Scenic and Sightseeing Transportation NAICS 4871, 4872, 4879

Feb 23, 2026 - Gen Z and Millennials Make Up Half of US Travelers

• Gen Z and millennials make up about half of all US travelers, with Gen Z’s share climbing from 8% in 2024 to 14% in 2025, according to Deloitte’s latest Travel Industry Outlook. Even with lower earnings, both generations travel at higher rates than older cohorts. How they plan and book trips is also changing the playbook: social media (especially short-form video) has become a primary discovery tool, and sustainability considerations increasingly influence lodging and transportation choices. Digital engagement matters more across the journey, from inspiration to booking to in-trip experiences. Millennials are leading in the use of AI for trip planning and tend to associate “luxury” with food-driven, family-friendly experiences. Gen Z, meanwhile, defines luxury around comfort, wellness, and amenities such as fitness and spa offerings. Together, these preferences are pushing travel and hospitality brands toward more digital-first marketing and personalized experiences designed to meet younger travelers where they are.
• International travel to the US fell in 2025 as global tourism grew, making it the only major destination seeing a decline in international visitors, according to the US Travel Association. Inbound travel dropped about 4% year over year - 11 million fewer visitors and a $50 billion hit to airlines, hotels, restaurants and attractions - while worldwide tourism rose about 4% (per the International Travel Association). The slide reflects a sharp shift in US entry policy under Trump, including expanded travel bans, widespread visa suspensions, and broader social-media vetting, measures that industry groups say have made the US feel less welcoming to foreign travelers. Those policies, coupled with confrontational rhetoric toward allies, have dampened demand from key markets of Canada, Europe and parts of the Middle East. Travel leaders warn the resulting slump could have lasting consequences for US competitiveness, even with potential tailwinds from events like the 2026 FIFA World Cup.

• Trump’s proposal to cap credit card interest rates at 10% for one year could ripple into the travel industry by undercutting the economics behind travel rewards cards. Banks use interest income to fund points programs for miles, statement credits, and other perks tied to airlines, hotels, cruises, rental cars, and general travel cards. If that revenue shrinks (as would be the case under the proposal) issuers may trim rewards, raise annual fees, or pull back on premium cards altogether. That would dull one of travel’s strongest demand engines, as many consumers book trips specifically to earn or redeem rewards. Travel companies, which lean heavily on co-branded cards and loyalty partnerships for steady, high-margin income, could see slower growth in ancillary revenue. The net effect of the change would be fewer incentives for consumers to travel and a less powerful loyalty machine operating across the travel industry.
• The travel industry is moving away from competing on discounts and toward creating experiences that travelers feel emotionally connected to. As people seek more authentic and meaningful trips, destinations and travel brands are leaning on storytelling to showcase local culture, real communities, food, history, and sustainability rather than just prices and attractions. Marketing is shifting from short-term promotions to ongoing narratives across digital channels that build interest before, during, and after a trip. Loyalty strategies are also evolving, with more emphasis on exclusive access, personalized experiences, and insider moments instead of simple price cuts. Technology and data are helping tailor these stories to different traveler motivations, while responsible tourism has become central to how destinations define themselves. In an increasingly crowded market, travel companies that build genuine connections are more likely to turn visitors into repeat travelers and long-term advocates.