With Taylor Swift on tour in Europe, free Luxury travel options in Southeast Asia and the rise of leisurely vacations have many Americans booking summer travel plans — even if debt is part of the package.
Three new reports show that Americans are willing to go into debt to finance their summer adventures this year. Surveys from Credit Karma, Bankrate and Bank of America show that Gen Zers and millennials are leading the charge in putting their finances at risk to secure their summer plans.
More than a third of Americans are willing to go into debt to finance their summer vacation, according to the Bankrate report, which used polling company YouGov to survey 2,360 American adults online March 18-20.
Forty-seven percent of millennials were willing to take on debt to finance summer travel. Gen Z was close behind, at 42%, while Gen X and boomers were at 31% and 22%, respectively.
Meanwhile, Credit Karma’s survey found that nearly 40% of Gen Z and millennials said they will prioritize summer travel over their finances. Qualtrics, on behalf of Credit Karma, surveyed 2006 US adults online from June 6 to 8 for the report.
Whether it’s 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 previous years, according to Credit Karma.
Summer plans are being made when many young people are not feeling flush with money. According to Credit Karma, one-third of Gen Z and millennials say they don’t feel financially stable right now. However, more than a third said they are 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 running into nearly $2,000 in debt over the course of the summer, according to Credit Karma’s survey. For 11% of Gen Z and 8% of millennials, that summer debt forecast exceeds $4,000.
This could mean taking on debt by carrying a balance on a credit card, borrowing money from a friend or parent, or buying 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 9-26.
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.
However, domestic travel is the most popular cross-generational vacation.
According to 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 to Florida and California is up roughly 15% over 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
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