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The identity gap: Where marketing feels effective and where it breaks down
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From airport security stressors to economic instability, tariffs and global conflict, the travel industry has seen an incredible number of shifts over the past year—but that doesn't mean no one is traveling. It's more that the traveler profile has changed, and what travelers are interested in varies across age and income bracket.
In Epsilon Pulse research we've conducted over the past couple of years, we've noticed that when it comes to dealing with rising costs, the average consumer tends to adjust the "how" not the "what."
For holiday shopping, that might mean they choose to shop at less expensive stores. For travel, that might mean they opt to stay closer to home instead of prioritizing international trips, reduce their travel budget or opt for a "destination dupe."
For luxury consumers, however, the economic impact looks a little different. After all, price increases just don't impact this group in the same way they impact middle-class and lower-income consumers. This is an example of what economists call the K-shaped economy, where different segments of the population or different industries experience vastly different outcomes.
In the travel space, our research showed that luxury consumers are over-indexing on domestic and international travel, while other economic groups are feeling priced out.
In October 2025, Delta Airlines CEO Ed Bastian theorized that, in 2026, “effectively, none of our growth in seats will be in the main cabin. Virtually all will be in the premium sector,” speaking to the trend of luxury offerings outpacing more accessible options. So far, his prediction has been correct, with Delta's premium cabin ticket sales up 9% year over year.
So what does that mean for everyone else? Besides the adjustments mentioned above, our research found that 58% of travelers look for travel rewards programs to maximize savings (especially Gen Z and millennials), and 69% are willing to adjust their travel dates if it means scoring a better deal.
To give you a better sense of how people are traveling in 2026, we broke down our data by generation, highlighting the trends marketers need to know so they can reach their audience with messaging that resonates across channels.
Gen Z travels and spends the most on both domestic and international trips. They're most likely to travel during the summer and over Christmas and New Year's, and 80% plan on traveling in the next year.
They're most interested in beach vacations, family-friendly trips and exploring major urban destinations and are more likely than any other generation to book a ski or snowboarding vacation. While they prefer booking hotels, they are more likely than other generations to book a vacation rental like Airbnb or Vrbo, a campsite, a bed and breakfast or a hostel.
Gen Z is eager to do more international travel and are most likely to book a trip based on something they saw on social media. They're also the most likely to use AI to plan their trips, with 68% of Gen Z saying they use AI in some way for travel (the most popular use cases include help with itinerary planning and packing tips).
Learn more about the latest Gen Z trends in our guide.
While they're not traveling or spending quite as much as Gen Z, millennials are still a big part of the modern travel mix. Seventeen percent of millennials report spending an upwards of $10,000 or more per household on travel, and like Gen Z, are more likely to travel during the summer months and Christmas and New Year's.
They are most likely to say they're planning to travel within the U.S. in the next year, and one in four millennials are planning to travel internationally. They prefer beach vacations, family-friendly locales and road trips and are mostly likely to book a hotel when they travel. Millennials are also more likely to prioritize local food and drink experiences compared to other generations and care the most about online reviews when they're planning a trip.
More than half say they've used AI for travel, with 30% of millennials using AI to search for travel deals and discounts and 28% using it to look for hotel reviews. Ultimately, this generation is leveraging AI to save time on research and simplify the trip-planning process.
Gen X travels a lot less than their younger counterparts, but they still spend an average of $4,821 per household on travel (which is likely lower since they probably don't have kids at home). They travel pretty consistently throughout the year, especially in summer and fall, and prefer road trips, beach vacations and urban getaways compared to other types of trips.
They overwhelmingly prefer hotels when booking travel and are less likely to be open to different types of accommodations. Gen X highly values cleanliness, safety, value, price and location when choosing accommodations.
Thirty percent of this generation say they use AI for travel, mostly to look for deals and discounts and to find hotel reviews. For those who use AI for travel, the number one reason is to help them save time on research.
Boomers are most likely to say they haven't traveled domestically or internationally in the past year, but those who did spent an average of $4,976 per household.
They're most likely to travel in summer and fall, and they're more likely to travel in the fall than younger generations. Three in five boomers plan to travel in the next 12 months, with more than 50% planning to travel domestically and one in six planning to travel internationally.
Travel may have changed a lot in the past year, but you can still optimize your marketing strategy to reach people when they're planning their next trip.
Research methodology: This study was in field from April 17 to April 27, 2026, and aimed to uncover key insights into travel planning behaviors, what types of vacations consumers seek and how they choose between accommodations, loyalty program trends, factors that influence repeat bookings and customer retention. To qualify for the research, respondents had to be between 18 and 77 years of age.
IDC White Paper, sponsored by Epsilon, Improve Data Quality to Support Quality AI Outcomes, #US53663025, July 2025
