Gen Z's Travel Accommodations in 2025: Sustainability, Style & Savings

From Budget to Boutique: Where Gen Z Is Staying in 2025

Traveling in 2025 isn’t just about where you go—it’s about where you stay. And if there’s one thing that’s clear, it’s that Gen Z isn’t settling for basic hotels with generic decor and overpriced room service. Instead, we’re shaping the travel industry with a focus on budget-friendly stays, unique experiences, and eco-conscious choices.

From boutique hotels to eco-lodges, digital-first accommodations to Airbnb-style rentals, Gen Z is pushing for travel experiences that feel personal, authentic, and seamless. As someone who’s been living the digital nomad life for years, I’ve stayed in everything from high-end eco-retreats in Costa Rica to budget-friendly hostels in Southeast Asia. And trust me—the way we book, experience, and even think about accommodations is evolving fast.

So, what’s driving this shift? And what exactly does Gen Z want from their stay in 2025? Let’s break it down.

1. Budget-Friendly, But With Style

Let’s be real—most of us aren’t rolling in cash, and value for money is everything. In fact, 47% of Gen Z travelers say affordability is a key factor in choosing a destination. But here’s the twist: we don’t want cheap, we want smart.

• 35% of Gen Z travelers prefer standard hotels (3 stars or below) to save money.
• Many are opting for affordable boutique hotels over big-name global chains, prioritizing unique designs and personalized experiences.
• Airbnb-style stays remain popular, offering more space, a local feel, and the ability to split costs with friends.

That means cookie-cutter hotel chains are out, and affordable stays that still feel stylish and well-curated are in. If a hotel or rental doesn’t offer a vibe, an experience, or a touch of personality, we’re swiping left.

2. The Rise of Boutique & Unique Accommodations

Forget massive hotel chains with impersonal lobbies—Gen Z is all about boutique stays that feel fresh and intimate. More than 72% of Gen Z travelers prefer boutique hotels over traditional global brands. Why? Because they offer:

• Personalized service – Smaller hotels mean staff actually know their guests.
• Aesthetically pleasing design – Instagram-worthy spaces that reflect the destination’s culture.
• Local charm – Staying somewhere that feels like the place you’re visiting, not just another chain hotel room.

And this doesn’t just apply to boutique hotels. Airbnb-style accommodations are thriving, as they offer authenticity, flexibility, and a more local experience. Whether it’s a treehouse in Costa Rica or a historical townhouse in Portugal, Gen Z is booking stays that feel like an adventure on their own.

3. Luxury? Maybe. Authenticity? Always.

Luxury hotels aren’t dead, but they’re evolving. While some Gen Z travelers still book 4- and 5-star hotels, they’re willing to pay extra for uniqueness rather than just extravagance.

Instead of massive, corporate resorts, Gen Z’s version of luxury includes:

• Eco-resorts with sustainability initiatives (think solar-powered bungalows or hotels that eliminate single-use plastics).
• Experiential stays, like a farm stay in Tuscany or a boutique riad in Marrakech.
• Wellness-focused retreats with yoga, meditation, or nature immersion.

Basically, if a luxury hotel only offers a fancy lobby and overpriced cocktails, we’re not interested. But if it delivers an experience—that’s where we’ll spend.

4. Eco-Friendly Accommodations: A Must-Have, Not a Bonus

Sustainability isn’t just a trend—it’s an expectation. A massive 56% of Gen Z travelers prefer staying in green or eco-friendly accommodations, and 73% actively consider sustainability when booking trips.

That means hotels and rentals need to step up their game. Some features Gen Z is looking for:

• Energy-efficient stays (solar power, waste reduction, water conservation).
• Sustainable materials (eco-friendly builds, plastic-free toiletries).
• Local sourcing (food from nearby farms, partnerships with local artisans).

Destinations leading the way? The Azores, Portugal, is a prime example—it’s not just stunning, but also one of the most sustainable travel spots in the world. Expect more places to follow suit if they want to attract Gen Z travelers in 2025.

5. Glamping & Outdoor Stays on the Rise

While there’s no major data on Gen Z’s obsession with camping, one thing is clear—our generation loves nature without sacrificing comfort. That’s where glamping and eco-lodges come in.

• Think tiny homes in the wilderness, safari tents with real beds, and glass cabins under the Northern Lights.
• With a focus on off-grid experiences, many of these stays offer a tech detox while still providing essentials like Wi-Fi for those who need it.

For those who crave adventure but don’t want to sleep on the ground, this is the perfect balance between rugged and relaxing.

6. Hostels: Not Just for Backpackers Anymore

Hostels have evolved from budget crash pads to trendy, social hubs that attract young travelers looking for connection.

• Many modern hostels now offer private rooms with hotel-level design, making them more appealing to Gen Z.
• Communal spaces like rooftop bars, coworking areas, and group activities make them perfect for meeting new people.
• With affordability being key, hostels remain a great option for travelers who prioritize experiences over luxury.

If a place combines budget-friendliness, cool aesthetics, and social energy, it’s a win.

7. Tech-Forward & Seamless Experiences

Gen Z grew up with tech, and we expect digital-first experiences when we travel. That means:

• Mobile check-ins and keyless entry—No one wants to stand in line for a room key.
• Fast, reliable Wi-Fi—Because let’s be honest, no one’s booking a place without it.
• Smart hotel apps—Allowing guests to book activities, order food, or adjust room settings from their phones.

Hotels and rentals that prioritize seamless digital experiences will thrive, while those stuck in the past will struggle to attract Gen Z travelers.

What's Next for Gen Z Travel in 2025?

The days of generic, overpriced hotels are fading. Gen Z is looking for accommodations that offer a mix of affordability, authenticity, sustainability, and tech-forward convenience.

If a stay doesn’t add to the experience of a trip, we’re not interested. We’re swapping global chains for boutique hotels, luxury for eco-consciousness, and fast travel for deeper, more immersive stays. Whether it’s a glamping lodge in Norway, a boutique hotel in Mexico, or a minimalist Airbnb in Japan, the future of travel is about more than just a bed—it’s about a story.

And in 2025, Gen Z is writing the next chapter.

Stay tuned for more travel insights at Woke Waves Magazine.

#GenZTravel #SustainableTourism #BoutiqueHotels #AirbnbTrends #DigitalNomadLife