Generation Z, born between 1997 and 2012, has emerged as a force to be reckoned with. The shift in mindset among Gen Z has had a profound impact on various industries, and the travel and fintech industries are no exception. This generation is known for being fearless, independent, and unafraid to walk their own path. As a result, they are changing the traditional ways of doing things and setting new standards for what is possible.
One industry that has been particularly affected by the shift in mindset is fintech. In the past, many young people were not interested in financial services, but now fintech has become increasingly popular among Gen Z, and it is now one of the biggest consumers of fintech services. In fact, according to a recent report, 99% of Gen Z and 98% of millennials use a mobile banking app for a wide range of tasks. Additionally, 80% of Gen Zers said that they would be willing to switch banks for a better mobile experience. This trend is not surprising since Gen Zers have grown up in a world where technology has always been a part of their entire lives.
One of the most popular fintech services among Gen Z is Buy Now Pay Later (BNPL). This service allows users to make purchases and pay for them in instalments over time. According to a report by a leading BNPL provider, 73% of Gen Zers have used BNPL services, and 70% of them plan to use it again. This trend is driven by the desire for financial independence and the ability to make purchases without relying on others. BNPL services have become one of Gen Zers’ favourites, as it allows them to fulfill their dreams without relying on others. The option of affordable EMIs, 0% interest, and the independence to choose payment plans as per their comfort help them live life to the fullest.Travel is another industry that has been impacted by the shift in mindset among Gen Z. Travel made a roaring comeback in 2022, as people finally broke free from the pandemic restrictions and ventured out with a vengeance. However, the road to normalcy was fraught with challenges as the effects of the pandemic lingered on. Travelers found themselves faced with rising inflation and higher prices on everything from rental cars to hotel rooms. Despite these challenges, an Expedia study revealed that 80% of the respondents between the ages of 18 and 34 were willing to pay to upgrade their travel experience. This cohort includes younger millennials and older members of Gen Z.
Traditionally, planning for a trip meant saving up for months or asking for money from family or friends. Many travel plans never materialised due to financial obstacles. However, Gen Z and Millennials refuse to be held back by such trivial factors when making their decision to travel. Travel Now Pay Later (TNPL) came in like a breath of fresh air for all those who wish to travel without asking for help from others. By using travel financing options, they can spread out the cost of their travel and make it more affordable.
The impact of Gen Z’s interest in travel has been significant, especially post-COVID-19. Social media influence and the ease of TNPL have increased the footfall of this generation in and around the world. According to a survey, 72% of Gen Zers have made a travel bucket list and plan to visit their dream destinations in the next five years. Moreover, 57% of Gen Zers prioritise experiences over material possessions, and travel is a significant part of that.
Additionally, Gen Z is more interested in unique and personalised travel experiences, rather than mass tourism. They are using technology to research and book travel that is tailored to their interests and preferences, such as adventure travel, cultural immersion, and food tourism.
In India, even adults seek permission from their families before taking a leisure trip, and many of them faced a straight “no” before the pandemic. However, Gen Z and Millennials have come together to make their parents understand the need to travel and the resources available, such as Travel Now Pay Later, which makes travel much easier. This shift in mindset has also led to the emergence of new ways of traveling, such as staycations and holiday homes, as people choose these options with ease due to the Easy EMIs they can avail to pay for major travel expenses.
The shift in mindset towards sustainable, experiential, and flexible travel is helping Gen Z achieve its travel goals while also benefiting the travel industry as a whole. They are using technology to make financial decisions and travel more accessible and affordable. The willingness to embrace new ideas, the desire for independence, and the prioritisation of experiences have led to the emergence of new options such as TNPL and staycations. These shifts have made travel more accessible to people, and it is a change for the better. The travel industry is poised for growth, and Gen Z is leading the way.
This article is written by Akash Dahiya, Co-Founder, SanKash. All views expressed are personal.
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