- The wide availability of vaccines is causing consumers — especially younger ones — to leave the confines of their homes and come out to spend.
- A lot of money may have been saved by Boomers, but it is not being spent.
- Instead, it is the Millennials and Gen Zs who are opening up their wallets.
Even with fewer savings in their accounts than older Americans, younger consumers are the ones who’ll be contributing to a big part of the market spending as the U.S. economy recovers.
Millennials and members of Gen Z are spending even more than they did before the pandemic. Everyone’s repressed demands for travel and other goods and services were bound to explode in this manner, helping the US economy recover at the current rate. Millennials and Gen Zs are spending 125% of what they spent pre-Covid in 2019.
The psychological repercussions of Covid-19 are making young consumers feel like they need to make up for the time they lost. According to a recent study by Pinterest, Gen Z has double the number of year-on-year searches (96% more) and 3% more searches per user now as compared to the pre-pandemic world.
The study suggests that Gen Z searches reflect a clear attitude of “life is very short” and they are focused on doing everything they have not been able to do since the pandemic began. Pinterest activity shows that young people are actively seeking inspiration to plan future experiences.
Gen Zs have been searching for dream vacation destinations 13 times more than before. They’re also more frequently looking for luxury vacations, organizing bags, and travel accessories.
The study also revealed that people want to socialize more now, and Gen Zs are on the lookout for innovative ways of celebrating special occasions with their friends by throwing themed parties.
Moreover, people are also searching for ideas on how to dress for parties, dinners, and bars. From their searches, it’s clear that Millenials and Gen Zs are now looking to invest in exciting experiences and live their best life.
And although people have returned to the skies for personal domestic travel, business trips still seem like a distant vision. Corporate travel isn’t likely to be restored to its pre-pandemic frequency until 2023. For now, businesses are benefiting from consumer spending towards vacations and outings to restaurants.