Introduction
Luxury travel was once traditionally defined by exclusivity and rarity, centred on experiences reserved for the very wealthy. In fact, for the most part, luxury tourism is powered by vacationers with net worths between US$1 million and US$30 million, as noted in a McKinsey report.
However, as Gen Z matures and gains spending power, the concept of luxury is taking on new meaning. Highly regarded as a cultural force for their strong passions and distinct values, these modern travellers are increasingly shifting away from a checklist of exclusive destinations and status-driven experiences towards journeys that prioritise personal growth and enrichment.
Many are now in a phase of accumulating wealth, prompting a greater willingness to invest a significant portion of their earnings in meaningful, high-quality experiences. In Asia Pacific, where Gen Z is expected to become the largest spenders in the coming years, thoughtful spending habits and a proclivity for customisation drive them to curate their journeys, selecting moments of splurge that speak to their identity and sense of purpose.
This mix-and-match style of travel defines à la carte luxury – a flexible expression of luxury that prioritises meaningful, high-impact experiences over one-size-fits-all opulence.
This mindset drives Gen Z to spend more on what they value most in a journey – whether that’s entertainment, sustainability, aesthetics, wellness, or culinary indulgences. This ultimately determines which brands they engage with and how their loyalty is formed through brands that gratify their preferences and lifestyle choices.
To better understand these shifts, BurdaLuxury and Vero introduce a collaborative study, À La Carte Luxury: Gen Z’s Selective Indulgence Approach to Travel, that explores the travel spending priorities of Gen Z travellers in Asia Pacific. By taking an in-depth look at how Gen Z plans, budgets, and navigates their getaways, we aim to unpack the values that shape their decisions and their evolving perceptions of luxury.
The insights are drawn from an online survey of nearly 2,500 Gen Z respondents, conducted by Kadence International across Hong Kong, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. The sample comprises both younger Gen Z (aged 16-22) and older Gen Z (aged 23-30). For the purposes of this analysis, younger Millennials (aged 29-30) have been grouped with older Gen Z due to the absence of significant differences.
This white paper unveils a wealth of opportunities for brands across sectors, such as hospitality, travel, and lifestyle. By crafting experiences that meet the expectations of contemporary luxury travellers, brands can build enduring relationships and position themselves as true allies in Gen Z’s search for fulfilling journeys.
