Sacrificing essentials for vacations
A significant number of younger New Zealanders are willing to skip mortgage or rent payments to fund their travels, according to a study commissioned by Flight Centre.
The research showed that 24% of Kiwis surveyed admitted to prioritising holiday expenses over essential housing costs, a rate that doubles the international average of 12%.
The study encompassed participants from New Zealand, Australia, Canada, South Africa, and the UK, emphasising a distinctive trend among Kiwis, Stuff reported.
Millennials lead in travel spending
The data revealed that men are more likely than women to forego rent or mortgage payments for travel, with Millennials showing a higher propensity (31%) compared to Gen Z (10%).
“Even though we would never encourage people to skip crucial life payments to fund a holiday, it’s interesting to see young Kiwis will do whatever it takes to explore the world,” said Heidi Walker, Flight Centre NZ’s general manager.
Responding to inflation and high costs
Despite economic pressures, an impressive 92% of Gen Z and Millennial Kiwis surveyed are planning to adjust their travel strategies rather than abandon their plans. Many intend to travel domestically (40%) or seek out exclusive deals (37%) to keep their travel dreams alive amidst rising costs.
“Travel continues to be high on the priority list for young Kiwis and there are certainly ways we can ensure that dream becomes a reality, despite the tougher financial times we’re currently in,” Walker said.
Older generations also affected
The impact of economic conditions on travel isn’t limited to the young.
According to New Zealand Seniors’ Grey Nomads Report, 15% of respondents over 50 are using credit cards to fund their travels, and 17% are tapping into their superannuation.
Additionally, 9% are drawing on retirement savings like KiwiSaver. The burden of maintaining enough retirement savings is significantly affecting their travel plans, with one in five seniors reporting that their holiday ambitions are curtailed by mortgage obligations, Stuff reported.
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