Key Insights
Why is Gen Z less likely to enroll in airline loyalty programs?
They prefer rewards tailored to their travel preferences, are wary of data sharing, find it takes too long to redeem rewards, and lack consistent travel with a single carrier.
Why do Gen Z members avoid airline data sharing?
They don't want airlines to have access to their data, despite already sharing data with other apps.
Why do Gen Z members find airline rewards programs unattractive?
They believe it takes too long to redeem rewards and that the programs are designed to benefit airlines more than consumers.
How do Gen Z members approach airline ticket purchases?
They price shop, focusing on the actual ticket price rather than airline rewards.
Why are credit cards less popular among Gen Z?
They are moving away from debt, including credit cards, with only about 40% using a credit card in the last 90 days.
How do co-branded credit cards affect airline rewards programs?
They are a significant part of these programs, with rewards often tied to spending on co-branded credit cards rather than actual miles flown.
What is the potential impact of Gen Z's approach on airline rewards programs?
Traditional loyalty programs may slowly fade as younger consumers, who make up a larger share of the traveling population, avoid them.
How do airlines and credit card companies target consumers?
They run thousands of experiments to discover ways to get consumers to chase rewards through more spending, leveraging deep knowledge of consumer behavior.
What advice does the podcast offer for saving money on flights?
Pay attention to airline sales, use travel apps, and research before booking to find better deals without relying on airline rewards.
Chapters
- 89% of boomers are loyalty program members, compared to 65% of Gen Z.
- Gen Z prefers rewards tailored to their travel habits.
- They are wary of airlines accessing their data.
- Reward redemption takes too long and requires too many points.
Shownotes Transcript
