According to new research by holiday company Contiki UK, millennials are more interested in travelling to New Zealand or South America than saving towards a deposit on a house, due to pessimism surrounding gaining footing on the property ladder.
Upon further review, it seems that last year, there was a 10% increase in the amount spent on holidays from 2016. The upward trend in 18 to 35 year olds splurging on travel was noticed by Donna Jeavons, who deals with sales and marketing. She believes that the increase can be attributed to the modern epidemic of millennials not having the ability to save for a house. "I think the urgency for buying a house is no longer there," Jeavons explains. She believes that the deposit is a deterrent for young people, who feel like saving is a pointless exercise, instead living in the moment. Typical investments have been overtaken by "investments" into experiences.
There are several industry figures that are targeted at millennials who agree with Donna Jeavons and have too noticed the trend. Many millennials will pay extra for access to more exclusive sights and beaches, choosing quality travel experiences over bricks and mortar. Millennial travel seems to be an exploding sector. The new Moxy hotels by Marriott drops telephones and common furniture for interesting interiors designed for your Instagram account. Richard Branson's Virgin Voyages launches in 2020 and Joon, a lifestyle airline, was launched by Air France.
Travel has become a necessity for millennials, something they would not willingly give up to save for a house. With the age of those settling down, getting married and having kids increasing, travel is being prioritised during their youth. Also, many destinations have become a lot more affordable, so it is no longer viewed as a form of indulgence. Instead, travel is a social norm and is in fact encouraged to develop social skills.
You could argue that with the help of online property investment platforms like Homegrown, millennials can start building a nest-egg for their future and tour the world. The way travel is perceived has changed, and property investment has followed, becoming more accessible and easier to undertake.
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