Gen Z Is Not a Threat to Tourism. The Bigger Risk Is Failing to Adapt.

Tourism businesses often talk about Gen Z as a challenge. They are said to spend less, look for low fares and expect more from the places they visit. That can be true for some young travellers, but it is not the whole story. The more useful question is: what are they telling the market about value?

A 2025 Fáilte Ireland study of travellers aged 18 to 28 found that Gen Z takes an average of three trips a year. Two-thirds want affordable options for everyday spending, and around 30% feel financially insecure. Yet the report describes value as more than a low price. It also includes clarity, convenience and an experience worth remembering.

A 2026 TUI study of 2,000 people aged 18 to 24 in Germany found a similar mix of digital discovery and practical decision-making. Almost half said social media inspires them to travel, while 34.8% use Instagram, TikTok and similar platforms to plan routes, places and photo spots. At the same time, more than half said they pay close attention to value for money, and 41.8% rely strongly on guest reviews when choosing accommodation.

This helps explain why Instagram matters to tourism, but it needs a careful comparison with LinkedIn. A 2026 survey of more than 100 travel operators reported that 61% were getting measurable results from Instagram, compared with 42% from LinkedIn. That does not mean Instagram directly produces more sales in every case. The same survey found that only 13% of respondents received most of their bookings and website traffic directly from social media and influencers. For Gen Z, Instagram is especially relevant as a place to discover and plan trips. LinkedIn remains useful for professional relationships and B2B communication. They do different jobs in the customer journey.

Sustainability is another part of the changing market, though it should be discussed without assuming every young traveller behaves the same way. Deloitte’s 2026 travel outlook reported that 42% of US Gen Z travellers expected to take some sustainability-related action, such as choosing a hotel with a higher sustainability rating. That is a meaningful signal, but stated intentions do not guarantee that sustainability will outweigh price, convenience or availability in every booking decision.

The gap between what travellers value and what they ultimately book matters. Germany’s long-running travel sustainability monitor found that 49% of respondents wanted environmentally responsible holidays in 2024. Yet holiday travel patterns had quickly returned towards pre-pandemic levels, and flight kilometres in 2023 exceeded the previous high recorded in 2019. Awareness alone does not change behaviour. Travellers need options that are practical, understandable and affordable.

The alcohol market offers a useful example of how a generation can influence a wider market conversation. Gen Z’s habits are reshaping what brands offer and how moderation is discussed, including in relation to wellbeing, fitness, cost and lifestyle. That influence reaches beyond young consumers, but it would be too simple to say Gen Z caused older generations to change. IWSR’s 2026 research found that Gen Z drinking participation had risen to 74% across 15 markets, while Boomers’ participation had fallen to 71%. The same research found moderation across generations, with people drinking less frequently or consuming fewer drinks per occasion. Gen Z is influencing the wider conversation and market offer, while Boomers are also changing their own behaviour for their own reasons.

Tourism businesses can learn from that kind of market shift. Small, structured focus groups with Gen Z travellers could help hotels, destinations, event planners and tour operators test ideas before making larger investments. They could explore what young travellers consider good value, which sustainability claims they trust, what makes a trip feel worthwhile, and where practical barriers arise. Focus groups cannot predict every booking, so their findings should be checked against real behaviour, such as enquiries, clicks, booking-page use and customer feedback. But listening before committing can reduce the risk of designing an offer around assumptions.

Sustainability should also be treated as a business capability, not just a response to regulation. The EU’s Empowering Consumers for the Green Transition Directive has applied since 27 September 2026 and strengthens consumer protection against greenwashing and unclear environmental claims. The separate Green Claims Directive proposal remains pending. The current framework does not create one universal sustainability certification or operating standard for every tourism business, but environmental claims already need careful, credible communication.

Businesses should not wait for every future rule before taking sustainability seriously. It can help them understand resource use, strengthen local relationships, respond to changing guest expectations and communicate what they actually do with greater confidence. Those that delay may find themselves behind competitors who have already made their practices clearer and more credible.

Gen Z is not a threat to tourism. The bigger risk is assuming that yesterday’s product, pricing and communication will keep working without question. Tourism businesses do not need to chase every trend or make promises they cannot prove. They need to listen, test their assumptions and make responsible choices visible in the experience itself.