Travel has become a new kind of mass-market status symbol and national pastime as millions of Americans emerge from the pandemic crisis and spread their wings. But today’s younger generations travel differently than their parents. Millennials and Gen Z are using their credit cards to buy airline tickets and book hotels and Airbnbs for a unique new travel trend: destination events.
A new summer travel survey from Bread Financial and AAA found that young people are highly likely to travel long distances for large live events like concerts and sports. Let’s dive deeper into why destination events are the new driving force of Gen Z and millennial travel.
More young people travel to big live events
Research from Bread Financial and AAA found that 65% of Gen Zers and 58% of millennials have traveled in the last 12 months (or plan to travel in the next 12 months) to live events more than 50 miles from home. Only 43% of Gen Xers and 27% of boomers said the same. Destination events are informing travel packages for young Americans.
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The survey also found that Gen Z is especially willing to spend a lot of money on air travel as part of a travel plan for destination events. More than half (53%) of Gen Z plan to fly to attend an event at their destination, and 18% of Gen Z said they would consider traveling 1,500 miles or more to attend an event. (Only 9% of boomers were willing to travel that far.) And 48% of Gen Z and 42% of millennials said they would even consider traveling internationally to see their favorite events if they could get cheaper tickets.
People have always traveled and attended major sporting events and concerts. But this new focus on destination events as the center of people’s travel plans appears to be a new shift in spending for Gen Z and millennial consumers.
The Taylor Swift Effect: How The Eras Tour is Shaping the Travel Industry
A great example of how destination events have captured the imagination of young music fans (and travelers) is a certain big-name pop star – Taylor Swift. Marriott Bonvoy® recently announced a month-long giveaway for fans to win free tickets to Taylor Swift concerts in cities around the world.
According to Bread Financial/AAA research, 20% of Gen Zers have traveled or plan to travel to a Taylor Swift concert. This is a huge percentage and shows how powerful music can be as a driving force in people’s travel decisions. If it’s difficult to get tickets to see your favorite artist in your hometown, traveling to another city could be a smart financial move. After all, if you and your friends already spend hundreds of dollars on tickets, it might be worth spending more on flights and hotels.
How people spend (and stay) on in-destination event travel
Whether it’s Taylor Swift, the NBA Finals or the Super Bowl, today’s young travelers are willing to spend big bucks on tickets to live events. And 39% of millennials and 37% of Gen Z said they have spent $500 to $5,000 (or more) on tickets to live events – not including travel costs.
Young travelers are also more likely to transform their trip from an in-destination event into a broader vacation experience. The Bread Financial/AAA survey found that 72% of Gen Z and 68% of millennials are likely to set aside extra travel time to sightsee and explore the destination event’s host city, compared to just 56% of Gen X and 51% of boomers.
This could be a sign that travel to events at the destination will have positive effects on local economies that host large concerts. Instead of bringing concert audiences into town for just one night, local bars, restaurants and businesses can attract new customers for a long weekend or midweek outing.
Destination Events and the Future of Travel Rewards Cards
Millennials and Gen Z are known for being motivated by the YOLO (“you only live once”) attitude. These young travelers tend to be willing to spend more money on experiences and happy memories, even if there are extra costs to get to the show.
Here are some tips for using travel rewards credit cards to make the most of your in-destination event travel.
Use expensive concert tickets to earn credit card welcome offers
If you’re shelling out hundreds or thousands of dollars for concert tickets, you can put that money toward a new credit card welcome offer. Some of the best travel rewards cards let you earn thousands of bonus rewards points or free frequent flyer miles if you spend a few thousand dollars in the first few months after opening your card.
Don’t overspend or accumulate a large balance. But if you’re planning to cover your next concert trip in advance, using the best credit cards can help you earn extra value.
Transfer travel rewards to flights or hotels
Some of the best travel rewards cards make it easy to transfer credit card rewards points to airline frequent flyer programs or hotel loyalty programs. It can make travel to your event destination more affordable if you can use your credit card points to get a discounted plane ticket or a free hotel for the weekend.
Final result
Gen Z and Millennials are leading a new way of traveling and are willing to spend money to see the shows, music, sports and destination events that matter most to them. Travel rewards credit cards can help you get extra benefits and special offers for the new world of destination event travel.
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