Gen Z travelers are proving to be savvy spenders, prioritizing travel experiences despite economic pressures. A recent survey reveals that they are leveraging loyalty programs and points to make their travel dreams more affordable, opting for once-in-a-lifetime adventures over shorter, more frequent trips.
Gen Z holidaymakers are proving to be savvy spenders, prioritizing travel and experiences despite the ongoing cost-of-living crisis. While daily expenses are being trimmed, Gen Z is unwilling to compromise on once-in-a-lifetime adventures. They are utilizing loyalty points to make their travel dreams more accessible. A recent survey revealed that over a third of adults born after 1996 have leveraged points to fund their international trips.
The survey indicated that nine out of ten individuals who utilize loyalty points have redeemed them for flights, while four out of ten have used them for accommodations. Popular destinations include iconic cities like New York, Paris, and Dubai, but a significant 45% are opting for rarer, bucket-list experiences rather than shorter, more frequent trips.The Points Index: Holiday Getaways report by Virgin Red delves into the evolving landscape of consumer spending and attitudes towards loyalty programs over the past year. According to the study, three-quarters of Gen Z respondents admitted that they couldn't afford a holiday without the financial assistance provided by rewards schemes. Andrea Burchett, Chief Loyalty Officer and Managing Director of the rewards club at Virgin Red, highlighted that younger travelers are adept at utilizing technology to maximize the benefits of loyalty programs. 'For younger shoppers, it's not just about cutting costs - it's also about enjoying a seamless experience, effortlessly integrating rewards into their digital routine, and having the freedom to tailor their benefits to suit their preferences,' she explained.Despite cutting back on everyday necessities, this research reveals that consumers are reluctant to sacrifice travel experiences. This trend, however, isn't exclusive to younger generations. According to the study, nine out of ten people use reward schemes. Maggie Hellicar, 39, successfully upgraded her flight to Disney World Florida last year, thanks to her strategic use of rewards. Traveling with her husband Carl and their one-year-old son, Aiden, they managed to save £5,000 by upgrading to upper-class flights using a combination of 115,000 Virgin Red points and a companion voucher. Maggie shared her strategy, 'The points do rack up if you can funnel as much of your spending onto things like the Virgin Atlantic credit cards,' adding that 'There are also bonus points when you sign up. Every little helps when you're trying to rack up those points and you're aiming to get enough for a flight or an upgrade.' Andrea further emphasized that technology plays a crucial role in enabling this trend across all demographics. 'This shows that while approaches may differ, the universal appeal of gaining value from purchases remains strong, whether that's for travel, groceries or healthcare,' she concluded.
GEN Z TRAVEL LOYALTY PROGRAMS COST-OF-LIVING CRISIS SAVVY SPENDING EXPERIENCES REWARDS AIR TRAVEL ACCOMMODATIONS
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