If you thought the stress of group vacations was limited to getting everyone to agree on destinations and activities — or the occasional travel inconvenience — you may be forgetting a big one: sorting out the finances once everyone gets home.
New research commissioned by Zelle suggests shared travel expenses are a major source of tension among younger travelers, with many saying repayment disputes have damaged friendships and even pushed them into debt. According to the company's Avoidance Economy Report, 76 percent of Gen Z respondents who covered group travel or event expenses said they were not fully repaid, while 55 percent said repayment issues created tension or negatively affected a relationship.
Forward Planning
The findings highlight a growing challenge among younger consumers, and though Samantha Collum, a senior travel advisor at River Oaks Travel, a Virtuoso agency, says proactive planning means these issues are less common in the luxury market, she stresses "the key to avoiding issues is setting expectations clearly from the beginning."
The research also reveals that younger travelers are spending heavily on shared experiences. More than one-third of Gen Z respondents reported spending at least $2,501 per person on major group trips and events, the highest proportion of any generation surveyed. Paying upfront often comes with financial consequences, however: 47 percent of Gen Z respondents said they had gone into debt while covering group expenses with the expectation of being reimbursed later.
To deal with this, Collum says advisors are increasingly encouraging clients to agree on how costs will be shared before any reservations are confirmed.
"We are seeing clients become more thoughtful about how costs are divided, especially when multiple households, couples or generations are traveling together," she says. "Even when everyone is comfortable with the overall budget, it is still important to clarify who is responsible for which expenses before anything is confirmed."
Avoid Over-Reliance
Rather than relying on one traveler to pay for the entire trip and collect money afterward, Collum says advisors should try to structure payments to eliminate the need for reimbursement altogether.
"The best way to avoid awkwardness is to avoid putting one person in the position of paying for everything and then collecting reimbursement from the rest of the group," she says. "Whenever possible, we recommend that each traveler, couple or household pay their share directly to our agency or supplier."
She explains further: "From an advisor perspective, we try to clarify the payment structure early in the planning process. For group trips, that includes identifying the primary decision-maker and confirming who is financially responsible for each component."
The report highlights what Zelle describes as the "avoidance economy," where consumers delay or avoid conversations about money after shared experiences. One in five Gen Z respondents said they had canceled plans or muted or ignored group chats to avoid discussing repayment, and 33 percent said settling shared expenses caused them stress or anxiety.
Board-certified clinical psychologist and certified financial therapist Dr. Traci Williams says this sort of avoidance often stems from financial anxiety.
"What starts as a payment request can quickly turn into avoidance to temporarily reduce financial anxiety," Williams says. "Taking responsibility, acknowledging the delay and using simple tools to pay people back can help reduce stress and protect relationships."
Technological Assist
While digital payment apps can still play a role during a trip, Collum says they are best reserved for incidental expenses rather than the trip itself.
"Digital payment tools like Venmo can be helpful for smaller shared costs during a trip, such as meals, taxis or casual activities," Collum says. "However, for major travel components, we still prefer a formal payment process directly through the agency or supplier."
The survey also suggests repayment disputes can have lasting consequences. Twenty-five percent of Gen Z respondents said repayment issues had damaged a relationship over the long term, while 14 percent said they had ended a friendship or relationship because of disagreements over paying money back.
Denise Leonhard, general manager of Zelle, stresses that amazing trips shouldn't be followed by the negative experience of chasing friends to settle up.
"Shared experiences should bring people closer, not create debt, tension or awkward group chat reminders," she says.
While digital tools can make reimbursements easier, technology alone is unlikely to solve the problem. Though many consumers are turning to banking apps such as Zelle, peer-to-peer payment platforms like Venmo, or expense trackers such as Splitwise, advisors say the biggest factor in avoiding conflict remains agreeing on responsibilities and payment expectations before the trip begins.
"Overall, reimbursement issues are most avoidable when the group has a clear plan before deposits are made," Collum says. "Good communication upfront allows everyone to relax and enjoy the trip without financial uncertainty lingering in the background."
She adds that for travel advisors, documenting financial expectations may be just as important as choosing the destination itself.
"The more that can be documented in advance, the better," she advises. "Clear expectations around deposits, final payments, cancellation penalties and shared expenses help prevent uncomfortable conversations later."
Related Stories
Experian: 36% of Travelers Willing to Take on Debt for Vacation
Delaware North Launches a New Premium Alternative Lodging Brand
Riviera Travel Names Hunter Swindle as VP Sales, North America
CFAR Travel Insurance Searches Surge as Geopolitical Fears Rise