02 Feb, 2022 Generation Hashtag will be a key driver for niche tourism growth driven by experience economy, according to GlobalDataPosted in Travel & Tourism
According to GlobalData’s recently published report, ‘Niche Tourism, 2022 Update – Thematic Research’, demand for niche tourism holidays and experiences is growing among Generation Hashtag (defined as people born between 1991 and 2005).
Craig Bradley, Associate Travel & Tourism Analyst at GlobalData, comments: “Generation Hashtag is a driving force behind the experience economy, which is defined as an economy in which goods and services are sold by emphasizing the personal effect they have on people’s lives. As such, it is closely linked with niche tourism due to the broad range of personalized excursions and experiences that can be on offer.”
In GlobalData’s Q1 2021 Global Consumer Survey, respondents were asked how much a product/service tailored to their needs influences their product choice. The survey found that 27% of Gen Z and 26% of Millennials said it ‘always influences my product choice,’ which were the two highest percentages out of all the age groups surveyed, and 3% above the global average.
GlobalData Global Consumer Surveys from Q4 2018, Q3 2019, and Q3 2021, which asked travelers what type of holiday they typically take, shows the increasing preference for niche trip types among young adults.
The results demonstrate a gradual increase in popularity for various niche trip types including adventure, gastro, eco, LGBTQ and health and wellness holidays within this cohort. However, the percentage of Generation Hashtag respondents taking more traditional types of trips such as city breaks, and sun and beach tourism stays roughly the same throughout the annual surveys.
The preferences of Generation Hashtag are helping drive many forms of niche tourism to the next level. Almost all types of niche tourism covered in GlobalData’s surveys over the last three years have shown an increase in demand from this cohort. This generation is the industry’s future, and the results indicate that their demand for niche trip types will help to drive tourism’s ongoing recovery.
Bradley adds: “Young adults yearn for more engaging and meaningful experiences. As such, perceived value is rarely down to just cost. Travel and tourism companies operating in niche sectors must focus on Generation Hashtag within marketing campaigns. This highly differentiated market could act as the deciding factor in specialist companies’ recovery and future growth.”