As Gen Z rises as a defining force in luxury travel, one long-held assumption no longer holds: there is no single Gen Z traveler. A new report from the Luxury Group by Marriott International in Asia Pacific excluding China (APEC), reveals a generation comprising four distinct luxury mindsets, with each redefining luxury on their own terms, from cultural immersion and personal wellbeing to digital disconnection and heritage-driven exploration.

Drawing on insights from 2,800 affluent travelers across eight Asia Pacific markets, including 1,200 Gen Z respondents aged 18 to 29, the report signals a decisive shift. Luxury travel is no longer anchored by demographic factors, but increasingly shaped by intention, identity, and personal meaning.

“Luxury today is no longer defined by a singular standard. It is deeply personal,” said Oriol Montal, Regional Vice President of Luxury, Marriott International Asia Pacific excluding China. “Our research reveals that affluent Gen Z travelers are not just participating in luxury travel. They are reshaping it, driven by a desire for meaning, wellbeing, and authentic connection. As the definition of luxury continues to fragment and evolve, understanding these emerging perspectives will be critical for shaping the next generation of travel experiences.”

From Followers to Architects of Luxury Travel

Today’s affluent Gen Z travelers are no longer passive participants. Rather, they are deliberate architects of their journeys. More than half fund their own trips, while nearly half plan every aspect of their journeys themselves. Immediate family remains their preferred travel companions (51%), while small-group travel has grown by 17%, signaling a shift toward more intimate, shared experiences.

They also bring sophisticated expectations to every journey. Cultural immersion and engagement with local communities influence destination choice for 87% of respondents, while culinary discovery (86%), proximity to nature (86%), and wellness (85%) are key priorities shaping travel decisions.

At the same time, Gen Z travelers expect luxury to be seamless. Time inefficiencies and communication gaps are among their biggest frustrations, underscoring a growing demand for intuitive, frictionless service. Meanwhile, technology is playing an increasingly important role in trip planning, with 23% already using AI tools for travel inspiration and planning.

Four Distinct Luxury Mindsets

The report identifies four Gen Z archetypes whose definitions of luxury diverge significantly:

The Connoisseur Traditionalist (34%)

For this group, luxury remains rooted in the enduring pillars of hospitality: reputation, service, and craftsmanship. They gravitate toward iconic hotels, exceptional service, loyalty recognition, acclaimed dining and meticulously planned itineraries. Notably, 79% consistently stay in luxury hotels, while 91% say brand reputation influences booking decisions. Loyalty remains a powerful driver, with 85% motivated by recognition and rewards. As one of the most organized traveler groups, 66% book trips at least one to two months in advance, underscoring a definition of luxury grounded in precision, trust, and excellence.

The Future Proofer (30%)

For Future Proofers, travel is an investment in long-term wellbeing. Their journeys are shaped by a desire for optimization and balance, with nearly all (97%) engaging in wellness facilities during their stay, while 95% value access to in-house healthcare experts and consider proximity to nature important when choosing a destination. More than half (57%) are willing to spend more on wellness treatments, far exceeding the broader Gen Z average (20%). Their growing influence reflects the evolution of luxury travel toward an indulgence in preventive health, restoration and holistic wellbeing.

The Quiet Luxurist (20%)

In an era of constant connectivity, Quiet Luxurists are choosing absence over access. They are redefining luxury as the ability to disconnect, disappear, and reclaim stillness. All respondents in this profile (100%) say they limit technology use while traveling, compared with 63% of Gen Z overall. Meanwhile, 85% seek out lesser-known destinations, 60% prefer places before they become popular, and 90% value private dining experiences. Favoring boutique hotels, private villas and secluded escapes, they measure luxury not by visibility, but by the freedom to step away.

The Cultural Reclaimer (16%)

For Cultural Reclaimers, luxury travel is closely linked to identity, heritage and meaningful connection. Every respondent in this group takes an active role in planning family trips, with 65% also acting as the primary financial decision-maker. Half say destinations linked to family heritage are very important, significantly above the broader Gen Z average of 33%. They are also highly engaged travelers, with 88% seeking immersive experiences. Their journeys are driven less by social validation, and more by cultural discovery, personal enrichment and strengthening intergenerational bonds.

A Broader Recalibration of Luxury Travel

Beyond Gen Z, the report also signals a broader recalibration of luxury travel across the region. Fueled by a continued appetite for premium travel experiences, affluent travelers are also becoming more selective, taking fewer trips while extending their length of stay. Average international leisure trips are expected to increase in duration from seven to nine nights, reflecting a shift from frequency to depth. As travelers concentrate their time and spending, expectations around personalization, seamless service, and meaningful engagement continue to rise.

As luxury travel enters a new era, the findings point to a fundamental shift: the future of luxury will not be defined by a single aspiration, but by a spectrum of personal values. From the pursuit of stillness to the search for identity, from wellbeing to cultural immersion, Gen Z is transforming luxury into something more nuanced and more intentional.

For the industry, the implication is clear. Success will depend not on creating one definition of luxury, but on understanding many, and delivering experiences that feel deeply personal, emotionally resonant, and unmistakably relevant.

A new CBRE report highlights how experience-led travel, evolving consumer preferences and Gen Z spending habits are accelerating the growth of lifestyle hotels.

The spending by Indians on experiences – recreational and cultural activities, restaurants, hotels, and travel – is expected to outpace the spending on physical goods between 2025 and 2030, according to a report titled “Gen Z Checks In: The Rise of the Lifestyle Hotel” released by world’s leading real estate services and investment firm CBRE. The expenditure on hotel accommodation is expected to grow even faster, making it one of the most dynamic consumer spending categories in the country.

An analysis of Oxford Economics data by CBRE Research projected that household expenditure by Indians on physical goods is likely to grow at a compound annual growth rate (CAGR) of 9.1% between 2025 and 2030. However, broader experiential spending is forecast to grow at a higher 10.3% CAGR over the same period. The spending on hotel accommodation is expected to grow at an even sharper 10.6% CAGR.

The report noted that the shift towards experiences was fundamentally accelerated by the COVID-19 pandemic. Pent-up demand and a desire to make up for lost time have been driving the trend since 2022.

Gen Z driving the shift

The trend is being primarily driven by Generation Z, which currently accounts for the largest demographic bloc across the Asia Pacific region. As Gen Z, born between 1997 and 2012, achieve financial independence, their spending is forecast to expand faster than any other living generation, according to the report.

It added that Gen Z travelers demand striking, curated design environments that double as social media backdrops, personalized service that avoids corporate predictability, and activated communal spaces that host experiences such as wine tastings, acoustic performances, and local cultural events.

Wellness integration is equally non-negotiable, with seamless technology from self-check-in to smart-room automation, now firmly an expectation rather than differentiation.

Emergence of lifestyle hotels

According to CBRE, a new category of property, the lifestyle hotel, has emerged as the industry’s answer to this generational demand. Unlike boutique hotels or global chains, these hotels occupy a middle ground: the design and local character of an independent property, backed by the operational scale, distribution networks, and loyalty programs of an institutional brand.

Between 2015 and 2025, the overall hotel supply across the Asia Pacific region grew at a steady 5% CAGR. However, lifestyle hotels grew at 19% over the same period. Now till 2030, the supply of lifestyle hotels is projected to maintain a 10% CAGR, five times the 2% growth forecast for the broader hotel market.

Moreover, this growth is backed by clear pricing power. The report highlighted that in 2025, upper upscale lifestyle hotels across Asia Pacific commanded a 13% revenue per available room (RevPAR) premium over traditional properties in the same category. Upscale lifestyle brands added a further 7% premium, achieving this despite smaller room sizes by generating stronger food and beverage revenues and running leaner operations.

In India, the penetration of lifestyle hotels remains low as compared to markets like Singapore and Hong Kong. That gap is increasingly being read by developers and investors as an opportunity.

Industry perspectives

“The contemporary consumer no longer just purchases lodging but wants unique, culturally immersive, and digitally shareable environments,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “This structural shift towards experiential consumption is an enduring macroeconomic trend. For property owners and institutional investors, the lifestyle hotel segment represents a compelling double-win: measurable RevPAR and ADR premiums over standardized assets, and a capital-efficient conversion pathway that maximizes long-term asset value.”

Ada Choi, CFA – Head of Research, Asia Pacific, CBRE, said, “The experience economy is not a trend but a structural reset. The hospitality sector in the APAC region is at an exciting point in this journey. In India specifically, rising incomes, a maturing Gen Z consumer base, and a significant undersupply of lifestyle hospitality product are converging to create one of the most attractive investment environments in the region.”

The investment opportunity

According to CBRE, developers are increasingly turning to existing properties rather than building from scratch, given the rising land costs and construction expenses. Older, independent, unbranded hotels – of which India has a significant stock – are being converted and repositioned as lifestyle properties, often at a fraction of the cost of new development.

The smaller asset transactions are also dominating market liquidity. Assets valued under $100 million grew from 31% of total hotel investment volume across Asia Pacific in 2020 to 42% by 2025, with roughly 30% of traded assets comprising independent hotels ripe for repositioning.

To capitalize on the opportunity, CBRE suggested that developers adopt a market-specific approach, identifying local white spaces, prioritizing design flexibility to preserve future exit optionality, and activating public spaces and food and beverage concepts as community-facing amenities that serve transient guests and local neighborhood demand alike.