Richard Carr
Gen Z travel is booming even though many young adults say they can't cover every bill each month, and the way to make it work is disciplined budgeting: leaning on loyalty programs, student discounts, offseason timing, and cheaper lodging and food choices to stretch limited income.
Why So Many Young Travelers Are Booking Trips Anyway
Roughly 63% of Gen Zers spent money on travel in 2024, according to survey data, and a TravelPerk survey finds this generation travels about three times a year on average. Bank of America Institute research shows about 26% of Gen Z spent more on entertainment and travel in 2024 than the year before. Linda Eaton, executive vice president at Cannon Financial Institute, says the generation places a premium on experiences over possessions. "They focus on adventure and mental health, and they're eager to explore different cultures," she said.
That appetite for travel doesn't line up neatly with steady paychecks. Gen Z, born between 1997 and 2012, is more likely than prior generations to go straight from high school into higher education. Research from the Annie E. Casey Foundation found 57% of 18 to 21 year olds were enrolled in college in 2022, compared with 52% of millennials at the same age. Many are still building careers or working gig jobs while trying to see the world.
The Money Gap Behind the Wanderlust
The tension shows up clearly in the numbers. About 28% of Gen Z respondents say they can't pay all their necessary expenses every month, and Bank of America Institute research found 32% more of them fell behind on payments in 2025 compared with a year earlier. That same share said they don't feel as financially secure as their parents did at their age.
Shelly Marmor, a travel advisor at DiscoverCars.com, points to the nature of Gen Z employment as part of the problem. "Many don't have steady salaries," she said. "It's freelance work, gig work, and entry-level jobs. They grew up through recessions and a pandemic, so long term stability isn't an expectation. Adaptability is." Eaton adds that some travelers are financing trips with loans or credit cards, a workaround that can leave them paying for a vacation long after it ends.
How Gen Z Spends Differently on the Road
Cost consciousness shapes where and how this generation stays and eats. TravelPerk's survey found 35% of Gen Z travelers say a three star hotel is as upscale as they need, and 56% prefer eco friendly properties. They also tend to drink less and skip the nightlife scene that older generations built into their travel budgets, putting more of their spending toward experiences like cultural sites and local activities instead of bar tabs.
Comparing the Main Ways to Cut Travel Costs
The specific tactics vary, but most fall into a handful of categories that are worth weighing against each other before booking a trip.
| Strategy | How It Saves Money | Trade Off |
|---|---|---|
| Loyalty programs | Nearly 60% of Gen Z travelers use points or rewards to offset flight and hotel costs | Requires repeat bookings with the same brands to build up value |
| Student discounts | Reduced rates on transit, attractions, and some airfare | Only available to those currently enrolled in school |
| Offseason travel | Lower hotel and airfare prices in late spring or early fall | Smaller crowds but sometimes shorter hours or fewer events |
| Budget airlines (Spirit, Ryanair, EasyJet) | Lower base fares, especially for weekday flights | Extra fees for bags, seats, and other add ons can erase savings |
| Self catering lodging | A kitchen or microwave cuts restaurant spending | Less convenient than dining out and requires grocery planning |
Building a Realistic Travel Budget
Marmor's advice starts with knowing your ceiling before you book anything. "A week of cafe meals can burn through 30% of the budget," she said, which is why she recommends picking accommodations with basic cooking facilities. Transportation costs, both to the destination and once you arrive, deserve as much attention as the flight price itself, since a cheap hotel far from the action can cost more in transit than it saves in nightly rate.
Timing matters too. Flights are generally cheaper midweek than on Saturdays, and prices climb once school lets out for the summer. Eaton suggests traveling in the shoulder seasons of late spring or early fall, when airfare and hotel rates drop and destinations are less crowded. Checking whether a discounted hotel outside a city center actually saves money once transportation is factored in can also reveal savings, though the payoff depends heavily on the specific destination.
Can Budgeting Alone Close the Gap?
Loyalty points, student discounts, and offseason timing clearly help, but they don't erase the underlying issue: nearly a third of Gen Z already struggles to cover monthly expenses. Whether these budgeting habits are enough to keep travel debt from piling up, or whether more young travelers will lean on loans and credit cards to keep exploring, remains an open question as this generation's spending habits continue to take shape.
Haley Butler