Generational shifts are reshaping how Americans travel—and what they expect from travel loyalty programs. According to a new report by arrivia, based on a survey of U.S. adults who travelled in the past year, younger travellers are rewriting the rules for how trips are planned, purchased, and rewarded. The report dives into the preferences of Gen Z, Millennials, Gen X, Baby Boomers, and the increasingly influential “Zillennial” micro-generation (those born between 1992 and 2002).
“These travellers are still forming brand preferences and travel habits, which gives loyalty programs a real opportunity to earn their trust and long-term commitment by responding to their needs early on,” says Jeff Zotara, arrivia Chief Marketing Officer. “It’s a crucial moment to build brand affinity by offering convenience, cost-efficacy and immersive experiences.”
By 2030, Gen Z and Millennials are expected to account for half of all leisure travel in the U.S., up from one-third in 2023. And their habits are already making waves. Over half of Gen Z (55%) and 42% of Zillennials say they plan to travel more this year than they did last year, a sentiment that drops sharply among older age groups. Younger generations aren’t just the future of travel—they’re already a dominant force.
Opportunity Comes with Complexity
While cost remains the biggest deciding factor across all age groups, younger travellers are far more likely to value booking convenience, flexible payments, and expanded travel options. This includes features like vacation rentals, cruise packages, and car rentals—all bundled into a single seamless transaction.
Zillennials, in particular, are emerging as a strategic sweet spot. Despite nearly half still living at home with parents, many report household incomes exceeding $100,000, giving them both disposable income and freedom to explore. They’re nearly twice as likely as the average traveller to go abroad, more likely to rely on rental cars at their destination, and more enthusiastic about bundling cruise, hotel, and airfare in a single booking.
Cruises Are Back in the Game
Cruises, once seen as the domain of retirees, are catching on with younger adventurers. Among Zillennials, 27% identify as cruise travellers, outpacing even Baby Boomers (18%). This signals a notable shift, especially as the cruise industry evolves to appeal to values-driven experiences. Vacation rentals are also on the rise among Millennials and travelling families, who are seeking space, flexibility, and better value than traditional hotel stays.
However, loyalty programs have some catching up to do. Despite 55% of respondents saying they would consider booking through a loyalty program if better deals or pricing were available, only 18% did so for their last trip. Gen Z travellers, in particular, want more—more destinations, more ways to pay, and more one-stop-shop functionality. Nearly half of them said they’d be more likely to use a loyalty program if it allowed booking an entire trip at once. That’s nearly double the rate of Baby Boomers, who tend to prioritise simplicity over perks.
To stay relevant, loyalty programs need to evolve beyond points and perks. The future lies in flexibility, personalisation, and packaging options that reflect how people travel today. And for the emerging Zillennial generation? That means loyalty programs need to speak their language: flexible, frictionless, and full of possibilities.