Spiritual retreats are now gaining in popularity with Gen Zers, who are in soul searching mode following the long pandemic lockdown and living in a fast-changing world. To that end, one in five are saying they plan to find themselves by splurging on a “soul-searching” trip (21%), traveling abroad (20%), or packing their bags for a romantic getaway (24%), according to new research from Empower, a financial planning firm.
However, although spiritual retreats are all the buzz with the younger set, vacation affordability continues to be an issue. Of the swath of Americans who won’t travel this summer, 20% say they can’t afford to go on vacation (women 24%, men 15%). Nearly all (88%) say inflation has cooled their summer plans, causing people to save up for longer, plan fewer getaways or shorter trips.
To fund their travel, Gen Zers say they are trimming back on hair/nail appointments (24%) and cancelling streaming subscriptions (18%). Nearly a third (31%) of Gen Zers and 26% of Millennials are turning to a side gig to save more for their soulstice.
One in five Americans (19%) say they’re planning trips within driving distance. Last month, the monthly average spend on gas was $193, a decline of nearly 23% from last year ($252), according to Empower Personal Dashboard™ data.
Spiritual Retreats and Travel Planning Tradeoffs:
The tradeoff for a trip: To save up for vacation, 37% of Americans have reduced the amount they eat out, 21% are cutting back on premium purchases such as furniture and clothes, 19% are passing on attending local concerts or the theater, and 18% have slashed beauty services (22% for Millennials). Some 30% have tapped into a savings account or rainy-day fund.
Unpacking the price: More than half of Americans who are planning on traveling this summer, whether that means taking spiritual retreats or just heading to the beach, are capping their spend at $500 for flights and transportation (52%), food (55%) and activities (51%). Nearly a third (31%) plan to splurge on lodging, spending more than $1,000 for their hotel or Airbnb stay. A quarter of respondents planning to vacation are willing to dish out between $500 -$1,000 for food (26%) and experiences (25%). Just 33% of this cohort expect to spend more than $500 on shopping during their trip.
Favorite travel companions: 42% of Americans plan to visit family and friends this summer, which trumps sightseeing (24%) and concerts/festivals (22%). Some 35% plan to spend on family-friendly activities or outdoor adventures (28%).
Flexibility can be the ticket when budgeting for a vacation. Popular tourist destinations tend to be more expensive, so looking at off the beaten path destinations or where the US dollar is strong relative to the local currency should be part of the research. This should include looking to travel during the off-season and booking flights mid-week will help bring down costs.
Empower’s report is based on survey responses conducted by Morning Consult on behalf of Empower from May 19 to May 21, 2023, surveying 2,201 Americans ages 18+ and data from the Empower Personal Dashboards.
Author: Travel Intel
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