Back Loyalty and the Changing Traveler highlights key differences in how U.S. consumers plan, book and think about travel—and what loyalty programs must do to stay competitive.
SCOTTSDALE, AZ, JUNE 16, 2025 — A new report from travel loyalty technology provider arrivia reveals how generational differences in travel preferences are creating both challenges and opportunities for loyalty program leaders. Based on a survey of 1,089 U.S. adults who traveled in the past year, Loyalty and the Changing Traveler examines how Gen Z, Millennials, Gen X and Baby Boomers prioritize, plan and purchase travel and how those behaviors influence engagement with loyalty programs across age groups. The report includes findings on the Zillennial micro-generation (born 1992 to 2002) with its growing spending power, highlighting nuances that point to the need for more personalized loyalty strategies.
From Zillennial’s interest in bundled bookings to Millennials’ preference for vacation rentals and Gen Z’s demand for flexible payments, the report outlines distinct behavioral patterns that loyalty programs must plan for to engage and build stronger connections with the next generation of modern travelers.
Travel demand is broad—but behavior is fragmented
By 2030, Gen Z and Millennials are projected to make up half of all U.S. leisure travel, up from one-third in 2023. According to arrivia’s findings, that shift is already underway: 55% of Gen Z and 42% of Zillennials say they plan to travel more this year than last—a number that decreases significantly for those born before 1981. For loyalty programs, the challenge is balancing the preferences of these groups without overlooking those of their Gen X and Baby Boomer base, who continue to be active, high-value customers.
Across all generations, cost remains the top consideration behind trip decisions. But younger travelers are more likely to prioritize additional features such as the ability to book entire trips in one place, access to flexible payment methods and a wider range of travel products, including vacation homes, car rentals and cruises.
Zillennials offer a strategic growth opportunity
Zillennials—a micro-generation that spans Millennials and Gen Z—are emerging as a high-potential audience, with growing income and specific travel preferences. Nearly half live at home with their parents while reporting household incomes of $100,000 or more, giving them more flexibility to spend on travel.
Compared to the survey average, Zillennials are:
- Nearly twice as likely to travel internationally
- Most likely to use a rental car as their main form of transportation to their destination
- More inclined to book trips that bundle cruise, hotel and airfare
“These travelers are still forming brand preferences and travel habits, which gives loyalty programs a real opportunity to earn their trust and long-term commitment by responding to their needs early on,” says Jeff Zotara, arrivia Chief Marketing Officer. “It’s a crucial moment to build brand affinity by offering convenience, cost-efficacy and immersive experiences.”
Cruise and vacation rentals are gaining ground
Cruising is shedding its reputation as a retiree vacation and becoming more popular among younger travelers. Today, 27% of Zillennials identify as cruise travelers—compared to 18% of Baby Boomers. This shift supports broader industry findings that younger generations are embracing cruise when the experience aligns with their values and expectations.
Vacation rentals are also seeing a similar generational shift. Millennials and families with children are more likely to choose vacation homes over hotels, with space, flexibility and affordability as the most probable reasons. For loyalty programs, this points to the need to expand lodging inventory and support more full-trip planning and booking capabilities, from cruise and car rentals to home stays and activities.
Loyalty must reflect how travelers book
While only 18% of respondents booked their most recent trip through a loyalty program, 55% said they’d be more likely to do so if offered better pricing or more relevant deals. Younger travelers, in particular, are motivated by different benefits. Nearly 45% of Gen Z would book travel through their loyalty program if presented with broader destination options (compared to 29% of Boomers). They also expressed above-average interest in the ability to book entire trips in one transaction (46% vs. 28% average), while nearly half would be influenced by more flexible payment options, which is only true for 14% of Baby Boomers.
“This report isn’t just about age; it’s about expectations,” Zotara says. “Every traveler wants value, but how they define it, and what earns their business, can depend on what stage of life they’re in. A Gen Z traveler fresh out of college may prioritize flexible payment options and budget-friendly bundles, while a Millennial parent may look for family-friendly accommodations and simplified booking. Older travelers may be more focused on comfort, reliability and loyalty perks that reward long-term engagement. Loyalty programs that respond to those nuances will be better positioned to win share of wallet now and in the years to come.”
For more information about the report or to speak with Jeff Zotara, Chief Marketing Officer at arrivia, please contact Vanessa Horwell at vhorwell@thinkinkpr.com or download the Loyalty and the Changing Traveler here.
About arrivia
For more than 25 years, arrivia has powered travel loyalty and rewards programs for some of the world’s most respected cruise, hotel, resort, and financial brands, including American Express®, USAA®, and Marriott Vacation Club® by offering their customers more value through exclusive pricing and personalized options that inspire travel and customer loyalty. Arrivia’s travel privileges technology platform provides travel loyalty, booking, and marketing solutions to deliver exceptional value to customers and drive growth through exciting travel rewards and member benefits. To learn more about how arrivia helps companies drive growth, incentivize sales, boost affinity, and reward high-value customers, visit www.arrivia.com.
