Gen Z, known for their zeal for unique travel experiences, are determined to pursue once-in-a-lifetime adventures despite facing financial constraints. Rather than giving up on their travel dreams, they are finding innovative ways to make them a reality. Loyalty points have become a key tool for these young travellers, with a recent survey revealing that more than a third of adults born after 1996 have used loyalty points to subsidize their international trips.
The survey highlighted that nine out of ten individuals use loyalty points to offset flight costs, while 40% have utilised them for accommodations. While popular destinations like New York, Paris, and Dubai still draw in travellers, 45% of Gen Z are opting for more unique and bucket-list experiences over shorter, more frequent trips. The Points Index: Holiday Getaways report by Virgin Red examines the evolving consumer spending trends and attitudes towards loyalty programmes. It found that 75% of Gen Z respondents admitted they would struggle to afford a holiday without the support of rewards schemes.
Andrea Burchett, Chief Loyalty Officer and Managing Director of the rewards club at Virgin Red, emphasised how younger travellers are leveraging technology to maximise the benefits of loyalty programmes. She highlighted that for this demographic, it’s not just about saving money but also about seamlessly integrating rewards into their digital routines to tailor their benefits according to their preferences. Despite making cutbacks on daily expenses, consumers are unwilling to compromise on their travel experiences, as revealed by the study.
Interestingly, it’s not just the younger generation making use of loyalty points. The report showed that nine out of ten people across different age groups are actively engaging with reward schemes. Maggie Hellicar, 39, shared her experience of upgrading to upper-class flights for a trip to Disney World Florida last year by leveraging 115,000 Virgin Red points and a companion voucher. She highlighted the importance of directing spending towards loyalty-generating channels like Virgin Atlantic credit cards to accumulate points for future travel perks.
Andrea further pointed out that the trend towards using loyalty schemes goes beyond generational boundaries, with technology playing a vital role in enabling consumers of all ages to benefit from such programmes. This underscores the universal appeal of gaining value from purchases, whether it’s for travel, groceries, or healthcare. The study reflects a growing trend where consumers are increasingly seeking ways to make their travel aspirations a reality without compromising on the quality of their experiences.
In conclusion, the determination of Gen Z to continue pursuing their travel dreams despite economic challenges is commendable. By leveraging loyalty points and technology, they are finding creative solutions to make their once-in-a-lifetime adventures more affordable. As the travel landscape continues to evolve, it’s evident that the desire for meaningful experiences remains a priority for consumers across various age groups, underscoring the enduring allure of exploration and discovery in today’s society.