Which Generation Spends the Most on Travel?
Written by
Jacob Wade
Edited by
Gary Dudak
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Traveling is a hobby of every generation. Exploring new cities, enjoying local cuisine and simply being away from your home can help you get some much needed rest and relaxation. Vacations can be expensive, though, and while it’s fun to travel, it can sometimes be cost prohibitive.
You may have an idea of what a vacation should cost, but that might be different than what your parents are willing to spend. In fact, based on a recent survey by GOBankingRates, there is a wide disparity between generations on how much is spent on travel. In this article, we’ll break down the data and show you how much each generation spends on travel, and who spends the most!
How Much People Spend on Travel By Age
Here’s how much people spend on travel on an annual basis:
Age 18 to 24: 49% of respondents spent less than $1,000 on travel for the entire year. 25% spent between $1,000 and $2,000, and 20% spent $2,000 or more.
Age 25 to 34: 59% of respondents spent less than $1,000 on travel for the entire year. 20% spent between $1,000 and $2,000, and 16% spent $2,000 or more.
Age 35 to 44: 57% of respondents spent less than $1,000 on travel for the entire year. 19% spent between $1,000 and $2,000, and 18% spent $2,000 or more.
Age 45 to 54: 64% of respondents spent less than $1,000 on travel for the entire year. 16% spent between $1,000 and $2,000, and 19% spent $2,000 or more.
Age 55 to 64: 66% of respondents spent less than $1,000 on travel for the entire year. 12% spent between $1,000 and $2,000, and 20% spent $2,000 or more.
Age 65 and over: 46% of respondents spent less than $1,000 on travel for the entire year. 21% spent between $1,000 and $2,000, and 23% spent $2,000 or more.
There are a few interesting findings from this data:
- From age 18 to age 64, the older generations have a higher percentage of people that spend less than $1,000 on travel per year compared to younger generations.
- Older generations tend to spend the most on travel, which is unsurprising.
- On average, Generation Z spends more on travel than millennials, which is surprising.
Which Generation Spends the Most on Travel?
Drilling into the survey data shows that on average, baby boomers and those age 65+ spend the most on travel. They have the highest percentage of travelers who spend at least $3,000-$5,000 (12%), and also the highest percentage that spend between $2,000 and $3,000 (11%).
Generation Z, the youngest crowd surveyed, actually spends more than Gen X or millennials, with the largest percent of them spending at least $1,000 – $2,000 per year.
What is very interesting is that those aged 55-64 spend the least amount on travel, with over 40% of respondents saying they spend $250 or less every year.
Why Younger Generations Are Spending More
It makes sense that Americans aged 65 and older spend a lot on travel. As many have retired and become empty-nesters, travel becomes easier. And if you’ve worked a 40-year career, you may have some bucket-list destinations saved up for your golden years.
But right behind them is Gen Z, with many prioritizing travel and spending more than some of the older generations. This is due to a variety of factors, but remote work, the gig economy and social media play a big part in this.
In short, Gen Z is seeing that travel can be a part of normal life, and they are willing to make it fit in their budget. As many Gen Zers don’t yet have kids and may still be figuring out their career, flexibility is the name of the game.
But it’s probably no surprise that our survey also shows that Gen Z tends to overdo it when traveling, with 40% of respondents saying they blew their travel budget in the past year. And nearly 20% of Gen Z travelers used their tax return funds to pay for it!
Why Doesn’t Gen X Travel as Much?
According to the survey, about 65% of Gen Xers are spending less than $1,000 on travel each year. This might be shocking, especially considering that many are in the highest-earning years of their career and should be able to afford the luxury.
However, between the ages of 45-64 there are some life circumstances to consider. Many Gen X parents have older children with busy schedules, and travel might not be an option for some of them. Plus, with the expenses of feeding teenagers and paying airline, lodging and transportation fees for the whole family, it can be cost prohibitive.
In the survey, over 75% of Gen X respondents said that the cost of living and cost of travel going up has prevented them from traveling more. With inflation still high and travel opening up in the past year, this makes perfect sense.
Bottom Line
As expected, retired folks spend the most on travel. But what’s surprising is that Gen Z is spending more on travel than everyone else besides those aged 65+.
The shift toward remote work and the ability to hold multiple part-time jobs with flexible schedules definitely points to this trend continuing. But it will be interesting to see if Gen X picks up traveling more as they start to retire, or if they will continue to hold off due to the expenses involved.
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