I'm a Travel Expert: 5 Top Travel Destinations for Millennials Worth the Money in 2025
'Millennial travelers seek out unique destinations, prioritize sustainable tourism, and crave authentic and immersive cultural experiences,' Maritz said. And, importantly, having entered the workforce during the Great Recession, many millennials want the most value for their money.
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Here are five travel destinations worth the money and aligned with millennial values, according to travel experts.
'With its captivating blend of cutting-edge innovation, ancient traditions and breathtaking aesthetics, Japan is a top destination on many millennial travelers' bucket lists,' Maritz said.
From cherry blossoms and sumo wrestling to authentic sushi and serene temples, the island nation of Japan submerses travelers with a unique combination of old and new. Travelers can explore neon-lit skyscrapers and shrines in well-known cities like Tokyo, Kyoto and Hiroshima, as well as gardens and castles in hidden gems like Kanazawa and Takayama. And they shouldn't leave without a visit to a green tea farm or a ride on the legendary Shinkansen bullet train.
Per Maritz, a 13-day tour (with lodging included) can begin around $2,600 per person.
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'With its unrivaled natural diversity from rolling winelands and towering mountains to sweeping coastal scenery and world-class safaris, South Africa truly offers something for everyone,' Maritz said.
Tourists can check out Cape Town — the oldest and perhaps most well-known urban city in the country — or drive the Garden Route, an ocean-hugging highway stretching from Mossel Bay to the Storms River that showcases the best of South Africa's beauty and hospitality. Then, of course, there's Kruger National Park, South Africa's most famous game reserve, offering multiday, once-in-a-lifetime safaris.
With its diverse ecosystems, South Africa offers opportunities to support local businesses and communities, as well as the option to unplug and digitally detox — all things some millennials crave.
Per Maritz, a 14-day tour (with lodging included) can begin around $2,170 per person.
'Mexico City has transformed into a dynamic cultural hub with world-class museums, vibrant street art and one of the most exciting food scenes in the world,' said Alex Alioto, founder and head of growth and partnerships at Whimstay.
A spot Condé Nast Traveler once called 'the tastiest destination in North America,' Mexico City offers everything from fine dining establishments to sizzling street tacos and churro shops with lines around the block. Tourists can visit Monumento a la Revolución (commemorating the Mexican Revolution) and Mercado Jamaica (Mexico City's principal flower market), or they can take an Uber ride outside the city to catch a Teotihuacan hot air balloon tour. In Mexico City, both ancient and modern cultures fuse to create lively and colorful experiences at affordable prices.
Per Alioto, accommodations run between $70 and $150 per night for everything from hostels to boutique hotels, and daily expenses usually run between $40 and $70 per day. He estimated the average cost of a seven-day trip to be between $1,800 and $2,600 per person.
'Greece is always a good idea for millennial travelers,' Maritz said. 'A visit to the Greek capital and its most celebrated islands perfectly combines ancient culture with Instagrammable scenery and vibrant nightlife!'
Not only is Athens, Greece, a budget-friendly city full of cultural and historical wonders like the Acropolis and Parthenon, there are many Greek islands to explore too, like Mykonos and Santorini.
Per Maritz, a seven-day tour of Athens, Mykonos and Santorini (factoring in lodging and travel between islands) can begin around $1,975 per person.
What millennial travel guide would be complete without the city of Portland, Oregon? Embracing sustainability, creative expression and endless Fred Armisen references, 'Portland offers an eco-friendly urban experience with excellent public transportation, an incredible food and craft beer scene, and proximity to stunning natural attractions,' Alioto said. The city also contains the world's largest independent bookstore and a bridge specifically reserved for bicyclists.
Per Alioto, accommodations run between $120 and $180 per night and daily expenses usually run between $60 and $90 per day. He estimated the average cost of a seven-day trip to be between $1,800 and $2,600 per person.
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Instead of slowly and gradually moving rates in one direction (up or down), interest rates would often rise, then fall, then rise again. Rates fell sharply to a target range of 13-14 percent on Nov. 2, 1981, then back up to 15 percent in the first four months of 1982, then back down to 11.5-12 percent on July 20, 1982, records of the moves show. The 'effective' fed funds rate averaged at 9.97 percent during this 10-year period. Interest rates haven't eclipsed 10 percent since November 1984. One reason for the volatility: Chair Paul Volcker decided that the best way to combat inflation involved limiting the growth of the money supply, rather than directly targeting interest rates — the way officials control inflation today. Other differences between today's Fed and the Fed of the past include a wider target range for the benchmark fed funds rate, sometimes spanning 5 percentage points instead of the 0.25 percentage point window today. Not to mention, the Fed would adjust rates at unscheduled meetings more often than not, after which it wouldn't release policy statements. Chairman Paul Volcker was the main driver of Fed policy in this decade, leading the Fed until Chairman Alan Greenspan took the post in August 1987. Critics at the time vilified Volcker for harming the economy. Farmers, for example, drove their tractors to the Fed's headquarters in Washington, D.C., to protest higher interest rates, according to historians at the St. Louis Fed, while car dealers mailed him car keys of unsold vehicles in coffins. The moves came with a price: Unemployment soared to almost 11 percent, at the time the highest since the Great Depression, historic Bureau of Labor Statistics data shows. Inflation, however, stayed away for years, falling to below 2 percent by 1986. Fed interest rate history of 1991-2000: Alan Greenspan steers the Fed through a brief recession then presides over 'Great Moderation' with a long economic expansion Fed rate moves Meeting date Rate change Target January 9, 1991: Conference call -25 basis points 6.75 percent February 1, 1991: Conference call -50 basis points 6.25 percent March 8, 1991: Unscheduled move -25 basis points 6 percent April 30, 1991: Conference call -25 basis points 5.75 percent Aug. 5, 1991: Conference call -25 basis points 5.5 percent Sept. 13, 1991: Conference call -25 basis points 5.25 percent Oct. 30, 1991: Conference call -25 basis points 5 percent Nov. 5, 1991 -25 basis points 4.75 percent Dec. 6, 1991 (After a Dec. 2, 1991, conference call) -25 basis points 4.5 percent Dec. 20, 1991 (After Dec. 17, 2001, meeting) -50 basis points 4 percent April 9, 1992: Unscheduled move -25 basis points 3.75 percent June 30-July 1, 1992 -50 basis points 3.25 percent Sept. 4, 1992: Unscheduled move -25 basis points 3 percent Feb. 3-4, 1994 +25 basis points 3.25 percent March 22, 1994 +25 basis points 3.5 percent April 18, 1994: Emergency meeting +25 basis points 3.75 percent May 17, 1994 +50 basis points 4.25 percent Aug. 16, 1994 +50 basis points 4.75 percent Nov. 15, 1994 +75 basis points 5.5 percent Jan. 31-Feb. 1, 1995 +50 basis points 6 percent July 5- 6, 1995 -25 basis points 5.75 percent Dec. 19, 1995 -25 basis points 5.5 percent Jan. 30-31, 1996 -25 basis points 5.25 percent March 25, 1997 +25 basis points 5.5 percent Sept. 29, 1998 -25 basis points 5.25 percent Oct. 15, 1998: Emergency meeting -25 basis points 5 percent Nov. 17, 1998 -25 basis points 4.75 percent June 29-30, 1999 +25 basis points 5 percent Aug. 24, 1999 +25 basis points 5.25 percent Nov. 16, 1999 +25 basis points 5.5 percent Feb. 1-2, 2000 +25 basis points 5.75 percent March 21, 2000 +25 basis points 6 percent May 16, 2000 +50 basis points 6.5 percent After a tumultuous few years for the Fed during the Great Inflation, Greenspan faced a much calmer period, though that's not to say he didn't have his fair share of challenges during his near 18-year tenure at the helm of the Fed. After an eight-month recession beginning in August 1990, Greenspan and Co. managed to take the fed funds rate all the way up to a target level of 6.5 percent in May 2000, the highest of the period. Rates reached a low of 3 percent in September 1992, the lowest of the decade. Besides during the early 1990s, the Fed mainly adjusted rates at Federal Open Market Committee (FOMC) meetings, a practice that is in rhythm with today's Fed. Officials did hike rates on April 19, 1994, at an emergency meeting due to inflation worries, and they cut borrowing costs at an unscheduled Oct. 15, 1998, gathering. Key insights on the 1991-2000 era Fed chair of the decade: Alan Greenspan (1987-2006) Peak of the decade: 6.75 percent Low of the decade: 3 percent Another noteworthy feat, the U.S. central bank also made its first 'insurance' cuts, meaning officials cut interest rates to give the economy an extra boost, not to fight a recession. Such was the case in 1995, 1996 and 1998, when the financial system confronted a share of headwinds ranging from debt default in Russia to a major hedge fund's collapse. The longest-serving Fed chair to date, Greenspan is often nicknamed 'maestro' for having steered the economy through the longest economic expansion at the time. The Fed unofficially began identifying 2 percent as its inflation target during this decade — a pivotal decision that would irrevocably change modern monetary policy. A proponent of deregulation, however, his policies would later be blamed for fueling asset bubbles that led to the dot-com boom and bust and the housing bubble that sparked the 2008 financial crisis. Fed interest rate history of 2001-2010: Fed faces the dotcom bust, the 9/11 terrorist attacks and the 2008 financial crisis Rate cuts 2001-2003 Meeting date Rate change Target Jan. 3, 2001: Emergency meeting -50 basis points 6 percent Jan 30-31, 2001 -50 basis points 5.5 percent March 20, 2001 -50 basis points 5 percent April 18, 2001: Emergency meeting -50 basis points 4.5 percent May 15, 2001 -50 basis points 4 percent June 26-27, 2001 -25 basis points 3.75 percent Aug. 21, 2001 -25 basis points 3.5 percent September 17, 2001: Emergency meeting -50 basis points 3 percent Oct. 2, 2001 -50 basis points 2.5 percent Nov. 6, 2001 -50 basis points 2 percent Dec. 11, 2001 -25 basis points 1.75 percent Nov. 6, 2002 -50 basis points 1.25 percent June 24-25, 2003 -25 basis points 1 percent Rate hikes 2004-2006 Meeting date Rate change Target June 29-30, 2004 +25 basis points 1.25 percent Aug. 10, 2004 +25 basis points 1.5 percent Sept. 21, 2004 +25 basis points 1.75 percent Nov. 10, 2004 +25 basis points 2 percent Dec. 14, 2004 +25 basis points 2.25 percent Feb. 1-2, 2005 +25 basis points 2.5 percent March 22, 2005 +25 basis points 2.75 percent May 3, 2005 +25 basis points 3 percent June 29-30, 2005 +25 basis points 3.25 percent Aug. 9, 2005 +25 basis points 3.5 percent Sept. 20, 2005 +25 basis points 3.75 percent Nov. 1, 2005 +25 basis points 4 percent Dec. 13, 2005 +25 basis points 4.25 percent Jan. 31, 2006 +25 basis points 4.5 percent March 28, 2006 +25 basis points 4.75 percent May 10, 2006 +25 basis points 5 percent June 29, 2006 +25 basis points 5.25 percent Rate cuts 2007-2008 Meeting date Rate change Target & target range Sept. 18, 2007 -50 basis points 4.75 percent Oct. 30-31, 2007 -25 basis points 4.5 percent Dec. 11, 2007 -25 basis points 4.25 percent Jan. 22, 2008: Emergency meeting -75 basis points 3.5 percent Jan. 29-30, 2008 -50 basis points 3 percent March 18, 2008 -75 basis points 2.25 percent April 29-30, 2008 -25 basis points 2 percent Oct 8, 2008: Emergency meeting -50 basis points 1.50 percent Oct. 28-29, 2008 -50 basis points 1 percent Dec. 15-16, 2008 -100 to 75 basis points 0-0.25 percent The 2000s were the Fed's most rhythmic period yet, with the Fed following clear cycles for both tightening and loosening rates. To start the decade, the Fed slashed interest rates 13 times to a low of 1 percent — a range that might've been unthinkable for those who remembered rates in the '80s — after a stock market bubble in the technology sector burst, kickstarting a recession that was exacerbated by the 9/11 terrorist attacks. Key insights on the 2001-2010 era Fed chair of the decade: Alan Greenspan (1987-2006) Ben Bernanke (2006-2014) Peak of the decade: 6 percent Low of the decade: 1 percent The U.S. central bank then managed to hike interest rates 17 times between 2004 and 2006 — all of those increases in gradual, quarter-point moves — to a high of 5.25 percent. That was until the financial crisis of 2008 happened and the ensuing Great Recession, which slammed the brakes on the economy. The Fed then did the unthinkable: It slashed interest rates by 100 basis points to near-zero. Chairman Ben Bernanke led the Fed during this period, which was, at the time, one of its most aggressive economic rescue efforts in Fed history. During this era, the Fed also unveiled an experimental, unconventional monetary policy tool: quantitative easing, or large scale asset purchases (LSAPs) as they're formally known. A massive bond-buying program to lower long-term interest rates and give the economy a bigger boost caused the Fed's balance sheet to balloon, soaring to $4.5 trillion from a starting place of $870 billion. Fed interest rate history of 2011-2020: The economy recovers from the Great Recession and faces the coronavirus pandemic a decade later Rate hikes 2015-2018 Meeting date Rate change Target range Dec. 15-16, 2015 +25 basis points 0.25-0.5 percent Dec. 13-14, 2016 +25 basis points 0.5-0.75 percent March 14-15, 2017 +25 basis points 0.75-1 percent June 13-14, 2017 +25 basis points 1-1.25 percent Dec. 12-13, 2017 +25 basis points 1.25-1.5 percent March 20-21, 2018 +25 basis points 1.5-1.75 percent June 12-13, 2018 +25 basis points 1.75-2 percent Sept. 25-26, 2018 +25 basis points 2-2.25 percent Dec. 18-19, 2018 +25 basis points 2.25-2.5 percent Rate cuts 2019-2020 Meeting date Rate change Target range July 30-31, 2019 -25 basis points 2-2.25 percent Sept. 17-18, 2019 -25 basis points 1.75-2 percent Oct. 29-30, 2019 -25 basis points 1.5-1.75 percent March 3, 2020: Emergency meeting -50 basis points 1-1.25 percent March 14-15, 2020: Emergency meeting -100 basis points 0-0.25 percent The Fed couldn't escape zero rates in the 2010s just as much as it couldn't escape devastating recessions. Officials would ultimately end up leaving interest rates at rock-bottom until 2015, after which they only hiked interest rates by 25 basis points once per year. That is, until 2017, when the Fed hiked three times, and 2018, when they hiked four more times. The fed funds rate peaked at 2.25-2.5 percent. Facing tepid inflation and moderating growth, the Fed also decided in 2019 to cut interest rates three times to give the economy a fresh boost — similar to Greenspan's 'insurance' cuts of the 1990s. Key insights on the 2011-2020 era Fed chairs of the decade: Ben Bernanke (2006-2014) Janet Yellen (2014-2018) Jerome Powell (2018-Present) Peak of the decade: 2.25-2.5 percent Low of the decade: 0-0.25 percent The fed funds rate looked like it was about to settle there until the coronavirus pandemic came along, ushering back in another era of near-zero rates. The Fed slashed rates to zero across two emergency meetings within 13 days of each other as the gears of the economy came to a halt. Chair Janet Yellen took the helm of the Fed from Bernanke in February 2014 and steered the economy through its Great Recession recovery until February 2018, when Chair Jerome Powell was installed. Fed interest rate today 2021-present: The Fed's latest moves in an era of soaring inflation Rate hikes 2022-July 2023 Meeting date Rate change Target range March 15-16, 2022 +25 basis points 0.25-0.5 percent May 3-4, 2022 +50 basis points 0.75-1 percent June 14-15, 2022 +75 basis points 1.50-1.75 percent July 26-27, 2022 +75 basis points 2.25-2.5 percent Sept. 20-21, 2022 +75 basis points 3-3.25 percent Nov. 1-2, 2022 +75 basis points 3.75-4 percent Dec. 13-14, 2022 +50 basis points 4.25-4.5 percent Jan. 31-Feb. 1, 2023 +25 basis points 4.5-4.75 percent March 21-22, 2023 +25 basis points 4.75-5 percent May 2-3, 2023 +25 basis points 5-5.25 percent July 25-26, 2023 +25 basis points 5.25-5.5 percent Rate cuts 2024-? 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Officials felt comfortable leaving their foot on the gas even as inflation soared to a 40-year high — in part, because they were guided under a false assumption that massive price pressures were only temporary. They also wanted to give the economy time to recover from the coronavirus pandemic. Experts say U.S. central bankers usually worry about the wrong conflict. Just how officials spent the 1990s worried about inflation, the Fed probably spent the early 2020s fearing too-low inflation, says Scott Sumner, monetary policy chair emeritus at George Mason University's Mercatus Center. 'Central banks tend to focus on fighting the last war,' Sumner says. 'If you have a lot of inflation, you get a more hawkish stance. If you've undershot your inflation target, then the Fed thinks, 'Well, maybe we should've been more expansionary.' Powell came into his job with that determination, that if there was another recession, they would be more aggressive. My own view is that the strategy was relatively successful at first but pushed too far.' Key insights on the 2021-2022 era Fed chair of the decade: Jerome Powell (2018-Present) Peak of the decade: 5.25-5.5 percent Low of the decade: 0-0.25 percent By many standards, however, an entirely different U.S. central bank is steering the boat, meaning officials don't want to tame inflation with aggressive, volatile rate hikes similar to the 1980s, he adds. Yet, officials have also spoken out against the stop-and-go manner of rate hikes leading up to the Great Inflation of the 1980s. 'The successful Volcker disinflation in the early 1980s followed multiple failed attempts to lower inflation over the previous 15 years,' Powell said in a pivotal 2022 speech at the Fed's annual monetary policy symposium in Jackson Hole, Wyoming. 'Our aim is to avoid that outcome by acting with resolve now.' Prices in June rose 2.7 percent from a year ago, more than three times slower than the eye-popping 9.1 percent annual rate from June 2022, according to the Bureau of Labor Statistics consumer price index (CPI). Excluding the more volatile food and energy categories, so-called core inflation is up 2.9 percent from a year ago, BLS data also shows. At the same time, unemployment has risen, and job growth has slowed markedly since the Fed started raising interest rates. The fear of harming economic growth was a primary motivation behind the Fed's decision to cut interest rates in 2024. Bottom line Even with three interest rate cuts so far, Fed officials appear poised to keep interest rates high as they wait to see how tariffs might impact prices. Concentrate on eliminating high-interest debt, boosting your credit score and shopping around for the best places where you can park your cash, so your money is rewarded. 'Interest rates took the elevator going up, but they'll be taking the stairs coming down,' McBride says. 'Interest rates won't fall fast enough to bail you out of a tight situation.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
