A recent report from Bank of America found that Gen Z and millennials are traveling internationally more than previous generations.
Sixty-five percent of Gen Z and 72% of millennials surveyed plan to spend more on travel than they did last year, compared to just 54% of Gen X and 40% of baby boomers. Younger travelers plan to take longer and more expensive vacations than older travelers.
But in an increasingly expensive and interconnected world, why are younger generations willing to spend more to see views they can only see online? And how are they going to pay for it?
According to CNBC, they're in debt, but they don't seem too worried.
Why is Gen Z willing to go into debt to pay for travel?
There are many reasons why young people are so keen to travel, and it's not just because they have money to spare.
“Generation Z is coming of age during an incredibly turbulent time,” Lindsay Roeschke, travel and hospitality analyst at research firm Morning Consult, told CNBC. “This is deeply impacting their travel behavior.”
Rather than waiting until they have saved up, young travelers try to cut costs wherever possible – and then pay the difference, whatever it may be.
Gen Z thinks about vacations differently than previous generations: older travelers generally prefer to take their time and enjoy leisure activities, while younger travelers are more inclined to explore and go on adventures, according to Collage Group.
Even within Gen Z, younger generations prefer adventure over relaxation: A Collage Group study found that 67% of young Gen Zers prioritize excitement when traveling.
Technology also plays a big role in motivating Gen Z to get out and travel. Social media apps like Instagram and TikTok make the world seem smaller, but at the same time, they make it closer. As a result, young people are starting to see travel as a right rather than a privilege.
“Virtual access to the world and other cultures from an early age has created a growing expectation to see and experience these places and cultures in person,” said Natalie Griffiths, director of product and content at Collage Group. “Gen Z not only wants to travel, they want to do so in the near future.”
What are the most popular travel destinations this summer?
Where does Gen Z want to go? This summer, popular destinations for Gen Z travelers are primarily Asian countries.
Travel deal-finding app Hopper recently reported that young travelers are searching prices for trips to Asian countries 50% more often in 2023 than they were before the COVID-19 pandemic. Popular countries include Thailand, Vietnam, the Philippines, South Korea and Japan, according to Travel + Leisure.
Some of these countries are less expensive than others, with Thailand, Vietnam, and the Philippines in particular offering beautiful natural scenery and authentic travel experiences that are very affordable for American travelers.
“Southeast Asia is a place that changes your brain chemistry,” said TikTok travel influencer Ramey Iacofono of Travel + Leisure.
According to Woke Waves, Gen Z travelers are also drawn to the locations they see most frequently online, such as Santorini, Greece; Copenhagen, Denmark; and Tuscany, Italy, as well as the stunning views of New York City and Vancouver, Canada.
“As this generation continues to define their travel preferences, destinations that align with their ethical values and digital connectivity will dominate the travel industry,” writes travel journalist Ethan Harper.
If you're looking for places to travel this summer, knowing where others are going can help you avoid crowds and take part in activities.
But how do other people pay? How do you pay?
Why Gen Z is traveling — and why you can too.
Gen Z funds their trips in a variety of ways, some of which involve debt, but not all of them. Check out this list of safe and unsafe ways to pay for a vacation.
Credit cards: According to CNBC, travelers are increasingly turning to credit cards, paying off over several months. 26% of travelers paid for their summer trips this way. Borrowing and taking loans: According to CNBC, 6% of travelers ask family and friends for travel assistance and promise to repay the assistance. 5% take out loans to pay for their trips. Travel points and apps: Airlines often offer miles or points that can help you reduce travel costs. Apps like Hopper are also a popular way to track flight and hotel prices. Digital nomads: According to Harvard Business Review, some travelers are adopting a “digital nomad” lifestyle, working and traveling at the same time. You'll need a flexible schedule and a boss, but you can take your work anywhere. It's not exactly a relaxing vacation, but you can earn travel money while you travel. Travel influencers: Take the digital nomad lifestyle a step further by becoming a travel influencer. According to Worldpackers.com, travel creators can earn money by posting their journeys online. Beautiful photography and travel guides quickly drive views, shares, and purchases, garnering attention from people who want to join in. Some travel influencers host group trips, funding their own trips while also helping plan vacations for others.
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