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New research indicates that Europe’s travel boom is being spurred on by Gen Z spending, with young people most likely to splash their cash and take regular trips abroad. Is tourism immune to the cost of living crisis?
New studies show that Europe is experiencing a travel boom, and Gen Zers are the driving force.
Forecasts predict that Gen Z will spend the most on international trips over the next twelve months and take more holidays compared to any other generation. These latest numbers come from a report by MMGY titled ‘Portrait of European Travellers.’ It seems that Gen Z are committed to leisure time and splashing cash despite their economic circumstances and job pressures.
Interestingly, MMGY also highlighted the growing role that AI is having on planning trips and mapping out activities, as well as the surging demand for sustainable and authentic experiences.
The research involved 4,107 travellers from France, Germany, Italy, Spain and the UK. The study points to an optimistic future for travel and tourism, with spending habits likely to remain stable. As this summary by Hospitality outlines, it seems that travellers are ‘adapting their plans to fit their budgets but not abandoning their trips altogether.’
Let’s get into a few specifics and break down the numbers. Gen Z are expected to spend an average of $6,434 on travel in the next year, and are set to fly off on 3.4 holidays. They’re also the most interested in organised group trips and tours, with 45% wanting to take part in the next twelve months.
In addition to all the spending, young people are also looking to change the way they travel. 95% of all European travellers say they want to stay on the continent for their holidays, with aspirations to visit the US seeing a 7% decline compared to 2024, no doubt a result of Trump’s increasingly hostile rhetoric toward anyone looking to enter the country.
AI and smarter planning tools are also seeing a boost, as Gen Zers lean on ChatGPT to plan routes, budget efficiently, and provide extra information that helps to make their travel experience smooth and seamless. They’re also using online tools that integrate various different aspects of travel into one platform, with services like Tripadvisor seeing a decline in engagement over the past year.
So, why are Gen Z so dedicated to travel and seeing the world?
An explosion in social media travel influencers is a partial factor, with TikTok and Instagram providing ample opportunity to promote and boost specific tourism spots or ‘hidden gems.’ This could be specific places, like beaches, theme parks, or villages, or could extend to advertising certain cuisine, types of ‘experiences,’ and much more.
If you’re travelling over the next year, you may notice extremely busy shops or food places that used to be niche. TikTok now provides some lucky businesses and places with overnight celebrity. Take ‘York Ghost Merchants’, for example, a retailer that hit it big on social media and became a viral success.
Gen Z are also a far more globalised generation compared to older folks, especially Baby Boomers and Gen X.
Their exposure to other cultures, foods and ideas has been boosted significantly by a lifelong familiarity with social media. References to places beyond home are rife in today’s media, with more big brands like Netflix and Marvel aiming to appeal to all corners of the world. As a result, young people are far more likely to be familiar with global ideas that promote diversity and connection. This, in turn, encourages greater curiosity for the world as a whole.
Hybrid working models and flexible hours also make it far easier to book trips. Plenty of Gen Zers are now accustomed to timetables that give them the freedom to work from anywhere. Fancy going to Barcelona for a few days? You can always take your laptop and crack on from a villa if you so desire. This fluidity gives new opportunities to see places and countries in a way that wasn’t available even a decade ago.
It’s important to mention that travel is an essential part of life for many young people. Most Gen Zers are aware that they’re only truly young once and for a limited period of time. With housing deposits feeling ever more impossible to obtain, many twenty-somethings would prefer to spend those savings on lived experiences rather than hoarding them for decades hoping to get onto the property ladder many years from now. Skiing or sky diving is probably a whole lot easier at 23 than 55, after all.
Given all of this, it shouldn’t come as a massive surprise that Gen Z are fuelling the travel boost currently being enjoyed across Europe. Sporting events, festivals, and seasonal activities are helping to bring more tourists to the continent than ever before, despite the economic hardships that young people currently endure.
Life is meant to be lived, and taking advantage of travel and getting stuck in is undeniably appealing.
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