Millennial and Gen Z travellers are increasing their travel budgets for 2023 but are also becoming more cost-conscious when booking flights and hotels, according to a report by travel booking app Hopper.
The company's 2023 Travel Trends Report, which surveyed 1,500 Hopper users, found that 84% of its primarily Millennial and Gen Z users plan to spend more on travel in 2023. However, they are also becoming increasingly price sensitive and only booking travel when the price is right.
According to Hopper economist Hayley Berg, it's not accurate to assume that Millennial and Gen Z travellers have limitless budgets and are spending all their money on travel. Instead, they are being highly attentive to prices to make the most of their budget.
The trend could eventually impact the growth of airline, hotel and leisure companies that have benefited from rising prices and pent-up demand.
Hopper users, who already tend to book the cheapest flight available more than half the time, are now checking prices even more frequently than they did in 2019. The company reported that users checked prices of domestic trips in 2022 an average of 16 times before booking, a 33% increase from 2019. Prices for international trips were checked 50% more often than in 2019.
Berg commented that, despite planning their trips closer to the date of travel, Millennial and Gen Z travellers are checking prices more frequently both before and after making their bookings. The report also revealed that travel planning time has decreased 30% compared to 2019 levels.
Although Millennial and Gen Z travellers typically booked their travel earlier than the rest of the population in 2019, they are now becoming more averse to booking, according to Hopper. About 70% of Hopper users are between ages 18 and 35.
