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Millennials 'travelling the world as they'll never be able to afford a house'

Bookings to New Zealand rocketed by more than 80% this year (Kai Schwoerer/Getty Images)

More and more millennials are spending their money on exotic holidays after giving up on a dream of ever owning a home.

Young people have splashed out 10% more this year travelling to far flung places, saying trying to save for a property in today’s spiralling market is unrealistic.

Global travel brand Contiki UK said it had seen a surge in bookings among 18-35 year-olds for so-called bucket list destinations.

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It reported that year-on-year demand for trips to New Zealand was up 83%, South America was up 71%, while visits to Bali and Vietnam were up 56% and 50%, respectively.

Donna Jeavons, marketing director at Contiki UK, said: “The cost of buying a house – in particular the deposit – can be prohibitively expensive for many young people, which means that saving can feel like a futile exercise.

“Perhaps the prospect is so far out of reach that saving a bit here and there isn’t really scratching the surface and millennials are choosing to invest in experience instead.”

She added that wasn’t that young people were frivolous with their money but that they were “choosing to spend their earnings in a different way to previous generations on travel and adventures they can afford, instead of taking the more traditional path to home ownership”.

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Latest figures show that while house price growth is slowing, and despite moves to axe stamp duty for the majority of those buying for the first time, the average price of well over £211,000 is still out of reach for many young people.

More millennials see having fun now a priority over saving for the future (Rob Knox/PGA TOUR via Getty Images)

Contiki is not the only firm to recognise that millennials may be increasingly adopting a YOLO (you only live once) approach.

Europe’s first river cruise aimed exclusively at young people will be launched by U by Uniworld in April 2018.

Far from the stuffy image of regular cruises with dour shore excursions, it will offer mixology classes, street art tours and vintage motor bike rides.

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Ellen Bettridge, chief executive of the firm, said: “We are targeting an active traveller between the ages of 21 and 45, with everything from the decor, dining and cocktail service to the land activities thoughtfully curated to meet the needs of this audience.”

And Air France has also launched Joon – a new subsidiary airline aimed at millennials.