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

Find Your Ideal Canary Island Escape This Winter

Nov 6, 2025 01:27 AM

airBaltic Launches Direct Flights Between Gran Canaria and Molde

Nov 6, 2025 00:34 AM

2026 Theatre Tours in the UK: Where to Find the Best Live Shows

Nov 5, 2025 12:44 PM

Unmanned Aerial Threats Halt Flights Across Belgium: Impact on Travelers

Nov 5, 2025 11:22 AM

Culture on the Move: How 2026 Turns the UK into a Travel Trail for Art Lovers

Nov 5, 2025 10:38 AM

New Etihad Routes Open Fresh Travel Paths Between the Middle East, Asia and Africa

Nov 5, 2025 09:46 AM

Stormy Weather in Thessalia Puts Ferry and Road Travel at Risk

Nov 5, 2025 04:23 AM

TAP Air Portugal Adds Curitiba to Its Map, Expanding Access to Brazil’s South

Nov 5, 2025 01:39 AM

Cagliari Airport Opens Winter 2025/26 Season with 33 Routes

Nov 5, 2025 00:45 AM

LOT Polish Airlines Announces Winter 2025/26 Flight Schedule

Nov 4, 2025 19:29 PM

New Hyatt Centric Hotel Brings Modern Stay to Historic Reims

Nov 4, 2025 18:32 PM

EasyJet Connects Ljubljana with Manchester in New Route Launch

Nov 4, 2025 17:44 PM

Emirates Expands Biometric Checkpoints Across Dubai International Airport

Nov 4, 2025 01:27 AM

New Family Train Ticket Simplifies Travel Across Wales

Nov 4, 2025 00:31 AM

New Athens–Madrid Connection Expands European Travel Options

Nov 3, 2025 23:48 PM

New Iceland–Miami Route Expands Travel Options Across the Atlantic

Nov 3, 2025 23:22 PM

New Meliá Hotel Brings Change to Honduras’ Quiet Island of Roatán

Nov 3, 2025 20:34 PM

Air Algérie and Qatar Airways Launch Joint Routes for 2025 Travelers

Nov 3, 2025 20:19 PM

Germany Issues Weather Warning for Alpine Travelers

Nov 3, 2025 19:53 PM

Christchurch Gains Direct Link to the Cook Islands for 2026 Season

Nov 3, 2025 19:36 PM

Winter Lights Transform North West England into a Festive Journey

Nov 2, 2025 23:48 PM

Travel Alert: Hurricane Melissa Affects Flights to and from Jamaica

Nov 2, 2025 23:13 PM

Nationwide Transport Strikes Announced Across Italy for November

Nov 1, 2025 23:54 PM

Travel Update: Limited Train Service to Rome’s Main Airport

Nov 1, 2025 21:41 PM

Jacksonville Becomes New Departure Point for Caribbean Cruises

Nov 1, 2025 20:57 PM

airBaltic Launches Direct Flights Between Gran Canaria and Ljubljana

Nov 1, 2025 03:25 AM