Gen Z and millennials aren’t just shaping modern travel—they are the travel market. By 2030, these generations will account for over half of all U.S. leisure trips. Their preferences are transforming how brands must think about loyalty: from what rewards look like to how they’re earned and experienced.
In this blog, we’ll unpack four key loyalty trends driven by younger travelers: experiential value, sustainability, personalization, and flexible rewards. Brands that adapt now can build lasting loyalty with the next generation of travelers.
Why Gen Z and Millennials Prefer Travel Over Things
Younger generations increasingly prioritize experiences over material possessions. Yahoo Finance, 63% of Gen Z and 59% of millennials would rather spend money on experiences like travel. Gen Z alone is projected to spend $450 billion globally and averages three vacations per year.
This experience-first mindset carries important implications for loyalty programs. Traditional models that focus on elite tiers or branded merchandise don’t always resonate. Instead, younger travelers want access to memorable, shareable moments—whether that’s a spontaneous city break, a curated local tour, or a unique redemption experience tailored to their interests.
Takeaway for brands: Travel loyalty programs must shift from transactional to transformational. Offering experiential rewards that feel personal and emotionally meaningful can be the difference between disengagement and brand advocacy.
Sustainability Matters—But It’s Not Everything
Sustainability isn’t always the deciding factor for Gen Z. Most younger travelers prioritize price, flexibility, and convenience, with sustainability as a bonus rather than a baseline.
That said, the expectation for responsible business practices is real. Gen Z especially assumes that a brand is environmentally conscious unless shown otherwise. Millennials tend to be more skeptical, having lived through years of evolving “green” messaging.
Authenticity is non-negotiable. These digital-native generations can spot greenwashing a mile away. Sustainability messaging should be woven into the broader brand story, not tacked on as an afterthought.
Takeaway for brands: Focus on visible, credible sustainability actions. Highlight things like carbon offsets, local partnerships, or digital-first solutions that reduce environmental impact—but keep the message grounded in real benefits, not buzzwords.
Real-Time Rewards and Personalized Loyalty for Younger Travelers
Personalization is no longer a nice-to-have—it’s the expectation. Gen Z and millennials are used to hyper-relevant content and recommendations, and they want the same from loyalty programs.
AI-driven platforms can now anticipate preferences and surface relevant offers before users even ask. Younger travelers are drawn to loyalty models that are intuitive and rewarding from the start, rather than ones that require long-term status building.
Meanwhile, loyalty program enrollment rates reflect shifting attitudes. While almost 90% of boomers are in at least one loyalty program, only 65% of Gen Z are enrolled—and many drop off quickly if value isn’t immediately evident.
Takeaway for brands: Loyalty programs should prioritize:
-
Simple, flexible structures
-
Clear earning and redemption pathways
-
Partner and alternative reward options
-
Personalized engagement based on behavior, not just transactions
Navigating the Overlap: Experience, Values, and Value
No single factor defines how Gen Z and millennials approach loyalty. It’s a blend of emotional connection, practical benefits, and cultural alignment. They want:
-
Experiences that feel unique and shareable
-
Sustainable choices that reflect their values
-
Personalized rewards that respect their time and data
-
Flexible options that offer immediate value
Brands that hit this intersection have a clear advantage. For example, loyalty platforms that allow users to:
-
Bundle flights, hotels, and local activities using points
-
See emissions transparency at checkout
-
Access curated getaways based on past preferences
-
Redeem points instantly for experiences—not just flights or gift cards
Rethinking Loyalty for a New Generation
Brands that succeed will be those who meet younger travelers where they are—not with static tiers and rigid perks, but with dynamic, human-centered engagement that reflects what travel means today.
Ready to meet the moment? Discover how Switchfly helps travel brands create loyalty experiences that actually matter.
