Why Gen Z Travelers are Ditching Hotels for Vacation Rentals

Remember when booking a hotel was the go-to choice for vacations? That’s becoming a thing of the past as Gen Z (born between 1997 and 2012) begins to redefine the travel scene. Tech-savvy and experience-driven, this generation is embracing vacation rentals like never before, driving a major shift across the hospitality industry. Here’s what’s fueling this trend—and why it’s a game-changer for the future of travel. 

Dreaming of a One of a Kind Experience

Gen Z travelers are eager to immerse themselves in destinations the way locals do. Research shows that 76% of them consider “living like a local” to be an important or very important factor when selecting where to stay. 

This desire for authentic experiences naturally steers Gen Z away from cookie-cutter hotel chains and toward distinctive vacation rentals. Instead of booking a generic hotel room that feels the same in Miami or Madrid, they’re choosing cozy apartments in local neighborhoods—places where they can browse the nearby market and stumble upon hidden-gem cafes that aren’t in the guidebooks. 

The New Age of Working Remotely 

The pandemic reshaped both the timing and purpose of travel. As remote work became a standard for many young professionals, the boundary between leisure and daily life began to fade. 

Whimstay research shows that 38% of Gen Z users booked accommodations specifically to work remotely—more than any other age group. Even more striking, the average duration of their stays grew by 35% between 2019 and 2023. 

Vacation rentals align effortlessly with today’s remote work culture: 

• A full kitchen allows for home-cooked meals, cutting down on expensive dining.
• With separate living spaces, there's room to work comfortably and professionally.
• High-speed Wi-Fi now comes as a standard in nearly all vacation rentals - 94% worldwide, to be exact.
• Longer stays are easier on the wallet thanks to monthly discounts.

Vacation Rentals Are a Social Media Dream

For a generation raised on Instagram and TikTok, the visual appeal of a vacation spot is everything. Plain hotel rooms just can’t match the charm of a cozy beachfront bungalow, a stylish ocean-view luxury home, or a renovated cottage by the sea shore. 

The data confirms it: A 2023 study found that 68% of Gen Z travelers said "social media shareability" influenced their choice of accommodations. 

Studies have also revealed that searches for “unique” and “Instagram-worthy” properties jumped by 87% among 18-25 year olds between 2022 and 2023. This generation is placing a premium on memorable experiences and visually compelling stories as essential aspects of travel, rather than just optional perks. 

The Cost-Effective Choice for Group Getaways

Gen Z travels in a way that's distinct from previous generations, with many preferring group vacations over solo trips or couples getaways. A survey found that 64% of travelers aged 18-25 took group trips with three or more friends in the past year—nearly twice the rate of Millennials at the same age.

The concept is straightforward but makes an impact: When six friends share a three-bedroom house and divide the cost, each person usually ends up paying much less than they would for separate hotel rooms.

Factor in the savings from cooking some meals "at home" rather than dining out for every meal, and the financial benefits become even more convincing. 

The Freedom Beyond Hotel Stays

Gen Z places a high value on independence and flexibility in every part of their lives, including travel. Traditional hotels often come with many limitations that Gen Z finds especially confining:

• Rigid check-in and check-out schedules
• Set breakfast hours
• Mandatory engagement with hotel personnel
• Minimal separation from fellow guests
• Restricted space for gathering with your group

Studies indicate that 71% of Gen Z travelers consider "flexibility in accommodations" to be extremely important. The same research also found that 82% prefer digital check-in options that eliminate the need for front desk interaction. 

The Eco-Friendly Advantage

Environmental awareness plays a major role in Gen Z’s buying habits—and travel is no different. According to one travel report, 73% of Gen Z travelers take sustainability into account when selecting accommodations, a rate notably higher than that of any other generation.

Vacation rentals are often seen as greener choices, thanks to:

• Reduced daily housekeeping (and associated water/energy usage).
• Access to a kitchen to prepare meals using locally grown ingredients.
• Focusing on property reuse over new development.
• More convenient recycling and composting options.
• Integration with local communities and economies.

While the sustainability comparison between hotels and vacation rentals is complex (and depends greatly on specific practices), the perception among Gen Z clearly favors rentals. 

How Property Owners Can Take Advantage of Gen Z's Travel Preferences

As Gen Z’s spending power increases and Millennials maintain similar travel habits, the vacation rental industry appears set for ongoing growth. Morgan Stanley analysts forecast the global vacation rental market will rise from $88 billion in 2023 to over $119 billion by 2027, reflecting a compound annual growth rate of 7.8%.

How to make your rental stand out to Gen Z:

1. Design a Picture Perfect Space

Studies show that properties with standout design elements see 38% more bookings from travelers under 30. Highlight a single eye-catching feature—like a bold accent wall, a unique piece of furniture, or locally inspired artwork—to create a memorable, photo-friendly space. It’s an easy way to boost shareability without overspending.

2. Ensure Essential Tech is Covered

For digital natives, technology is a necessity, not a luxury. An impressive 84% of Gen Z travelers prioritize fast Wi-Fi over classic amenities like pools or luxury bedding. Make sure your rental offers high-speed internet (and highlight the speed in your listing), smart TVs, plenty of charging stations, and keyless entry for a seamless experience.

3. Provide a Perfect Space For The Remote Worker

With 38% of Gen Z guests combining travel with remote work, listings that offer dedicated work spaces experience 23% more bookings. Set up a functional desk area with ergonomic seating, proper lighting for video calls, and a clean, professional backdrop to attract these digital nomads.

4. Accommodate Groups

Given that 64% of Gen Z travelers prefer group trips, design your space to accommodate socializing. Include multiple hangout areas, plenty of seating, a kitchen stocked for group cooking, and fun extras like board games or a fire pit to enhance the shared experience.

5. Connect Travelers to the Local Culture

An impressive 87% of Gen Z travelers appreciate tips for exploring destinations “like a local.” Consider creating neighborhood guides that spotlight hidden gems, collaborating with local businesses, and providing authentic welcome gifts sourced from nearby artisans or producers.

6. Make Your Property Shine Online

Listings with high-quality, professional photos attract 40% more Gen Z bookings. Invest in great photography, ensure prompt responses to inquiries (as 70% expect replies within hours), and keep your reviews stellar, as 92% of Gen Z travelers read multiple reviews before making a booking decision.

7. Offer Flexibility

Properties with flexible or moderate cancellation policies see a 22% increase in bookings from travelers under 30. When possible, simplify cancellation terms and offer perks like early check-in, late checkout, and discounts for extended stays.

By aligning your property with these Gen Z preferences—providing authentic, unique, and tech-friendly spaces that cater to both work and social activities—you’ll set yourself up for success in the growing vacation rental market.

Why Vacation Rentals Are Shaping the Future of Travel

Gen Z is changing the way we think about travel accommodations. Their desire for authenticity, flexibility, sustainability, and social connection has made vacation rentals the preferred option over traditional hotels.

From working remotely in a cozy cabin to capturing Instagram-worthy moments in a distinctive property, or sharing costs with friends in a group-friendly house, Gen Z is leading a cultural transformation in the hospitality industry.

For property owners and travel businesses, adapting to these shifting values is crucial for staying competitive in the future of travel.

Published by Marketing
Wednesday, May 21, 2025