Gen Z are getting the most bang for their buck on holidays

A women (in her 40s) sits on the roof of her campervan in the countryside. She takes a photo of the sunset on her smartphone.
-Credit:Getty Images


Gen Z travellers are leading the way in stretching their holiday budgets further by leveraging loyalty points for memorable experiences abroad.

A recent survey showed a third have used points to help cover the cost of a holiday with three quarters admitting they wouldn't be able to go on holiday if it wasn't for discounts from reward programmes.

And it turns out they're not the only ones using the, a significant 64 per cent of millennials have redeemed points to reduce costs on major expenses like flights, with New York, Paris, and Dubai ranking as popular destinations achieved through points.

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An overwhelming nine out of ten surveyed said they're part of a reward programme, with one in four involved in five or more separate schemes. A large 88 per cent have used points to subsidise flights, while additional 41 per cent utilise them for hotel stays.

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88 per cent have used points to subsidise flights -Credit:Getty Images

The findings coincide with the release of Virgin Red's third annual report, The Points Index: Holiday Getaways, which delves into the evolving public attitudes and spending habits related to loyalty programmes over the past year.

Andrea Burchett, the rewards club's chief loyalty officer and managing director, highlighted that younger generations are adopting a tech-forward approach to maximising loyalty schemes.

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"They are drawn to digital platforms, mobile apps, and gamified experiences that reward their engagement in innovative ways. As we continue to cut back our daily essentials, this data shows consumers refuse to lose out on travel."

Maggie ,39, and her husband Carl, along with their one year old son Aiden, flew to Disney World in Florida last year, pocketing a substantial saving of £5,000 on upper class flights thanks to 115,000 points accumulated through Virgin Red and a timely companion voucher.

Maggie Hellicar with her son Aiden at Disney World in Florida
*** FREE FOR EDITORIAL USE *** Maggie Hellicar with her husband Carl and son Aiden at Disney World in Florida -Credit:Maggie Hellicar

"The points do rack up if you can funnel as much of your spending onto things like the Virgin Atlantic credit cards," revealed Maggie. "There are also bonus points when you sign up."

"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."

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Andrea highlighted, "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 (71per 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."