Gen Z is busy rewriting the rules to shape everything from culture to commerce – and the business of loyalty is no exception.
For decades, the loyalty equation in travel was straightforward: fly more, stay longer, earn more. Points, upgrades, and priority perks were the currency of commitment.
That formula drove repeat bookings, increased spending patterns, and brand allegiance across generations. But today, a new generation of travelers is rewriting the rules – Gen Z. And they’re not playing by the old playbook.
Gen Z: The “loyalty skeptics” driving a paradigm shift
Gen Z is rapidly emerging as the dominant consumer generation, reshaping the purchasing landscape with values, behaviors, and above all, digital fluency. Born between the mid-1990s and early 2010s, this cohort now represents a growing share of global spending power, both through their own income and influence on household spending decisions.
Gen Z travelers are “famously disloyal,” with nearly 70% engaging with multiple brands across a single travel journey.
Unlike previous generations, Gen Z expects seamless digital experiences and values authenticity over advertising, presenting a unique set of challenges to travel brands.
According to a McKinsey report, Gen Z travelers are “famously disloyal,” with nearly 70% engaging with multiple brands across a single travel journey.
A separate study by OAG, a global air travel data provider, found that only 65% of Gen Z and millennial travelers participate in airline loyalty programs, compared to 80% of Gen X and Boomers. This means that traditional point-based models that require months of engagement to deliver value resonates much less with them.
This is happening even as loyalty programs grow in value. Based on the Rocket Travel by Agoda 2025 Trend Report, the five largest airline loyalty programs increased in valuation by 7.75% from 2020 to 2023, generating over US$20 billion in combined revenue.
Yet, in the same period, loyalty surveys conducted by McKinsey in 2021 and 2023 revealed a decline in the likelihood that customers would recommend traditional travel loyalty programs. This points to a clear disconnect – financial success doesn’t always translate to customer satisfaction. In short, we’re seeing a growing trend where some loyalty programs are generating more revenue but are delivering less satisfaction to their customers.
Based on this insight, we studied how Gen Z interacts with travel, technology, and loyalty brands. Our survey findings reveal four clear behavioral patterns, each with major implications for how travel brands need to respond to new customer demands in order to stay relevant:
Mobile-first is non-negotiable
Mobile is not just a channel; it’s the control center for Gen Z’s entire travel experience. A 2024 survey by Rocket Travel by Agoda revealed that 61% of customers booked travel using their mobile devices, highlighting the critical importance of a mobile-first approach.
61% of customers booked travel using their mobile devices, highlighting the critical importance of a mobile-first approach.
Notably, the survey also found that 59% of these bookings were initiated by push notifications rather than traditional search, underlining the power of proactive and personalized mobile engagement. If your loyalty program isn’t designed for a seamless, fast, mobile-native experience, you’re losing at the first click.
TikTok is the new word of mouth
TikTok has become a powerful discovery engine for travel inspiration, particularly for Gen Z, who make up roughly 60% of the user base. Gen Z doesn’t wait for email campaigns; they’re inspired by 15-second videos, local recommendations, and authentic peer-to-peer content. That’s where intent is sparked and where conversion begins. Brands that create shoppable, shareable, and relevant content in this space are outperforming those who don’t.
Spontaneity when it comes to travel
Gen Z travelers aren’t planners in the traditional sense. Agoda survey data shows that 1 in 5 Gen Z travelers book flights less than a week in advance, higher than any other demographic.
This demand for flexibility opens a window for real-time, personalized offers that convert spontaneous interest into tangible bookings. Loyalty in this context isn’t about long-term accumulation; it’s about short-term value recognition.
Experience trumps traditional perks
Points matter, but they’re not everything. In fact, McKinsey research shows that experience has 4x the impact on hotel booking frequency for Gen Z compared to traditional benefits, and 2x the impact for airlines.
Gen Z responds to personalization, relevance and exclusivity – curated stays, in-destinations experiences and lifestyle-aligned perks matter more than yet another free night or lounge pass.
Competing in the experience economy
For hoteliers and airlines, catering to the demands of Gen Z requires a strategic shift. You’re no longer competing only with each other. You’re competing with OTAs, fintechs, and digital lifestyle platforms, all of which offer seamless, instant, and hyper-personalized journeys. Winning loyalty and boosting spend in this environment requires deep integration of data, mobile-first UX, and strategic partnerships.
This is why it’s critical to work with a partner who can not only track these trends, but act on them quickly too. Whether it’s adapting to Gen Z’s demand for seamless mobile booking or responding to last-minute booking behavior, speed and flexibility are key. A partner with the ability to rapidly update the user experience – through smarter design, targeted content or product innovation – can help capture demand in real time, drive conversion and loyalty rates, and keep you ahead of the competition.
These are not just better experiences; their business outcomes are rooted in understanding how Gen Z wants to travel.
The loyalty market is growing but the rules are changing
The Asia Pacific loyalty market is projected to double from US$30 billion in 2024 to US$60 billion by 2029, according to ResearchandMarkets.com. But this growth will disproportionately benefit brands that embrace change, not those that preserve legacy.
Gen Z isn’t disloyal. They’re just loyal to what works for them now. Real-time relevance, mobile convenience, and emotional connection are their currency. If we meet them on their terms, we might just find they’re the most loyal generation yet.
