When it comes to travel, are you the type who spares no expense, do you pride yourself on hunting down deals and stretching every dollar or do you fall somewhere in between? Either way, you might be curious how your spending stacks up with others.
A new report reveals that Baby Boomer travel spending surpasses every other generation. But does that mean Boomers are overspending? Or are younger generations just more frugal or possibly missing out?
Let’s break down travel spending by age group and see what lessons each generation can take away for strategic and more satisfying travel.
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Travel spending by age group: Key insights
According to a Phocuswright study highlighted by TravelPulse, 25% of Baby Boomers report spending more than $6,000 on average when traveling, compared to just 17% of millennials and 16% of Gen X.
In contrast, 32% of Millennials say they spend $1,000 or less on their trips. Additionally, Boomers tend to take longer vacations and spend more per day than younger generations.
While this could be due to greater financial stability or the flexibility of retirement, it raises an important question: are Boomers getting more value for their money?
Why Baby Boomers might spend more on travel
There are a few reasons Baby Boomer travel spending is higher:
- More disposable income: Many Boomers are retired or near retirement and have fewer financial obligations, giving them freedom to splurge on travel.
- Focus on comfort and convenience: This generation values hotel upgrades, guided tours and premium flights that enhance comfort and cost more.
- Multi-generational travel: Many Boomers are footing the bill for family vacations, including travel with children and grandchildren.
- More time to travel: With flexible schedules, Boomers can take longer trips, which naturally cost more overall.
These aren’t necessarily bad spending habits, but they do suggest opportunities to find more value or rethink how much is “enough” to spend.
How younger travelers spend less and travel differently
Millennials and Gen Z travelers typically spend less on travel, but that doesn’t mean they’re missing out. They simply approach travel differently. Flexibility, online deals, rideshare services and alternative lodging options help keep their costs down, especially when working with tighter budgets or juggling school and early-career responsibilities.
These younger travelers are also quick to take advantage of loyalty programs and cash-back offers. While Boomers may splurge on five-star hotels, younger generations often prioritize cultural experiences, food tours and local exploration.
Travel preferences are highly personal. Some people prefer luxury hotels, while others enjoy hostels and a good map. While younger travelers often focus on affordability and unique experiences, many older travelers value convenience, comfort and multi-generational trips.
Ultimately, it’s not about one generation being smarter than the other; it’s about how personal priorities shape our travel habits.
Cost vs. value: Which one matters more when traveling?
The generational gap goes beyond how much each group spends — it’s also about what they value. It’s always worth considering whether you’re getting good value for your money.
For one traveler, a luxury resort may be worth every penny, while for another, it’s an unnecessary expense. Some prefer paying more for a fully planned itinerary, while others enjoy the freedom of spontaneous, budget-friendly travel.
While travel spending by age group gives us a broad view of trends, it doesn’t account for individual priorities. Whether you’re splurging or sticking to a tight budget, the best trip is one that aligns with your goals, comfort level and budget.
What really matters when it comes to travel spending?
Baby Boomer travel spending is higher, but that’s not the whole picture. Boomers often prioritize comfort and family experiences, while younger generations tend to value affordability and adventure.
So, do Boomers overspend on travel? Maybe, but they could simply be getting what they want. The real question is whether you’re getting what you need from your travel budget.
If your travel choices don’t match what truly matters to you, it might be time for a new approach — no matter your stage in life. After all, the smartest traveler isn’t the one who spends the most or the least; it’s the one who spends with intention.