Holiday spending: Over-50s 'go cruising, while young tighten belts'

cruise ship Image copyright Getty Images

People over the age of 50 are spending more and more on holidays - including cruises - while younger people are travelling less, according to research.

Over the past five years, the older age group has increased spending on travel by 23%, says a study by the CEBR consultancy for Saga.

Those under 50 have cut spending on tourism by 5% during the same period.

As a result, the older generation is now responsible for well over half the UK's total spending on holidays.

Last year, the over-50s spent £39bn on travel, including £2.1bn on cruises.

Other exotic destinations included exploring the silk road in Uzbekistan, the report says.

Saga specialises in selling insurance and holidays to the over-50s.

Generational fairness

Earlier this year, the Institute for Fiscal Studies (IFS) said that younger people had suffered a fall in income since the financial crisis, while those over 60 had enjoyed a higher standard of living.

In the seven years up to 2015, that age group saw an 11% rise in incomes, it said.

However, those under 30 saw a 7% drop in income over the same period, with those in the middle seeing little change.

The divergence in financial fortunes has been guaranteed by the "triple-lock" on pensions.

Since April 2011, the basic state pension has risen in line with average earnings, consumer price inflation or 2.5% - whichever of the three is highest.

Earlier this year, a committee of MPs launched an inquiry into generational fairness. It is expected to publish its report next month.

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