Friends, Fun and Finances: Experian Survey Explores How Travelers Handle Group Vacation Costs

Price Tags and Peer Pressure

Memorable experiences and activities are the No. 1 priority for friends traveling together, Experian found. However, differing spending styles can cause tension. Among members of Generation Z and millennials who travel with friends, over half report having a money-related disagreement with friends while traveling, and 1 in 5 have ended a friendship over a money issue.

Across all generations, unexpected costs during trips and splitting costs fairly when friends have different spending priorities are the two biggest financial stress points when planning group travel. This is followed by feeling pressure to spend more than they are comfortable with.

Question: Which of the following are financial stress points for you when planning group travel?

Having different budget ranges is the biggest financial challenge when traveling with friends, especially for millennials: 35% of this age group cite it as their top difficulty. Discussing money openly without awkwardness is another common issue, particularly among millennials.

Question: When planning a trip with friends, what is the biggest financial challenge you've faced?

Most travelers spend more than planned when traveling with friends, with Gen Z and millennials most likely to go 50% or more over budget.

Question: What's the most you've ever overspent on a group vacation compared to your original budget?

Tips for Saving Money on Your Group Getaway

Try these tactics to save money when you travel with friends:

• Set a budget. Only 1 in 4 travelers surveyed by Experian say their friend group sets a budget upfront, but doing so can help you get the most from your money.
• Book early. Many people try to find last-minute deals, but you'll usually get the best rates by booking flights, rental cars and accommodations well in advance.
• Be flexible. Being open to different dates, destinations and flight times can mean big savings. Use websites like Google Flights and Skyscanner to track airfare prices and check out lower-cost options.
• Consider a package tour or all-inclusive resort. Built-in expenses mean less stress about splitting costs. Plus, you may be able to set up a payment plan that spreads expenses over time.
• Track your spending. Gen Z and millennial travelers are most likely to use apps and websites for tracking and splitting expenses; Gen X and baby boomers are more apt to keep a mental note of spending. Simplify your trip by using apps like Paypal, Venmo, Splittr, Splitwise, SettleUp or Tricount to track expenses, split costs and pay each other back.

Learn more: How to Save Money on a Vacation

Travel Smart With Credit Card Perks and Benefits

Except for Gen Z travelers, who prefer cash and debit cards, Experian found credit cards are the most common form of payment used on trips with friends. That's smart, because using credit cards wisely can help you save money and track expenses on a trip.

For instance, if you use travel rewards credit cards to pay for travel, you can earn points, miles or cash back for future travel. (Among travelers Experian surveyed, 29% have used credit card travel rewards to pay for trip expenses.) Some credit cards also offer benefits like travel insurance or hotel and airline upgrades. Others offer cash back bonuses if you spend a certain amount soon after opening an account. Just make sure the benefits you'll earn outweigh the card's fees.

You can also finance a vacation with a credit card that offers a 0% introductory APR for purchases. Put your trip expenses on the card and you'll pay no interest until the card's promotional period ends (typically 12 months or more). Just be sure you have a plan to pay the card off before the balance begins accruing interest.

Considering a new credit card? Experian offers an easy way to explore your options and get personalized offers for cards that fit your credit profile.