FOMO-obsessed millennials ditch home ownership for travel

Younger millennials would rather spend money on travelling than saving for a home, despite being saddled with student loans

A study by travel and media start up Culture Trip found that high house prices and student debts had led to a new set of values ‘where experiences matter more than ownership’.

"For Generation Rent in particular, no matter how expensive an experience or a trip, it is still more affordable than a house," said the report, The Cultural Mindset.

It found 43% of people save money to travel more often and 18% save to pay for more luxurious trips. In contrast, only 13% save for a house deposit.

Brexit and the inward-looking Trump administration aren’t acting as a deterrent to travel either, instead they are increasing people’s enthusiasm for exploring other cultures.

"During our six months of research, we’ve seen that US and UK citizens are placing a greater emphasis on cultural openness and diversity. In particular, people in urban areas with high densities of multicultural populations (think: London, New York), are showing conscious interest in other communities and their associated cultural codes such as food, art, language, music and traditions," said the report.

Culture Trip, which quizzed 10,000 travellers, including 4,000 in the UK, said travel companies must start to offer more off-the-beaten track, ‘undiscovered’, cultural experiences for this younger generation of holidaymakers, for whom experiences are more important than possessions.

Its study found that FOMO (Fear of Missing Out) is a major driver among younger millennials and generation Zers, as 59% of those aged 18 to 24 don’t want to feel out of touch or left behind so will travel to the same places as their friends. However, only 41% of older people feel this way.

Nearly one in five people use Instagram as a source of travel inspiration, while 30% use Youtube, according to the report’s findings. It also found that 74% of people still want to see traditional sites, but half of these want to avoid touristy places. 

The report’s author, Natalie Malevsky, Culture Trip VP of product marketing, said: "Travel has traditionally been split between exclusive and often expensive and mundane and predictable holidays; our challenge as an industry is to offer exciting cultural experiences in places that feel undiscovered.

"Companies need to recognise that there is a strong need for people to learn something new, they want to find themselves through travel."

The research, which included in-depth face-to-face interviews with 75 people in the UK, included both Culture Trip customers and the wider travel market.