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40% of Gen Z plan to fund their vacation with a credit card

Research reveals millions of Britons plan to spend more on holidays this year than before the pandemic, despite the rising cost of living. However, young people will increasingly borrow money to pay for their trips. Jenny Southan Reporting

To identify travel spending trends in 2022, credit provider Tymit surveyed 2,000 UK residents about their overseas spending habits. The Post-Covid Travel Report explored what UK residents buy abroad, how they finance their holidays, how many UK holidaymakers are overspending and the difference between age groups and gender when it comes to spending.

Survey data suggests that 14 million UK adults (28%) plan to spend more on holidays this year, despite the rising cost of living.

However, more than 17 million UK holidaymakers (31%) plan to pay for their holidays by credit card, with younger generations much more likely to finance their trip with unsecured credit.

As you’d expect from a generation with less income and savings, 40% of Gen Z (18-24) plan to use a credit card to fund their next trip abroad, while that only 20 of Boomers (aged 55+) plan to do the same. 62% of baby boomers say they will use their savings to fund their next vacation instead.

There are also gender gaps in spending abroad. More than a third (35%) of men say they have gone over budget when vacationing abroad, compared to just 26% of women, suggesting they are slightly more careful with money.

What do people use their credit card for when they are abroad? Paying for shopping and eating out accounts for around 30%, while only 11% use a credit card to pay for car rental, which is surprising given that most car rental companies require a credit card. credit. Around one in five Britons have enhanced their holidays with a credit card.

Tymit CEO Martin Magnone said: “After a tough few years, Britons are eager to get away, and many are clearly planning to use the credit to fund their summer holidays. Used wisely, credit cards offer a convenient way to spread costs with the added security of consumer protections, but too many vacationers still face the pitfalls of traditional credit – hidden fees, charged exchange rates and minimum payment pitfalls that last long after. the return trip.

“It’s shocking that so many people are still paying for holidays from last year, but sadly that’s no surprise. We give Tymit users the peace of mind of having a clear plan for reimbursing their free expenses abroad.

Worryingly, around 30% of UK residents say they do not check their credit card charges when abroad. Many also don’t realize that booking with a credit card offers extra protection should anything go wrong.