Younger passengers changing views on air travel

BTN News
Thursday, 06 June 2024

Travellers are eager to fly and plan trips, but they remain cost conscious and, depending on the generation, less swayed by traditional airline loyalty programs, according to OAG’s latest survey, 'Beyond the Ticket: Winning Traveller Loyalty with Rewards and Ancillary Services'. 


The survey, which includes insights from 2,000 travellers, suggests that while loyalty and frequent flyer programs remain popular among all travellers, airlines need to reinvent their approach with younger travellers who are less likely to be enrolled than their older peers.

Only 65 per cent of Gen Z and 70 per cent of Millennials report being enrolled in airline frequent flyer programs, compared to 89 per cent of Baby Boomers and 80 per cent of Gen X. The number one barrier to joining loyalty and frequent flyer programs is lack of consistent travel with a single carrier or brand.

The survey suggests that the number one way for airlines to improve loyalty program adoption and engagement is to allow customers to use earned points elsewhere in their travels. This speaks to younger generations’ desire to have rewards that are specific to their travel preferences and booking patterns. Some 50 per cent of Gen Z and 49 per cent of Millennials want to use points with vacation rental providers. Seventy-three percent of all travellers desire to put their airline rewards program points towards hotel accommodations, followed by car rental services (53 per cent).

Other traveller preferences that influence loyalty and purchasing decisions:

• Younger travellers prioritise experiential factors over cost, with Gen Z and Millennials both 27 per cent more likely to pay up to $100 more for a ticket to fly with a legacy carrier as opposed to a low or ultra low-cost carrier.

• Most travellers purchase add-on services through an airline’s web site (48 per cent) or mobile app (37 per cent), with only 10 per cent opting for gate and five per cent for in-flight purchases. Gen Z is the most likely to purchase add-ons once on the plane (12 per cent).

• Half of all travellers prefer to purchase add ons at the time of booking, with 26 per cent purchasing add-ons in between booking and check-in. Another 12 per cent are likely to purchase add-ons at the time of check-in, six per cent at the airport and six per cent doing so in-flight.

• Although 67 per cent of all travellers are willing to pay up to US$20 to take more than one extra carry-on item into the cabin, 50 per cent think too much luggage is being taken into the cabin and agree with stricter airline policies about carry-on baggage.

Younger passengers changing views on air travel

BTN News
Thursday, 06 June 2024

Travellers are eager to fly and plan trips, but they remain cost conscious and, depending on the generation, less swayed by traditional airline loyalty programs, according to OAG’s latest survey, 'Beyond the Ticket: Winning Traveller Loyalty with Rewards and Ancillary Services'. 


The survey, which includes insights from 2,000 travellers, suggests that while loyalty and frequent flyer programs remain popular among all travellers, airlines need to reinvent their approach with younger travellers who are less likely to be enrolled than their older peers.

Only 65 per cent of Gen Z and 70 per cent of Millennials report being enrolled in airline frequent flyer programs, compared to 89 per cent of Baby Boomers and 80 per cent of Gen X. The number one barrier to joining loyalty and frequent flyer programs is lack of consistent travel with a single carrier or brand.

The survey suggests that the number one way for airlines to improve loyalty program adoption and engagement is to allow customers to use earned points elsewhere in their travels. This speaks to younger generations’ desire to have rewards that are specific to their travel preferences and booking patterns. Some 50 per cent of Gen Z and 49 per cent of Millennials want to use points with vacation rental providers. Seventy-three percent of all travellers desire to put their airline rewards program points towards hotel accommodations, followed by car rental services (53 per cent).

Other traveller preferences that influence loyalty and purchasing decisions:

• Younger travellers prioritise experiential factors over cost, with Gen Z and Millennials both 27 per cent more likely to pay up to $100 more for a ticket to fly with a legacy carrier as opposed to a low or ultra low-cost carrier.

• Most travellers purchase add-on services through an airline’s web site (48 per cent) or mobile app (37 per cent), with only 10 per cent opting for gate and five per cent for in-flight purchases. Gen Z is the most likely to purchase add-ons once on the plane (12 per cent).

• Half of all travellers prefer to purchase add ons at the time of booking, with 26 per cent purchasing add-ons in between booking and check-in. Another 12 per cent are likely to purchase add-ons at the time of check-in, six per cent at the airport and six per cent doing so in-flight.

• Although 67 per cent of all travellers are willing to pay up to US$20 to take more than one extra carry-on item into the cabin, 50 per cent think too much luggage is being taken into the cabin and agree with stricter airline policies about carry-on baggage.