How to Save and Spend Smart on Your Next Trip

Generation Z may not be the wealthiest generation, but that hasn’t prevented them from exploring the world. Surveys show that nearly two-thirds of Zoomers 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.

Gen Z Likes to Travel

Generation Z is a diverse demographic. The youngest were born in 2012, so they’re just hitting their teen years in 2025. The oldest members were born in 1997, and many have already launched their careers.

They can’t recall a world without the internet, social media, or cellphones. They’re also the most likely to go from high school to college, according to research by the Annie E. Casey Foundation. About 57% of 18- to 21-year-olds were enrolled in college in 2022, compared with 52% of millennials at the same age.

“Studies show that Gen Zers are putting a lot of emphasis on interesting life experiences, such as travel,” said Linda Eaton, executive vice president at Cannon Financial Institute. “They focus on adventure and mental health, and they’re eager to explore different cultures.”

A survey by TravelPerk finds that Gen Zers travel 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 that spending comes at a cost. “It’s not surprising that so many are prioritizing trips, even if it means going into debt,” Eaton said. “A significant number of Gen Z travelers are using loans or credit cards to fund their journeys.” 

But Gen Z Struggles to Pay All Their Monthly Bills

More than a quarter (28%) of Gen Z respondents report not being able to pay all their necessary expenses every month. And 32% more of them were collecting unemployment benefits in 2025 over a year earlier, according to research performed by the Bank of America Institute. The same percentage reported that they didn’t feel as financially secure as their parents were at the same age.

“Many don’t have steady salaries,” according to Shelly Marmor, a travel advisor at DiscoverCars.com who helps clients of different ages with destination planning to fit their lifestyles and budgets. “It’s freelance work, gig work, and entry-level jobs. They grew up through recessions and a pandemic, so long-term stability isn’t an expectation. Adaptability is.”

Hotels, Restaurants, Bars, and More

As budget-conscious travelers, Gen Z is less likely to prioritize luxury accommodations. Travel Perk’s survey finds that 35% say that three-star hotels are as fancy as they’ll go, while 56% prefer eco-friendly hotels and establishments.

TravelPerk also found that this generation isn’t big on parties, and they drink less than millennials. Members of Gen Z prefer to spend their time exploring new and different cultures, and doing it without a bar tab can stretch their travel budgets.

Budgeting for Trips

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

If you’re traveling on a tight budget, start with a firm idea of how much you can spend. Then look for ways to make your dollars go further while you’re traveling.

“A week of cafe meals can burn through 30% of the budget,” Marmor said. You can save money by choosing a place to stay with a kitchen or a microwave.

Spirit, Ryanair, and EasyJet tend to be budget-friendly airlines. Most flights are less expensive on weekdays, so consider taking off on a Wednesday rather than a Saturday. Airfare and hotels also get more expensive when school is out, so you can save money by traveling during shoulder season weeks.

“Traveling offseason is a great way to reduce costs,” Eaton said. “Hit the road in late spring or early fall when prices are lower and crowds are smaller.”  

You can also save by looking for accommodations 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 staying in a city center. Depending on where you’re traveling, you may find significant savings if you’re willing to make the trek.