How millennials and Gen Z are driving luxury travel brands to be more authentic and immersive
Their desire for personalised and immersive experiences is transforming travel, and luxury operators must adapt to create offerings worth their premium price.

Statistics have shown that millennials are spending more on immersive and experiential travel. (Photo: Chervonne Ang)
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Between juggling work and running household errands on weekdays, YC Tan has little “me time,” apart from her gym sessions. Weekends are reserved for her four-year-old and husband, before the cycle repeats. She is, as the internet says, “peak adulting”.
But once a year, she ditches that life for a solo luxury travel experience abroad. Her most recent solo getaway? Bhutan – a destination she had always dreamt of visiting for its mystical culture, breathtaking landscapes, and of course, a chance to treat herself to an Aman resort stay.
Never mind that the dream trip was over in just five days and set her back her entire month's pay. To her, it was an experience that made her feel “blessed”.
Tan, 34, belongs to the generation of travellers that are changing the face of travel with their preference for immersive and experiential holidays – and they don’t mind paying a premium for it.“When I’m in Singapore, I’m like, ‘$5 for a coffee… should I?’ but when I’m overseas I’m like, ‘Aman? Oh, take my money!’” she said.

According to a 2023 survey by travel and experience booking platform Klook, one in four millennials surveyed in Asia are willing to spend more than US$3,000 (S$4,035) on their next holiday. That’s three times the median salary in Asia.
Gen Z, who are just at the start of their careers, are not far behind, with one in five sharing the same sentiment. The biggest spenders in the Asia Pacific region are from China, Hong Kong, South Korea, and Singapore, the report says.
“I’m not surprised,” said Manda Foo, a luxury travel designer at Blue Sky Escapes. The travel company has noticed a shift in its clientele towards younger travellers with appetites for more exotic destinations.
“They see travel experiences as a defining moment in life, the same way you would spend two, three times your salary on your honeymoon, or even more on your wedding. It's not just another holiday. They're seeking something more,” she said.
While the definition of “immersive” or “experiential” may be subjective, generally, it’s the style of travel where people don’t plan a long to-do list to tick off, nor jam-pack multiple activities in a day. It’s quite the opposite to how previous generations would travel.
“In the past, you would hit 12 countries in 12 days. Now, in six days maybe you hit two places. You spend more time in one place and do activities that expose you to a type of local culture that you can't access if you just sightsee,” said Foo.

And that was exactly the experience Tan was looking for with her getaway to Bhutan. Through activities organised by the hotel, like hiking through villages and making pit stops in the locals’ homes, she learnt a way of life long forgotten in our fast-paced world: The warmth of being invited into a stranger’s home, while learning family recipes passed down the generations. On one occasion, she even made her own chilli paste with a human-sized pestle and mortar, how it’s done the local way.
“That’s the thing I like about hotels like Aman. Their activities are very localised, and you know there is a certain authenticity. The stories they share are told from their own perspective, with their own experiences and culture mixed in. It's really not something you can read about. It's beyond the books,” offered Tan.

Indeed, millennials take the world as their classroom. They are the most educated generation worldwide – 25 per cent of them have a secondary education or higher. Travel to them could just be yet another platform for intellectual enrichment.
“They question everything,” said Radit Mahindro, senior regional director of marketing at Aman Indonesia.
“They want to know ‘Why should I go there? How do you conduct your business? Is it ethical and sustainable?'. If they eat something, they want to know who is cooking their food; where does it come from? These kinds of questions are becoming the norm,” Radit continued.
As such, his team at Aman Indonesia have started designing activities to engage with this generation’s curiosity. One of the ways they do this is through culinary experiences. “Food is something that can bring people together easily,” said Radit.

At Amanjiwo in Java, a resident anthropologist conducts sessions on the history of native Javanese foods, while guests can request for its chef to take them to the farms where the resorts sources its food from at Amandari in Bali.
Over in the eastern part of Bali at Amankila, they will soon offer a dining experience inspired by the Karangasem royal family that once ruled over Bali. The experience will start with a guided palace tour, followed by dinner with a menu inspired by the late king's favourite items and dining rituals.
Through this activity, guests will be exposed to a side of Bali that is often overlooked — the authentic Bali, not the beach clubs or brunch spots that have become so synonymous with the island these days.
Their strategy seems to be working. As of 2023, about a third of the guests in Aman Indonesia were between the ages of 28 and 36 — quite a different demographic from before.
“In the past, it used to be just the top one per cent — CEOs and billionaires were our typical clientele. Now, it’s getting younger, and they are keener to explore new experiences,” said Radit.
“What we're doing is actually just trying to be a gateway to the destination. That kind of ethos is what Aman was created upon and it has stood the test of time,” he continued.
LUXURY BRANDS FIGHTING FOR A SLICE OF MILLENIAL WEALTH
Millennials are now the world’s largest generation, followed by Gen Z. Together, they make up 43 per cent of the world’s population. The former will soon reach their prime earning years. Concurrently, trillions of dollars are being passed into their hands, as they start to inherit wealth from previous generations, according to a 2023 report by Bank of Singapore’s Chief Investment Office.
“To harness the immense spending power of this new generation, players across the hospitality landscape – from airlines to hotels to travel agencies – will need to evolve in tandem,” said the Bank of Singapore analyst.
So it’s no surprise that bigger international hotel chains are ramping up their offerings to tap into this opportunity.

Hyatt Hotels has announced plans to launch their own ryokan series in Japan through a new brand, Atona. In recent years, the group has been diversifying its offerings through acquisitions of boutique hotels and resorts that are lifestyle and wellness oriented. It also just rolled out its Be More Here campaign, an initiative to include themes of wellness across all their properties.
Over at One&Only Desaru coast, resort manager Jerome Pichon noted: "We’ve seen a surge in demand for bespoke itineraries that include cultural excursions, wellness retreats, and adventure activities.”
As of this year, millennials and Gen Z make up 60 per cent of the clientele at One&Only Desaru Coast, up from just 20 per cent in 2022.
Guests can join silat classes with the resort’s resident silat master or get in on the padel craze (the hotel has two professional padel courts). It also recently launched a spa in collaboration with Augistinus Bader, a skincare brand endorsed by celebrities like Victoria Beckham and Kim Kardashian.
TRUE YEARNING OR GOOD MARKETING?
But does all this demand for unorthodox travel stem from an innate yearning, or is it just the result of good marketing?
“A lot of people are getting these travel inspirations from social media. But those videos invoke a feeling that they're seeking in real life,” said Foo of Blue Sky Escapes.

Take her client Chervonne Ang. One moment, she was enjoying herself as a 20-something-year-old. Then, the pandemic happened and she went through a series of “life-changing” events: A failed relationship, getting a dog, and finding solace in nature when she was never an outdoorsy person before.
When borders reopened, she went on a series of revenge travels, starting with a cycling trip through Taiwan with the Brompton Experiences. Then, she explored the ancient towns of Southern China, and most recently, splurged on a luxury safari trip to South Africa.
“Yes, travel brands are selling us a dream. But we’re all just trying to escape from something, so it works,” said the 34 -year-old who works in the education sector.

Travelling brought Ang through dark times, and posting about her travels on social media reconnected her with friends. Still, not everyone was convinced that splurging on an exotic holiday is the best antidote to her woes.
“Some people say I should save for retirement, but I just feel that life doesn't always pan out exactly the way we want it to be. Right now, my body is at its prime, so I’m very willing to part with that money because I’m just really happy to be able to savour all this now,” she explained.
So that begs the question: Do people really find what they’re looking for after spending top dollar on these luxury escapes?
“Whether the experience gives them what they want is anybody’s guess. It’s something that is deeply personal and it’s very internal. We are there to lay it out for them to then make that experience their own,” said Foo.
As for Tan, she admitted: “There are times when I ask myself ‘Why am I paying so much? It’s just a hotel room’”. But then she reminds herself she’s there to get away from it all.
“What I appreciate is that it's a slower way of travelling. You spend so much on the accommodation, you would take the time to explore their facilities, to really enjoy the experience the hotel has created for you,” she offered.