Millennials are known to be stressed, overworked, underpaid, and in need of a break. However, many are unable to afford a vacation, even if they receive paid time off from their employers. This is especially true when they have bills, student loans, and expensive rentals to pay for. Due to financial constraints, 55 percent of Millennials did not go on vacation in the past year. This is in contrast to 49 percent of Gen Xers and 35 percent of Baby Boomers who could not afford a vacation for the same reasons.
Despite working hard to save money for travel, 76 percent of Millennials struggle to do so. To reduce travel costs, 46 percent of respondents in the study prefer to keep their travel budget under $1,000, while only 22 percent keep their budget under $2,000.
Sadly, the study reveals that 74 percent of Millennials wish they could save more money for vacations, and 37 percent have gone into debt due to vacation expenses. Even worse, one in 10 Millennials are still paying off their previous trip.
Baby Boomer travellers have generally higher salaries and fewer major expenses, such as mortgages, compared to Millennials who are burdened with student debt and are still saving for a home. A 2019 Deloitte study found that the net worth of many Millennials has dropped 34% since 1996, with some having a net worth of less than $8,000. This makes it difficult for them to set aside money for a vacation, especially when the average vacation budget is around $2,000.
However, the rise of micro-cations, which are short stays of less than four days, has become increasingly popular among Millennials. These mini-vacations are more affordable and require fewer days out of the office.
Interestingly, the study also found that all respondents, not just Millennials, preferred to go on more affordable trips. It appears that all generations are being frugal with their vacation expenses, whether they choose to stay home or travel.
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