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Gen Z Travelers Aren't Letting Money Stop Their Travel Plans
As the newest generation of consumers, Gen Z travelers are finding their way in the market fast. Unlike millennials who had a bit of a slow grid getting into the travel groove, Gen Z travelers are moving at full force towards exploring the world. The young demographic is making quite an impact in the travel industry and setting trends that could change it forever.
One thing you have to remember is that Gen Z has never experienced life without mobile devices and the internet. This significant difference sets them apart from older generations and is shifting the way they consume travel goods and services. Not only that but being low on funds is definitely not a hindrance when it comes to getting outside.
Yes, you heard that right. Gen Z is not pressed about money when preparing to travel. In fact, being broke is a non-factor to them. If there’s a will, there’s a way and Gen Z travelers are jet-setting coast to coast despite what’s in their bank accounts.
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Low Funds Don’t Equal Low Thrills
The bottom line is that Gen Z travelers are not staying at home. According to Morning Consult, a data research company, Gen Z is on par with millennials who have become the travel industry’s favorite consumers.
Fifty-two percent of both Gen Z and millennials are frequent travelers taking one to two leisure trips each year. The difference is that Gen Gen Z is more willing to fit leisure travel into their annual budgets despite being lower earners than millennials. Ultimately, travel is just more important to Gen Z consumers.
“In short, they’re being raised in a society where travel is more prioritized than it was for past generations,” travel and hospitality analyst Lindsey Roeschke told CNBC. “Brands need to pay attention now.”
Eleven percent of Gen Z travelers make more than $110,000 a year, with 61 percent of them earning less than $50,000 a year, according to Morning Consult. While they might not have more money, this generation is more likely to spend it on the travel they need.
“Cost-of-living crisis or not, nothing is going to get in the way of Gen Z taking a well-earned break,” the report stated.
The Strategy Is In The Sacrifice
The strategy for frequent travel for Gen Z consumers lies in their willingness to sacrifice. Unlike older generations, Gen Z would rather forfeit more traditional luxuries so they can see the world.
According to a study by Student Beans, Gen Z cut spending on fashion, tech, and food between 2021 and 2022 by 23 percent. Their travel purchases, however, increased by 60 percent.
This can be attributed to the fact that Gen Z travelers seem to prioritize wellness and leisure breaks more than older generations. With their desire to travel being driven by their mental health needs and desire for thrills and adventures, Gen Z is quickly shifting the reason why folks are traveling.
“It wasn’t too long ago that the 18-30s travel market was practically synonymous with raucous partying … that’s no longer the case,” StudentUniverse brand manager Will Jones said to CNBC.
Ethics & Budget Matter
Morning Consult also discovered in their study that Gen Z travelers are more prone than millennials to take international trips. However, their approach is completely different.
Destinations where social issues are unheard of, or where blatant discrimination occurs, are a big no-no for Gen Z. This includes matters concerning race and LGBTQ rights with 82 percent of Gen Z travelers expressing they avoid countries with inhumane approaches to human rights. It’s just not the vibe for Gen Z.
This generation is also more likely to indulge in accommodations that support sustainability for the environment. According to Virtuoso, 56 percent of Gen Z travelers are willing to pay more to work with brands that have environmentally friendly practices.
Since they are the true children of the world wide web, Gen Z uses a lot of technology when budgeting for travel. According to Booking.com, Gen Z adults are 62 percent more likely to use technology to save money when planning a trip than other generations.
The Difference Between Gen Z & Millennial Travelers
Everyone knows that there’s a secret feud raging between Gen Z and millennials. Millennials look down on their former Tide pod-eating ways while Gen Z truly believes that millennials are old. However, when it comes to travel, both generations are in similar boats despite their differences.
Millennial and Gen Z travelers prioritize travel much more than their parents and grandparents. Gen Z is typically the frugal traveler while millennials are prone to do the most every trip. One has luxury at the top of their travel bucket list while the other just wants meaningful travel experiences.
It’s important to note that Gen Z travelers are more likely to receive financial help from their parents, unlike their millennial counterparts. Both generations do worry about not having the money to travel. It’s just that Gen Z travelers don’t mind risking it all to get away.