It's gearing up to be a hot travel debt summer for Gen Z and millennials
Three surveys show that Gen Z and millennials are willing to risk their financial health for summer fun.
Ratnakorn Piyasirisorost/Getty Images
- Three surveys show Gen Z and millennials are willing to risk their finances for summer plans.
- Nearly 40% of Gen Z and millennials said they'll prioritize summer travel over their finances.
- A quarter of Gen Z and millennials anticipate going into almost $2,000 in debt across the summer.
With Taylor Swift touring Europe, cheap luxury travel options in Southeast Asia, and the rise of quiet vacationing, many Americans have booked summer travel plans — even if debt is a part of the package.
Three new reports show that Americans are willing to go into debt to fund their summer adventures this year. Surveys by Credit Karma, Bankrate, and Bank of America show that Gen Zers and millennials are leading the charge in risking their finances to ensure their summer plans.
Over a third of Americans are willing to go into debt to fund their summer vacations, according to Bankrate's report, which used polling company YouGov to survey 2,360 US adults online from March 18 to 20.
Forty-seven percent of millennials were willing to take on debt to fund summer travel. Gen Z trailed close behind, with 42%, while Gen X and boomers were 31% and 22%, respectively.
Meanwhile, Credit Karma's survey found that nearly 40% of Gen Z and millennials said they'll prioritize summer travel over their finances. Qualtrics, on behalf of Credit Karma, surveyed 2,006 US adults online from June 6 to 8 for the report.
Whether squeezing savings or maxing out a credit card, 44% of Gen Z and millennials said they plan to spend more this year on travel than in years past, according to Credit Karma.
Summer plans are being made when many younger people aren't feeling flush with cash. According to Credit Karma, a third of Gen Z and millennials say they don't feel financially stable right now. Still, more than a third said they're willing to "put their financial goals on hold in order to have a fun summer."
Funding a summer of fun
Nearly a quarter of Gen Z and millennials anticipate going into almost $2,000 in debt across the summer, according to Credit Karma's survey. For 11% of Gen Z and 8% of millennials, that summer debt forecast surpasses $4,000.
That could mean taking on debt by carrying a balance on a credit card, borrowing money from a friend or parent, or purchasing flights on a buy now, pay later plan.
Additionally, younger generations are more likely to travel internationally than their older counterparts, according to a Bank of America survey that analyzed credit and debit card data and surveyed over 2,010 US adults online from April 9 to 26.
Bank of America found that Gen Z and millennials are more likely to take longer trips and spend more on vacation this summer than Gen X and boomers.
Nonetheless, domestic travel is the most popular vacation across generations.
According to the Bank of America survey, nearly 70% of respondents who say they plan to vacation this summer will do so in the US. In fact, tourism in Florida and California is up roughly 15% compared to 2019, Bank of America credit card data shows.
Are you a millennial or Gen Zer planning to take a summer vacation this year and willing to go into debt for the adventure? If so, please contact this reporter at jtowfighi@businessinsider.com