Gen Z, millennials much less taken with loyalty journey, OAG survey finds

Gen Z and millennial traveler preferences might change the way forward for airline loyalty applications, in line with the outcomes of flight database and statistics agency OAG’s newly printed report, “Past the Ticket: Successful Traveler Loyalty with Rewards & Ancillary Providers.”

“The loyalty program panorama is shifting, particularly as youthful generations make up a bigger share of the touring inhabitants,” mentioned John Grant, chief analyst at OAG, in a launch on the report.

OAG’s North American survey included 2,000 vacationers with intent to research companies together with rewards applications and ticket inclusions and the way these may be driving buying habits. The survey, taken in April, included enter from vacationers primarily based in the US, Canada and Mexico: 119 contributors between ages 19 and 24, 406 contributors between ages 25 and 39, 539 contributors between ages 40 and 55 and 656 contributors over the age of 56.

Of these teams, youthful vacationers are much less seemingly than their older counterparts to affix an airline loyalty program or to be loyal to an airline, OAG discovered.

General frequent flyer applications are well-liked amongst vacationers – 82% of the respondents reported they’d enrolled in a program – however solely 65% of Gen Z and 70% of millennials reported being enrolled. That’s a major drop from the 89% of child boomers enrolled and 80% of Era X members enrolled in airline loyalty applications.

The dearth of curiosity in loyalty amongst youthful vacationers goes additional. That demographic can be much less constant with regards to reserving with a selected model.

Sixty-one p.c of Gen Z and 49% of millennial vacationers surveyed reported “lack of constant journey with a single provider or model” and 14% of Gen Z and 19% of millennial respondents cited factors taking “too lengthy to redeem” as boundaries to becoming a member of loyalty applications.

OAG’s findings are in keeping with loyalty program dips reported by different sources. Lufthansa Innovation Hub’s TNMT, for instance, confirmed a drop in frequent flyer program participation with 66% taking part in 2019 and 52% taking part in 2023. And a few airways are exploring avenues by means of which to evolve their loyalty applications.

“Savvy airways who create extra significant rewards applications that align with the evolving preferences of at this time’s vacationers and who perceive the way to faucet into real-time aviation insights to customise their advertising methods will deepen connections with their clients and redefine the way to win their loyalty,” mentioned Grant.

OAG supplied some suggestions for airways hoping to spice up loyalty program enchantment primarily based on its survey.

One suggestion OAG made is to provide clients the flexibility to make use of factors in different elements of their journey. Free checked baggage – interesting to 63% of respondents – is one other OAG suggestion, as was entry to airport lounges – interesting to 43% – and sign-up bonuses – interesting to 53%.