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Gen Z & Millennials Are Driving Summer 2025 Travel Trends

by Sarah Milner  June 11, 2025
Gen Z & Millennial Traveler in airport

Photo: Shutterstock.com / Drazen Zigic

New reports from Allianz Partners USA and Squaremouth suggest that Gen Z and Millennials are leading the charge when it comes to summer travel trends. 

Allianz’s 17th annual Vacation Confidence Index found that 6 in 10 Americans plan to take a summer vacation this year—an all-time high for the report. With more Americans planning to travel this summer, the projected spend is also higher: a record-breaking $226.6 billion.

The report’s data is based on a survey conducted by Ipsos on behalf of Allianz Partners between April 14 and 15, with a sample size of 2,005 Americans aged 18 years or older.

In a release published on June 10, Allianz Partners revealed that younger and higher-income Americans are the most likely to travel over the summer months. The research found that 70% of survey respondents under 35 years of age are confident that they will vacation this summer, compared to just 57% of those aged 55 or older. 

Income and education also factor in. Travel confidence rates are double for Americans who earn at least $100,000 a year compared to those who earn up to $50,000 a year (76% compared to 45%). Similarly, individuals with a college degree (70%) are more likely to travel than those without one (50%).

“As travel continues to rebound, these findings underscore how income and life stage increasingly influence how, and if, Americans plan their vacations,” said Emily Hartman, general manager at Allianz Partners USA. 

Whether or not there are children in the home is another factor influencing summer travel confidence this year. The survey found that 74% of parents with children at home were planning a summer vacation compared to just 58% of non-parents. 

“While cost remains a concern for many, Gen Z, Millennials, and affluent families are driving the recovery, and they’re not waiting for perfect conditions to hit ‘book now,’” added Hartman. 

Summer Travelers Are Sticking Close to Home in 2025

Squaremouth, a travel insurance comparison service, also released a report focusing on American summer travel. 

For its survey, Squaremouth polled 2,600 customers between May 16 to 23 “to gauge their sentiment on the aviation industry,” according to a release. 

The survey found that nearly half of travelers (47%) expect flight delays and disruptions to be worse in summer 2025 than in years past. 

Almost one-third (31%) of travelers said they bought travel insurance because they’re concerned about flight disruptions or accidents, and one-quarter (25%) stated that recent airline incidents and technical outages influenced their travel plans.

“Travelers are packing their patience this summer as they take to the skies. While they’re still taking their vacations, they’re doing so differently than in years past, as they opt for closer destinations and prioritize travel insurance to protect against potential issues like delays and cancellations,” said Ned Tadic, manager of public relations at Squaremouth.

The data also indicates that Gen Z and Millennials are more anxious about flying in general than their older counterparts. While 35% of travelers under 40 said their travel plans were influenced by recent aviation incidents, only 23% of travelers over 40 reported the same.

In a separate press release, Squaremouth shared the top destinations Americans are traveling to this summer. The data, which is based on travel insurance policy purchases, shows a shift towards closer-to-home destinations. 

Within the top 10 list, Canada rose from the fourth spot in 2024 to second place, overtaking the U.K., which maintained third. Mexico also moved up the list, rising from eighth to sixth.

Italy dropped from second to fourth in the ranking, while Greece dropped four spots, from sixth to 10th.

This shift away from perennial favorites like Greece and Italy could be explained by a shift in affordability and trip lengths. The Allianz 2025 Vacation Confidence Index indicated that the average trip length is decreasing to an average of four nights, with almost a third of travelers (31%) willing to splurge on one- or two-night vacations.

The Vacation Confidence Index also found that affordability is increasingly influencing travel confidence: 70% of those who aren’t traveling said they don’t want or can’t afford the expense (up from 62% last year). 

“Since the start of the Vacation Confidence Index, we’ve seen Americans place a greater emphasis on vacations,” says Daniel Durazo, director of external communications at Allianz Partners USA. “This year we saw that at an all-time high with 75% of Americans considering annual vacations important to them regardless of their ability to take vacations. This consistent prioritization is an indication of the ways Americans want to live and learn—we don’t expect it to shift anytime soon.”

  
  
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