Gen Z are making the most of their money when it comes to holidays and experiences abroad. Despite cut backs on daily spending as a result of the cost-of-living crisis, Gen Z refuse to give up saving for once-in-a-lifetime experiences.
As a result, they’re utilising loyalty points to stretch their budget further. A recent survey shows over a third of adults born post-1996 and have used points to subsidise their international travel.
The survey showed that nine in ten of those using loyalty points have used thtem to subsidise flights while four in ten have used them for hotel stays.
New York, Paris and Dubai were among the top destinations visited, however, 45% are choosing more ‘once in a lifetime’ travel experiences, than smaller trips away.
The Points Index: Holiday Getaways by Virgin Red examines changes in public spending and attitudes towards loyalty programmes over the past year.
Andrea Burchett, Chief Loyalty Officer and Managing Director for the rewards club, noted that younger generations take a more tech-savvy approach to maximising loyalty programmes.
“They are drawn to digital platforms, mobile apps, and gamified experiences that reward their engagement in innovative ways,” he said.
“For these younger shoppers, it’s not just about savings – it’s about the experience, the convenience of integration with their digital lives, and the opportunity to personalise their rewards. As we continue to cut back our daily essentials, this data shows consumers refuse to lose out on travel.”
An astonishing nine out of ten respondents confirmed they are part of a reward programme, with a quarter participating in five or more separate programmes.
And three quarters of Gen Z admit they wouldn’t be able to afford a holiday if it wasn’t subsidised through a rewards incentive.
Maggie Hellicar, 39, upgraded her flight ticket to Disney World Florida last year. Travelling with her husband Carl and their one year old son, Aiden, they saved £5,000 to upgrade to upper class flights using a combination of 115,000 points through Virgin Red and a companion voucher.
“The points do rack up if you can funnel as much of your spending onto things like the Virgin Atlantic credit cards,” Maggie stated. “There are also bonus points when you sign up. Every little helps when you’re trying to rack up those points and you’re aiming to get enough for a flight or an upgrade.”
Andrea Burchett of Virgin Red commented: “It’s worth noting that this trend isn’t entirely generational, technology is a key enabler across the board.”
“Older consumers are increasingly adopting digital loyalty tools, particularly as businesses simplify the user experience. Today, almost three quarters of Brits (71%) said collecting loyalty points is now part of their everyday routine.”
“This shows that while approaches may differ, the universal appeal of gaining value from purchases remains strong, whether that’s for travel, groceries or healthcare.”