SALEM, Ohio — Great news for the travel industry was reported by mortgage guarantor Freddie Mac in a reminder of the spending power of the mighty baby boomer generation. As of 2024, there were 65 million baby boomers accounting for 20% of the U.S. population and 36% of total homeownership. The report goes on to predict an ensuing “silver Tsunami” is likely to bequeath a “wave of wealth” for their children and other heirs.
This wave of wealth will result in massive discretionary income for a new generation that will discover the value of traveling with friends and fellow like-minded travelers and make travel a high priority.
The report shows that boomers hold half of the nation’s home equity, amounting to $17.3 trillion, and 75% plan to leave either their home or the proceeds of its sale to their children or family. Only 9% are going to use or are using their home equity to fund their retirement.
The travel industry has benefited from 25 years of wealth transfer from the World War II generation to baby boomers. This emerging data indicates that the transfer of wealth from boomers to Gen X and millennials may prove even more substantial over the coming decades.
“All indicators point to a continued strong demand for group travel,” said Charlie Presley of The Group Travel Family of Brands. “The economic impact of inheritance, combined with a strong travel demand and increasing health, will headline and encourage people to seek travel as a group.”
These factors point to a healthy group travel market that will span the next 20 years.