See Why Young Generations Are Driving This Big Travel Trend

Travel has become a new kind of mass-market status symbol and national pastime, as millions of Americans have shaken off the doldrums of the pandemic and spread their wings. But today's younger generations are traveling differently than their parents. Millennials and Gen Z are breaking out their credit cards to buy plane tickets and book hotels and Airbnbs for a unique new travel trend: destination events.

A new summer travel survey from Bread Financial and AAA found that young people are highly likely to travel long distances for big live events like concerts and sports. Let's dig deeper into why destination events are the new driving force in Gen Z and millennial travel.

More young people travel for big live events

The Bread Financial and AAA survey found that 65% of Gen Zers and 58% of millennials have traveled in the past 12 months (or plan to travel in the next 12 months) to live events more than 50 miles from home. Only 43% of Gen Xers and 27% of boomers said the same. Destination events are informing travel packages for younger Americans.

The survey also found that Gen Zers are especially willing to spend big money on air travel as part of a destination event travel plan. Over half (53%) of Gen Zers have a plan to travel by plane to attend a destination event, and 18% of Gen Z said they would consider traveling 1,500 miles or more to attend an event. (Only 9% of boomers were willing to travel that far.) And 48% of Gen Z and 42% of millennials said they would even consider traveling internationally to see their favorite events if they could get cheaper tickets.

People have always traveled and attended big-time sporting events and concerts. But this new focus on destination events as the center of people's travel plans seems to be a new shift in consumer spending by Gen Z and millennials.

The Taylor Swift effect: How The Eras Tour is shaping the travel industry

One big example of how destination events have captured the imagination of young music fans (and travelers) is a certain big-name pop star -- Taylor Swift. Marriott Bonvoy® recently announced a monthslong sweepstakes for fans to win free Taylor Swift concert tickets in cities around the world.

According to the Bread Financial/AAA survey, 20% of Gen Zers have traveled or plan to travel to a Taylor Swift concert. That's a huge percentage, and it shows how powerful music can be as a driving force in people's travel decisions. If it's hard to get tickets to see your favorite artist in your home city, traveling to another city might be a smart financial move. After all, if you and your friends are already spending hundreds of dollars for tickets, it could be worth spending more on flights and hotels.

How people spend (and stay) with destination event travel

Whether it's Taylor Swift, the NBA Finals, or the Super Bowl, today's young travelers are willing to spend big money for live event tickets. And 39% of millennials and 37% of Gen Z said they have spent $500-$5,000 (or more) for live event tickets -- not including travel costs.

Young travelers are also more likely to turn their destination event travel into a larger vacation experience. The Bread Financial/AAA survey found that 72% of Gen Z and 68% of millennials are likely to book extra travel time to sightsee and explore the host city of their destination event, compared to only 56% of Gen X and 51% of boomers.

This could be a sign that destination event travel will have positive spillover effects for the local economies that host big concerts. Instead of getting the concert crowd in town for just one night, local bars, restaurants, and businesses can attract new customers for an entire long weekend or midweek jaunt.

Destination events and the future of travel rewards cards

Millennials and Gen Z are known for being motivated by the attitude of YOLO ("you only live once"). These young travelers tend to be willing to spend more money on experiences and happy memories, even if there are extra costs in getting to the show.

Here are a few tips to use travel rewards credit cards to get the most out of your destination event travel.

Use expensive concert tickets to earn credit card welcome offers

If you're shelling out hundreds or thousands of dollars for concert tickets, you could put that money toward a new credit card welcome offer. Some of the best travel rewards cards let you earn thousands of bonus reward points or free frequent flyer miles if you spend a few thousand dollars within the first few months of opening your card.

Don't overspend or rack up a big balance. But if you're planning ahead for covering your next concert trip, using the best credit cards can help you earn extra value.

Transfer travel rewards for flights or hotels

Some of the best travel rewards cards make it easy to transfer your credit card reward points to airline frequent flyer programs or hotel loyalty programs. This can make your destination event travel more affordable, if you can use credit card points to get a discount airline ticket or free hotel for the weekend.

Bottom line

Gen Z and Millennials are leading the charge on a new way of travel, and they're willing to spend money to see the shows, music, sports and destination events that matter most to them. Travel rewards credit cards can help you earn extra benefits and special deals for the new world of traveling to destination events.