As Americans, especially younger Americans, have more vacation time left, they are increasingly determined to travel, even if it means borrowing money.
More than a quarter of those surveyed said they would be willing to borrow money to travel this year, according to Bankrate data. That's more than twice as many people doing the same in categories like dining out and live entertainment. Specifically, 44% of Gen Z and 37% of Millennials expect their travel spending to be higher in 2024 than they were a year ago. In contrast, 34% of baby boomers said the same.
Nearly half of Americans did not use all of their vacation time in 2022, according to Expedia's 2023 Vacation Deprivation Report. Even those who were on vacation weren't using it for fun. More than half used at least one day for personal commitments, and about the same number used an average of two days off in lieu of sick leave. Respondents cited financial reasons as the biggest problem preventing them from using their allotted time off.
have difficulty paying for travel expenses
A recent Credit Karma study reported that 92% of Millennials and Gen Z would rather receive the gift of travel or experiences such as a concert or sporting event than pay for goods. . This is in line with another study by Credit Karma that found 38% of Gen Z and 28% of Millennials ended up spending money they didn't have on a trip after being influenced by seeing someone else's vacation on social media. We are doing so.
The result is simple. Young people end up paying even more debt for the trip they so desire. Young people are known to prefer points more than older generations, creating a rich opportunity for companies offering travel points cards. Prepaid gift cards are also an option for older consumers who want to give younger generations something they want but can't afford.
“Gift cards provide a great opportunity for recipients to get the gift they want,” said Jordan Hirschfeld, Director of Prepaid, Javelin Strategy & Research. “Givers are unlikely to directly purchase airline tickets or local experiences, but gift cards can offset those costs or provide a more meaningful occasion and cherished gift.”
