Travel costs have reached record highs this year, but that reality doesn’t seem to be dampening enthusiasm for travel.
New data from the online travel insurance marketplace Squaremouth shows that insured trips are up 12.9 percent year over year, with an average trip costing more than $7,400.
This is despite U.S. travel costs being 9 percent higher as of October than at the same time last year, according to the NerdWallet Travel Price Index. Airfare alone is up a whopping 22.4 percent, and lodging is also trending higher, up 4.3 percent year over year.
So, what’s driving travelers to keep spending? After surveying more than 3,000 customers post-purchase, Squaremouth found that making memories with family and friends is the top reason people prioritize travel across all generations.
Those same family and friends are also fueling travel FOMO (fear of missing out), which nearly 8 in 10 (78 percent) travelers say they’ve experienced.
Translation: Even if it means going into debt, Americans continue to travel.
Friends and Family Drive Travel FOMO, Not Influencers
The rampant travel FOMO that Americans are experiencing is largely driven by people travelers know, not so-called travel influencers or what they see online, according to the Squaremouth report.
“Friends and family sharing their trips causes travel FOMO more than social media, online articles, and TV and movies combined,” the report says.
What’s more, that influence grows with age. Among Boomers and the Silent Generation, friends and family cause 41 percent of travel FOMO, compared with 36 percent for Gen X, 33 percent for Millennials, and 31 percent for Gen Z.
Gen Z Feels Travel FOMO Most Often
While friends and family have a stronger impact on older generations, Gen Z experiences it more often, the report says.
About 40 percent of Gen Z travelers experience FOMO at least monthly, nearly twice the rate of Boomers (23 percent).
And overall, 28 percent of travelers feel travel FOMO at least once a month, and 7 percent feel it almost daily.
Why People Travel Changes With Age
One more interesting fact from the Squarmouth report: travel motivations.
Younger travelers, it seems, travel to escape. Older travelers, meanwhile, can’t imagine life without travel. (Raising hand.)
“After making memories with friends and family, the next biggest reason flips with age. Escaping the stress of daily life drives 36 percent of Gen Z’s travel, compared with 33 percent for Millennials, 32 percent for Gen X, and 22 percent or less for older generations,” says the report.
Conversely, “I can’t imagine life without travel” accounts for 31 percent of the Silent Generation’s motivation and 27 percent of Boomers, compared with just 15 percent of Gen Z.
COVID Is No Longer a Reason People Travel
The global lockdown brought about by the COVID-19 pandemic triggered a wave of revenge travel once the world opened up again. Meaning, after being cooped up for much of 2020 and 2021, people were eager to get out and explore again. The experience “taught people not to put off trips,” explains the Squaremouth report.
Six years later, however, that lesson has interestingly faded as a motivator. The COVID lockdown years ranked last of all available motivators to travel for every generation, cited in just 5% of responses, according to Squaremouth.
“Travel FOMO is often blamed on social media and influencers, but our data tells a different story,” said Jackie Mondelli, chief marketing officer at Squaremouth.
“Friends and family drive more travel FOMO than social media, articles, and TV combined,” Mondelli added. “Whether it’s because they’re trying to keep up with the Joneses or simply want to make memories with loved ones, travelers are prioritizing shared experiences, even as costs remain high.”
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