Boomers spend about three times more per trip than Gen Z, finds McKinsey

Those who spend the most on travel are not those who want to travel the most. According to Exame, based on a McKinsey survey, boomers, aged 62 to 80, spend around three times more per traveler than members of Generation Z.

The same study indicates that younger people spend a larger share of their income on tourism. The result is a market with two different drivers: on the one hand, spending is concentrated on older generations; on the other, the desire to travel appears more strongly among younger people.

The report also describes what each generation looks for in a trip. Boomers seek certainty, Generation X seeks convenience, millennials seek experiences, and Generation Z seeks novelty. These are different priorities that help explain why the same sector serves such different audiences.

What is at stake is who defines the pattern of tourism consumption. When spending and desire are concentrated in different age groups, supply and price planning needs to deal with two audiences at the same time.

What changes for the investor

For those who invest, the analysis suggests that companies linked to travel may have revenues shaped by the profile of the public they serve, whether due to the bigger ticket from older generations, or the volume of interest from younger generations. The report does not deal with shares, balance sheets or prices, and this text does not indicate the purchase or sale of any stock. It is worth monitoring how these differences appear in the results of companies in the sector.

Automatically translated from Portuguese.