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Generation Z (Gen Z), born in the late 1990s to early 2010s, is one of the most exciting and, at the same time, most demanding target groups for companies worldwide. With their unique ideas about brands, consumer behavior, and communication, they pose new challenges for businesses. Especially in the hotel and hospitality industry, the question arises: How can Gen Z be won over as guests and retained in the long term?
Walter Veit, President of the Austrian Hotel Association, sums it up: “Generation Z has new perspectives, demands, and priorities. Those who want to win and excite them as guests must understand them.” In this blog post, we want to highlight why Gen Z is such a demanding target group, what factors are important to them, and how hotels and companies can successfully reach young people.
- Who is Generation Z?
Gen Z is the first generation to grow up in a fully digital world. They have never known a world without the internet, smartphones, and social media. This digital upbringing has not only shaped their way of communication but also their consumer behavior, values, and expectations of companies.
Compared to previous generations, Gen Z is much more critical of advertising and brands and has high expectations regarding authenticity and transparency. Companies that do not align with these values risk losing this young generation quickly.
- The Demands of Generation Z
2.1 Digital Natives and the Importance of Social Media
For Gen Z, interaction with brands and companies through social media is the most important communication channel. Platforms like Instagram, TikTok, and YouTube are not only sources of entertainment but also places where they gather information, read reviews, and make purchasing decisions. According to a study by the Austrian Hotel Association, social media presence is crucial for hotels to reach Gen Z. Especially TikTok has gained significant importance in recent years. Yet, an association study shows that only 16 percent of Austrian hotels actively use TikTok.
Gen Z prefers interactive, creative content presented in an authentic and often humorous tone. To appeal to this young target group on these platforms, companies must be familiar with the language and visual codes of these social networks. TikTok, characterized by short, entertaining videos, challenges hotels and companies to take a creative and unconventional approach.
2.2 Sustainability and Ethical Commitment
Generation Z places great importance on sustainability and social responsibility. Companies that act in an environmentally conscious manner, maintain transparent supply chains, and engage with social issues have a clear advantage with this target group. According to a McKinsey survey, 73 percent of Gen Z consider a product’s environmental friendliness a decisive reason to purchase.
In the hotel sector, this means that sustainable practices are not just a nice extra but are often a basic expectation. Hotels must ensure they clearly communicate their sustainability initiatives, whether through the use of eco-friendly materials, reducing plastic, or supporting local communities.
2.3 Authenticity and Transparency
Authenticity is another crucial factor for Gen Z. They prefer brands and companies that are authentic and transparent. Hotels or businesses that exaggerate in advertising or make false promises are quickly perceived as unreliable.
For hotels, this means they should not only present their offerings as “luxurious” or “special” but must also provide credible and transparent information about their services and commitment. Reviews from other guests, detailed information on websites or social media, and honest communication are essential to gaining the trust of this target group.
2.4 Individuality and Personalization
Gen Z values individuality and customized experiences. As a generation constantly bombarded with information and offers, they do not want to be just another number. They expect companies to recognize their individual needs and offer tailored experiences.
In the hotel sector, this could include personalized offers, customized services, or special experiences like private events, unique excursions, or personalized wellness treatments. The ability to adapt to the specific desires of each guest is an important competitive advantage for hotels.
- The Right Use of Social Media and Influencers
As mentioned earlier, social media plays a key role in addressing Gen Z. Platforms like Instagram, TikTok, and YouTube are an integral part of this generation’s daily life. But using these platforms correctly requires more than just posting pictures or videos.
3.1 TikTok as a Key Platform
TikTok has become one of Gen Z’s favorite platforms in recent years. It’s not just for sharing videos but also for setting viral trends and sparking discussions. Hotels that don’t incorporate TikTok into their marketing strategies miss out on a major opportunity to reach this young audience.
The challenge lies in not simply posting promotional content on TikTok but in creating creative and entertaining videos that grab users’ attention. This can be done through humorous clips, behind-the-scenes footage, or collaborations with influencers. Gen Z loves content that is real and fun—less formal and more spontaneous.
3.2 Influencer Marketing
Influencer marketing is another important part of a social media strategy targeting Gen Z. This generation often trusts influencers and content creators more than traditional advertising. Collaborating with micro-influencers who have an authentic and engaged community can be a valuable way for hotels and businesses to build trust and directly address Gen Z.
However, it is crucial that influencers remain authentic and credible. If a partnership appears to be solely commercially motivated, Gen Z will quickly see through it and turn away. It’s not just about the influencer’s reach, but also about message alignment and authenticity.
- Conclusion: Understanding Gen Z as a Demanding Target Group
Generation Z is demanding, but also an incredibly exciting target group. To win them over, companies must understand their values, needs, and expectations. Authenticity, transparency, sustainability, and individuality are the keys to gaining this generation’s trust.
Hotels and businesses that adapt to Gen Z need to expand their presence on social media and tailor their communication and services to the desires of this audience. Especially on platforms like TikTok, creativity is required to capture the attention of young users and earn their loyalty.
Gen Z will significantly shape the future of consumption and travel. Those who set the right course today will benefit from a loyal and engaged audience tomorrow.
Sources:
- Walter Veit, Präsident des Hotelverbands Österreich, in einer Stellungnahme zur Hotelstudie 2025
- McKinsey-Studie zu Nachhaltigkeit und Konsumverhalten der Gen Z, 2024
- Hotelverband Österreich, Social Media Studie 2025
Image rights: Unsplash | Piotr Cichosz
