How To Save On Summer Travel
Here’s my office view this week…
I’m still away from home at a family lake house.
We’ve had a big family reunion…
There are 27 of us in this photo, and it’s not the entire family! It’s not even all of the little kids (one was napping when we took this photo).
One of the family members who’s part of Gen Z was away in Amsterdam, and several of the family members had just gotten back from Turkey and a cruise in the Mediterranean.
So, it’s not surprising to me when I read a recent report that said Gen Z and millennials are traveling abroad more than older generations and that younger generations are taking longer and more expensive vacations, sometimes going into debt to pay for them.
Why is Gen Z so willing to go into debt to pay for their trips?
A travel and hospitality analyst told CNBC that Gen Zers came of age during an incredibly turbulent time, so that’s why it’s deeply impacting their travel behaviors. The analyst says due to covid and other events, these younger travelers prefer adventure over relaxation.
Social media apps like Instagram and TikTok also inspire wanderlust, and make the world a lot more accessible, and therefore these young adults see travel as a right, not a privilege.
“This virtual access to the world, to other cultures, at such a young age, has fueled an expectation that they will be able to see and experience these places and cultures firsthand,” said Natalie Griffith, director of product and content at Collage Group. “Not only does Gen Z want to travel to various locales, but they would like to take these trips in the very immediate future.”
What are the most popular places to travel this summer?
Popular destinations for Gen Zers seem to be predominantly Asian countries.
Hopper, an app that looks for travel deals, recently reported that younger travelers searched prices for travels to Asian countries 50% more in 2023 than they did before the COVID-19 pandemic. According to Travel and Leisure, popular countries include Thailand, Vietnam, the Philippines, South Korea and Japan.
Some of these countries are less expensive than others, especially Thailand, Vietnam and the Philippines.
A lot of Gen Z travelers also search out Instagram famous locations such as Cappadocia in Turkey or the coast of Cinque Terre in Italy.
But how are these Gen Z and millennials paying for these picturesque places?
How Gen Z affords to travel — and how you can, too
Gen Z is financing their travels through various means. Not all these means include debt, though some do. I also added a few of my own ways to save on travel:
Credit cards: According to CNBC, younger travelers are increasingly willing to take out credit that they pay for over the course of multiple months. Twenty-six percent of travelers are paying for their summer trips this way.
Borrowing and taking loans: Per CNBC, 6% of travelers are getting help from their family and friends to travel, with promises to repay the help. Five percent are taking out loans in order to pay for their trips.
Travel points and credit card hacks: Airlines frequently offer miles and points that help cut travel costs. If you’re good at juggling multiple credit cards and maximizing points, then you can often pay for flights and/or hotels with those cards. In addition, apps like Hopper are also a popular way to track flight and hotel prices.
Digital nomadism: Some travelers are taking to “digital nomad” lifestyles, where they work and travel simultaneously, according to Harvard Business Review. While you’ll need a flexible schedule and boss, you can potentially take your work wherever you go. It’s not exactly a relaxing vacation, but you can make the money to afford your travels while traveling.
Travel influencing: Take digital nomadism one step further by becoming a travel influencer. Traveling creators can make money by posting their journeys online, according to Worldpackers.com. Beautiful photos and travel guides quickly reel in views, shares and purchases from others eager to get in on the action. Some travel influencers even host group trips, financing their own travels while also helping others out by planning their vacation for them.
Other Ideas:
Travel during off peak locations. Most people want to travel to beachy, warmer locales during the winter, so now that it’s summer, you’ll save money going to a hot locale. For example, Vegas hotel prices tend to drop BIG TIME in July and August.
Keep travel dates flexible. When I was looking at plane tickets to Michigan for this family reunion/lake house trip, it was a few hundred dollars cheaper to fly back a few days later than I had originally wanted, so I opted for the less expensive option.
Also know what you care about and what you don’t care about. Just like a wedding, if you spend less on certain things that you don’t care about as much, then you can splurge on the things that you do value. On vacation, food is really important to me, so I would rather spend more money on a Michelin starred restaurant than on a five starred, luxury hotel or flying first class. Of course, I do believe there’s a time and place for everything. On my 10 year wedding anniversary, my husband and I did get business class flights to London and Paris and our hotels were either 4 or 5 stars, while eating well.
According to other “budget travel experts,” here are a few additional ways to manage your money and travel:
Identify your travel goal
To begin, think about what this vacation means to you. Maybe you want nothing but rest and relaxation, or you’re looking for a little excitement and adventure. A good way to think about it is: Do you want a relaxing vacation or are you looking to take an itinerary-filled trip?
You should also consider how much time and energy you want to put into planning your getaway. A family vacation abroad could require months of advance planning, while a lake house retreat will probably take much less effort.Find balance in your budget
Remember that going on a wonderful vacation doesn’t have to mean going into debt. A road trip can be a great way to save on travel expenses – especially for families – so consider locations within driving distance. How you choose to spend your days away will have a major impact on your budget as well. Beaches and public parks are often free to enjoy, and even urban destinations offer free or low-cost activities, such as museums, art galleries or concerts by local musicians.
Make the most of your meals
Meals and snacks can also be a budget buster, but there are ways to strike a balance. If you stay at a rental property with a kitchen, you’ll have the option to buy groceries and cook some meals, which can help slash your spending. Want to splurge on a fine dining experience but still stay on budget? Look for other opportunities to save, like taking advantage of your hotel breakfast or trying inexpensive street food.
Think outside the hotel box
When it comes to accommodations, check out deals and cost-comparison sites. You also don’t have to limit yourself to traditional hotels. A cozy cabin, chic vacation rental or even a more out-there option like a houseboat or tiny home might suit your vacation needs and be easier on your wallet.
Hope these ideas help you to have a fun and less costly vacation! Financial freedom is having the money to pay for fun stuff that aligns with your values. It’s also achieving what you want in the present and still being mindful of the future.
With Love and Gratitude,
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