and costs, unlike long-haul flights to Europe where airfares are more expensive post-pandemic.
He said that although Gen Z and millennials have lower budgets than older generations, their desire to travel is extremely high.
"They want to make sure they maximise every dollar and stretch these dollars for the ultimate experience," said Mr Toomey.
About 73% of the respondents plan to make at least two trips within the next 12 months, and 91% of them plan to spend the same or more than a year earlier.
Many of them are even willing to sacrifice their daily spending for travel, with 60% preparing to reduce dining out, and 57% will restrict their shopping budget.
Nearly four in five respondents also expected hotels to provide curated local programmes and experiences, while 84% prefer a hotel concept that reflects the destinations.
"We believe this trend will continue with people foregoing material goods for more amazing experiences," said Mr Toomey.
At present, Marriott operates over 570 hotels across 24 brands in 22 countries in Asia-Pacific, excluding China, with another 320 properties in the pipeline.
In Thailand, it has 53 properties, and will open four new hotels this year.
He said Thailand will definitely benefit from this trend, as the country is one of the top-three strongest markets in the region, alongside Japan and India.
The number of regional members of its loyalty programme Marriott Bonvoy in 2023 grew 50% from 2019.
With 57% of Gen Z and millennials in the region looking towards a travel programme that includes all their needs, Mr Toomey said Marriott Bonvoy can cater to their needs, with various benefits including access to exclusive events and partnerships with airlines, credit cards and online travel platforms.
Tourists socialising over a meal. The company polled 1,000 travellers in April, targeting Gen Z (age 18-24) and Millennials (age 25-41) in 10 countries in the region.