Gen Z is the fastest-growing consumer segment in travel.
According to Berkshire Hathaway Travel Protection's annual State of Travel Insurance Report, Gen Z travelled more in 2024 than in previous years and intends to travel even more in 2025.
The study describes Gen Z, born between the late 1990s and early 2010s, as a tech-savvy generation that grew up in the digital age, prioritizing experiences and social responsibility along with a tendency to purchase travel insurance.
Adam Armstrong, the former CEO of Contiki, told Newsweek that "younger travelers are diving into spontaneous and unconventional trips with a serious 'if not now, when?' vibe."
"Gen Z is rapidly becoming the next great wave of travelers, eager to explore the world and experience different cultures, which comes with the desire to protect their travel investments," said Dean Sivley, President of BHTP.
"As they continue to grow as travel consumers, their appetite for travel, and the protection that accompanies it, will only expand, which is exciting to see.”
Findings from the report:
- Spending Trends: Gen Z was the only consumer segment surveyed that reported increased travel spending year over year, averaging more than $11,000 per trip in 2024.
- Destination Preferences: Increasingly interested in destinations in South Asia.
- Influence of Social Media: More than half (55%) rely on social media to plan their trips.
- Event-Based Travel: Travel for concerts and sporting events is rising
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Travel Insurance Purchases: Intent to purchase travel insurance among Gen Z rose by 24% from 2023 to 2024.
The Pinnacle Gazette reports that Gen Z increasingly prioritizes shorter travel experiences. Over 60% seek trips lasting between two and six days, catering to their work commitments and financial constraints.
The report surveyed 1,838 travellers across various age groups and income levels.
