Key Takeaways
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Baby boomers are living their best lives in retirement as the biggest travel spenders, while millennials spend the least on travel.
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Gen Z is the only generation spending more on travel at a year-over-year rate.
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Millennials often opt for alternative accommodations and inexpensive travel arrangements.
Younger generations (millennials and Gen Z) typically travel more frequently than older generations (baby boomers and gen X). However, more frequent travel doesn’t necessarily mean more money spent. Here’s how much each generation spends on travel.
Baby Boomers Spend the Most on Travel
Many baby boomers are traveling a lot—and spending a lot—during their retirement. Though baby boomers typically don’t travel as often as younger generations, when they do book a trip, they choose more expensive accommodations and spend more while touring their destinations.
In fact, Baby Boomers are the biggest spenders when it comes to travel and in-destination expenses, including accommodations, experiences, and transportation, according to the U.S. Traveler Trends 2025 report by Phocuswright.
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How Much Each Generation Spends on Travel |
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|---|---|---|---|
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Millennials |
Gen X |
Baby Boomers |
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More than $6,000 per trip |
17% |
16% |
23% |
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$2,000-2,999 per trip |
13% |
13% |
14% |
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Less than $1,000 per trip |
32% |
27% |
26% |
Gen X and Millennials Are More Frugal
Unlike baby boomers, Gen X and millennials are scaling back on their travel spending.
This makes sense, given that millennials and Gen Xers are often balancing careers with familial obligations, including childcare and caring for aging parents, while also planning for retirement. So they are less likely to have the time, flexibility, and disposable income for travel that many baby boomers and Gen Zers do. That said, some types of travel that many millennials choose, such as backpacking and road trips, cost less money than other options.
Gen Z Has Entered the Workforce and Increased Travel
Berkshire Hathaway’s State of Travel Insurance Report for 2025 predicted that Gen Z would be the group most likely to increase their travel-based spending. Gen Z was the only consumer segment surveyed that spent more on travel year over year, with an average of more than $11,000 per trip spent in 2024.
Gen Z is the first generation to enter the workforce having grown up with social media throughout their entire lives, so it’s no surprise that over half of Gen Z travelers report using social media to plan their travel experiences.
Note
Nearly a quarter of Gen Z travelers reportedly intend to purchase travel insurance for their getaways.
Ways to Save on Future Travel
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Join loyalty programs: Signing up for loyalty programs can be an easy and efficient way to jumpstart your travel savings. Hotel groups with loyalty programs can be a great way to earn free nights, especially if every night of paid travel accumulates points towards your next stay.
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Maximize credit card points: Using a travel-specific credit card is an easy way to accrue points that can be applied towards discounted travel, including flights and hotel stays. Save up on points from credit cards and membership programs.
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Automate savings: By automating deposits into a high-yield savings account, you can build up your travel fund over time without putting a strain on your monthly budget. You can apply this same practice towards subtly shaving your expenses to increase the amount you can put away for your next travel adventure.
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Avoid peak times: Booking travel during non-peak times of the year, as well as non-peak times of the week, is one of the easiest ways to guarantee that you’ll enjoy discounted travel expenses. The next time that you decide on a travel destination, discover how much you can save by avoiding peak times.
Read the original article on Investopedia