How to save and spend smartly on your next trip

Generation Z may not be the wealthiest generation, but that hasn’t stopped them from exploring the world. Surveys show that nearly two-thirds of Zoom users spent some of their limited funds on travel in 2024.

The generation of digital natives has learned to use the Internet effectively to find the best deals and destinations, despite facing significant financial challenges.

Generation Z loves to travel

Generation Z is a diverse demographic. The youngest was born in 2012, so they will be teenagers in 2025. The oldest members were born in 1997, and many of them have already started their careers.

They cannot remember a world without the Internet, social media or cell phones. They are also the most likely to transition from high school to college, according to research by the Annie E. Casey Foundation. About 57% of 18-21 year olds will attend college in 2022, compared to 52% of millennials the same age.

“Studies show that Generation Z places a lot of emphasis on interesting life experiences, such as travel,” said Linda Eaton, executive vice president of the Cannon Financial Institute. “They focus on adventure and mental health, and are keen to explore different cultures.”

A TravelPerk survey found that Gen Z travels about three times a year. A Bank of America Institute survey shows that about a quarter (26%) spent more on entertainment and travel in 2024 than they did in 2023.

But this spending comes at a cost. “It’s no surprise that many prioritize trips, even if it means going into debt,” Eaton said. “A significant number of Gen Z travelers are using loans or credit cards to finance their trips.”

But Generation Z is struggling to pay all of their monthly bills

More than a quarter (28%) of Gen Z respondents reported that they are unable to pay all of their necessary expenses each month. 32% more were receiving unemployment benefits in 2025 than the previous year, according to research by the Bank of America Institute. The same percentage reported that they did not feel as financially secure as their parents did at the same age.

“A lot of people don’t have fixed salaries,” says Shelley Marmor, a travel consultant at DiscoverCars.com who helps clients of all ages plan destinations that fit their lifestyles and budgets. “It’s freelance work, gig jobs, entry-level jobs. They’ve grown up through recessions and pandemics, so long-term stability is not an expectation. Adaptability is just an expectation.”

Hotels, restaurants, bars, and more

As budget-conscious travelers, Generation Z is less likely to prioritize luxury accommodations. The Travel Perk survey found that 35% say three-star hotels are as luxurious as possible, while 56% prefer greener hotels and establishments.

TravelPerk also found that this generation is less likely to party, and they drink less than millennials. Generation Z members prefer to spend their time exploring new and different cultures, and doing so without a tab can stretch their travel budgets.

Budget for trips

There are many ways to reduce the cost of travel. Nearly 60% of Gen Z travelers rely on loyalty programs. Others take advantage of student discounts.

If you’re traveling on a budget, start with a firm idea of ​​how much you can spend. Then find ways to increase your money while you travel.

“A week of café meals can eat up 30% of the budget,” Marmur said. You can save money by choosing a place to stay that has a kitchen or microwave.

Airlines like Spirit, Ryanair, and EasyJet tend to be budget-friendly airlines. Most flights are less expensive on weekdays, so consider taking off on a Wednesday instead of a Saturday. Airfare and hotels also become more expensive when school ends, so you can save money by traveling during the shoulder season weeks.

“Travelling in the off-season is a great way to cut costs,” Eaton said. “Get on the road in late spring or early fall when prices are lower and crowds are smaller.”

You can also save by looking for accommodation away from the most expensive hot spots. Check the cost of transportation from an out-of-the-way hotel, and compare it to the higher costs of accommodation in the city centre. Depending on where you’re traveling, you may find significant savings if you’re willing to make the trip.