The experience economy
FOMO, aka ‘fear of missing out’, has gripped youngsters for decades (probs even for you too).
After all the lockdowns and what not (we won’t go into that…), experiences reemerged as part of a cultural renaissance – with greater vivacity, excitement, intentionality, and momentum.
In 2024, we’ll see young consumers embrace communities like never before: focusing on creating new memories, closer ties and meaningful experiences.
As globalization increases and the rising cost of living concern rages on, we delved into travel and the experience economy.
“Gen Z wants value for money, they have the means to afford luxury travel but they want to make sure it’s worthwhile.”
The year of enriched travel experiences
Traveling gives Gen Z the chance to rest, rejuvenate and immerse themselves in different cultures.
Despite YouTube being the number one social media platform for Gen Z, there’s one hegemon in the travel game: TikTok.
TikTok has seen a 410% increase in views of travel content in the last year. It has fundamentally changed the way users discover and book travel – turning the purchasing funnel into an infinite flywheel.
Millions of Gen Z consumers are going online to find their travel inspiration. This is a huge opportunity for brands: they can drive traffic to their sites without the need for large follower bases.
Equally, the influence of TikTok doesn’t end at the discovery stage. 35% of TikTok users have traveled to a new destination after seeing a video about it.
Is price still king when it comes to the experience economy?
Well, yes and no.
In the US, young consumers are happy to pay the a premium if the destination feels luxurious, showing their affinity for self-indulgence. On the other hand, UK holiday-makers want to get more bang for their buck as their love for the all-inclusive and budget holiday emanates through our data loud and clear.
22% of US and 25% of UK Gen Zers said that they’d be convinced to book a trip if it offered a luxurious and relaxing experience.
Interestingly, despite a lot of discourse on Gen Z’s sustainability credentials, this isn’t necessarily translating into their spending habits.
How can your brand leverage these insights?
Young people are overstimulated, yet failing to create valuable connections.
There’s an opportunity for brands here. Advertising should be unifying: using creativity to make brands a part of the culture.
When it comes to IRL, brands can capture young consumers by creating spaces for them to connect. Facilitating an IRL space allows consumers to come together and offer an escape from everyday life to those visiting.
Make Gen Z explore a whole host of relevant touchpoints.
Gen Z wants physical spaces to bring them closer to their communities: nearly half of consumers said they’d engage with alternative experiences, such as pop-ups, workshops and other activities.
Work with creators.
When it comes to travel activations and the experience economy, creators are your golden ticket.
Creators don’t have to have huge platforms; in fact, a lot of the time consumers are more receptive to those with smaller following counts. Visual content can promote an experience or brand just by virtue of being visual: we all know the power of FOMO on our wallets.
Offer discounts.
Affordability is still the most important factor in booking an experience – specifically for travel, where purchases are high ticket.
68% of Gen Z in the US and 62% in the UK say affordability is the most important factor. This is backed up by 60% in the US and 53% in the UK saying value for money is paramount.
There’s no stronger way to offer value than offering a product at a discounted rate – consumers will thank you, and they’ll be likely to return to your brand, even in the face of a saturated market.
Want to dive deeper into this year’s trends?
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