How Gen Z and Millennials are Reshaping Vacation Ownership: The New Era of Flexible Travel

The vacation ownership industry is experiencing a seismic shift as younger generations take the reins of travel planning and purchasing decisions. A staggering 57% of timeshare owners are now Gen Z and Millennials, representing a dramatic increase from previous generations and fundamentally changing how the industry operates. This demographic revolution is reshaping everything from booking systems to destination preferences, forcing the vacation ownership sector to evolve at an unprecedented pace.

The statistics paint a clear picture of this generational shift. According to the American Resort Development Association (ARDA) 2022 U.S. Owners Report, Gen Z and Millennials now account for more than half of all timeshare owners (57%), more than half of new sale purchasers (53%), and nearly two-thirds of resale purchasers (65%). This represents a complete reversal from the traditional demographic profile of vacation ownership, which historically skewed toward older, more established buyers.

Even more remarkable is the spending power these younger generations bring to the table. Gen Z spent an average of $11,766 — more than any other generation — to travel in the summer of 2024, demonstrating their commitment to prioritizing travel experiences despite facing economic challenges that previous generations didn't encounter at the same life stage.

Gen Z represents the first cohort of travellers raised entirely in the digital age. From their early teens, they've been immersed in a world shaped by smartphones, social media platforms, streaming services, and real-time global information. This constant digital exposure has created expectations for seamless, technology-enabled booking experiences that traditional vacation ownership companies are scrambling to meet.

The influence of social media cannot be overstated. TikTok is driving travel, with 60% of Gen Z using the platform as their primary source of inspiration. 40% report they've booked a vacation as a direct result of TikTok content. 88% of Gen Z surveyed are following at least one travel influencer on TikTok.

According to a 2023 survey by Expedia, 65% of Gen Z travellers said the pandemic made them more likely to prioritise experiences over possessions. This philosophical shift aligns perfectly with the vacation ownership model, which sells access to experiences rather than traditional ownership of physical assets.

The pandemic brought mental health to the forefront, and Gen Z responded by turning travel into a form of self-care. Wellness retreats, forest therapy, silent getaways, and digital detox experiences have seen a surge in popularity. Self-care is a significant focus for Gen Z travelers, with 61% prioritizing travel plans that include wellness experiences.

The traditional fixed-week timeshare model is rapidly becoming obsolete. More than 60% of timeshare buyers are predisposed towards floating week ownership over the fixed-week product because of greater flexibility. Even more popular are points-based systems, with more than 55% of timeshare purchasers under the age of 40 choosing points-based vacation ownership instead of traditional timeshare.

This preference for flexibility extends beyond booking windows to trip duration and destinations. 15% of Gen Z travelers said their next leisure trip will last longer than two weeks, indicating a desire for more immersive, extended experiences.

The 2022 report noted a significant shift in where owners are interested in owning a timeshare. City/urban areas increased in attractiveness from 34% in 2020 to 44% in 2022, while beachfront/coastal areas declined in attractiveness from 47% in 2020 to 39% in 2022.

This shift reflects younger generations' desire for cultural immersion and authentic experiences. The #1 reason Gen Z travel is to see sights and experience different cultures, and some 68% of respondents, aged 18 to 25, said they were interested in experiencing a new culture, while only 21% were in search of nightlife and clubbing.

Gen Zs increasingly want their travel experiences to be meaningful. 70% of Gen Z travelers actively look for travel experiences off the beaten path that their family and friends have not heard of. This desire for authenticity is driving vacation ownership companies to partner with local experiences and cultural attractions rather than focusing solely on resort amenities.

The use of AI tools in trip planning is also on the rise, with 48% of families planning to use such tools in 2024. One-fifth of Gen Z consumers use artificial intelligence for personalized travel recommendations. Vacation ownership companies are responding by integrating AI-powered booking systems and personalized recommendation engines.

The floating week intervals and points system reign supreme in the vacation ownership industry, where today's traveler seeks flexibility, customized vacation experiences, and economies of long-term cost. Companies are rapidly transitioning away from fixed-week models to accommodate younger buyers' preferences for spontaneous and varied travel.

The evolution of vacation ownership offerings including points-based systems and short-term rental hybrids has appealed to millennials and Gen-Z types seeking flexibility. Major players like Marriott Vacations Worldwide, Wyndham Destinations, and Hilton Grand Vacations are investing heavily in mobile apps, AI-powered booking systems, and virtual reality property tours.

Recognizing the shift toward urban destinations, vacation ownership companies are expanding beyond traditional beach and mountain resorts to include properties in major metropolitan areas. This allows younger owners to experience city culture, dining scenes, and professional networking opportunities while still enjoying the benefits of ownership.

56% of Gen Zers say they would pay more to book with a travel provider that displays environmental responsibility, compared to 48% of Millennials. Sustainability is becoming a significant consideration for family travelers. Parents are increasingly educating their children about environmental responsibility. Vacation ownership companies are responding with eco-friendly resort practices and carbon-neutral vacation properties.

Interestingly, younger generations aren't just influencing their own travel decisions. Travelers are being influenced by their children. I have seen a lot of mother-daughter, father-son trips and have been told that the kids are determining where they'll stay and what they'll do. This means Gen Z and Millennials are also reshaping how Baby Boomers and Gen X approach vacation ownership.

Multi-generational travel, where grandparents, parents, and children vacation together, is becoming increasingly popular. Studies on family travel statistics show that over 50% of parents plan to travel with grandparents and children, creating demand for larger accommodations and diverse activity options.

Despite their high spending on travel, younger generations face unique financial challenges. Only 11% Gen Zs who travel frequently come from households earning $100,000 or more annually, according to Morning Consult. Most (61%) say they earn less than $50,000 per year.

31% of Gen Zs said they planned to go into debt to pay for their summer vacations in 2025, according to a survey by the financial services company Bankrate. This has led to creative financing options and shorter-term ownership models that make vacation ownership more accessible to younger buyers.

The numbers support the long-term viability of this generational shift. The global vacation ownership market was estimated to be worth around USD 13.1 Million in 2025 and expected to reach USD 24.1 Million by 2035, growing at a CAGR of 6.2%.

In the US, Gen Z's spending power is predicted to increase by 48% by the end of this decade, suggesting that their influence on the vacation ownership industry will only continue to grow.

The vacation ownership industry's future belongs to companies that can successfully adapt to younger generations' preferences for flexibility, technology integration, authentic experiences, and urban destinations. With an extraordinarily high satisfaction rate of 90%, the 2022 Owners Report confirms that the timeshare industry is delivering for its owners, but only those companies that evolve with their changing demographic will maintain this success.

The 57% representation of Gen Z and Millennials in vacation ownership isn't just a statistic—it's a fundamental shift that's redefining what vacation ownership means in the 21st century. From points-based flexibility to AI-powered booking systems, from urban destinations to wellness-focused experiences, the industry is transforming to meet the needs of travelers who view vacation ownership not as a luxury purchase, but as an essential investment in experiences, personal growth, and well-being.

As these younger generations age and their spending power increases, their preferences will continue to shape the industry's evolution, creating opportunities for innovative companies and challenges for those stuck in traditional models. The revolution is already underway—the question is whether vacation ownership companies will lead it or be left behind by it.