Gen Z Spearheads Surge in Buy Now, Plan Later Travel Bookings by over 20% :: Hospitality Trends

• The ‘Buy Now, Plan Later’ (BNPL) travel booking model, primarily driven by Gen Z, grew by over 20% in 2024, making it a mainstream method of travel consumption.
• Hotel booking fulfillment rates within the BNPL segment have seen a 70% year-on-year increase.

The ‘Buy Now, Plan Later’ (BNPL) travel booking model allows consumers to purchase travel products such as flights, hotel stays, and attraction tickets in advance, offering them the flexibility to finalize their travel dates and destinations at a later date. This method provides significant cost savings compared to traditional direct booking. According to Fliggy’s 2024 BNPL Travel Insight, the booking volume for BNPL travel products in 2024 has increased by over 20% compared to the previous year, with Gen Z consumers making up nearly a quarter of those utilizing this model.

The share of outbound tourism within the BNPL travel segment in 2024 has increased by 10 percentage points compared to the previous year. Moreover, hotel booking fulfillment rates for outbound travel have seen a surge of 70% year-on-year. The top BNPL order destinations in 2024 included Malaysia, Singapore, Thailand, Japan, South Korea, the Maldives, New Zealand, Australia, the United States, and Indonesia. Emerging destinations like Iceland, Norway, Kenya, the United Kingdom, and New Zealand have also grown rapidly.

The variety of travel experiences has continued to evolve, with a significant increase in demand for international cruises, overseas car rentals, and tickets to overseas amusement parks. The volume of international cruise bookings saw a nearly threefold increase year-on-year.

The BNPL model has gained significant traction among consumers, especially younger demographics. Fliggy data shows over 45% of consumers purchasing hotel packages through this model were new customers. Nearly one-quarter of consumers opting for this model were born between 1995 and 1999 (Gen Z), and the proportion of consumers born in 2000 or later has seen the fastest growth, nearing 20%.

In China, more consumers are turning to live streaming for information on travel and events. Fliggy, by partnering with Taobao and a network of professional live streamers, has integrated live streaming into the travel industry, supporting merchants who may lack resources for effective live commerce. Promotional placements for BNPL products through live streams and Key Opinion Leaders (KOLs) on Fliggy rose by nearly 70% year-on-year in 2024, with a significant increase in conversion rates for live streaming sales.