Is Gen Z the generation that knows how to make the most out of travel?
Survey: Younger generations are more likely to travel just for fun.
It’s easy to see why Generation Z (defined as anyone born after 1997 by the Pew Research Center) has a different worldview than Generation X and even millennials (those born between 1981 and 1996). Generation Z has never known a world without the internet, phones that tether you to the wall, or rapid technological disruptions and discoveries every few years.
Gen Z is also more open-minded and understanding of social change, and they appear to believe that anything is possible because it is. Even though their parents and grandparents may not have had the same opportunities, those in the younger generation appear to be more inclined to get out and explore.
In fact, according to a new Bankrate survey released in July 2023, younger generations are more likely than their older counterparts to travel for fun this year. Survey results revealed that 68% of Gen Z respondents and 69% of millennials planned to travel for leisure this year.
The impact of affordability on Gen Z’s travel plans
Recent data shows that Gen Z travelers want to get out and explore, and they’re willing to do so even if their finances aren’t quite in order. However, rising travel costs may be putting trips out of reach for some Gen Z adults with high expenses or low incomes.
Consider:
- Due to economic concerns, 24% of Gen Z travelers planned to spend less on trips this year than last (Bankrate).
- 47% of Gen Z people who aren’t taking a summer vacation this year say they can’t afford it (Bankrate).
- 61% of Gen Zers who took three or more leisure trips in the previous year came from households earning less than $50,000 per year (Morning Consult Pro).
- More than half of Gen Z adults (52%) are frequent travelers, which means they took at least three leisure trips in the previous year (Morning Consult Pro).
- 43% of Gen Zers taking a summer vacation this year plan to visit the beach, while 32% plan to stay at home (Bankrate).
Post-pandemic, Gen Z is ready to travel
The COVID-19 pandemic that began in early 2023 may be mostly over, but the overall increase in travel demand it caused is not. According to research, Gen Z adults may be more eager to travel than ever before, especially now that most pandemic-related travel restrictions have been lifted.
According to Bankrate data, 31% of Gen Z adults have taken a leisure overnight trip outside of their local area in 2023, with 49% planning to do so before the end of the year. Further questions revealed that 30% of Gen Zers, 25% of millennials, and 18% of Generation X are more excited about travel than they were before the pandemic.
While traveling more, Gen Z is spending less
Inflation is definitely influencing how much money Americans, including Generation Z, can spend on vacations.According to Bankrate data, 29% of summer travelers across all generations and age groups choose less expensive accommodations, 28% engage in less expensive activities, and 26% drive instead of fly to help cope with rising prices.
When it comes to getting the most bang for their buck on their travel plans, Gen Zers may be especially frugal. According to a Student Universe 2023 travel study, nearly two-thirds of Gen Z travelers look for the cheapest accommodations, flights, and more, and nearly half (46%) rely on financial assistance from parents to cover the costs of trips.
However, according to new ICF Travel research, having shared values with a travel brand is twice as important for Gen Zers as it is for Baby Boomers. This suggests that Generation Zers are willing to spend more money on travel and experiences that align with their personal values.
And, while Gen Z is more enthusiastic about leisure travel than previous generations in the aftermath of the pandemic, they are not necessarily planning to spend more. For example, only 21% of Gen Z travelers expect to spend more on leisure travel in 2023 than in 2022, compared to 27% of millennials, 29% of Gen X, and 33% of Boomers.
How Gen Z is paying for travel
Are you planning to spend $1,000 or more on leisure travel this year?
Only 8% of Gen Z travelers are willing to go into debt – or add to their existing debt – for leisure travel this year, according to Bankrate data. So, how are they going to pay for their trip?
According to a recent eMarketer survey, Gen Z adults and Millennials are the most likely to use points and miles to offset some of their travel expenses. Furthermore, Gen Z and other younger travelers appear to be more concerned with loyalty programs than previous generations, and these travelers may place a premium on programs that provide flexibility and choice in terms of redemption options.
Here are some facts:
- 52% of frequent Gen Z travelers plan to visit a national park in the next year, with another 55% planning to visit a theme park, indicating that they prefer longer trips but not necessarily more expensive ones (Morning Consult Pro).
- Due to inflation, 33% of Gen Zers planning at least one summer vacation this year are choosing less expensive accommodations and/or destinations (Bankrate).
- 21% of Gen Z adults, along with 21% of millennials and 20% of Gen X, plan to use credit card rewards to pay for some travel in the future (Bankrate).
- Generation Z has an average credit card debt of $2,282, compared to $4,576 for millennials and $7,070 for Generation X — they may be redeeming points and miles for travel, but they aren’t using credit cards to rack up as much debt as previous generations (Bankrate).
The bottom line
Gen Z is full of savvy travelers who enjoy finding the best deals on airfare, flights, and vacation packages, and they prefer to take longer trips when possible. Travelers in this generation also appear to be more at ease spreading their wings and exploring the world than previous generations, which makes sense given how the internet expanded our collective knowledge just before they were born.
If you’re a member of Generation Z looking for ways to save money on travel this year, know that smart planning, budgeting, searching for deals, and signing up for travel credit cards can all help. Travel may be expensive right now, but you don’t have to let price and demand keep you from going.
