GEN Z get the most bang for their buck when it comes to experiences and holidays abroad – using loyalty points to make their money go further.
A poll of 2,000 Brits found more than a third (34 per cent) of adults born after 1996 and 26 per cent of millennials have used points to help fund their overseas travel, compared with just 10 per cent of boomers and 11 per cent of Gen X.
A survey found that three quarters (70 per cent) of Gen Z said they wouldn’t be able to afford a holiday if it wasn’t subsidised via a rewards incentive to get the price down[/caption]
Maggie and Carl saved thousands using incentives[/caption]
Of those who have funded their travel abroad, 64 per cent of millennials had used points to get money off big-ticket expenses such as flights – compared with just 48 per cent of boomers.
New York, Paris and Dubai are among the most exotic locations the younger generation has visited using points to fund the trip.
This comes as Virgin Red launches its third annual report, The Points Index: Holiday Getaways which takes stock of the nation’s mood for trips abroad, while also looking at how public spending and behaviours towards loyalty programmes has changed in the past 12 months.
Andrea Burchett, chief loyalty officer and managing director for the rewards club, which commissioned the research as part of its annual Points Index report, said: “We’re seeing real trends with how people are spending their points.
“Millennials and Gen Z in particular, are demonstrating a remarkable ability to maximise the benefits of loyalty programmes by adopting a more tech-savvy approach.
“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, and the opportunity to personalise their rewards.
“As we continue to cutback our daily essentials, this data shows consumers refuse to lose out on travel, particularly amongst Gen Z, and our sense of adventure has not been lost among Brits. Particularly those saving up for once-in-a-lifetime experiences.”
Almost three quarters (70 per cent) of Gen Z said they wouldn’t be able to afford a holiday if it wasn’t subsidised via a rewards incentive to get the price down, compared with just half (51 per cent) of Brits overall who said they are in the same position.
Of those using points towards subsidising travel, 88 per cent have used them towards flights, and a further 41 per cent for hotel stays.
It seems the older generation could be missing a trick when it comes to getting money off foreign travel, as more boomers and Gen Xers (both 97 per cent) collect loyalty points than millennials or Gen Z (83 and 77 per cent respectively).
Looking at their future travel plans, 27 per cent of younger respondents want to go on more adventures, based on their bookings in the past 12 months.
And 45 per cent are opting for more ‘once in a lifetime’ travel experiences, rather than smaller trips away.
While nearly half (46 per cent) of Brits are looking at ways to earn more points per spend, in a bid to recoup rewards to upgrade on holiday purchases like flights and hotel stays, the survey also found 46 per cent have changed their spending habits to mitigate the impact of the cost-of-living crisis.
And a huge 90 per cent of those surveyed confirmed they are part of a reward programme, with a quarter of those participating in five or more separate programmes, the OnePoll research found.
Maggie Hellicar, 39, her husband Carl and their one-year-old son Aiden managed to jet 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.
They said they saved £5,000 together[/caption]
Revealing her tips and tricks, Maggie said: “The points do rack up if you can funnel as much of your spending onto things like the Virgin Atlantic credit cards.
“That gives you a slightly better rate when you spend, and there was also bonus points when you signed up.
“It was a case of spending money on the card, and then you’ve got competitions on Virgin Red which help give you points.
“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.
“The other benefit you get is the companion vouchers with the credit cards.
“If you spend over a certain amount a year, it makes a massive difference if you’re looking to upgrade or book an extra seat – they’re really useful.”
Andrea Burchett of Virgin Red added: “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 per cent) 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.”
The couple said they wouldn’t have been able to afford the trip without it[/caption]
