Millennials and Gen Z are spending smarter, not less, on travel in 2026

Marketers take note: 88% of Millennials and Gen Z travelers plan to maintain or increase their travel budgets this year, according to Klook’s Travel Pulse 2026. Despite global economic uncertainty, young travelers are prioritising experiences over shopping, embracing multi-destination trips, and using social media and AI to discover and plan journeys beyond traditional hotspots.

Asia Pacific (APAC) leads the way. Travelers in the region are 50% more likely than those in Europe or the US to increase travel spending, cementing APAC as a growth engine for the global travel industry. Travel intent remains strong, with nine in 10 global travelers planning international trips in 2026, and 61% expecting to travel in the first half of the year. This is up from 50% last year.

The study also found a clear shift in spending priorities. Rising costs are not driving cuts in travel experiences, but rather in shopping and material purchases. APAC travelers are nearly twice as likely as their counterparts in Europe and the US to spend more on experiences, signalling a region-wide appetite for immersive, flexible, and culturally rich itineraries.

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“Travel has remained resilient despite the rising cost of living,” said Marcus Yong, vice president, global marketing at Klook. “Instead of cutting back, travelers are spending smarter, prioritising richer experiences, flexible itineraries, and deeper discovery. They seek experiential value that goes far beyond simply ticking destinations off a checklist.”

In addition, two-thirds of travelers now plan to visit multiple destinations per trip, moving away from single-stop itineraries. Major cities are increasingly seen as gateways rather than end goals, allowing travelers to explore lesser-known locales. APAC Gen Z travelers lead this trend, favouring faster-paced, packed itineraries and venturing beyond mainstream hotspots.

Out of all the countries, Japan remains a top-considered destination, but interest is spreading to secondary locations such as Yokohama, Hiroshima, and Nagoya. Globally, emerging destinations such as Cairns and Hobart in Australia, Baix Llobregat in Spain, Tromsø in Norway, and Sharjah in the Middle East are gaining traction. Travelers cite authentic local experiences (42%), the chance to discover hidden gems (39%), and affordability (37%) as key motivators.

The role of social media and AI

Travel discovery is increasingly powered by social influence and AI. Eight in 10 global travelers say social media inspires the destinations or experiences they book, while AI is now used by 91% of travelers for trip research, translations, itinerary planning, and budgeting. Together, social media sparks desire, and AI adds practical validation, turning inspiration into actionable travel plans.

2026 is shaping up as a year of intentional, distributed travel, with discovery emerging as a core driver of where, how, and why people explore. For marketers, this signals opportunities to engage audiences through experience-led offerings, social storytelling, and AI-enhanced planning tools.

Singapore leads Asia 

Closer to home, Singaporeans are showing Asia’s strongest confidence in travel, with 90% planning to maintain or increase their spending on activities, tours, and experiences in 2026. Millennials and Gen Z continue to drive this trend, combining careful budgeting with a willingness to invest in richer, more meaningful experiences.

On average, Singaporeans expect to spend US$2,500 (≈SG$3,190) on long-leisure trips of seven nights or more, surpassing other key regional markets such as Hong Kong (US$2,090), Mainland China (US$2,080), and Indonesia (US$1,860). In 2025, 83% of Singaporeans went on an overseas vacation, well above the global average of 62%, highlighting the city-state’s strong outbound travel appetite.

Moreover, nearly half are already considering a trip within the next three to six months, with eight in 10 planning at least one short-haul journey and nine in 10 intending medium- or long-haul travel over the next year.

Japan remains the most popular destination for Singaporeans, ranked 2.5 times higher than Mainland China. While the traditional “Golden route” of Tokyo, Kyoto, and Osaka continues to attract strong interest, travelers are increasingly exploring secondary cities such as Fukuoka, Nagoya, and Sapporo. Interest in Mainland China is also growing, with destinations including Chengdu, Guangzhou, Chongqing, Harbin, and Suzhou gaining traction.

Despite rising travel costs, Singaporeans are prioritising experiences over material spending. Around half plan to increase spending on food, dining, and activities in 2026, with many willing to pay extra for passions such as outdoor adventures, theme parks, and water parks.

“Travel remains a priority for Singaporeans, and we are seeing a growing confidence in the way they plan and spend,” said Sarah Wan, general manager for Singapore, Indonesia, Malaysia, and Thailand at Klook. “Singapore travelers are thoughtful about value, but they are also willing to invest in experiences that bring joy, depth, and meaning to their journeys.”

To capitalise on growing seasonal demand, Klook is also hiring a chief spring officer, a time-bound role designed to help travelers navigate the operational complexities of spring travel across Japan, South Korea, and Mainland China.

The March–April period, shaped by short-lived cherry blossom windows, unpredictable weather, and peak crowds, remains one of the region’s most demanding travel seasons. The role will deliver live insights, curate experiences, and share practical guidance to help travelers plan and move with ease, with applications open until 12 February via Instagram or TikTok submissions.

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