Adapting Loyalty Programs for Gen Z Travelers

Move over Millennials, Gen Z is redefining loyalty trends for younger travelers. By 2030, Gen Z will dominate a significant share of U.S. leisure trips, already taking upwards of three vacations per year. With $450 billion in global spending power, members of Gen Z aren’t just traveling more — they’re traveling differently, prioritizing personalized experiences and technology-driven convenience.

So, what do Gen Z travelers value in loyalty programs? Better yet, what are the key loyalty trends for younger travelers?

This experience-driven generation values perks that reflect their travel loyalty preferences. Think along the lines of instant rewards, eco-conscious initiatives, and immersive experiences. To capture this market, brands must move beyond traditional models and craft Gen Z loyalty programs that meet younger travelers where they are: online and ready to explore. 

Decoding Gen Z Travelers: A Generational Snapshot

Generation Z, born between 1996 and 2010, sits between Millennials and Generation Alpha. Known as “digital natives,” Gen Z has never known a world without the internet. On average, they’re glued to their phones for 6 hours and 27 minutes daily — outpacing both Millennials and Baby Boomers. So, when it comes to planning trips and booking travel, it’s no surprise they rely on digital platforms.

However, this constant connectivity has a direct impact on Gen Z travel loyalty preferences. They seamlessly switch between websites, apps, and social media feeds to find the best deals, with over a third booking based on price alone. Their loyalty is also hard to come by: 62% of Gen Zers are open to exploring other brands, and even those with favorites will jump ship for better quality or prices.

But there’s more to Gen Z than screen time and deal-hunting. Raised during economic uncertainty and growing climate concerns, they crave authenticity over flash. Forget name-brand luxury; this generation seeks unique, meaningful experiences that align with their individuality and sustainability ideals. Gen Z loyalty programs need to ditch tradition and tap into this modern mindset.

Key Gen Z Travel Loyalty Preferences

What does it mean to ditch tradition? Ask a Gen Zer, and they’d tell you to shelve the gimmicks — like impossible-to-reach loyalty tiers or ambiguously worded offers — in favor of tailored perks, digital-native loyalty programs, and eco-conscious rewards. 

Emphasis on Personalization

Born into a world of online information, Gen Z has been inundated with digital advertisements, email marketing, and paid promotions for as long as they can remember. Sure, this has made them savvy shoppers; however, it’s also encouraged them to expect more from companies than other generations. In fact, 49% of Gen Z say they’re less likely to make a purchase after an impersonal experience, and 27% say they’ll stop shopping with a brand altogether or share the negative experience with friends and family.

This bias has carried over to a preference for personalization in loyalty programs, travel included. Gen Z and travel personalization now go hand-in-hand, with younger travelers anticipating rewards that are based on their previous trips and recent searches. They’re also more likely to disengage from a loyalty program when offered irrelevant rewards and opt for a more tailored program instead.

Seamless Technology Integration

With 78% of Gen Zers reporting that accessibility and convenience were important characteristics of their favorite brands, technology-driven loyalty solutions are far more likely to win over younger travelers. Preferred Gen Z loyalty programs deploy mobile apps for simple rewards redemption (and preferred data collection) along with digital wallets for quick payments and bookings. 

Focus on Sustainability

Gen Zers are drawn to brands with purpose; 73% of them actively try to support ethical companies, and nine out of ten believe brands should tackle social and environmental challenges. For Gen Z loyalty programs, this means weaving sustainability into the rewards. Offering perks that reflect Gen Z’s eco-conscious values is key to building genuine connections with this demographic.

Take sustainable travel loyalty perks, for example. Programs could offer carbon-offset rewards for flights, points redeemable for eco-friendly stays, or exclusive experiences like guided nature tours. These initiatives deeply resonate with Gen Z loyalty program members, of which a whopping 63% would choose one program over another specifically because it prioritizes sustainability. 

How Travel Brands Are Innovating for Gen Z

Now that Gen Z has aged up and into the travel market, brands have begun to take notice. Gen Z loyalty programs are increasingly seeping into the travel and hospitality space, targeting younger generations with lower costs, higher value, and maximum experiences. Many brands have even ditched the traditional points-based system in favor of a flat fee for premium loyalty program perks. 

Take the Dis-loyalty travel and food membership from Ennismore hospitality company, for instance. The Dis-loyalty Collective is home to 90+ hotels in over 50 destinations worldwide, plus 175+ bars, coffee shops, and restaurants. For $18 per month, Dis-loyalty members receive 50% off stays at recently opened hotels, 20% off at properties they’ve never visited before, 10% off return visits, and one free barista-made drink every day at any Dis-loyalty restaurants and bar, no purchase necessary.

However, not all Gen Z loyalty programs​ have to forgo points. The free Marriott Bonvoy Moments program, for example, has reimagined how points can be earned and redeemed. Program members who earn on Marriott stays and purchases with Marriott partners can redeem experiences in one of four program categories: Culinary, Sports, Entertainment, and Art & Lifestyle. Current Moments up for grabs include tickets to March Madness, Tyler the Creator concerts, and comedy shows at The O2 in London.

Balancing Privacy and Personalization

Gen Z demands personalization in loyalty programs. They expect tailored recommendations, curated offers, and experiences that feel uniquely theirs. But here’s the catch: they’re equally protective of their data. Striking a balance between personalization in loyalty programs and respecting privacy is crucial for brands looking to win over this privacy-conscious younger generation of consumers.

How can loyalty programs balance personalization and privacy for Gen Z? Consider these tips:

• Rely on first-party data. Collect information directly through Gen Z loyalty programs, such as user preferences or purchase history, to build personalized experiences while avoiding third-party data concerns.
• Incorporate mobile apps. Use Gen Z travel loyalty preferences to create seamless app-based experiences, allowing users to voluntarily share data in exchange for exclusive rewards or perks.
• Prioritize opt-in options. Always ask permission before collecting data, offering clear explanations of how it will enhance their experience and how they can opt out if desired. Transparency is key to earning trust.
• Offer control over data. Let users view, manage, or delete their loyalty program data anytime. This empowers Gen Z program members to feel in control of their information while fostering loyalty.

Tips for Building Loyalty with Gen Z Travelers

Building authentic connections is at the heart of Gen Z loyalty programs. This generation values inclusive, supportive communities and gravitates toward brands that align with their social and environmental causes. Social media plays a huge role, with content tailored to Gen Z being nearly twice as important as tone and style. Speak their language and foster true brand belonging.

Likewise, experiential rewards are paramount for Gen Z. Gen Zers are more likely to remember a once-in-a-lifetime concert ticket or an exclusive adventure over a cash-back offer. Loyalty programs that prioritize personalized experiences — like local food tours or meet-and-greet packages — capture the essence of what this generation values most: unique, unforgettable moments.

Want to truly resonate? Partner with influencers Gen Z already admires. With 60% of Gen Zers getting their news from social platforms, they’re 2.7 times more likely to rely on influencers than traditional news outlets. Partnering with online creators not only drives trust but ensures building loyalty with Gen Z travelers happens on the platforms where they’re already the most engaged.

Embracing the Next Generation of Travel Loyalty

It’s clear: aligning rewards with Gen Z travel loyalty preferences isn’t just trendy; it’s a must to win the younger generation’s loyalty. The continuous evolution of loyalty programs calls for a shift toward personalization, sustainability, and seamless technology. By prioritizing building loyalty with Gen Z travelers, brands can create meaningful connections that go beyond points, crafting experiences and rewards that resonate with their values and secure their loyalty for years to come.

Ready to future-proof your loyalty program? See how arrivia helps brands adapt to meet loyalty trends for younger travelers.