Why Gen Z is Ditching Hotels (And What Airbnb Got Right)
July 02, 2025
A New Era of Travel Is Here
By Connor de Lange
Travel isn’t what it used to be and neither are today’s travellers. Especially among Gen Z, the traditional idea of taking a break from work to relax in a hotel has evolved. Instead, this new generation is blending work, lifestyle, and adventure. They’re freelancers, creators and remote workers who treat the world as both their playground and their office.
This shift in mind-set has left traditional hotels scrambling. Generic rooms, standardised decor, and rigid policies no longer resonate with a generation that prioritises freedom, flexibility, and personal expression.
How Airbnb Turned Stays into Stories
While hotels focus on uniformity and control, Airbnb celebrates uniqueness and connection. Each listing is infused with character, reflecting the host’s personality and the cultural flavour of its surroundings. Whether it’s a beachside bungalow in Bali, a cosy cabin in the Canadian Rockies, or a stylish apartment in Barcelona, Airbnb offers stays that spark curiosity and create lasting memories. These aren’t just bookings, they’re stories waiting to be lived, and Gen Z wants in.
What truly sets Airbnb apart is its human element. Guests don’t just get a place to sleep, they get recommendations from locals, thoughtful amenities, and sometimes even a new friend. It’s these small, personal touches that transform a trip into a memory.
Gen Z: The Digital Disruptors of Travel
Gen Z has grown up in the age of the internet, raised on platforms like TikTok, YouTube, and Instagram. They’re not flipping through brochures or relying on travel agents, they’re discovering destinations in real-time, through videos and stories from creators they follow and trust. Every part of the travel journey, from inspiration to planning, booking, and sharing is driven by digital experiences.
This generation expects transparency, control, and personalisation. They want to choose their own adventure, filter options by their exact preferences, and know that other travellers had a good experience before they commit. Airbnb delivers all of this through peer reviews, algorithm-powered suggestions, and highly customisable search filters. In launching Airbnb Rooms, a more affordable offering with average prices significantly lower than hotel rates, the company also directly responds to Gen Z’s demand for budget-friendly options that don’t compromise on experience.
Scroll, Click, Book: The New Way Gen Z Travels
Booking habits are changing. More than half of Gen Z travellers are comfortable booking directly through platforms like TikTok or Instagram, using integrated “buy” buttons or links. Travel inspiration, research and booking all happen in the same digital space, creating a seamless, socially integrated experience.
At the same time, shareability is a key motivator. For many in Gen Z, the experiences they choose are often guided by how well they’ll photograph or perform online. A quirky Airbnb with unique decor is more appealing than a polished hotel suite because it offers more visual and narrative value on social media.
Why Airbnb’s Model Just Works
Airbnb’s business model is brilliantly aligned with Gen Z’s expectations. It doesn’t own any properties instead, it provides a platform that connects hosts with travellers. This asset-light approach allows Airbnb to scale quickly across markets while keeping its cost base low.
Every Airbnb stay is different. Unlike hotel chains, which rely on replicable standards, Airbnb celebrates diversity. This uniqueness is a core value for Gen Z, who often seek out personalised experiences that reflect their identity. Airbnb’s algorithm tailors listings to the user’s interests, whether that’s a pet-friendly stay, a remote workspace, or an eco-conscious home.
It’s not just about convenience, it’s about community. Reviews, ratings, and host reputations create a self-regulating ecosystem that promotes trust and quality. More users lead to more listings, which leads to better options and, in turn, even more users. This flywheel effect keeps the platform growing and responsive to new travel trends as they emerge.
Final Takeaway: The Future Is Personal
Gen Z isn’t just choosing Airbnb over hotels, they’re shaping the future of the travel industry. Their preferences are pushing hospitality toward authenticity, flexibility, community, and digital-first design. They care about values, identity, and experiences that feel personal and shareable.
Airbnb understood this early on and built a model that reflects it. Instead of offering what travel used to be, they leaned into what travel is becoming. In doing so, they’ve positioned themselves as not just a booking platform but as a cultural and lifestyle brand that speaks Gen Z’s language fluently.
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Disclosure: This article expresses our own opinions and views. We have no business relationship with any company whose stock is mentioned in this article. Your capital is at risk, seek financial advice.