Gen Z, born roughly between 1997 and 2012, is steadily becoming one of the most influential customer groups in the tourism industry. More than just a new wave of travellers, Gen Z is reshaping the entire decision-making journey, from seeking inspiration and comparing services to choosing destinations, booking accommodation and flights, and sharing post-trip experiences. This necessitates that hotels, resorts, tour operators, and OTA platforms re-evaluate their sales strategies and customer engagement approaches in the digital age.

Gen Z

According to Deloitte, Gen Z and Millennials now account for approximately half of all travellers in many major markets. Social media, in particular, has become a crucial tool in this group's travel planning process, with over half of Gen Z stating they use platforms like TikTok, Instagram, or YouTube to find inspiration and evaluate destinations before booking services. This trend is also rapidly emerging in Vietnam. A Euromonitor report indicates that the growth of online booking platforms, coupled with the increasing influence of TikTok content, has boosted travel demand, especially among younger travellers. Experience videos, local reviews, culinary exploration journeys, and "viral" destinations are becoming key drivers in booking decisions.

How has Gen Z's booking journey changed?

While customers previously started by searching on Google or contacting travel agencies directly, Gen Z now begins with a short video on TikTok or Instagram Reels. They don't search by hotel name or brand, but by desired experience, such as "cafe with sunrise view," "resort in the forest," "hotel with beautiful sea view," or "little-known check-in spot." This makes inspirational content the first touchpoint in the entire customer journey.

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After being inspired, Gen Z quickly moves to the information verification stage. They read reviews on multiple platforms and watch real user videos instead of solely trusting official advertising images. Access to a large volume of user-generated content makes transparency a decisive factor in building trust with a brand. A 2026 Decision Lab report shows that 57% of Vietnamese consumers now prefer to plan and book their travel services independently rather than purchasing package tours. This trend reflects the desire to control their itinerary, actively choose services, and personalize experiences, which are typical characteristics of Gen Z.

Price is still important, but experience is the deciding factor

A common misconception is that Gen Z only cares about low prices. In reality, what they seek is value commensurate with the experience received. They are willing to pay more if the service offers a unique, personalized feel or creates shareable social media content. According to Deloitte, Gen Z not only considers cost but also prioritizes factors such as sustainability, local experiences, and convenience throughout the entire booking journey. Approximately 42% of Gen Z travelers state they actively choose sustainable travel options when provided with sufficient information for comparison. This indicates that price is no longer the sole criterion, and experience and brand value are increasingly influencing purchasing decisions.

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For hotel businesses, this means investing in customer experience will yield longer-term results than simply competing on promotions. A beautifully designed space, a clear brand story, personalized service, and local experiences will create a much more sustainable competitive advantage than continuous price reductions.

Booking decisions are made faster but require more comprehensive information

A prominent difference with Gen Z is their rapid decision-making once they have all the necessary information. However, they are also willing to abandon a transaction if the booking process is complicated, lacks transparency, or incurs unexpected additional costs. Euromonitor notes that the demand for secure online payment methods, integrated e-wallets, and QR payments is growing in Vietnam. This reflects young consumers' expectation for a simple, fast, and frictionless booking process. For travel businesses, this necessitates optimizing the entire digital experience. Websites need to load quickly, have mobile-friendly interfaces, streamlined booking or tour reservation processes, and transparent pricing from the outset. A single complex payment step or unclear information can lead customers to switch to another brand in a matter of seconds.

Social media is no longer just a promotional channel but has become a sales channel

For many years, Facebook and Instagram were primarily seen as communication tools. However, for Gen Z, the line between inspiration, information seeking, and booking services has almost disappeared. A short video can instantly lead customers to a booking page or OTA platform with a single tap.

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Euromonitor also points out that the growth of TikTok and online booking platforms is contributing to the growth of Vietnam's tourism industry. Young consumers are increasingly influenced by real-life experience content, content creators, and authentic community reviews rather than traditional advertising. Therefore, marketing strategies in the hotel and tourism industry need to shift from merely promoting products to building a content ecosystem. Businesses need to invest in short videos, user-generated content, collaborate with suitable KOLs and KOCs, and integrate the booking journey directly into digital platform touchpoints.

What do travel businesses need to prepare to win over Gen Z?

The shift in Gen Z's booking behavior is not just a short-term trend but reflects a long-term transformation of the tourism market. As this customer segment grows in size and purchasing power, businesses can no longer operate using traditional sales models.

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Instead of focusing solely on selling rooms, tours, or tickets, businesses need to build a seamless experience ecosystem, from inspiring and providing information to supporting decision-making and post-trip customer care. Concurrently, customer data, AI technology, digital content, personalization, and mobile experience optimization will become core competitive capabilities in the next phase of the tourism industry's development.

Conclusion

Gen Z is not merely a new customer segment; they are reshaping how the entire tourism industry operates. They seek experiences over products, prioritise transparency over flashy advertisements, and expect all booking processes to be fast and convenient on digital platforms. Businesses that understand this behaviour and proactively adapt will have significant opportunities to build a competitive advantage in an increasingly digitalised and personalised market. As customer behaviour continuously evolves, understanding market trends and developing appropriate business strategies are crucial for the competitiveness of hotel and tourism businesses. NewSun Hospitality partners with investors and operators in market research, business model development, Sales & Marketing strategy, digital transformation, and optimising customer experience, helping businesses anticipate trends and achieve sustainable growth.

References:

  • Decision Lab. (2026). The rise of independent travel in Vietnam is changing how destinations, airlines, and tour brands compete.
  • Deloitte. (2026). 2026 Travel Industry Outlook.
  • Euromonitor International. (2025). Booking in Vietnam.
  • Euromonitor International. (2025). Travel in Vietnam.
  • Euromonitor International. (2024). Vietnam Consumer Profile.