A Look at Important Traveler Segments—From Gen Z to Outdoor Enthusiasts

In collaboration with our friends at Miles Partnership, we are excited to present these latest findings from “Travel Segments Powered by The State of the American Traveler 2024," with the aim of continually providing our industry colleagues valuable insights into the evolving travel landscape. 

In this edition, we examine: 

• Price Pressures
• Generational Divides
• Outdoor Enthusiasts 

By understanding the unique preferences and behaviors of different traveler segments, we as an industry can better cater to their needs and enhance their experience of travel.

Price Pressures 

With the ways the current economic and even social conditions impact travel, it’s important to look at price pressures on travelers—who and how it's impacting them. The cost of travel remains the top deterrent for travelers in 2024, although concerns have decreased compared to last year. A significant 73.1% of respondents emphasized the importance of getting good value for their money when selecting travel destinations, accommodations, and activities. Even the vast majority of households with $200k+ income seek value in their trip decisions. Interestingly, Gen Z travelers are less concerned about value compared to other generations.

Financing Travel & the Role of Travel Rewards Programs

Nearly 40% of American travelers financed parts of their most recent overnight trip, with the proportion of trip spend financed fairly stable across generations. However, as one might expect, younger and less affluent travelers feel a greater need to borrow money for travel. High interest rates also impact travel decisions, particularly among travelers with lower household incomes. Travel rewards programs continue to play a crucial role in travel financing, as over 40% of American travelers have used credit card points or rewards for trips in the past year. The importance of these programs has remained steady from 2022 to the present.

Generational Divides

While much is made about generational differences, it is clear that understanding these differences is key to effectively targeting and inspiring. Those in the Millennial and Gen Z generations exhibit distinct travel behaviors, such as shorter planning windows, a preference for visiting multiple destinations on their trips, and using travel as a form of wellness and escapism. Millennials are the most likely to select international destinations and have a more diverse set of interests driving their travel behaviors. In contrast, Baby Boomers prioritize relaxation and, even with having the largest travel budgets, are more likely to compare prices and seek out deals.

Reaching Different Generations

One of the most significant ways the generations diverge is in their travel inspiration sources. Gen Z says Instagram and TikTok inspire travel; they are less into traditional digital. For Millennial travelers, it’s Facebook and Instagram, and some traditional digital. Gen X looks to traditional digital and some Facebook; meanwhile, Boomers turn to traditional digital like search engine results and email campaigns. When it comes to time for trip planning, younger travelers report heavy usage of digital influencers, videos, and other social media content. Platforms like YouTube and TikTok are particularly popular among Gen Z for trip planning. 

Outdoor Enthusiasts

While outdoor-based attractions are among the most common trip activities and enjoying nature is a top sought-after travel experience across all American travelers, Outdoor Enthusiasts—those particularly passionate about outdoor activities when they travel—are a significant segment, representing 1-in-4 American travelers. Outdoor Enthusiasts are value-conscious and will be looking for budget travel options, however, they have sizable travel budgets and it appears to be a good time to be marketing outdoor travel products given their positive financial and travel sentiment. 

Outdoor Enthusiasts are motivated by the desire to connect with nature and seek out destinations that offer scenic beauty and outdoor adventure opportunities. This segment will most commonly prioritize activities such as hiking, camping, and exploring National Parks in their upcoming trips. Noting, that more than half of outdoor enthusiasts are also passionate about urban travel experiences, including fine dining and art museums. To reach this valuable segment, note that digital influencers, podcasts, and social media are all heavily used by Outdoor Enthusiasts in their travel inspiration and planning.

Methodology

The State of the American Traveler study began in 2006 and is now a monthly tracking survey that captures the sentiments of a representative sample of adult American travelers across the country. With over 4,000 fully completed surveys collected each wave, our data provides a robust understanding of domestic travel trends. The data referenced in this content is the most up-to-date at time of writing and was collected between August 16-27, 2024, with a confidence interval of +/- 1.55%