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

Train Maintenance in Northern Italy May Disrupt Winter Travel Plans

Nov 12, 2025 23:37 PM

Jet2 to Open New Base at London Gatwick with 29 Holiday Routes

Nov 12, 2025 23:13 PM

Paris–Berlin Night Train to Return, Linking Two Capitals Once Again

Nov 12, 2025 22:45 PM

Sun, Snow or City Lights: airBaltic Announces New Winter Destinations

Nov 12, 2025 22:39 PM

Heavy Rain Threatens UK Travel Plans This Weekend

Nov 12, 2025 21:56 PM

easyJet Flight Crew in Italy to Strike on 14 November

Nov 12, 2025 09:38 AM

Marriott Expands Branded Residences Across EMEA

Nov 12, 2025 01:46 AM

Ryanair Expansion Brings Faster, Cheaper Summer Getaways from Ireland’s West

Nov 11, 2025 21:29 PM

Scotland Prepares for Crowds with Expanded Rail Schedule

Nov 11, 2025 20:33 PM

From Steam to Innovation: Wales Hosts a Moving Railway Museum

Nov 11, 2025 19:44 PM

IHG Hotels & Resorts Expands to Montenegro’s Adriatic Coast with Crowne Plaza Budva

Nov 11, 2025 17:27 PM

New Eurostar Discounts Open the Door to Winter City Escapes

Nov 11, 2025 16:31 PM

Travel Made Easier: Aurora Trains to Modernize East Midlands Routes

Nov 10, 2025 23:57 PM

US Flight Delays and Cancellations Surge Amid Air Traffic Controller Shortages

Nov 10, 2025 22:53 PM

Brindisi–Prague Link Restores Simple, Scenic Travel Between Two Regions

Nov 10, 2025 22:36 PM

ITA Airways Opens Direct Route Between Mauritius and Rome

Nov 10, 2025 21:48 PM

More Trains, Lower Fares: West of England Line Reopens for Travelers

Nov 10, 2025 20:22 PM

easyJet’s 30-Hour Sale Brings New Opportunities for Budget Travel

Nov 10, 2025 19:35 PM

Italy Faces Orange Thunderstorm Alert: Travel Plans May Be Disrupted

Nov 9, 2025 23:55 PM

Fewer Apartment-Style Options for Marriott Guests After Sonder Split

Nov 9, 2025 23:39 PM

Spies to Launch First Direct Flight from Aalborg to Cape Verde in April 2026

Nov 8, 2025 04:42 AM

More Flights to Tokyo as AirJapan Updates Schedule

Nov 8, 2025 03:38 AM

Seasonal Traditions Return: Christmas Markets Across Europe

Nov 8, 2025 02:26 AM

Philippine Airlines Offers Assistance as Typhoon Uwan Approaches

Nov 7, 2025 21:49 PM

Batik Air to Relocate Singapore Operations to Terminal 4 from 11 November 2025

Nov 7, 2025 21:33 PM

Bangkok Unveils Riverside Venue Combining Thai Culture and Dinner

Nov 7, 2025 21:17 PM