Innovation Needed: Gen Z & Millennials Show Less Interest in Traditional Airline Loyalty Programs

By Ivan PetrenkoJun 9, 2024 06:00 AMNews
Share:
white passenger plane in mid air during daytime. Source: unsplash

A recent report by OAG highlights a significant shift in how younger travelers view airline loyalty programs. Gen Z (61%) and Millennial (49%) travelers often cite inconsistent travel with a single carrier as a primary reason for not joining loyalty programs, followed by lengthy reward redemption times, noted by 14% and 19% respectively. Additionally, 8% of Gen Z travelers prefer rewards tailored to their travel preferences and booking patterns.

Adapting Loyalty Programs for Younger Travelers

To address brand loyalty issues, airlines are increasingly moving away from solely rewarding customers based on frequent flying. One popular strategy is the introduction of co-branded credit cards that generate miles regardless of the airline flown. This flexibility caters to the younger generation's travel habits, allowing them to earn miles even if they fly with different carriers. For example, a traveler can earn miles on their Delta SkyMiles account even when flying with Southwest Airlines.

Embracing Digital Native Travel Habits

Digital natives, particularly Gen Z and Millennials, often seek the most cost-effective accommodation options rather than sticking with traditional hotel chains. Airlines can capitalize on this trend by offering loyalty points for bookings made through third-party websites. For instance, Air France’s Flying Blue program offers two miles for every euro spent on Booking.com, providing a direct incentive for travelers to book through their platform.

To benefit from these rewards, travelers must book through the dedicated portal for Flying Blue members and enter their membership number during the final booking stage. Miles are automatically credited after the stay is completed, ensuring a seamless experience for the user.

Transparent Data Communication

Transparency in data collection and usage is critical for earning the trust of Gen Z and Millennials. These generations, particularly Gen Z, are highly conscious of online privacy. Airlines must clearly communicate how customer data is used and why certain information is necessary for safety and regulatory compliance.

For example, airlines can reference how the United States Department of Transportation (DOT) is reviewing the safety of passenger data collected by major airlines, as announced by Secretary of Transportation Pete Buttigieg. This review aims to ensure that airlines handle passenger data responsibly and transparently, addressing privacy concerns and building trust.

In the European Union, airlines are already required to explain their data processing practices under the General Data Protection Regulation (GDPR), setting a standard for transparency and data protection.

Looking Ahead

The OAG report underscores the declining appeal of traditional loyalty programs among younger travelers, who prioritize flexibility and tailored rewards. In response, airlines are innovating by offering co-branded cards, partnering with third-party platforms, and enhancing transparency in data usage. These strategies are essential for adapting to the preferences of Gen Z and Millennials and maintaining their loyalty.

Top Articles

Not Just a Suitcase: My Personal Checklist for Smart Travelers in 2025

Mar 3, 2025 18:00 PM

Practical Eco-Friendly Travel Solutions for Sustainable Tourism

Feb 14, 2025 15:00 PM

Top Tips for Securing Your Luggage and Preventing Loss

Feb 7, 2025 14:00 PM

Your Guide to Hand Luggage and Baggage Rules

Feb 4, 2025 20:00 PM
More News

Top Summer Destinations for 2025 and Rising Favorites

Apr 30, 2025 16:42 PM

New Flight Options from Berlin: Eurowings and BER Connect to Four More Cities

Apr 30, 2025 14:36 PM

Radisson Blu Opens Eco-Friendly Hotel in Ha Long Bay

Apr 30, 2025 03:37 AM

beOnd Adds 18 Direct Routes to the Maldives, Cutting Layovers

Apr 29, 2025 21:24 PM

UK Railways Gear Up for Winter with New Fleet to Tackle Seasonal Delays

Apr 29, 2025 19:32 PM

AirAsia Expands Flexibility with Paid Cancellation Options

Apr 29, 2025 17:48 PM

Marriott to Open First Safari Camp in Tanzania’s Serengeti Blending Nature and Infrastructure

Apr 29, 2025 15:53 PM

Edinburgh Airport Cuts Security Time with New Scanners

Apr 29, 2025 13:56 PM

Batumi's Tourism Scene Expands with the Arrival of La Quinta Hotel

Apr 29, 2025 04:47 AM

Travel Disruptions Expected as Euston Station Closes

Apr 29, 2025 02:31 AM

Finnair to Lay Off Pilots and Cut Long-Haul Routes Amid Ongoing Strikes

Apr 28, 2025 23:29 PM

flydubai Expands Seasonal Summer Flights to 11 Destinations

Apr 28, 2025 21:36 PM

New SIRO Boka Place Brings Active Travel to Montenegro’s Coast

Apr 28, 2025 19:53 PM

Major Disruptions Expected on Britain’s Railways Over May Bank Holidays

Apr 28, 2025 17:28 PM

New Travel Opportunities as Emirates Expands 2025 Flight Network

Apr 28, 2025 15:34 PM

Flow Country Becomes a New Travel Destination in Scotland

Apr 27, 2025 23:25 PM

Air India Eases Transfers and Refreshes Cabins for Smoother Journeys

Apr 27, 2025 19:33 PM

Easier Journeys Ahead: Belgrade–Geneva Flights Resume in 2025

Apr 26, 2025 13:47 PM

A New Nordic Journey: What Travelers Can Expect from the North

Apr 26, 2025 11:34 AM

Fewer Stopovers: Edinburgh–D.C. Route Gets Winter Boost

Apr 26, 2025 09:23 AM

Europe’s Beaches in 2025: What’s Worth Your Trip This Summer?

Apr 26, 2025 06:49 AM

Belgian Airports Brace for Major Disruptions as Nationwide Strike Causes Flight Cancellations

Apr 26, 2025 03:35 AM

Amtrak Announces New Route Linking Gulf Coast Cities

Apr 25, 2025 23:38 PM

Avani+ Fujairah Resort to Open in 2028, Expanding Travel Options in UAE

Apr 25, 2025 21:46 PM

Travelers in Jakarta Get New Emirates Service Center

Apr 25, 2025 19:21 PM

New Budget-Friendly Super 8 Hotels to Open Across Spain and Portugal

Apr 25, 2025 17:37 PM