Across all generations, cost is the top consideration when booking trips
A new report by travel loyalty technology provider, Arrivia highlights how generational differences in travel preferences are challenging, and inspiring, loyalty programme leaders to rethink their strategies.
Based on a survey of 1,089 adults from the United States who travelled in the past year, the Loyalty and the Changing Traveller report examines how Gen Z, Millennials, Gen X, and Baby Boomers prioritise, plan and purchase travel, and how these behaviours influence engagement with loyalty programmes across age groups.
Arrivia says that by 2030, Gen Z and Millennials are projected to make up half of all US leisure travel, up from one-third in 2023. The shift is already underway as 55 pc of Gen Z and 42 pc of Zillennials, those born between 1992–2002, plan to travel more this year than last, a trend that drops sharply among those born before 1981.
The report adds that for loyalty programmes, the challenge is balancing the preferences of younger travellers with those of Gen X and Baby Boomers, who remain active, high-value customers.
According to the report, across all generations, cost is the top consideration when booking trips. However, younger travellers place greater emphasis on features such as bundled bookings, flexible payment methods and a wider range of travel products, including vacation homes, car rentals and cruises.
Arrivia says that Zillennials, in particular, are emerging as a high-potential audience, with nearly half living at home while reporting household incomes of USD 100,000 or more, giving them significant spending power and flexibility.
The report reveals that Zillennials are nearly twice as likely to travel internationally, most likely to use rental cars as their main mode of transport and more inclined to book trips that bundle cruise, hotel, and airfare. Cruise travel, once seen as the domain of retirees, is gaining popularity among younger generations: 27 pc of Zillennials identify as cruise travellers, compared to 18 pc of Baby Boomers.
Jeff Zotara
“These travellers are still forming brand preferences and travel habits, which gives loyalty programs a real opportunity to earn their trust and long-term commitment by responding to their needs early on. It is a crucial moment to build brand affinity by offering convenience, cost-efficacy and immersive experiences,” says Jeff Zotara, Chief Marketing Officer, Arrivia.
The report adds that vacation rentals are also seeing a generational shift, with Millennials and families with children more likely to choose home stays over hotels for reasons of space, flexibility and affordability.
Arrivia says that while only 18 pc of respondents booked their most recent trip through a loyalty programme, 55 pc said they would be more likely to do so if offered better pricing or more relevant deals. Younger travellers are especially motivated by broader destination options, the ability to book entire trips in one transaction and flexible payment methods.
Additionally, nearly 45 pc of Gen Z would book through a loyalty programme for more destination options, compared to 29 pc of Boomers and almost half are influenced by flexible payment options, a feature that appeals to just 14 pc of Baby Boomers.
“This report is not just about age; it is about expectations. Every traveller wants value, but how they define it and what earns their business, can depend on what stage of life they’re in. A Gen Z traveller fresh out of college may prioritise flexible payment options and budget-friendly bundles, while a Millennial parent may look for family-friendly accommodations and simplified booking. Older travellers may be more focused on comfort, reliability and loyalty perks that reward long-term engagement. Loyalty programs that respond to those nuances will be better positioned to win share of wallet now and in the years to come,” Zotara adds.
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