Move over family travelers. Gen Zs are set to make the biggest splash this summer, with surveys showing they are upping their vacation plans and spending more than older travelers. No longer satisfied with road trips to their parents’ homes, Gens Z are planning international trips at higher rates than other generations, according to a report released by Bank of America on May 20. The survey of more than 2,000 Americans showed Gen Zs are planning to travel for longer periods and to take more expensive vacations at higher rates too.
Gen Zs, together with millennials, are at the helm of a surge in travel spending this year, according to an April report published by the market services firm PMG. That report, which surveyed 1,800 adults in the United States, United Kingdom, India, Germany, and China, shows that 65% of Gen Zs and 72% of millennials said they plan on spending more on leisure travel this year, well ahead of the 54% of Gen Xers and 40% of baby boomers who said the same.
Financial Strategies
The number of Gen Zs who said they’re traveling because they have the savings to do so has fallen since August 2023, according to a new report from the research company Morning Consult. Gen Zers have come of age during an incredibly turbulent time,” Roeschke said. “This is deeply impacting their travel behaviors.” Gen Zs are not letting financial constraints hinder their travel plans. They are finding ways to trim travel costs instead of canceling or postponing their trips. This could involve traveling during off-peak seasons, using price-comparison apps, redeeming credit card points, cutting back on other expenses, or taking up side gigs to finance their travels.
Debt Concerns
Despite their innovative financial strategies, 42% of Gen Zs and 47% of millennials say they plan to use debt to finance their summer trips, according to a survey by the financial services company Bankrate. Using credit cards paid over multiple months, “buy now, pay later” services, borrowing from family and friends, and personal loans are some of the popular methods Gen Z travelers use to fund their vacations. This debt-heavy approach raises concerns among financial experts who worry about the long-term implications of accumulating debt for discretionary purchases like vacations.
Travel-happy Gen Zs don’t necessarily feel optimistic about their finances. Nearly a quarter (24%) said they felt pressured by friends to take trips they can’t afford, according to a study published in May by the financial services company Empower. Compared with other adults, Gen Zs are more likely to say that their own finances, the broader economy, and climate change negatively affect their willingness to travel, according to Morning Consult. However, despite these concerns, Gen Z travelers are still determined to explore the world.
The rise of Gen Z travelers is reshaping the travel industry. Their travel habits, spending patterns, and financial strategies differ significantly from older generations. While some may criticize their debt-heavy approach to travel financing, it is essential to recognize the unique challenges and opportunities Gen Z faces. As the travel industry evolves, understanding and catering to the needs of younger travelers like Gen Z will be crucial for the future of travel.
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