Burning the children's inheritance: The third generation is changing the tourism industry
A new trend is changing the tourism industry: more and more members of the third generation are going on long and expensive vacations around the world. Increased life expectancy, free time in retirement, and the wealth they have accumulated allow them to invest huge sums in luxury travel.
After Jane Chao's husband and mother passed away within six months of each other, she felt an urgent need to get away from everything. Chao, a 69-year-old mother and grandmother who recently retired, booked a 21-day tour on a private jet, visiting six different locations around the world.
During this trip, she rode camels in the deserts of Egypt, sailed on a cruise ship down the Nile, and visited Stonehenge in the UK. This trip, one of two private jet journeys offered by the travel company "Road Scholar", cost her 93,000 dollars. Chao has already booked another private jet trip to visit six countries on the African continent.
"I want to do it now, while I'm still able," she says candidly.
Chao's story is far from an exception. According to an article by reporter Clare Ansberry in the "Wall Street Journal", the "baby boomer" generation collectively possesses more wealth than any other living generation in history, and they are not hesitating to spend it on global travel. They live longer, enjoy more free time, and are in better physical shape than their parents. As the oldest among them cross the age of 80, there is a growing sense of urgency to see as much of the world as possible.
This trend is transforming the global tourism industry. Members of a generation that once hitchhiked with backpacks are now opting for Serengeti safaris as part of guided, comfortable tours. Boomers crave adventure but demand four- and five-star accommodations, fine dining, and minimal hassle with heavy luggage.
David Porter, founder of a travel agency dedicated to the third generation, told the "Wall Street Journal" that there has been a 20% jump in bookings this year. His clients are "middle-class millionaires" with a net worth ranging from one to ten million dollars. The average cruise booking is about 25,000 dollars, but luxury world cruises easily exceed the 300,000-dollar threshold per couple.
Despite their wealth, a recent survey by the American Association of Retired Persons found that boomers still seek bargains, often using artificial intelligence to find deals. Some even pride themselves on their economical approach. Lian and Leon Ryland, who retired in their mid-50s, travel 20 weeks each year, spending an average of 40,000 dollars.
Lian shares tips with other retirees on an ironic Facebook page she created called "SKIClub", an acronym for "Spend the Kids' Inheritance". The tourism industry is well aware of who is currently driving the market.
