5 Biggest Financial Challenges Each Generation Faces When Planning Group Vacations
Written by
Crystal Mayer
Edited by
Amen Oyiboke
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Traveling with friends, regardless of age, can be an unforgettable experience. Whether you’re a millennial heading with your besties to an exotic paradise or a retiree returning to the lake house you’ve visited for years with fellow empty nesters, going with a group can make the trip even more memorable. While there are plenty of perks to traveling with friends, there can also be pitfalls.
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According to a recent survey by Experian, vacationing with peers can lead to conflict, whether due to mismatched spending habits or unexpected expenses.
Here are the five biggest challenges each generation faces when planning group vacations.
Unexpected Costs
For every generation, the top financial stress point when planning group travel was unexpected costs during the trip. Millennials were most concerned, with 58% saying it was an issue. Gen Z followed closely at 55%, while baby boomers were the least anxious, with only 40% citing it as a stressor.
A separate survey by McKinsey found that only 17% of respondents used a travel agent in the past year. That means most travelers plan trips themselves, and while many enjoy the process, it can also lead to more surprises along the way.
Different Spending Habits
Nearly every generation has also been concerned about different spending habits among friend groups. Hopeful travelers worried about whether their budget would be too low or too high compared to their peers. Over half of those surveyed in younger generations, primarily Gen Zers and millennials, admitted to having had a financial disagreement with friends they were traveling with. More troubling, one in five said they had ended a friendship over a money-related dispute.
Splitting Costs Fairly
Along with different spending habits, people traveling with friends often worry about splitting costs fairly, particularly when vacationing with peers who have different spending priorities. According to the Experian survey, 48% of millennials and 43% of Gen Xers were concerned with splitting costs fairly. Again, Baby boomers were the least anxious about splitting costs, with only 39% listing it as a financial stress point.
Spending Peer Pressure
Many people reported feeling pressured to spend more than planned when traveling with a group. Gen Z and millennials were the most likely to exceed their budget by 50% or more, while just 1% of Gen Xers and baby boomers said they had more than doubled their planned spending. Baby boomers were also the most likely not to set a budget at all, with 17% saying they never establish one.
Not Being Able To Discuss Money Openly
Conversations about money can be uncomfortable, even with close friends and family. Millennials were the most concerned about openly discussing finances while traveling with friends — 21% said it was a challenge they had faced. Gen Xers were less worried, with only 15% citing awkward money talks as a concern.
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