Determinants of Indonesian Gen Z’s purchase behavior on online travel platforms: Extending UTAUT model

Abstract

Understanding Gen Z’s purchase behavior in online travel agents is essential to effectively engage and meet the unique preferences of this generation, fostering long-term loyalty and satisfaction. Utilizing the unified theory of acceptance and use of technology (UTAUT) as the theoretical foundation, this study aims to analyze the impact of performance expectancy, effort expectancy, social influence, facilitating condition, and trust on purchase decision of flight tickets through online travel agent platforms. The data were collected through an online survey of 253 Gen Z users of online travel agent applications in Indonesia, such as Traveloka, Tiket.com, Pegipegi.com, Agoda, and Booking.com. The study employed PLS-SEM to test the hypotheses. The results indicate that performance expectancy, effort expectancy, social influence, and facilitating conditions influence trust (t-value 1.645, p-value < 0.05). Further, performance expectancy, effort expectancy, and facilitating conditions influence purchase decisions (t-value 1.645, p-value < 0.05). However, social influence does not significantly affect purchase decisions (t-value 1.041, p-value > 0.05). The analysis also shows that trust fully mediates the relationship between social influence and purchase decisions, while no mediating effect is identified in the relationship between effort expectancy and purchase decisions. By investigating the key factors contributing to Gen Z’s buying behavior in online travel agent platforms, this paper provides valuable insights for online travel businesses to effectively engage and cater to Gen Z’s unique needs and preferences.