Boomers Invest Heavily in Travel Each Year. See How Your Spending Compares

Baby boomers are more likely than any other generation to spend big when they travel.

In a 2025 survey by Phocuswright, 23% of baby boomers reported spending $6,000 or more while at their destination. By comparison, 16% of Gen X and 17% of millennials and younger travelers hit that level of spending, with almost one-third of both groups saying their expenses didn’t exceed $1,000.

How Travel Spending Breaks Down by Generation

Participants in Phocuswright’s survey were asked how much they spent while on vacation and given a choice of six options in $1,000 increments, ranging from $1,000 or less to $6,000 or more.

Across all generations, the most common response was spending $1,000 or less, chosen by 32% of millennials and younger travelers, 27% of Gen X respondents, and 26% of baby boomers.

This data highlights a clear generational divide. Worth noting: not all boomers are flush with cash, and this survey captures travelers specifically, not the general population.

Why Boomers Are Outspending Everyone Else

Federal Reserve data shows that boomers now control more than half of U.S. household wealth. Much of that money is tied up in retirement accounts and real estate, although many also often have a decent amount of accessible cash.

While their retirement funds may not pay as much as younger generations’ salaries, boomers’ net incomes often stretch further because their expenses have dropped sharply. Total annual spending for Americans ages 65–74, the heart of the boomer generation, averages $64,461, a 36% decline from the $100,588 peak for 45–54-year-olds, according to the Bureau of Labor Statistics (BLS).

Pension and Social Security contributions plummet from $14,242 to $3,940, education costs virtually disappear, and housing costs are far lower than what younger households pay. That frees up cash for discretionary spending, including travel.

There’s also a life-stage factor. Retirement or semiretirement allows for longer stays, which naturally increases spending. A two-week trip will typically generate more local spending than a three-day getaway.

How To Know If Your Travel Spending Is Financially Healthy

Spending habits shouldn’t be shaped by what a few peers reported in a survey.

How much to spend on travel depends on income, expenses, savings, and personal priorities. The following guidelines apply:

• Spend only what you can comfortably afford.
• Avoid financing travel with emergency savings or debt.
• Don’t carry high-interest credit card balances for vacations.
• Treat travel as discretionary spending that has a lower priority than essentials such as housing, health care, and retirement contributions.

Not all Americans follow these guidelines, including putting their trips on their credit cards (without paying them off immediately). Financing trips with high-interest debt increases the cost of travel and risks undermining your everyday quality of life, as well as the ability to afford future trips.

A healthier approach is to save gradually. Other strategies to keep travel affordable:

Travel spending varies widely—even within the same generation. While boomers are more likely than younger travelers to fall into the highest spending tier, most still report relatively modest travel budgets.

The real benchmark isn’t what others spend. It’s whether your travel enhances your life without compromising your financial security.