As summer approaches, there is a noticeable shift in the demographics of travelers. Move over family travelers, as Gen Zs are gearing up to take center stage this summer. Recent surveys have shown that Gen Zs are not only increasing their vacation plans but also planning to spend more than older generations.
According to a report released by Bank of America on May 20, Gen Zs are no longer satisfied with just road trips to their parents’ homes. They are now looking at international trips at higher rates than other generations. The survey of over 2,000 Americans revealed that Gen Zs are planning to travel for longer periods and take more expensive vacations at higher rates as well.
Gen Zs, along with millennials, are leading a surge in travel spending this year, as per a report published by the market services firm PMG in April. The report, which surveyed adults from various countries, showed that 65% of Gen Zs and 72% of millennials plan on spending more on leisure travel this year, surpassing older generations.
However, the way Gen Zs plan to fund their travels differs from other age groups. While the number of Gen Zs who said they’re traveling because they have the savings to do so has fallen, they are not letting that stop them. Lindsey Roeschke, Morning Consult’s travel and hospitality analyst, mentioned that Gen Zs are looking for ways to trim travel costs and find alternative funding methods to make their trips a reality.
Despite some concerns about financing their trips, as 42% of Gen Zs and 47% of millennials plan to use debt to finance their summer trips, they are determined to make it happen. Popular methods of financing holiday trips include credit cards paid over multiple months, “buy now, pay later” services, borrowing from family and friends, and personal loans.
While there may be some apprehension from older generations and financial specialists about taking on debt for discretionary purchases like vacations, Gen Zs are still forging ahead with their travel plans. Roeschke noted that even though Gen Zs don’t necessarily feel optimistic about their finances, they are still finding ways to make their travel dreams a reality.
In conclusion, despite the challenges and uncertainties surrounding their finances, Gen Zs are showing resilience and determination in their pursuit of travel experiences. Their willingness to adapt and find creative solutions to fund their trips showcases their adventurous spirit and desire to explore the world, even in uncertain times. So, this summer, get ready to see Gen Z travelers making a big splash and setting the trend for travel.
