A new report is shedding light on who’s shaping travel in 2025, and the results may surprise you. According to data released by MMGY Travel Intelligence, younger travelers, particularly Gen Z and Millennials, are expected to drive much of this summer’s vacation activity. These groups aren’t just dreaming about trips, but they’re actively booking them, often prioritizing unique, meaningful experiences over traditional beach getaways.
The report is part of MMGY’s Portrait of American Travelers study, one of the industry’s longest-running surveys. It found that Gen Z and Millennial households are planning to spend significantly more on travel this summer than their older counterparts, by as much as 15 to 20 percent in some cases. And they’re not just spending more; they’re also shaping the kinds of trips we’re likely to see.
Experiences Over Destinations
Younger travelers are focusing less on where they go and more on what they’ll do once they’re there. That might mean hiking trips through the Southwest, food-focused weekends in lesser-known cities, or wellness retreats that blend travel with rest. The emphasis is clearly on personalization and purpose and not just checking off tourist landmarks.
This trend reflects a shift away from one-size-fits-all vacations. Many Gen Z and Millennial travelers are using platforms like TikTok and Reddit to uncover hidden gems and lesser-known travel hacks, often skipping traditional travel agencies and big-box tourism packages. They’re booking more directly and staying in places that reflect local culture, whether that’s boutique hotels or short-term rentals.
Affluent Travelers Are Also Spending Big
The other major force in this summer’s travel surge? High-income households. MMGY’s data shows that travelers earning over $150,000 a year are fueling a rise in luxury and international travel, particularly to destinations in Europe and Asia. These travelers are booking further in advance, flying business class more often, and choosing longer stays abroad.
Interestingly, many of these affluent travelers are also younger, suggesting that Millennials and older members of Gen Z are beginning to flex more financial muscle than they did just a few years ago. That’s a big change from pre-pandemic trends, where baby boomers typically dominated high-end travel spending.
Cost Is Still a Barrier, But Not a Dealbreaker
While many Americans say travel is still “too expensive,” it’s not stopping them from making plans. Nearly half of respondents said they expect to take at least one vacation this summer, even if that means budgeting more carefully or traveling closer to home. Road trips, domestic flights, and extended weekends remain popular ways to manage costs without skipping the experience altogether.
Many travelers are also adapting by booking trips further in advance to score lower fares or using flexible scheduling to travel midweek when prices tend to dip. It’s not that people aren’t cost-conscious, its that they’re finding new ways to stretch their travel dollars.
What This Means for the Travel Industry
If you’re in the business of travel — hotels, tour operators, airlines — this report is a signal: meet your younger, more intentional travelers where they are. That could mean offering better mobile booking experiences, flexible cancellation policies, or curated travel itineraries that go beyond the usual brochures.
But even for those outside the industry, the message is clear: the way people vacation is changing. It’s less about luxury for luxury’s sake and more about value, purpose, and flexibility. Whether you’re planning your own trip or just dreaming about one, these trends offer a glimpse into how travel is evolving and why it’s more accessible (and more meaningful) than ever before.