There’s no denying that majority of millennials save money for travel instead of necessities like home or insurance. This begs the question, “Should I travel or save money?” If you are one of these millennials, this post might be of help.
Save Money For Travel | Choices Made By Millennials
Reason Why Millennials Opt More for Travel than Home-Ownership
Millennials seem to have begun a trend of putting off home-ownership in favor of traveling. With housing prices reach extraordinary highs in a variety of cities– including shocking average prices in cities like San Francisco and Toronto, many millennials believe that saving enough for a down payment feels futile and out of reach. Interested in finding other means of investing their earnings, many people in this age bracket have turned to travel.
The perception of travel has changed substantially in the past few years. Many people no longer hold any negative connotations of indulgence with the idea of putting off ‘settling down’ and traveling the world. The experiences and skills gained through such travel are largely viewed positively.
At the same time, milestones valued by many past generations, such as owning a home, marrying, and having children, have been pushed back by this generation. With their willingness to wait until a bit later in life for these markers, the millennials have the time and funds for travel.
How Has this Trend Impacted the Travel Industry?
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In response to the boom of millennials booking various vacations, many in the travel industry have been searching for ways to cater to this particular generation and attract them to the company. Millennials, in general, appear to want to genuinely enjoy their vacations and often demonstrate a willingness to pay for the experience.
Interestingly, while Americans in general have reported intentions to spend less on travel next year, millennials specifically have gone in the opposite direction: they intend to spend more on their trips.
The impact of the millennial trend can be seen in the travel industry. Marriott, for example, has their Moxy hotel brand. These rooms come without features that many associate with hotel rooms– such as telephones and desks– but instead offer connectivity and interiors that cater to those who want to take selfies. Similarly, Air France has an airline known as Joon that has been designed to cater to this crowd as well.
Interestingly, as millennials plan these trips, they have also been increasingly buying travel insurance. Research shows that 30% of millenials plan to buy more travel insurance in the following year, that number jumped to 70% in 2017.
What Types of Trips are Millennials Taking?
Millennials place a strong emphasis on traveling for a purpose. They want to return home feeling as though they have had a transformational experience, which is why there has been an increase in the types of vacations that center around various adventures. This generation also finds the idea of customizable trips to be very appealing.
Many of the trips that millennials take are also powered by their use of technology. With the growth of personalization in mobile browsing, such as customized shopping, dining, or activity suggestions, many members of this generation turn to their devices to help them experience the trip they had in mind.
Here’s a clip of why travel industries should invest in millennials courtesy of CNBC:
The influence of millennials on a variety of aspects of culture can be seen across a variety of sectors, including travel businesses and real estate. As organizations and industries work to better understand the needs and desires of these young adults, we will continue to see shifts and changes in perceptions and attitudes in a variety of areas. Taking their advice to save money for travel instead of making down payments on homes can help more people experience the adventures they desire.
Are you part of the millennials who save money for travel instead of buying a house? Let us know if this article best fits the reasons or you can share some of your own in the comments section below!