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86% of millennials prefer eco-friendly travel, driving major shift in global tourism, finds Kearney

Consultancy Kearney has released data from its latest report ‘In the mind of global travelers: how travelers’ evolving expectations are reshaping tourism‘, that found 75% of travellers now consider the environmental impact of their travel decisions.shift in global tourism

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According to Kearney, millennials are driving this trend – 86% of those aged 25 to 34 favour eco-friendly travel modes and green mobility alternatives.

The firm surveyed 1,700 respondents from nine countries – including the US, China, India, UK, and key European and Middle Eastern markets – to analyse the shifting preferences of travellers globally. 

The report sheds light on the challenges and opportunities facing the global travel industry, identifying ways in which it can evolve, or risk losing tourist traffic, in an increasingly competitive landscape.

It revealed that iconic destinations like Miami, Las Vegas, and New York continue to top travellers’ lists while emerging niche locations are gaining traction.

Wellness travel shift in global tourism

Simultaneously, wellness travel is becoming increasingly mainstream across all demographics, with the market projected to grow significantly in the coming years. Family-friendly wellness resorts and specialized retreats, such as those focused on weight management and mental wellness, are driving this growth. Younger travelers, particularly Gen Z and millennials, are driving demand for experiential and events-based tourism, creating economic opportunities for destinations that host major events.

“Emerging destinations, including those in the Middle East, have a unique opportunity to set new standards and offer unparalleled experiences as popular global spots become overcrowded. By strategically developing appealing alternatives, these locations can not only attract more tourists but also support economic growth,”

said Marc Biosca, Partner at Kearney Middle East & Africa.

“Success will require a careful balance of top-down directives with a deep understanding of market dynamics and visitor preferences, and alignment with global best practices,”

said Pascal Armoudom, Partner at Kearney Middle East & Africa.

Wellness travel is growing in popularity, too, with Kearney’s research highlighting that it is now becoming a family-friendly option. Once dominated by solo travellers and couples, nearly 30% of wellness travellers now bring their children along, creating a new opportunity for tourism operators to develop multi-generational wellness packages.

California ranks highest for wellness-related travel, Rome for heritage, and Kenya for wildlife experiences.

However, travellers are increasingly seeking immersive experiences that offer a deeper connection to local culture and nation, with 75% of respondents spending at least half their time exploring outside their hotel or Airbnb.

Luxury or Budget? Travelers Seek Both as Demand for Premium Experiences Soars

Kearney’s survey found that weight management programmes and mental wellness retreats are the two most popular wellness-related getaway choices, reflecting a shifting preference toward incorporating self-care into travel.

The report also revealed that there is considerable demand for both luxury and budget travel options. More than 50% of travellers are willing to spend more on premium or luxury services. This is most prominent among travellers aged 25-44 and those from developing economies, likely fuelled by the pent-up demand after pandemic restrictions kept people from travelling.

At the same time, a growing segment of cost-conscious travellers – many of them solo travellers – are more likely to choose budget options. Notably, over 60% of solo travellers expect affordable or budget/basic service levels from hospitality providers.

Mauricio Zuazua, Kearney Middle East and Africa Region Chair and lead author of the report, said:

In the aftermath of the pandemic, it’s clear that the travel industry has evolved rapidly, driven by global demographic changes and middle-class appetite for new experiences. 

“Growing awareness about our responsibility to the planet is positive in itself, but also presents a lucrative opportunity for tourism providers to adapt their offering to the eco-conscious consumer. 

“As for destinations, it’s no surprise that iconic locations remain at the top. Places like California and Bali are synonymous with wellness travel, while heritage-rich destinations like Rome, Athens, and Egypt continue to draw travellers from across the world. 

“That said, niche locations are gradually gaining ground, particularly as more popular hotspots implement measures to combat overtourism and protect their environment and the local community”.

William Hillgarth, principal, mobility defense and advanced industrials of Kearney, added:

“Other than increasing demand, travellers’ preferences have been expanding, notably with emerging destinations and new types of experiences gaining popularity. 

“Players within, and around, the tourism sector will need to adapt to stay relevant to today’s traveller preferences.”

Based on an extensive global survey of 1,700 respondents across 9 countries, the analysis aims to help tourism authorities, developers, and destinations understand what’s driving the decisions of today’s travelers to tailor offerings, identify opportunities, and compete with the world’s established industry leaders. shift in global tourism

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