With Americans continuing to leave vacation days on the table—especially younger demographics—there’s a rising determination to travel, even if it means borrowing money to do so.
According to a data from Bankrate, more than a quarter of those surveyed said they would be willing to take on debt to travel this year. That’s more than double that of those who would do the same for categories like dining out and live entertainment. Specifically, 44% of Gen Zers and 37% of millennials expect to spend more on travel in 2024 than they did a year ago. In contrast, 34% of Baby Boomers said the same.
Nearly half of Americans did not use all their vacation days in 2022, according to Expedia’s Vacation Deprivation Report 2023. Even those using vacation days didn’t use them for fun. More than half used at least one day for personal appointments, and nearly as many used an average of two vacation days in lieu of sick days. Respondents cited financial reasons as the biggest issue that prevented them from using their allotted vacation time.
A Struggle to Pay for Travel
A recent Credit Karma study reported that 92% of millennials and Gen Zers would rather receive the gift of travel or an experience like a concert or sporting event, rather than paying for material items. This falls in line with another study from Credit Karma which found that 38% of Gen Zers and 28% of millennials have been influenced to spend money they don’t have on travel after being exposed to other people’s vacations on social media.
The upshot is simple: More debt to pay for the travel young people so richly desire. Younger individuals have been found to favor rewards points more than older generations, presenting a rich opportunity for companies offering travel rewards cards. Prepaid gift cards have also become an option for older consumers looking to provide the younger generation with what they desire but may not afford.
“Gift cards provide a great opportunity to allow recipients to get the gift they want,” said Jordan Hirschfeld, Director of Prepaid at Javelin Strategy & Research. “It’s unlikely that a giver would directly buy a plane ticket or an on-site experience, but a gift card to offset those costs or provides a more meaningful opportunity and a treasured gift.”