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In this episode of the Travel Buddy podcast, presented by Switchfly, hosts Ian Andersen and Rachel Satow examine how generational shifts are redefining travel loyalty. Through a mix of industry data and personal perspective, they focus on what Gen Z and millennials value in rewards, what skepticism persists, and which trends will shape the future of travel experiences.
Key Highlights
Key Highlights
- Generational shift: Hosts share that Gen Z and millennials are projected to drive over 50% of U.S. leisure trips by summer 2030, with Gen Z alone expected to spend $450 billion globally on travel.
- Experiences first: Younger generations consistently value memorable trips over material possessions, reshaping value propositions in travel.
- Sustainability as baseline: Gen Z expects sustainability as standard—while millennials remain more cautious, often questioning the sincerity of brand sustainability claims
- AI-powered personalization: AI enables loyalty programs to deliver highly personalized offers and seamless digital experiences, AI delivers proactive, personalized recommendations.
- Demand for instant rewards: Gen Z prefers immediate, easy-to-understand perks and “daily earning” opportunities, looking to models like Starbucks Rewards for simplicity.
- Flexibility and transparency: Unpredictable program changes breed skepticism. Younger travelers seek loyalty programs with straightforward earning, flexible redemptions, and low commitment.
Creators and Guests
What is Travel Buddy with Switchfly?
See more at Switchfly.com
Welcome to Travel Buddy,
presented by Switchfly.
In this podcast, we talk about all
things travel, rewards, and loyalty.
Let's get to it.
Brandon Giella: Hello and welcome
back to another episode of The Travel
Buddy podcast presented by Switch Fly.
I have with me as always, Ian Anderson.
Welcome back, and Rachel ow.
Welcome back.
So excited to talk to you guys again
today we are talking about loyalty
status and travel trends, and what
matters most to modern travelers today.
So we'll be talking about
Gen Z and millennials.
I'm a millennial.
I'm 34, about to be 35.
I'm right in the middle.
Born 1990.
What's up?
so I have my own travel thoughts.
I know you guys do too.
you millennials.
Ian Andersen: we're all
millennials on this one, I believe.
Yeah.
Brandon Giella: that's right.
That's right.
We're taking over the world.
but there is Gen Z coming
up right behind us.
And there's a great wealth
transfer coming one day and
they're gonna dominate everything.
And then there's gen alpha behind them.
And then there's betas I learned
today, one of, so I had a baby a week
ago and that baby boy is a gen beta.
But my daughter who's two
and a half is a gen alpha.
Fun fact.
Ian Andersen: that's my, two are, my
oldest is the very tail end of Gen Z
and youngest is the upper end of, alpha.
And they're two years apart also.
Brandon Giella: So they're
gonna be wildly different people
that you have to figure out how
Ian Andersen: Yep.
Totally.
Brandon Giella: Natalie.
All right.
so what is happening is within this
demographic shift, millennials,
coming up in the age of social media
where this, I feel like this is
an important, point in time where.
When we were younger, we
did not have social media.
It came in later in high school
and then into college where
it got more in, our culture.
But for Gen Z, that is not true.
They have, since they were
kids, had social media.
It impacts the way that they think about
everything, but particularly travel.
And there are some growing trends, we
feel from millennial to Gen Z demographics
that I think it's important for.
Business leaders to understand loyalty,
leaders to understand, especially if
you're a boomer or Gen X, there are
some differences within generations.
People talk about this all the time,
but I wanna, bring a point to it
where we have, some growing trends
of sustainability, personalization
and instant and flexible rewards.
Gen Z and millennials are looking
for as well as experiences.
Now, we've talked about this a
little bit on the show before, but
I wanna dive a little bit deeper,
so I'll throw it up to you two.
there is a stat here that, gen Z and
millennials are projected to drive over
50% of US leisure trips by summer 2030.
That's up by a third since 2023.
So in that seven year gap.
50%, will be driven by, 50% of
leisure trips will be driven
by this next generation.
And that Gen Z is projected to spend $450
billion globally on travel, averaging
about three vacations every year.
In my experience, I
think that's about true.
and I think millennials and Gen
Zs that I know want to travel and
they want to have a great time, and
they're willing to spend some money
on it despite inflation tariffs.
But there, it's, so you guys, so what
do you guys, see just in general when
you're thinking about millennial and
Gen Z travel habits and what you're
seeing maybe across the, generations,
maybe folks that, maybe the way that
you guys think about, travel in general,
and then we'll dive into some of those,
more particular instances in a minute.
Ian Andersen: I think so maybe starting
with some of the similarities between.
gen Z and millennials, so
versus the older generations.
a lot of what we've seen over the
past few years is, around experiences
and, both the millennial and Gen Z
generations tend to value experiences
far more than previous generations
over material, goods or things.
So travel.
It really fits, it really makes sense
that even though Gen Z is still relatively
small as far as buying power and in
the workforce, it makes a lot of sense
that they're going to be an play, an
outsized role in the travel industry
that, taking a trip to, Europe, to
Asia, across the us whatever it is.
that experience would be more
valuable to them than, buying a
new car or buying a new something.
So I think as long as basic needs
are met, both Gen Z and millennials
are much more likely to go with
the experience over the possession.
that said, travel is only
going to keep being in more and
more demand across the board.
Brandon Giella: Yep.
Yep.
Heard.
Rachel, what are your general
thoughts on how you're seeing
some of these demographic trends?
Rachel Satow: Yeah, I think Ian
hit the nail on the head there.
We are seeing, gen Z and millennials
are traveling differently, but I think
it's important for us to highlight why.
This is such a hot topic and why
loyalty programs are having to make
shifts because of the new buying
power of the younger generations.
And it's really because since they are
increasing their frequency and they
are increasing, the market share of
their presence in the travel industry
in comparison to older generations, We
are seeing that phase out the phase out
of the boomers being able to travel.
So all of that is really transferring
down to millennials, gen Z,
eventually Gen Alpha and gen beta.
and loyalty programs need to be sensitive
to this shift as you would in any
commerce situation, simply because.
The way the, these generations have
grown up is so different in comparison
to older generations and loyalty
programs have to meet those demands.
so I had mentioned that Gen
Z's traveling differently.
They're really leaning
into the tech side of.
we've got AI that's able
to help them plan things.
We've got, such frequency that
they're able to shift the way they're
allocating their disposable income.
And in order to capitalize that on that
appropriately, loyalty programs need
to be able to capture their attention.
Brandon Giella: I'm glad you mentioned
AI because I think there across a lot
of these trends that we're seeing that
we have here in our notes, there is
like a convergence of these trends.
So you've got technology and AI and things
like that, but you've got sustainability,
you've got hyper-personalization,
you've got instant and flexible rewards.
All of these things are intermingling.
So here's what I mean.
and I wanna get your thoughts on this.
So on.
The very first trend, that we're
talking about here is sustainability.
And so the younger generations are
much more sensitive to environmental
impact or their eco stewardship, if
you will, or green travel, because
of the sensitivity of some people say
because their time horizons a lot.
Further out, they've gotta be on
earth for another 70 years, whatever.
Whereas somebody that maybe is a
boomer is not thinking as, as far,
that's one argument people make.
but when it comes to travel, I'm
curious how you guys think about
sustainability as it relates to travel.
So there's a stat that says that 42% of
Gen Z and 38% of millennials took action
to travel more sustainably in 2023.
And I'm curious how you guys interpret
that data because when I think
about sustainability in travel, I.
I do see things like on Google, if I'm
searching for a flight or whatever, let's
say I'm going to London, I'm looking
at the trip to London and I'm comparing
flights and sometimes I see this little
thing on Google that'll say this flight
path takes 3% less carbon emissions
than another flight path or whatever.
And I'm curious how much
that might impact your.
decision to take a trip or not take a
trip, or whether you take, an Uber or not.
so Ian, you had mentioned like price is
always the number one differentiator,
and then maybe it's timing and then maybe
we'll get to the sustainability question,
but I'm curious, like, how do you guys
think that sustainability impacts,
decision making for younger travelers?
Ian Andersen: I think so.
So Rachel had a good point earlier,
I think before we started recording
on how sustainability has become so
culturally pervasive that, especially
among Gen Z, they don't necessarily.
Actively think about it, right?
It's just, it's like you, you
make sure there's gas in your
car before you start driving.
You make sure like it's a
natural thing for them to just
go with a sustainable option.
All else being equal,
right?
So it's not necessarily
top of mind, but it does.
Affect their behavior
just because it's natural.
with millennials especially someone
like me who's a elder millennial, on
the edge of Gen X and, I come up in
the sort of green revolution, that,
that sort of marketing and messaging
still really stands out to me.
and it doesn't affect my behavior and I
think most millennials behavior, but like
you said, but all else being equal, right?
if a sustainable option, no
matter how it's messaged.
Is significantly more expensive
than, one that may or may not be.
It's just not messaged as.
most people, and that's every generation
are gonna go with the lower priced
option and travel price and it, I
don't wanna say in travel in most
things, but travel, definitely Price
is your number one consideration.
And especially now we live in a time of.
Most people doing their travel buying,
not through an agent, not even directly
with the supplier, but through a platform
aggregator, like Switch, fly, like
Priceline or Hopper or one of the others.
That is basically a list, you may
not necessarily know, which is the
more sus most sustainable option.
I know you say Google highlights
it, but even then, is it, bumping
those to the top or is it just, a
little kind of sidebar that displays
slightly more sustainable option?
until.
Culturally, and I don't know if it'll ever
get to this place, but until culturally
we all decide that sustainability is
a number one, number two priority.
it's going to affect things only
barring all else being equal.
Rachel Satow: Ian, you bring up an
interesting thing in your earlier
statement about how, It's not necessarily
that millennials or Gen Zs are shirking
their responsibility from a sustainable
sustainability standpoint, but you
had mentioned that, you saw the Green
Revolution happen, and I think that's
a really key differentiator between
millennials and Gen Z, is that.
Millennials saw the shift happen when
it was really pushed five, 10 years
ago for companies to become more,
more conscientious of their carbon
footprint and their sustainable options.
And it became almost a selling point
for brands to showcase, Hey, we
are taking this into consideration.
And I think millennials.
See can sometimes see oh, this
might be just a marketing ploy.
So there's that like potential for
doubt on the sustainability side
from, from the perspective of, it
being out there for a travel brand.
whereas with Gen Z, they grew up.
Only knowing the sustainable option.
It's a, it's an expectation for
them at this point that brands are
doing the right thing and taking
the steps to be more sustainable.
so when we dial that back into the
conversation regarding price, I think
from a psychological standpoint,
they're probably making decisions
not with the idea of sustainability
first, because they're already assuming
that the brands they're purchasing
from have made the choice to.
To take the sustainable route.
so that's why we might see that little
bit of a dichotomy between the two
generations where there's almost
this from a millennial perspective.
Lack of trust that these sustain
sustainable options are real.
Whereas for a Gen Z, they just are
working with the assumption that brands
are making the right decisions and are
going forward with sustainable options
and that they have the freedom to
choose the lowest price because as all
brands are working towards the same goal
Ian Andersen: or all brands aren't right.
I
think you see a lot of skepticism in
Gen Z that you don't always see in
millennials, but but I think you're right
on the environmental sustainability.
I do think that brings up
a point, Brandon, that you.
Discussed earlier is there are different
types of sustainability, right?
there's, we generally think of it as
environmental, and I think what we've
been talking about so far has been
mostly on the environmental side, right?
But there are things like social and
economics, sustainability as well.
and those do affect people's
choices and behaviors.
those are considerations to make.
It's one though some though that
are, hard to quantify a lot of
times and hard to message against.
Brandon, when we were talking
earlier, you brought up the point
of, somebody who might not want
to use a, Uber in New York City.
Because it might be considered
unfair to the taxi drivers
who had worked so hard to,
to even, earn their taxi medallion.
that is a very specific and unique form
of sustainability that isn't gonna have
broad messaging appeal across, across
the country, much less across the world.
I think, if you're talking to.
Somebody in Arizona, talking about taxi
medallions, Uber being unfair for taxi,
taxi drivers and getting their medallion,
it is just not gonna resonate in the same
way as it would to somebody who lives
in New York City or goes there often.
social sustainability is a big one.
economic.
how many years now have, has the
discussion revolved around, the
economic environment that younger
millennials and Gen Z are coming
up in is far different than
Gen X and, boomers.
but that is still.
Unique and targeted in a way that say
environmental sustainability isn't.
And I think that's where AI and
personalization's gonna play a much
bigger role in that when you are
identifying environmental sustainability
is become so ubiquitous that you
almost don't need the targeting, right?
Most people across the board believe.
That there is some effect humans
are having on our environment
that is negative, right?
The degree of which is argued about
a lot, but the mere fact that we
are having this effect, isn't really
much of a question anymore, right?
so you can message environmental
sustainability in a pretty broad
way that's gonna resonate from some
18-year-old buying their first plane
ticket all the way to, an elderly
person going to see their grandkids.
whereas some of the social and
economic sustainability questions
may not have that broad messaging
appeal, and this is where AI will
really start playing a role, right?
is being able to identify
who's asking the question, and
then targeting the messaging.
To them, not only generationally,
but all, all forms of demographic,
whatever their, other sort of
demographic features might be.
it will be able to be a
lot more targeted to them.
Yeah.
Brandon Giella: I wanna be clear
that we're talking about really
big terms, and sustainability,
personalization, demographic shifts.
But we're, so we're seeing the
stats, we're seeing the research,
but we're also seeing people
actually make decisions based on
some of these trends in real life.
I mentioned, yeah, before we were
recording that, had a friend of a
friend who decided not to Uber with
us, to dinner across Manhattan.
He wanted to give a taxi
for social justice reasons.
I had a friend recently, and this
is where these trends start to
converge in real ways, is with.
Generative ai and we talked in an
episode a few weeks ago about using
generative AI to find, off the beaten path
itineraries for when we want to travel.
I.
I had a friend recently tell me, two weeks
ago, that they refuse to use AI because
of its negative impact on the environment.
Its energy use, it's water consumption
to cool down servers, things like that.
So these are real things and that
people are actually making decisions
and it affects the travel industry
particularly because airlines of
course, use huge amounts of fuel and
carbon emissions in just traveling.
And then hotels obviously being large.
large buildings using a
lot of energy and so on.
But the AI mixed with experiences mixed
with the travel eco footprint, all these
things are interrelated and they are
actually affecting people in real ways.
I.
Ian Andersen: I think that,
it's an excellent point and
you hear about it occasionally.
I've met people who've brought that
up of refusing to use generative
ai, for environmental reasons.
I think in some ways they're
missing the point of.
Brandon Giella: I agree.
Ian Andersen: the genie is
out of the bottle on that.
And if you are not using chat, GPT or
Claude or any of the various ones, now, it
doesn't matter as much because the people
you're buying from certainly are using it.
so you might be taking care of part
of the equation and I don't want to
dismiss anybody's, feelings regarding it.
because it is a real thing.
I'm not sure I'm not sure that's gonna
have much of a behavioral change, except
a very small percentage of the people.
And even those people, it's
not like they can't, or, they
can just avoid buying things.
And whether it's travel
or any other industry.
Across the board companies are
using ai, whether it's, go ahead.
Brandon Giella: Sorry, I cut you off.
I want to double down on that
point that, everybody's using ai.
In generative AI in that way, if
you're using Google or Apple Maps,
that traffic data, to how you get to
where you're going is generative ai.
It's the same process or your voicemail
being transcribed on your Apple
iPhone or this very podcast being
transcribed by the podcast tool.
It's all generative ai.
It's all the same tool.
We use it all the time.
If you use Gmail, that the servers to
Google servers are translating that.
Information and scooping all
that information up anyway, so
Ian Andersen: Yeah,
absolutely.
and what you know, going
to the grocery store.
down the street, more than
likely your grocery store,
whether it's in its marketing,
whether it's in its, supply, supply
relations, the, the inventory
management, they're using ai right?
In various ways.
switch fly is in a number of different
ways, and I can't think of a company
that has actively taken a stance against
using AI just because it's.
It's like anymore getting to the point
of claiming you don't use the internet.
so whether or not you personally make
the choice on whether or not to use
it, I think besides the point, the ads
being served to you on your Facebook
page are done through ai, that's, that
is the important question actually.
I was thinking when we first
started talking, Brandon, this is.
We've been doing this podcast for
about a year, a little over a year now.
and AI's been a common theme
that comes up and it's.
Interesting.
Looking back at the conversations we had
just a year ago about AI on, and it was
so much more on the user side, right?
It was so much more am like, we
would talk about things like letting
AI build a trip itinerary for me
or whatever.
Or, talking about the
best places to go for.
If you got kids or whatever.
and I think we totally missed the point on
that is the least of what AI is doing in
our society right now.
that is.
It does help you on an individual
level, me going and putting things
together, but on what it, what I am
seeing day to day, how the software
I use behaves and interacts with me.
that is far more prevalent in
our, in today's culture than
anything we talked about a year ago
Brandon Giella: Mm-hmm.
Mm-hmm.
Yeah.
Agreed.
Agreed.
Rachel Satow: So I think
we're dancing around.
Saying it.
But I think the core here is that
AI and all of its sustainable impli
implications is re regardless of your
personal choices, it's ingrained in the
technology that we're using every day.
and you can't get around it.
And when we dial back into some of
the trends we're seeing, we also
have to take into the fact that.
It is enabling some of the expectations
that are being created by Gen
Z, gen Alpha, et cetera.
So I know we, we brought up
the idea of personalization.
Personalization at scale is being
driven by AI's capabilities to.
Take into account mass amounts of data
and segment out individuals and be
able to say on a one by one basis what
would be perfect for them to serve.
So when we think about going back
to the sustainable aspect, and how
Gen Z is not necessarily making
decisions to be more sustainable
because they are valuing price more.
We're also, we also have to take into
account the personalization aspect of it.
They're
going to have the expectation that
their lives and the advertisements
they see, the perks that they
are served are more personalized.
They also have to make
that choice of, ooh.
The tools I'm using, the
program I'm using has AI in it.
And now they're having to like
make sacrifices where, you know,
on a personal basis just because
it's being, implemented at scale.
Ian Andersen: that's a really interesting
point that I don't know if I've ever
totally internalized of coming up.
Growing up when we did and the rise
of the internet and it taking over
the world, millennials were handed a
tool at a pretty young age where you
could go find what you needed, right?
and give me a little bit of time.
I can go find whether it's the flight I
want or the type of software I need or
whatever it is, I can go find it, but it
would actively require me searching where.
Now, over the last five plus years,
and definitely going forward, this
search isn't a part of it, right?
This will be actively handed to you,
without, you might not even need to fully
create the problem statement, right?
That, that AI is getting to the point.
AI and personalization is
getting to the point to where.
Based on your general behavior, it's
gonna be, it's starting to predict
what you will need next before
you might even know you need it.
and your ads that you're being served,
the, just the offer, the general
offers available to you that were.
Yeah, there were offers in those places
before, in early internet and in TV and
radio, and they all had ad spots, right?
the monetization of the internet
is the exact same as it was
in newspapers 200 years ago.
It's just, you can't personalize
an ad in a newspaper.
For exactly what Brandon or Rachel
need at this particular point in time.
and it's just getting to the point
to where younger generations will
have never had to actively search for
something they might particularly need.
And if they do, it is
an extremely limited.
Search compared to what
had happened before.
And, that's a bit of a
double-edged sword, right?
One, it might not teach them the
skills required to do so that
may or may not be transferrable
to other parts of their life.
But on the other, it could make
them infinitely more productive than
we ever dreamed of being, because.
There won't have to necessarily
think of the next step.
That next step's gonna be
personalized and served to them.
They can be thinking four
or five steps further.
And, I think travel is part of it, right?
if a personalization engine
like Switch Fly can identify
and start serving you something.
At the very beginning of your search,
maybe even before you started making
it, you are going to take as given
you know, this offering and starting
to think about the next things.
I just find that whole idea very
fascinating of AI being so good.
and I don't know if it's tech, it's
quite there yet, but it's definitely
not far off of handing you something
before you're even looking for it.
and then,
Brandon Giella: I, I think a simple
example is instead of searching for,
best places to travel for summer 2025,
which was the way we've been searching
these kind of things for the last 10
years, now it's opening up Chacha, BT
turning on a deep research report and
telling it, two paragraphs about you and
what you are looking for in your travel.
And then it surfaces here's exactly
where I think you should go and exactly
what I think you should do, and that.
Changes, it changes the
way people relate to it.
Ian Andersen: Yeah, you are right.
It takes a lot of the decision
making out of the equation, which I.
Again, I could come up with
half a dozen bad things because
you know that stem from that.
But I can also come up with
probably an equal amount of good
things that come from it too.
in the end, it's a tool like any other.
It can be used for many different things,
but it is going to be groundbreaking
in the way it causes us to behave with
the internet and Gen Z especially,
and Gen Alpha and those behind.
Just the sheer fact of growing up
with it and it being such a ubiquitous
part of their life are going to have
a much different experience than
those of us who've lived the majority
of our life without these AI tools.
Rachel Satow: Yeah, we're getting eerily
close to discussing and going all the way
down the algorithmic bias rabbit hole.
Ian Andersen: Yeah.
Rachel Satow: maybe that'll be another
episode.
Brandon Giella: Yeah, yeah, yeah.
Ian Andersen: we, she just some
like tinfoil hat conspiracy
level.
Brandon Giella: No, but it do.
I think it's important though because,
these topics do, they are converging.
I think to the earlier point we were
making, like we're talking about
sustainability, we're talking about
improvements in technology and ai.
We're talking about personalization and
Rachel, I wanna get your thoughts on this
the last few minutes that we have here.
One of the other trends we were
talking about is flexibility that Gen
Z millennial travelers are looking for
in their loyalty, programs from brands.
And I'm wondering if.
This converges as well, where
we're using AI to search for
things or hyper personalized.
We have these sustainability, pre
preconceptions and as a result, it's
increasing competition amongst, loyalty
providers or brands or, because I'm
looking for things that are very unique
to me and my experiences that I'd like
or my personalized, needs or desires.
And as a result of that.
They're, gen Z and millennials have, lower
loyalty than previous generations, and so
they're looking for, what you guys were
talking about before we started recording
was looking for like flat fee memberships,
non-travel redemption options that maybe
there's partner retailers, unrestricted
redemption options, low commitment models.
I have, I'm thinking of
American Express Platinum.
I can go get $200 worth of, like Walmart
credits or I can get like audible
credits for entertainment, purposes.
so I'm thinking are there things
like that, do you think that it's a
result of personalization and wanting
meaning and experiences because
of ai, because of sustainability?
Like how does flexibility
fit in with this, if at all?
Because I, I think it does.
Rachel Satow: Yeah.
So you know, you brought up an interesting
point in that Gen Z and I can only assume
that Gen A and Gen B and beyond are
going to have the same sort of mentality,
but there is that lower loyalty uptake.
And we were talking about this stat
earlier that for Gen Z, only 65%.
Of the generation is
enrolled in a program, in a
enrolled, in a loyalty program.
Whereas when you look at boomers, it's
closer to 90% are enrolled in programs.
So when we talk, the grand conversation
of this is really like that
mentality shift between generations.
But, one thing that's super notable for
Gen Z is that they really are impatient.
Driven and that they want those
instant rewards and they want to
feel as though they can earn daily
rather than having to do like the
marathon in order to get to status.
so when we think about that and how
programs have to take a shift, it's
really, it stems to making a lower
barrier to entry for your program
to capitalize on the people that.
Are in that generation that are
wanting to go, the loyalty program
route, even though, like I said, there
is such a small percentage of it.
they're having to lower the barrier
of entry into the program and into
status for Gen Z simply because.
I can only imagine
putting my Gen Z hat on.
I can only imagine that if I were
to sign up for a program, I'm one
of the few in my generation that
are 50%, if it's now impossible for
me to ever earn status, I'm going
to stop utilizing
that program.
Brandon Giella: Mm-hmm.
Rachel Satow: I, I will, go stagnant.
So I think when we think about this
flexibility we have to take into
account the fact that Gen Z and beyond
are really going to want to look for
instant rewards and, simpler redemption
options or simpler earn options.
one of the things that makes programs
like, I'm gonna, I'm gonna call out
Starbucks 'cause I go to Starbucks way
too often, but one of the things that
makes their loyalty programs super
successful is that it's very obvious it's
a 1:1 ratio, $1 spent, 1 point earned.
And I know when I hit.
25 stars, I can get something small.
When I hit a 100 stars, I can get
something a little bit bigger.
It's a very simple process.
so I think a lot of loyalty programs
are going to have to make the
shift for these younger generations
to change the way they can earn.
To be more interactive?
Is it based on app usage?
Is it based on site usage?
Is it based on searches?
Are you earning as you engage
with the brand in other ways?
outside of actively purchasing,
but also being very transparent
with how you are earning and how
to get to where you want to go.
that's gonna be vital.
Brandon Giella: I think the
transparency and simplicity
points are really important.
I had a friend that I was
talking to just a few months ago.
He was a, he's in his seventies.
He was a hotel consultant for many years.
I.
And as you can imagine, he traveled
all over the place and he decided
to pick an airline, very large major
brand, won't name, but he picked
that airline and for 15 years, put
all of his miles on this airline.
And he was like just a few years away
from their like lifetime traveler,
Highest possible status you can achieve.
He said he was just a few years away
and they changed their value structure
and it basically pushed that out another
15 years for him or whatever it was.
I can't remember the number, but it
essentially, it was like this great regret
that he had in his life as a 70-year-old
man that he chose an airline and decided
to be loyal and they changed it on him.
It's just like a word of caution
if you get into a loyalty,
but this is what creates that
fear in Gen Z and millennials.
I don't wanna pick anybody because
then they're gonna change it on me
and it's inflation in another way,
Ian Andersen: and we're seeing that, and I
don't know, it's probably a bit of a, like
chicken and egg problem, but, that the.
One causes the other, but the younger
generations are not as interested
in the, that status, loyalty tier,
options and availability, right?
it is much more about that instant reward.
exactly what Rachel said, right?
You spend a dollar, you get a point.
I can use those points.
there's no, oh, after five years
you spend a dollar, you get
a point and a half and after
10, like that is much less interesting
to, to, younger generations than
just the straight transactional,
if I do this, you give me this.
And that's just the way it is.
And.
and you're absolutely right
regarding flexibility.
it's important to millennials, but far
more important to Gen Z of what, if I
don't want to book a united flight with my
united, credit card, what if I want to go
to Lululemon or to Kroger or to whatever?
and I think that building
those partnerships, having.
Various offerings, whether it's a
loyalty program or a rewards program
or whatever it is, is gonna be far
more valuable than picking a lane
and then giving some sort of status,
tiered structure of an offering.
Brandon Giella: Mm-hmm.
Mm-hmm.
Yeah.
I, as a millennial have seen my more
experienced generations, have some
pretty bad experiences with choosing,
loyalty, whether it's an employer,
whether it's this airline example.
So it's tough out there,
and I think we're hesitant.
So we want a lot of flexible options.
Ian Andersen: No.
Brandon Giella: It's probably a
thousand stories we could talk about
like that and a thousand different
ways we could take this conversation.
But I think to close it out, I think these
trends like flexibility, personalization,
technology, sustainability, they are
all converging in their interrelated.
And I think the challenge for loyalty
leaders in travel especially is to.
differentiate, define what that looks
like, and ensure that their messaging is
not competing with these different trends.
Because Gen Z and millennials
have very keen eyes and, a lot of
criticism to muster against a brand.
If they don't get the messaging right,
and I think it's a really big challenge,
but I think it's important to take up
and, and so I think loyalty leaders
can do a really good job in their
messaging and marketing and building
these programs if they think about the
interrelated nature of these topics.
Ian Andersen: Absolutely.
Brandon Giella: So I'll end with that.
Rachel, Ian, thank you so much
for, this great conversation.
I always love talking to you guys,
about how you're thinking about travel
'cause it's so fascinating, like all
these different, converging points
and I know that you all have a lot of
experience traveling, a lot and so there's
a lot of personal relevance as well.
I'm excited to talk to you guys again on
the next episode and we'll see you then.
Ian Andersen: Awesome.
Thanks
Rachel Satow: Thanks Brandon.