How Millennials Are Changing Travel

A disillusioned, recession-battered generation is investing in overseas experience—and hoping the bet pays off.
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The author in Argentina's Patagonia region (Kevin Parine)

In the summer of 2012, at age 24, I left home to travel the world. In just over a year, I backpacked through South America, South Asia, Western Europe, and the western United States. I hiked the Inca Trail, skied the Alps, hitchhiked through Patagonia, and trekked through the Himalayas. I worked at hostels, stayed at a Buddhist monastery, and gardened at an English women’s retreat center in exchange for meals and a place to sleep. And while I learned many things on the trip, what was most surprising was how many people my age were traveling just like me.

In the United States, the Boston Consulting Group reports, the millennial generation, defined as those between the ages of 16 and 34, is more interested than older generations in traveling abroad as much as possible—by a 23-percentage-point margin. The United Nations estimates that 20 percent of all international tourists, or nearly 200 million travelers, are young people, and that this demographic generates more than $180 billion in annual tourism revenue, an increase of nearly 30 percent since 2007. The UN attributes that growth both to rising incomes in emerging markets and a commitment by youth in advanced economies to “continue traveling despite economic uncertainty.” We are now the fastest-growing age segment in terms of the money we spend on travel, according to American Express Business Insights.

Not only that, but we’re redefining the very meaning of international travel, foregoing standard vacations in favor of extended, meaningful experiences. The World Youth Student and Educational (WYSE) Travel Confederation, which recently surveyed more than 34,000 people from 137 countries, found that young travelers are not as interested in “the traditional sun, sea and sand holidays” as previous generations are. They are spending less time in “major gateway cities” and instead exploring more remote destinations, staying in hostels instead of hotels, and choosing long-term backpacking trips instead of two-week jaunts. The study showed an increase from 2007 in young travelers taking trips (like mine) for longer than two months, with the average trip lasting 58 days.

This kind of travel did not come naturally to me. I grew up middle class in Florida in a family where “traveling” generally meant driving two hours to the nicest nearby beach. I got a passport when I was 16 so I could visit my extended family in Ecuador, and by the time I entered college, that family reunion was still the only time I had ever been overseas. Until I discovered the backpacking scene, I always considered travel to be something reserved for the wealthy, or at least for people with far more experience abroad than I had. 

But with easy access to social media and budget-travel tools like Airbnb, Couchsurfing, Skyscanner, and Lonely Planet message boards, I soon realized that long-term travel wasn’t nearly as expensive or difficult as I had imagined. I funded my 15-month trip on a little more than $16,000 (that’s luxurious: many backpackers I met spent half as much in the same amount of time). I saved more than half the money from a part-time job in high school, and the rest came from two years of work after college. And while there’s little data on the economic backgrounds of backpackers, the people I met during my trip—waiters, teachers, seasonal workers, flight attendants, carpenters—gave me the sense that people of diverse means had done the same.

In the case of American millennials, many of us also feel like there’s little reason to wait until our golden years to see the world. Our generation has arguably been hit hardest by the recession, and grown skeptical of the best-laid retirement plans. According to the Center for Retirement Research, less than a third of private-sector workers in the U.S. had defined-benefit coverage for retirement in 2010, down from 44 percent in 1995 and 88 percent in 1983. Since 1985, the number of companies offering pensions has fallen from 112,000 to 23,000. The Pew Research Center has reported that only 6 percent of millennials expect to receive the kinds of Social Security benefits that today’s retirees enjoy. Half don’t believe there will be money remaining in the Social Security system by the time they retire, and an additional 39 percent think these benefits will be significantly reduced. Under these circumstances, it makes sense that we’d travel now, instead of saving travel for a future that is in no way guaranteed. 

Faced with a lack of reliable, long-term employment options, a number of millennials are also using travel to take a break from job-searching and reevaluate what to do next. In 2013, at every education level, millennials aged 25 to 32 confronted a higher unemployment rate than those facing older generations, and an overall unemployment rate of more than 8 percent. Both of my traveling partners, Kevin Parine and Chelin Lauer, considered going abroad after finding limited job opportunities in their area of study. Parine graduated with a degree in geology but decided to travel after struggling to find work in his field. Lauer graduated with a degree in biology and ended up moving to South Korea to work as a science and English teacher, and then travel whenever she had the chance.

“Teaching English in Korea was the highest-paying job I could find after graduating,” Lauer, 26, says. “But the flipside to a bad job market is that it gave me a chance to explore something I probably would have never done otherwise.”

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Amanda Machado is a writer based in San Francisco.

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