Gen Z are making the most of their money when it comes to holidays and experiences abroad – here’s how they’re doing it
A recent survey of 2,000 Brits revealed that over a third of adults born post-1996 and a quarter of millennials have used loyalty points and reward schemes to subsidise their international travel.
Of those who have funded their overseas trips this way, 88% have used them towards flights, and a further 41% for hotel stays.
Two thirds of millennials have used points to reduce the cost of significant expenses such as flights to New York, Paris and Dubai among the top destinations.
This data coincides with the launch of Virgin Red’s third annual report, The Points Index: Holiday Getaways, which 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, said: “As we continue to cut back our daily essentials, this data shows consumers refuse to lose out on travel.”
He noted this was especially ‘true’ for most Gen Z and those saving up for once-in-a-lifetime experiences. He expressed 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. For these younger shoppers, it’s not just about savings – it’s about the experience, the convenience of integration with their digital lives.”
This aligns with the fact that 45% are choosing more ‘once in a lifetime’ travel experiences, rather than smaller trips away. However, three quarters of Gen Z recognise they wouldn’t be able to afford a holiday if it wasn’t subsidised through a rewards incentive.
Overall, nine out of ten respondents confirmed they are part of a reward programme, with a quarter involved in five or more separate programmes. The stats show 88% use points to subsidise flights, an additional 41% use them for hotel stays.
Maggie Hellicar, 39, is one of those using points to make her spending go further.
Maggie, along with her husband Carl, and their one year old son, Aiden, flew off to Disney World in Florida last year – saving £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 said. “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,” Maggie added. “The other benefit you get is the companion vouchers.”
Andrea Burchett of Virgin Red chimed in: “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.”
