While many people have hit the brakes on traveling this year due to economic setbacks (i.e., high inflation and rising unemployment rates), Generation Z, those between 13 and 28 years old, aren’t waiting for the economy to rebound before booking their getaways.
This might be surprising considering recent reports that many entry-level jobs are fading due to companies favoring AI to cut costs (via Newsweek). However, teenagers and those just starting out in the workforce are boldly pushing back against the nation’s financial uncertainty and moving forward with their travel plans.
Gen Z Refuses to Sit Still
This is all according to a recent study from Lance Surety Bonds, a Doylestown, Pennsylvania-based insurance agency, which found that more than half (54 percent) of Gen Z plan to increase their travel spending in 2025. This generation was also the most optimistic about their future financial prospects, with 63 percent holding a more positive outlook.
The study surveyed 501 consumers and 500 business leaders to understand how Americans were responding to anticipated inflation and adjusting their spending. Gen Z noticeably stands out from the rest, not just in their pursuit of travel but also for other ways they’re choosing to spend their money.
Among all the categories, Gen Z was the most likely to say they’ll make at least one big purchase this year (nearly 3 in 4 with their eyes on pricy electronics), with a whopping 72 percent expressing that intention. While not as shocking of a number, 15 percent of this population revealed they planned to purchase a primary residence despite warnings of inherent inflation.
Generational Spending Contrasts
Other generations didn’t have the same views. Gen X — those between 45 and 60 years old — were the most likely to delay large purchases, as 62 percent chose this route. This checks out, as this group also felt the least optimistic about their financial prospects. They are also the most likely to decrease their overall spending, with 29 percent saying so.
The way various age groups are opting to spend their hard-earned cash has been a hot-button topic lately. A June 2025 Adweek article noted that young consumers are making purchasing decisions differently than the older crowd, grouping them alongside the Baby Boomers (those aged 61 to 79). It also noted that Gen X and Boomers were more likely to buy items based on their performance, while Gen Z and Millennials, also known as Gen Y (those aged 29 to 44), evaluated brands based on how they made them feel.
Americans’ Overall More Conservative Approach
Based on the study, Americans, as a whole, are behaving more conservatively with their spending in some areas. The survey revealed that 59 percent of those surveyed were more inclined to postpone significant purchases due to the current economic status. However, 50 percent of Americans planned to increase their spending habits, and 42 percent felt more confident about their finances.
Overall, Americans are thinking smartly in adjusting their business strategies, with many taking proactive steps to strengthen their financial standings. Half of the surveyors said they aim to boost their savings (either by increasing the amount or by contributing more frequently), and 35 percent resolved to increase their debt repayment or investment efforts.
Generations’ Divide of Traveling Habits
What everyone does with their money isn’t the only generational divide. Their travel habits are also considerably different, including how they book their vacations and what they do once they arrive. In May 2025, Afar reported that results from The Pew Research Center showed that Gen Zers generally plan their itineraries via research from TikToks and other social media channels. Meanwhile, Gen Xers and Boomers seek guidance from travel advisors and other more old-school resources.
The older groups also tend to book private tours and spend considerable time in one familiar destination. At the same time, the younger folks prefer to hop around and see multiple places. Additionally, Afar noted that Gen Xers travel less frequently than other age groups due to more limited availability and typically book at the last minute, whereas Gen Zers prefer to plan in advance.
How This Affects the Travel Industry
What this proves is that travel remains a top priority for Gen Zers, and it appears little will change that as they favor experiences over economic security. However, they have been shifting how they travel in some ways.
In December 2024, the New York Post highlighted the rising costs of travel in 2025, pointing out that studies showed that Gen Zers preferred to save money on airfare by swapping direct flights for layovers. They instead wanted to put their savings toward experiences once they arrived at their destinations.
A recent blog post by Peekpro echoed this, noting that Gen Z travelers were seeking fewer five-star amenities, such as cushy hotels and room service, and opting for hotels, eco-lodges, and locally owned rentals to stretch their budget.
Additionally, the digital nomad lifestyle and rise of bleisure trips have helped offset costs for younger travelers, as explained in GWI‘s 2025 travel trends report. The outlet shared that 30 percent of Gen Z and Millennials planned to utilize their remote work capabilities and log in from various countries.
The Bottom Line
Eric Weisbrot, Digital Marketing Manager at Lance Surety Bonds, commented on their findings, saying that “thoughtful indulgence” appears to be the common theme for all travelers.
“Even as inflation calms, nearly six in ten Americans are delaying purchasing large goods like homes and cars. Instead, they’d rather spend what’s left in their budgets on plane tickets. Experiences and memories are winning among consumers,” Weisbrot began.
“We found that travel is especially important to Gen Z, with over half of Gen Zers already planning to travel more this year.
“There’s a new mood in travel: thoughtful indulgence. Travelers are getting more creative and planning trips on a budget that still feel unique and special. If you’re smart with your spending, you can still treat yourself and find ways to plan meaningful experiences.”
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