Why Millennials Aren’t Going on Vacation?

September 6, 2020

Millennial pressure, overwork, underpay and urgent need for vacation are no secret.

Even for young people working at companies that offer paid vacations, the cost of travel can be a heavy burden, especially when they have to balance their budgets to pay bills, student debt, and expensive rents. So it’s no surprise that more than half of millennials can’t afford a vacation.

According to a new study by DepositAccounts, 55% of millennials said they did not take a holiday last year for economic reasons, compared with 49% of Gen X and 49% of baby boomers.

This is not to say that millennials are not struggling to save travel costs. In fact, 76% of millennials are trying to do this. To reduce travel costs, nearly half (46%) of respondents in the study said they wanted to keep their travel budget under $ 1,000. Only 22% of respondents said that their budget remained below $ 2,000.

Perhaps the most frustrating data suggests that 74% of millennials hope they can save more money for vacations, while 37% say they are already in debt for vacation-related debt. One tenth of this group is still paying off the last trip.

The study notes that baby boomers, especially those who are about to retire, typically have higher salaries and can usually repay their mortgages (and other major expenses) in their lives. However, many millennials often carry student debt and are still saving money for housing.

According to a 2019 study by Deloitte, the net worth of Gen Z and millennial Americans (between 18 and 35) has fallen by 34% since 1996, and many millennials have net assets below $ 8,000. With a large number of Americans setting their vacation budget to a maximum of $ 2,000, a vacation seems impossible. Who wants to spend up to a quarter of their net worth in less than a week?

But for millennials, the issue of holidays is not easy. The rise of microcations, or short stays of less than four days, has become increasingly popular as it enables millennials to leave the office for less money and less time.

The study also showed that virtually all respondents (not just millennials) on vacation go to places more affordable than your usual trips.

So millennials and other generations, whether they stay at home or travel, seem to be frugal.