Gen Z, Millennials, and Zillennials Redefine Loyalty, Arrivia Reveals Travel Trends That Loyalty Programs Must Crack by 2030

Published on June 17, 2025

By: Tuhin Sarkar

Gen Z, Millennials, and Zillennials are rewriting the rules of travel loyalty—and the clock is ticking. Arrivia reveals seismic shifts that loyalty programs must crack before 2030, or risk losing their grip on the most influential generations in modern travel. These aren’t just subtle changes in travel taste; Gen Z, Millennials, and Zillennials are collectively turning the loyalty playbook upside down.

While Baby Boomers and Gen X once defined loyalty, Gen Z and Millennials now dominate future travel demand. And Zillennials, the micro-generation between them, are the wildcard loyalty programs can’t afford to ignore. Arrivia’s latest report unpacks how Gen Z, Millennials, and Zillennials plan, prioritize, and purchase travel differently—and why it matters now more than ever.

Meanwhile, Arrivia reveals that traditional perks no longer guarantee loyalty. Gen Z and Zillennials demand flexibility, bundles, and immersive value. Millennials crave experiences over points. Loyalty leaders? They need to crack the code or fall behind.

Arrivia reveals that Zillennials, with their rising income and adventurous booking habits, are poised to reshape loyalty strategy completely by 2030. These travelers aren’t waiting—they’re exploring, spending, and booking differently right now. Gen Z, Millennials, and Zillennials are setting new standards, and loyalty programs must adapt swiftly.

So buckle up. What Arrivia reveals isn’t just data—it’s a red alert for loyalty professionals. Gen Z, Millennials, and Zillennials are calling the shots now. Loyalty, as we know it, is changing. And the brands that crack it before 2030? They’ll win not just customers—but lifelong believers.

Generational Travel Revolution: Arrivia’s Report Sounds Alarm for Loyalty Programs

Travel loyalty strategies are at a turning point. A new Arrivia study of 1,089 U.S. travelers reveals generational divides fueling urgent change for loyalty program leaders. Gen Z, Millennials, Gen X, Baby Boomers, and the newly identified Zillennial micro‑generation (1992–2002) all travel—but they book, pay, and spend very differently.

By 2030, Gen Z and Millennials are set to make up half of all U.S. leisure travel—up from a third in 2023. But that rise isn’t one-size-fits-all. Arrivia’s data confirms younger travelers demand bundled packages, flexible payments, and home rentals, while older groups stick to traditional flight-hotel combos.

Travel Demand Is Broad… But Traveler Behavior Is Fragmented

Cost remains the top priority—but generations prioritize value differently:

• Younger travelers (Gen Z & Zillennials) prioritize bundled trips, flexible pay, and varied stays like vacation rentals and cruises.
• Older travelers lean toward hotels, consistent loyalty benefits, and ease of booking.
• Still, all groups value cost and comfort.

Zillennials: The Micro-Gen Holding Massive Potential

This fledgling group—born between Millennials and Gen Z—is rapidly gaining influence. Despite nearly half still living at home, they earn more than $100,000 annually. They:

• Are nearly twice as likely to travel internationally.
• Prefer rental cars on trips.
• Show the strongest demand for bundles including cruise, hotel, and airfare.

This micro-gen is open to brand loyalty—and willing to explore new options. Loyalty leaders must act fast to engage them.

Cruises and Vacation Rentals: No Longer Just for Boomers

Cruising now appeals widely to young adults. Among Zillennials, 27% identify as cruise travelers—well above Boomers at 18%. Meanwhile:

• Vacation rentals outshine hotels for Millennials, especially families.
• Flexibility, space, and cost drive this shift.

Loyalty programs focused only on hotels risk alienating huge traveler segments.

Loyalty Must Match Booking Behaviors

Despite only 18% booking trips via loyalty channels, a full 55% of all travelers said they would use loyalty if pricing improved or deals felt tailored. Differences persist:

• Nearly 45% of Gen Z respond to broader destination options.
• 46% want bundled booking in a single transaction.
• Almost 50% of Zillennials rank flexible payment as crucial—versus 14% of Boomers.

That shows loyalty isn’t broken—it’s just outdated.

Urgency Climbs: Loyalty Programs Must Evolve

What loyalty leaders must consider now:

1. Personalize by generation. Gen Z seeks freedom. Millennials want family options. Boomers value consistent perks.
2. Add trip bundles. Air + car + hotel + cruise is the new baseline.
3. Embed flexible pay tools. This appeals strongly to younger travelers at checkout.
4. Expand lodging types. Support rentals, home stays, boutique stays alongside traditional hotels.

A Fourth Option: The Zillennial Wildcard

Zillennials sit squarely between Millennial loyalty and Gen Z spontaneity. They crave adventure—so offer them exclusive travel content, curated experiences, or loyalty acceleration on bundled bookings.

Loyalty is behavior-shaping. As younger generations gain travel share, their habits will shape norms. Letting loyalty lag is strategically dangerous.

Program Redesign Doesn’t Have to Wait

Opportunities are immediate:

• Airlines and hotels can test bundle offers for Gen Z and Zillennial segments.
• Integrate payment flexibility for select loyalty levels.
• Reward cruisers and vacation rental users with points or upgrades.

Program redesign costs less than doing nothing—and pays off by retaining early loyalty of high-spending travelers.

Final Boarding: The Loyalty Pivot Is Here

Arrivia’s data reveals a loyalty reset isn’t optional. It’s mandatory. Travel leaders must act before full generational dominance shifts travel behavior completely. Programs must now deliver:

• Value by life stage.
• Booking ease by generation.
• Payment freedom by preference.

Because by 2030, Gen Z and Millennials will own the market. And Zillennials demand a fresh take now. Make loyalty matter—or risk getting left behind.