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      New Report Reveals the Highest Spending Generation of Travelers

      Image: Saving money for travel (Photo Credit: Kittiphan/Adobe Stock)
      Image: Saving money for travel (Photo Credit: Kittiphan/Adobe Stock)
      Mia Taylor
      by Mia Taylor
      Last updated: 3:30 PM ET, Tue July 29, 2025

      Baby Boomers continue to be the big the big spenders compared to other generations when traveling and specifically when in-destination.

      Just how much are Baby Boomers spending, exactly? In excess of $6,000 or more in-destination, according to a new quarterly travel trends report from Phocuswright.

      The data shows that about 23 percent of Baby Boomers splash at least that much when exploring a destination, compared to 17 percent of Millennials who say they spend $6,000 or more and 16 percent of Gen X.

      Millennials, on the other hand, dominate the lowest spending category when exploring a destination with 32 percent spending $1,000 or less. By comparison, about 27 percent of Gen X and 26 percent of Baby Boomers say they spend $1,000 or less in-destination.

      Spending levels are most comparable across generations in the $2,000 to $2,999 spending bracket: 13 percent of both Millennials and Gen X say they spend this much in-destination, while 14 percent of Baby Boomers say they too spend at this level in-destination.

      New technology emerges as a payment method

      Between AI, chatbots and facial recognition, new technology is impacting all areas of travel these days. That includes how globetrotters are paying for expenses as they explore locations around the world.

      Younger travelers, it seems, are increasingly using new forms of payment, such as mobile payment services and peer-to-peer payments, according to the same Phocuswright trends report covering the first quarter of 2025.

      About 28 percent of Millennials and younger travelers turn to mobile payment services and 18 percent use peer-to-peer payments.?

      But credit card companies need not despair. Using a credit card to pay for travel expenses continues to be the dominant payment method by far - with a whopping 62 percent of travelers across all generations (Millennials and younger; Gen X;? Baby Boomers) reaching for their credit card to make payments.

      When looked at by generation, it¡¯s hardly any surprise that Baby Boomers lead the pack, with 78 percent still using this more traditional form of payment, followed by 62 percent of Gen X, and 52 percent of Millennials and younger.

      Transportation choices by generation

      New ways of doing things are also changing transportation choices. Travelers are still most likely to rent a car while in destination, but Millennials and younger travelers also leverage public transportation and ride shares, even renting bikes and scooters more than others.

      Millennials are turning to ride share most significantly, with 24 percent saying they use this form of transportation in-destination, followed by 13 percent of Gen X and Baby Boomers.

      Renting a bike or scooter lags well behind at 9 percent of Millennials using this type of transportation, followed by just 2 percent of Gen X and a mere 1 percent of Baby Boomers.

      Still, adoption of other types of transportation has a long way to go. A significant 44 percent of Millenia¡¯s and 33 percent of Gen X still say rental cars are their first choice, followed by 25 percent for Baby Boomers who opt for rental vehicles.


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      Mia Taylor

      Mia Taylor

      Senior Editor

      Mia Taylor is an award-winning journalist who has two decades of experience. Most recently she worked as a staff writer for America's largest digital publisher DotdashMeredith, where she contributed stories on a daily basis to four of the company's most iconic brands - Parents,Real Simple, Better Homes & Gardens, and Health. Her work has also appeared in Travel + Leisure, The Boston Globe, The San Diego UnionTribune, Westways Magazine, Fortune, and more.

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