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

Top 10 reasons for flight cancelation by airlines: a clear algorithm of actions to get compensation

Oct 16, 2025 16:22 PM

Where to Buy eSIM at the Best Price: A Full Review of Tariffs and Options

Aug 8, 2025 10:54 AM

Internet on a Cruise: How to Avoid Huge Bills for Connectivity

Aug 6, 2025 09:14 AM

No More SIM Swaps: The eSIM Travel Solution You’ll Actually Use

Aug 4, 2025 16:51 PM
More News

EES Expansion Triggers Calls to Ease Border Bottlenecks

Jan 10, 2026 03:37 AM

TAP Brings Portuguese Wine Culture On Board in 2026

Jan 10, 2026 02:32 AM

Limoges Airport Hosts Travel Showcase This January

Jan 10, 2026 01:37 AM

Etihad Confirms First Direct Luxembourg–Abu Dhabi Route

Jan 10, 2026 00:24 AM

Qatar Airways Pushes Ahead with Starlink Rollout

Jan 9, 2026 23:51 PM

Emirates Expands Premium Economy on Key Routes

Jan 9, 2026 19:07 PM

Nationwide Rail Strike May Disrupt Rome Airport Links

Jan 9, 2026 18:04 PM

Snowstorm Disrupts Flights as Europe Faces Winter Surge

Jan 9, 2026 17:32 PM

Tirana Adds Two New Summer Routes

Jan 9, 2026 04:04 AM

UK Introduces eVisa and ETA Requirements in Early 2026

Jan 9, 2026 03:28 AM

Edinburgh Gains Extra Transatlantic Flights for 2026

Jan 9, 2026 03:03 AM

Paris Flights Coming to Wrocław in April 2026

Jan 9, 2026 02:05 AM

Air Travel in Italy Faces Disruption on 9 January Due to National Strikes

Jan 9, 2026 01:18 AM

Seasonal Nonstop Flights Open Fresh Options for European Holidaymakers

Jan 9, 2026 00:38 AM

Soldiers Deployed at Lisbon Airport After EU Finds Serious Border Control Failures

Jan 8, 2026 21:20 PM

Snow and Ice Keep Schiphol Flight Schedules Unstable

Jan 8, 2026 09:38 AM

Italy Prepares for Flight Delays as National Aviation Strike Set for 9 January

Jan 8, 2026 04:37 AM

One Booking Reference Instead of Many: Lufthansa Moves Towards Unified Travel Records

Jan 8, 2026 03:38 AM

Limoges Airport Disruption Continues After De-Icing Equipment Failure

Jan 8, 2026 02:08 AM

Winter Ski Escapes Within Easy Reach of Europe’s Major Airports

Jan 8, 2026 01:30 AM

Air New Zealand Opens January Sale With Low Fares Across Its Global Network

Jan 7, 2026 11:47 AM

Popular European Cities Lead airBaltic’s 2025 Routes as 2026 Sale Opens

Jan 7, 2026 10:42 AM

January Rail and S-Bahn Works Disrupt Public Transport Access to Berlin BER Airport

Jan 7, 2026 09:34 AM

American Airlines Plans Free High-Speed Wi-Fi on Most Flights Starting 2026

Jan 7, 2026 08:34 AM

Wizz Air Opens New Year Sale With Discounts Across Its 2026 Network

Jan 6, 2026 22:31 PM

Manchester Airport Expands 2026 Network With New Mediterranean and Island Routes

Jan 6, 2026 20:37 PM