Baby Boomers Remain Top Global Travel Spenders, New Report Finds
Baby Boomers continue to lead the way in global travel spending, significantly outpacing both Millennials and Generation X, according to the latest quarterly report from Phocuswright on travel trends.
The study reveals that 23% of Baby Boomers spend more than $6,000 during their stay at a destination. In comparison, only 17% of Millennials and 16% of Gen X travelers report reaching that same level of expenditure. At the other end of the spectrum, 32% of Millennials say they spend $1,000 or less, compared to 27% of Gen X and 26% of Boomers.
In the mid-range spending bracket—$2,000 to $2,999—the three generations show similar behavior: 13% of Millennials and Gen X, and 14% of Boomers fall into this category.
Technology Is Reshaping Travel Payments
Technological innovations like AI, chatbots, and facial recognition are transforming the way travelers pay while on the move. Younger travelers, particularly Millennials, are the quickest to adopt new payment methods, such as mobile wallets and peer-to-peer (P2P) platforms.
According to the report, 28% of Millennials use mobile payment services, while 18% opt for P2P payments. Still, credit cards remain the preferred method overall: 62% of travelers across all age groups use them to pay for their trips.
Boomers top the list of credit card users with 78%, followed by 62% of Gen X, and 52% of Millennials and younger generations.
Millennials Embrace New Transportation Options
When it comes to transportation at the destination, younger generations are experimenting with more innovative mobility choices. While car rentals are still the most popular option, Millennials are leading the use of public transit, ride-share services, and even bike and scooter rentals.
Specifically, 24% of Millennials report using ride-share services, compared to just 13% of Gen X and Boomers. In the area of bike or scooter rentals, only 9% of Millennials make use of them, while usage among Gen X and Boomers drops to 2% and 1%, respectively.
Despite the growing availability of new transport options, rental cars remain the primary choice for many travelers: 44% of Millennials, 33% of Gen X, and 25% of Boomers still prefer them.
These findings underline the generational diversity in travel behavior and spending. According to Phocuswright, such insights are vital for the tourism industry as it seeks to personalize offers, optimize customer experiences, and cater to evolving consumer preferences.
