who make up the bulk of airline travel spending, are increasingly turning away from traditional airline loyalty programs

Generation Z and Millennials, who make up the bulk of airline travel spending, are increasingly turning away from traditional airline loyalty programs. Airlines must now look for new ways to retain loyalty.

Image Credit: commons.wikimedia.org

Despite Generation Z traveling more, they are turning away from traditional airline loyalty programs. According to OAG, Millennials and Generation Z will account for more than 80% of all airline-related travel spending by 2035, but their loyalty patterns are different.

Millennials (born 1981-1996) have surpassed Generation X and Baby Boomers in terms of air travel spending. At the same time, Generation Z (born 1997-2012) is also making an increasingly significant contribution. However, the loyalty of these two generations is not traditional.

27% of Generation Z and Millennial travelers are willing to spend an extra $100 to travel with legacy carriers rather than low-cost options. This inclination is significantly higher than that of Gen X and Baby Boomers, of whom only 17% and 18% respectively show a similar willingness to pay extra. Cost is essential, but the new generation also wants a better quality experience.

Although Generation Z and Millennials are participating in airline loyalty programs, their loyalty has declined. According to the OAG survey, only 65% ​​of Generation Z and 70% of Millennials participate in airline loyalty programs, while 89% of Baby Boomers and 80% of Gen X participate in the programs.

Airlines need to redesign their loyalty programs to reverse this trend. They should promote options to earn miles and status in ways other than flying, such as Flying Blue’s partnership with Uber. Airlines need to work towards retaining loyalty by recognizing the new generation’s favorite areas and developing reward systems accordingly.