Avoid family travelers.
Gen Z will make the biggest splash this summer, with surveys showing they are ramping up their vacation plans and spending more than older travelers.
No longer content with road trips back to their parents’ homes, Gen Z is planning international trips more frequently than other generations, according to a report. Report issued by Bank of America May 20th.
The survey of more than 2,000 Americans shows Gen Z is planning to take longer trips and take more expensive vacations at higher prices.
ready to consume
Gen Z and Millennials are leading this year’s surge in travel spending, according to an April report from marketing services firm PMG.
The report, which surveyed 1,800 adults in the U.S., U.K., India, Germany and China, found that 65% of Gen Z and 72% of Millennials said they plan to spend more on leisure travel this year. More than 54% of Gen Xers and 40% of Baby Boomers said the same.
But how Gen Z (generally defined as those born between 1997 and 2012) plan to fund travel also differs from other age groups.
According to statistics, the number of Gen Z who say they travel because they have savings has dropped since August 2023 a new report From research firm Morning Consult.
But that won’t stop them, said Lindsey Roeschke, a travel and hospitality industry analyst at Morning Consult and author of the report.
“Gen Z grew up during a time of great turmoil,” Roeschke said. “This profoundly affects their travel behaviour.”
“Why would they put off going to a place they really want to go to save money when there could be another pandemic, financial crisis, war or other major event that could prevent them from getting there?” she told CNBC.
Roeschke also noted that Gen Z will spend their time looking for ways to cut travel costs rather than canceling or postponing trips.
“They are looking for ways to trade off and save money. This may include traveling during the off-season, using apps and other technology for price comparisons, cashing in credit card points, making trade-offs in other areas of spending, or purchasing a side hustle to fund their travels,” she told CNBC.
Use Debt to Fund Summer Travel
However, 42% of Gen Z and 47% of Millennials said they plan to use debt to fund summer travel, according to a survey by financial services firm Bankrate.
According to the report, the most popular ways to finance summer vacation travel include:
- Credit card installment payment – 26%
- “Buy now, pay later” service – 8%
- Borrow money from family and friends – 6%
- Personal loan – 5%
This debt-ridden mentality worries older generations, who tend to travel less ambitiously (if at all) in their 20s, and it’s a concern for Bankrate senior analyst Ted Rossman. and the dissatisfaction of financial experts.
“I don’t want to tell people they can’t have any fun, but I do worry about taking on debt for discretionary purchases like vacations, especially with credit card balances and interest rates at record highs,” Rothman said in the report.
Roeschke noted that Gen Z, who like to travel, are not necessarily optimistic about their financial situation. Nearly a quarter (24%) said They feel pressure from friends to take trips they can’t affordaccording to a study released in May by financial services firm Empower.
Morning Consult says Gen Z is more likely than other adults to say their finances, the overall economy and climate change have negatively impacted their willingness to travel.
“But… they’re still doing it!” Roschke said.
About The Author
