Young people are after ways to link their general day to day spending and use the loyalty points on travel rather than having to earn the loyalty points specifically through the airline or company they want to travel with.
Craig Brennan, CEO of Switchfly, who work with some of the leading travel companies on their loyalty programmes, said: "As millennial and Gen Z consumers reach the income and age thresholds where travel becomes more attainable and frequent, they're bringing their own attitudes to loyalty, rewards and other incentive programmes."
Lin Dai, chief executive and co-founder of Hooch, a smartphone app that rewards purchases from over 250,000 companies, added: "Points and miles were really popularized by airlines almost 30 or 40 years ago, so it can use a little update by now. Traditional rewards programs basically lock you into purchasing from one brand and then spending the rewards back with that one brand. As a result, it takes a long time to both earn and redeem, and the redemption options over the years have gotten less and less. There's a traditional thinking in the loyalty industry that when consumers are spending points, it's ok to charge them full price because it's like monopoly money to the consumer. We think we should just get the consumer the deepest discount whether or not they're spending cash or their rewards dollars."