According to a recent survey by OAG Aviation, travelers are eager to fly and plan trips, but they remain cost-conscious and, depending on their generation, are less swayed by traditional airline loyalty programs.
The survey, titled ‘Beyond the Ticket: Winning Traveler Loyalty with Rewards & Ancillary Services,’ surveyed 2,000 travelers and found that while loyalty and frequent flyer programs remain popular, airlines need to adapt their approach for younger travelers who are less likely to be enrolled than their older counterparts.
Only 65% of Gen Z and 70% of Millennials are enrolled in airline frequent flyer programs, in contrast to 89% of Baby Boomers and 80% of Gen X. The primary barrier to joining these programs is inconsistent travel with a single carrier or brand.
The survey suggests that the best way for airlines to boost loyalty program adoption and engagement is to allow customers to use earned points across different aspects of their travels. This aligns with younger generations’ preference for rewards tailored to their travel habits. For example, 50% of Gen Z and 49% of Millennials want to use points with vacation rental providers.
Additionally, 73% of all travelers wish to use their airline rewards points for hotel accommodations, followed by 53% for car rental services.
Other findings on traveler preferences influencing loyalty and purchasing decisions include:
* Travelers are more likely to choose airlines that offer flexible booking and cancellation policies.
* Travelers are more likely to book flights through online travel agencies than directly with airlines.
* Mobile apps are becoming increasingly important for travelers, with 75% of travelers using them to book flights and track their flights.
To cater to the unique preferences of today’s travelers, businesses throughout the travel ecosystem, including booking engines, travel and hospitality apps, airline apps, online travel agencies, metasearch engines, search engines, and flight tracking apps, should consider offering flexible booking options, easy-to-use mobile apps, and rewards programs that can be used across different aspects of travel.
