Gen Z and Boomers Show Stark Divide in U.S. Travel Spending

The latest U.S. Traveler Trends 2025 report from Phocuswright reveals major generational differences in how Americans spend on in-destination experiences, offering critical insights for travel marketers and strategists.

Millennials and Gen Z travelers are the most budget-conscious, with the majority spending under $1,000 per trip once they’ve arrived at their destination. In contrast, baby boomers are far more likely to splurge—nearly 25% report spending $6,000 or more on in-destination activities such as tours, dining, and entertainment. Generation X remains consistent with its median reputation, spreading spending evenly across all tiers.

These findings are part of a larger quarterly research effort by Phocuswright that surveys U.S. adults with internet access who participate in leisure travel. Each edition focuses on a different aspect of the traveler journey, tracking shifts in behavior, sentiment, and preferences.

This quarter’s research zeroes in on payments, transportation preferences, and in-destination spending, highlighting how age influences traveler decisions. The study points to growing generational gaps that are shaping how travel products are packaged, priced, and promoted across platforms.

As younger generations prioritize affordability and older ones lean toward premium experiences, travel brands are being urged to refine their targeting strategies and product offerings accordingly.

Tags: phocuswire, SyndicEx250629B

Gen Z and Boomers Show Stark Divide in U.S. Travel Spending

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