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Gen Z holidaymakers race to Europe as the Euro falls… while their spending on holidays is up 19% compared to pre-pandemic levels, Revolut reports

Gen Z holidaymakers race to Europe as the Euro falls… while their spending on holidays is up 19% compared to pre-pandemic levels, Revolut reports | Fintech Finance

As travel to Europe has increased exponentially in 2022, Revolut, the global financial super-app with more than 4.8 million retail customers in the UK and more than 20 million customers globally, reveals that Gen Z holidaymakers are forking out more money whilst they’re away as compared to the pre-pandemic levels. With around 16% of 18-24 year olds in the UK having a Revolut account, Revolut reports the number of its 18-24 year old UK customers spending money abroad has quadrupled since before the pandemic.

With over 90.3 billion views on #travel TikTok videos, Gen Z has been bitten by the travel bug. But as the Euro fell to parity against the Dollar this month, young UK holidaymakers are flocking to Europe for cheap fun in the sun. This month, a new travel report from YouGov found that 44% of Gen Zers say they will be spending more on travel this year compared with other leisure time activities. New Revolut data shows that Gen Z is spending 19% more on holidays this summer, as compared to summer 2019.

Furthermore, new Revolut data finds that the average British 18-24 year old holidaymaker spent 18% more on hotels this June as compared to June 2019, 24% more on car rentals, 4% more on tourist attractions, and 16% more on bars, cafes, and restaurants. The Revolut data suggests many are making the most of their holidays by purchasing fashion abroad, as the average transaction at clothing stores is up 31%. However, spending on airline tickets and taxis has actually gone down by 1% since pre-pandemic levels.

Top holiday destinations have relatively stayed the same, with Spain still being the most popular country, and Revolut data shows it takes 15% of foreign spend by UK 18-24 year olds. Even so, Boomers still win for splashing the dinero – 21% of foreign spend by UK 55-74 year olds is spent in Spain. Below are the top 10 Euro-using countries where UK 18-24 year olds are spending the most this summer.

Rank

Euro-using countries where UK 18-24 year olds spent the most in June 2022

1

Spain

2

Ireland

3

France

4

Italy

5

Netherlands

6

Greece

7

Lithuania

8

Cyprus

9

Germany

10

Portugal

However, Revolut’s data also shows emerging destinations that Gen Z have been going to. The top 10 Euro-using countries below are the destinations which have seen the biggest rise in spending by UK 18-24 year olds. Interestingly, young UK holidaymakers are venturing further out from Europe to spend Euros. Guadeloupe tops the list, and Martinique comes in fifth place, both of which are in the Caribbean.

Rank

Euro-using countries which have seen the biggest rise in spending by UK 18-24 year olds

(June 2022 compared to June 2019)

1

Guadeloupe

2

San Marino

3

Estonia

4

Lithuania

5

Martinque

6

Cyprus

7

Malta

8

Greece

9

Ireland

10

Montenegro

Adam Gagen, Global Head of Government Affairs and Public Policy at Revolut, said the latest Revolut data suggests that while travel disruption remains a challenge, and inflation is clearly adding to costs, there remains very robust demand from young people to finally get abroad and spend in Euros – which should help boost EU tourism sectors notably in Spain, Ireland, France and Italy.

“While clearly travel disruption and inflationary pressure is making holidaying this summer more painful for all, Gen Z are not being deterred and appear to be finding smart ways to get their money to go further by heading out to Euro-using countries as its value has fallen over the last few weeks.

This will provide a much needed boost for travel and tourism sectors across the Eurozone, and shows that the efforts of Governments in key countries such as Spain, France, Italy and Greece to entice tourists back appears to be paying off.

After a turbulent past two years, it’s Generation Z who perhaps particularly feel like they have missed out on enjoying their youth. Due to lessening Covid travel restrictions, the rise of travel influencers on social media, and ever better exchange rates, it makes sense that young people want to prioritise adventure and new experiences.”

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