Why Gen Z Travelers Are Ditching Hotels for Vacation Rentals

Generation Z is ditching traditional hotels in favor of vacation rentals, and it’s changing the future of travel in ways property owners can’t afford to ignore.

Remember when staying in a hotel was the default for vacations? Those days are quickly fading as Gen Z (born between 1997 and 2012) transforms the travel landscape. These digital natives are flocking to vacation rentals in unprecedented numbers, and their preferences are reshaping the entire hospitality industry. Here’s what’s really driving this shift and why it matters for the future of travel.

Craving Authenticity in a Cookie-Cutter World

Gen Z want to experience destinations like locals. According to research, 76% of Gen Z travelers prioritize “living like a local” as important or very important when choosing accommodations.

This authenticity-seeking behavior naturally pushes them away from standardized hotel chains and toward unique vacation rentals. Rather than staying in a corporate hotel room that looks identical whether you’re in Miami or Madrid, Gen Z is opting for charming apartments in a local neighborhood where they can shop at the corner market and discover the coffee shop that tourists never find.

The Remote Work Revolution

The pandemic completely transformed when and why we travel. With remote work becoming the norm for many young professionals, the lines between vacation and everyday life have blurred.

According to Whimstay research, 38% of Gen Z users booked stays specifically for remote work purposes, higher than any other generation. Even more telling: the average length of stay for Gen Z guests increased by 35% between 2019 and 2023.

Vacation rentals cater perfectly to this work-from-anywhere lifestyle:

Full kitchens mean no expensive restaurant meals three times a day.
Separate living spaces create actual workspaces (no more Zoom calls from bed).
High-speed internet is now standard in 94% of vacation rentals worldwide.
Monthly discounts make longer stays financially doable.

Vacation Rentals Are Perfect for Social Media

For a generation that grew up with Instagram and TikTok, the visual appeal of an accommodation matters. A lot. Plain hotel rooms just don’t generate the same excitement as a converted lighthouse, a minimalist desert cabin, or a renovated vintage Airstream.

Data backs this up: A 2023 study by found that 68% of Gen Z travelers admitted that “social media shareability” influenced their accommodation choices.

Research has also shown that searches for “unique” and “Instagram-worthy” properties increased by 87% among 18-25 year olds in 2022-2023 alone. We’re seeing a generation that values distinctive experiences and visual storytelling as core components of travel, not just nice-to-have extras.

Learn more about listing with Whimstay here

The Group Travel Money-Saver

Gen Z approaches travel differently than previous generations, often preferring to vacation in packs rather than solo or as couples. According to a survey, 64% of travelers aged 18-25 reported taking group trips with three or more friends in the past year—nearly double the rate of Millennials at the same age.

The economics here are simple but powerful: When six friends can rent a three-bedroom house and split the cost, each person typically pays significantly less than they would for individual hotel rooms.

Add in the savings from preparing some meals “at home” instead of eating out for every single meal, and the financial advantages become even more compelling.

Freedom From Hotel Constraints

Gen Z values independence and flexibility in all aspects of life, travel included. Traditional hotels come with a lot of constraints that Z-ers finds particularly restrictive:

Research shows that 71% of Gen Z travelers rate “flexibility of accommodation” as “extremely important.” This same study revealed that 82% of Gen Z travelers preferred digital check-in options that didn’t require front desk interaction.

The Sustainability Factor

Environmental consciousness influences Gen Z purchasing decisions across all categories, and travel is no exception. One travel report revealed that 73% of Gen Z travelers consider sustainability factors when choosing accommodations, significantly higher than any other generation.

Many perceive vacation rentals as more environmentally friendly options, citing:

Reduced daily housekeeping (and associated water/energy usage).
The ability to cook with locally sourced ingredients.
Repurposing existing buildings rather than new construction.
Better access to recycling and composting.
Integration with local communities and economies.

While the sustainability comparison between hotels and vacation rentals is complex (and depends greatly on specific practices), the perception among Gen Z clearly favors rentals.

How Property Owners Can Capitalize on the Gen Z Shift

As Gen Z gains more spending power and Millennials continue similar travel patterns, the vacation rental industry seems positioned for continued growth. Analysts at Morgan Stanley predict the global vacation rental market will expand from $88 billion in 2023 to over $119 billion by 2027, representing a compound annual growth rate of 7.8%.

Here’s how to attract Gen Z to tour rentals:

1. Create Instagram-Worthy Spaces

research shows that distinctive design features receive 38% more bookings from under-30 travelers. Focus on one photogenic feature: a statement wall, unique furniture piece, or local art that reflects the destination. This gives guests something share-worthy without breaking your budget.

2. Prioritize Tech Essentials

For digital natives, tech isn’t optional. A striking 84% of Gen Z guests rank fast WiFi above traditional amenities like pools or premium bedding. Ensure you provide high-speed internet (advertise your speeds!), smart TVs, multiple charging stations, and keyless entry.

3. Design for Remote Work

With 38% of Gen Z guests traveling while working, properties with designated workspaces see 23% higher booking rates. Include a proper desk with ergonomic seating, good lighting for video calls, and professional-looking background walls.

4. Accommodate Groups

Since 64% of Gen Z travelers prefer traveling together, create multiple gathering spaces, provide ample seating, equip kitchens for group cooking, and offer entertainment options like games or fire pits.

5. Facilitate Local Connections

A substantial 87% of Gen Z travelers value recommendations for experiencing destinations “like a local.” Create neighborhood guides highlighting hidden gems, partner with local businesses, and offer authentic welcome gifts from area producers.

6. Nail Your Online Presence

Properties with professional photography receive 40% more Gen Z bookings. Invest in quality photos, respond quickly to inquiries (70% expect responses within hours), and maintain excellent reviews (92% read multiple reviews before booking).

7. Offer Flexibility

Listings with moderate or flexible cancellation policies receive 22% more bookings from under-30 travelers. When possible, ease cancellation terms and offer options for early check-in, late checkout, and extended stay discounts.

By aligning your property with these Gen Z preferences—creating authentic, unique, tech-enabled spaces that support both work and socializing—you’ll position yourself for success in the evolving vacation rental marketplace.

Why Vacation Rentals are the Future

Gen Z is redefining why and where we stay. Their preference for authenticity, flexibility, sustainability, and social connection has made vacation rentals the go-to choice over traditional hotels.

Whether it’s working remotely from a cozy cabin, snapping share-worthy content in a unique stay, or splitting costs with friends in a group-friendly home, Gen Z travelers are driving a cultural shift in hospitality.

For property owners and travel businesses, understanding and embracing these evolving values is essential to staying relevant in the future of travel.

Learn more about listing with Whimstay here