According to a Bank of America survey published on May 20, Gen Z is more likely than previous generations to be planning travels abroad since they are no longer content with taking road trips to their parents' houses. (Photo : by Ian Schneider / Unsplash)
Gen Z is more likely than previous generations to plan international trips, opting for more expensive and longer vacations compared to older generations who often chose road trips.
According to surveys, 65% of millennials and 72% of Gen Zs plan to spend more on leisure travel this year, leading the rise in travel expenditure among all age groups.
Despite having different financial plans, many Gen Zs are willing to use debt to finance their travels, with 42% of Gen Zers and 47% of millennials planning to rely on credit for their summer trips.
According to a Bank of America survey published on May 20, Gen Z is more likely than previous generations to be planning travels abroad since they are no longer content with taking road trips to their parents' houses.
According to a poll conducted among over 2,000 Americans, Gen Zs intend to take more costly holidays at greater rates and travel for longer periods of time. A PMG market services research from April, Gen Z and millennials are leading the way in the rise in travel expenditure this year.
According to the analysis, which polled 1,800 persons in the US, UK, India, Germany, and China, millennials and Gen Zs are far more likely than Gen Xers and baby boomers to say they want to spend more on leisure travel this year-65 percent and 72 percent, respectively.
However, Gen Zs, who are often characterized as people born between 1997 and 2012, also have different financial plans than previous age groups.
As per a recent analysis by Morning Consult, the percentage of Gen Zs who stated that they are traveling because they have the savings to do so has decreased since August 2023.
Rather of calling off or delaying their travels, Gen Zs will take their time researching methods to save expenditures. Still, according to a poll by the financial services business Bankrate, 42% of Gen Zers and 47% of millennials said they want to utilize debt to pay their summer travels.
Concerns Over Financing Summer Holiday Trips Among Gen Z
The report revealed that the most popular methods of financing summer holiday trips include using credit cards paid over multiple months (26%), "buy now, pay later" services (8%), borrowing from family and friends (6%), and taking out personal loans (5%). This debt-be-damned mentality is concerning to older generations, who tended to travel less ambitiously in their 20s, if at all. Financial specialists, such as Ted Rossman, a senior analyst at Bankrate, also find this trend worrisome.
Gen Zers who love to travel may not always feel good about their financial situation. According to a May research released by the financial services business Empower, over a quarter (24%) said they felt pressured by friends to take trips they can't afford.
According to Morning Consult, Gen Zs are more likely than other adults to claim that factors such as their own circumstances, the state of the economy as a whole, and climate change have a negative impact on their desire to travel.
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