Luxury vs. budget tourism: Changing preferences of millennial and Gen Z Travelers

Abstract

This study investigates the evolving tourism preferences of Millennial (born 1981-1996) and Gen Z (born 1997-2012) Travelers, specifically contrasting luxury and budget tourism segments. It explores their expectations regarding service quality, booking behavior, and spending patterns. With a sample of 480 Indian respondents, this paper reveals significant generational differences and convergences in travel motivations and consumption behaviors. Findings suggest Gen Z shows more flexibility and tech-driven decision-making, whereas Millennials value personalized luxury experiences. The implications are critical for travel marketers and service providers seeking to align with the digital-native tourism economy.