Who’s Ready for a Pay-Cation?

Younger workers are choosing to work remotely from vacation destinations, a new report says
Girl sitting in the sand
Younger travelers are also choosing to take solo adventures, the report says. Pixabay

A new work-from-a-vacation-destination travel trend has taken hold in the wake of the COVID pandemic, according to a new report by Allianz Partners. A “pay-cation” is when younger generation employees choose to work remotely from a vacation destination.

Allianz Partners’ Annual Vacation Confidence Index found that respondents in the 18 to 34-year-old demographic are more likely (42%) to travel to a vacation destination to work remotely, compared with 26% of those ages 35 to 54 years old and 12% who are 55 years and older.

“Younger Americans who spent the early years of their career during the work-from-home era in the pandemic are re-shaping our preferences for the way we work and travel,” said Daniel Durazo, director of external communications at Allianz Partners USA. “While some companies have already returned to in-person work, our findings clearly show that a healthy balance of work and play is here to stay, and prioritizing self-care is going to impact the way Americans view travel and time off the clock.”

In other survey findings:

  • Among all survey respondents, two in five (39%) say that wellness and self-care are a priority for travel this year, including a majority (54%) of those ages 18 to 34 who mark it top of mind.
  • Younger Americans are more likely to engage in a solo travel experience this year versus older generations. Two in five (42%) of them will embark on a trip alone this year, compared to almost one in three (31%) of 35- to 54- year-olds and seventeen percent (17%) of ages 55 and older.
  • Solo travel doesn’t always have to equal alone time. Emotional well-being also extends to the inclusion of companion animals on trips, with four in 10 (41%) of 18–34-year-olds opting to include their pets on vacations, compared to 36% of 34- to 54-year-olds and 20% of travelers aged 55 and older who want to bring a pet along on their travels.

Allianz Partners offers travel insurance through most major U.S. airlines, leading travel agents, online travel agencies, hotel companies, cruise lines and directly to consumers.

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