As the summer travel season heats up, more travelers are fighting off stubborn inflation by paying for their vacations with alternative payment methods. Hopper Lead Economist Hayley Berg joins Wealth! to discuss travel trends as consumer wallets are under pressure.
"We’re really seeing generational shifts in how people are thinking about paying for these bigger ticket items," Berg explains. While older generations have traditionally paid for their vacations with credit cards, more than 30% of Gen Z and millennials are using alternative payment methods like "buy now, pay later."
Berg explains that buy now, pay later is a great option for travelers making larger purchases. She highlights that this payment option is actually the norm in other parts of the world, like Latin America, despite being a rather new method in the United States. The economist adds that buy now, pay later "makes many destinations and experiences more accessible for travelers who have a smaller budget," as demand for bucket-list destinations like Paris, London, and Rome increases.
"We’re still seeing deal-seeking behavior and price sensitivity, so travelers aren’t just blowing their budget on something that they can’t quite afford out-of-pocket," Berg says of consumer behavior.
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