OAG’s latest survey, ‘Beyond the ticket: Winning traveller loyalty with rewards & ancillary services. Generational preferences changing the game for the travel industry’ offers fresh insight into different generations’ attitudes towards loyalty rewards and ancillary services. The study looks at Gen Z, Millennials, Gen X, and Baby Boomers.
After surveying 2,000 North American travellers in April 2024, OAG picked out the following as the main takeaway:
“Travelers are eager to take to the skies (64 per cent taking 3 or more trips in a year), but they remain cost conscious and less swayed by traditional airline loyalty programs. As Gen Z and Millennial preferences redefine what loyalty programmes look like, airlines will need to rethink what matters most to travellers to engage customers more deeply. “
Here’s what the study highlights for Gen Z:
Participation in airline frequent flyer programmes is notably lower in younger generations. Only 65 per cent of Gen Z and 70 per cent of Millennials are enrolled in these programmes compared to Baby Boomers (89 per cent) and Gen X (80 per cent).
Looking into the drivers behind this decline for Gen Z and Millennials, the survey indicates:
#1 – Lack of consistent travel with a single carrier or brand.
#2 – Delays: it taking too long to redeem rewards.
#3 – Rewards are not relevant enough: 8 per cent of Gen Z would rather have rewards that are specific to their travel preferences and booking patterns.
#4 – Data privacy: 8 per cent of both Gen Z and Millennials don’t want airlines to have access to their data.
One area that Gen Z stands out is their likelihood to make purchases once on the plane. At 12 per cent, they are the most likely age group to purchase add-ons in flight. Analysing the potential of this finding, OAG suggested:
“Purchasing add-ons at the time of booking is a long-learned behaviour. Gen Z’s affinity to continue shopping while on the plane offers new opportunities for brands to optimize their advertising and maximize their return on investment. For example, tech savvy brands can tap into aviation data insights to learn where Gen Z is flying the most and tailor specific ads that pop up on their TV displays once they are on the plane.”
With younger generations of travellers exhibiting different priorities, airlines must begin catering to these evolving demands. Read the full report summary by OAG for more insights.
For more on Gen Z see:
- Unlocking Gen Z engagement: Three essential factors to remember
- Interview with Sumesh Patel, APAC President, SITA – Megatrends, collaboration, and Gen Z
- “That’s the art. It’s understanding the customer and meeting them where they are.” VP of Marketing and Loyalty, United Airlines
