Millennials are taking more expensive holidays because they believe saving enough money to buy a house is unrealistic, a travel expert has said.
Holiday firm Contiki reported a 10 per cent increase in the average amount of money people aged 18 to 35 spent on trips in 2017 compared with 2016.
It found that young travellers were taking more adventurous and so-called bucket list trips, with increased year-on-year demand for destinations such as New Zealand (up 83 per cent), South America (up 71 per cent), Bali (up 56 per cent) and Vietnam (up 50 per cent).
Contiki sales and marketing director Donna Jeavons has noticed a trend in young people prioritising experiences including travel over getting on the property ladder.
‘‘With housing being so expensive, many young people are opting to live in the moment and pursue other goals first, knowing that buying a house could be a little further down the line than it was for previous generations.
‘‘Saving a bit here and there isn’t really scratching the surface for millennials, so many are choosing to have the best holiday they can afford instead.’’
The average age of Contiki customers is 26 and in 2017 the firm introduced specially themed trips to Canada for ‘avid Instagrammers’.
This was in response to research which showed that a section of the youth market is drawn to destinations from where they can upload popular social media posts.
Several other companies have also started selling products aimed at younger travellers.
U by Uniworld will be Europe’s first river cruise brand exclusively for young people when it launches in April, with craft beers, mixology classes, street art tours and vintage motorbike rides.
‘‘We are targeting an active traveller between the ages of 21 and 45, with everything from the decor, dining and cocktail service to the land activities thoughtfully curated to meet the needs of this audience,’’ the firm’s chief executive Ellen Bettridge said.