New research from arrivia tracks travel trends among Gen Z and Millennials

The most successful travel loyalty brands have always prioritized staying responsive to consumer trends. But as younger generations surpass Baby Boomers in both travel frequency and spend, marketers are facing more than a typical market shift; they’re experiencing a generational transition.

According to Deloitte, Gen Z and Millennials are projected to account for over half of all U.S. leisure travel by 2030, up from just a third in 2023. These travelers have distinct preferences that can’t be addressed with one-off promotions or limited time offers. Meeting their expectations requires investment in adaptive loyalty technology and systems that evolve alongside them.

New research from arrivia offers a closer look at how this transition is already reshaping travel. Based on a survey of more than 1,000 U.S. travelers, Loyalty and the Changing Traveler explores how Gen Z, Millennials, Gen X and Boomers plan, book and engage with travel—and what their behavior means for your loyalty strategy. The findings are clear: brands can no longer treat their customers as monoliths. Instead, they must effectively balance generational nuances to connect with younger travelers and long-standing members alike.

Travel today is about flexibility

Traditional loyalty programs were built on earn-and-burn models tied to flights and hotel stays, requiring consistent use to earn points. But younger travelers—particularly Millennials, Gen Z and the emerging “Zillennial” cohort—favor diverse rewards options, greater booking flexibility and a wider range of travel experiences.

Consider cruise: 27% of Zillennials (born 1992–2002) say they’re interested in cruising, compared to just 14% of Millennials, despite these groups sharing similar age and life-stage characteristics, and 18% of Boomers to whom the cruise industry has traditionally catered (though that’s changing!). This gap reveals that even adjacent generational segments may diverge sharply in travel preferences and interests.

Those differences don’t end at the shoreline. Zillennials are twice as likely as the overall survey average to use a rented car as their primary mode of travel (22% vs. 11%). Millennials—especially those with children—prefer vacation rentals over hotels, likely due to space and convenience. Meanwhile, Baby Boomers remain loyal to traditional hotel brands.

These variations underline a key point: generational labels are a starting point, not a strategy. Even subtle variations can shape product preferences and engagement, making the case for more precise targeting and modular loyalty design.

Multi-generational travel: One trip, many expectations

Another trend reshaping loyalty strategy is the rise of group and multi-generational travel. Gen Z and Zillennials are far more likely to vacation with friends, siblings or parents, adding new layers of complexity to the booking process.

Older travelers may prioritize straightforward loyalty incentives such as discounted rates, clear redemption structures and familiar hotel brands. Younger travelers in the same party, on the other hand, may value bundled experiences, flexibility and options such as shared payments or split itineraries. Successful loyalty platforms must reconcile these needs, sometimes within a single trip.

Rather than relying solely on age-based segmentation, marketers should embrace “context-based” personalization. Understanding how travelers behave in groups or as part of a family is just as important as understanding their demographic profile. This behavioral insight enables brands to support a wide range of travel patterns without forcing members into a box.

Balancing innovation with familiarity

Even as younger travelers reshape loyalty dynamics, Baby Boomers still wield significant spending power and loyalty potential. Sidelining this group in pursuit of emerging segments would be a mistake.

The arrivia survey confirms that foundational incentives—exclusive deals, lower prices and discounts—resonate across every generation. But younger consumers are also motivated by features that extend beyond cost.

• Nearly 43% of Gen Z respondents said they would be more likely to book through a loyalty program offering broader destination choices, compared to 29% of Boomers.
• Gen Z also shows higher interest in booking activities (35% vs. 26% average), sustainability-conscious travel (36% vs. 13%) and all-in-one booking flows (46% vs. 28%).
• Further, nearly half would be influenced to book if given more payment options, which is only a factor for 14% of those born between 1946 and 1964.

Yet only 18% of respondents said they booked their most recent trip through a loyalty program. The vast majority (72%) used an online travel agency or booked directly with a vendor, reflecting both a competitive threat and an experience gap. OTAs offer breadth, speed and convenience that many loyalty platforms still struggle to match. Bridging that disparity requires not just better pricing or inventory but smarter, more responsive platforms.

Systems that combine personalization, flexible booking and loyalty management allow brands to deliver experiences that rival OTAs, while keeping members within their own ecosystem. Technology, in other words, becomes the bridge between advancement and familiarity.

Loyalty that lasts

Younger travelers’ expectations aren’t passing trends; they reflect a broader behavioral evolution. With unified, agile platforms that support true personalization, loyalty marketers can go beyond segmentation and respond in real time.

That means delivering elegant experiences that feel natural to each members’ habits, needs and motivations. Loyalty shouldn’t be something that wears off. With the right infrastructure in place, it doesn’t have to be.

Editor’s Note: