Gen Z wants more than points as loyalty enters the travel era

Gen Z's appetite for experience-led travel is pushing brands to rethink traditional loyalty programmes, with connected travel experiences emerging as the next frontier for customer engagement, according to Agoda.

Research from the digital travel platform found that younger travellers across Asia are travelling more frequently and prioritising experiences over transactional rewards, creating new opportunities for banks, airlines and loyalty providers to embed travel more directly into their digital ecosystems.

According to Agoda's "2026 Travel outlook" report, cultural exploration (32%), outdoor activities (30%) and culinary experiences (28%) rank among Gen Z's top travel motivations. Rather than relying solely on points-based rewards, the company said brands can strengthen engagement by curating destination-specific experiences, exclusive member perks and bundled travel offerings that better reflect how younger consumers plan their trips.

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The findings also showed that nearly three in four (73%) Gen Z travellers plan to take between one and six trips each year, while 86% opt for shorter stays of one to seven days. Agoda said these more frequent travel patterns create multiple touchpoints for brands to engage customers throughout the year by integrating travel into the booking journey, surfacing personalised offers and enabling members to earn and redeem rewards within the same platform.

Beyond convenience, sustainability is also becoming a key consideration. Agoda's "2026 Sustainable travel survey" found that 23% of Gen Z respondents choose to travel during off-peak periods to reduce their environmental impact, while 38% actively seek accommodation with recognised sustainability certifications.

For marketers, this presents an opportunity to weave sustainability into loyalty strategies through initiatives such as bonus rewards for certified stays, curated sustainable travel collections or exclusive off-peak member offers.

"Gen Z is changing what travel loyalty needs to feel like. They plan around experiences and expect a straightforward path from discovery to booking. The opportunity here is to make travel feel native within the platform's existing experience, so members can see value clearly, book with confidence and use rewards across the trip," said Damien Pfirsch, chief commercial officer and head of Rocket Travel by Agoda. 

"Programs must also be thoughtful about surfacing offers that align with their growing budget and sustainability values. When travel feels like a natural extension of the loyalty experience, partners can increase engagement and build stronger long-term customer relationships," he added.

The findings reflect a broader shift towards embedded commerce, where brands are looking to keep customers within their own digital ecosystems rather than directing them to third-party platforms.

Agoda's findings echo a broader trend emerging across the travel industry. Earlier this year, Klook's Travel Pulse 2026 report found that 88% of Millennial and Gen Z travellers planned to maintain or increase their travel budgets despite ongoing economic uncertainty.

Rather than cutting back on travel, younger consumers said they were prioritising experiences over shopping, while embracing multi-destination itineraries and turning to social media and AI to discover destinations beyond traditional hotspots.

The report also identified Asia Pacific as a key growth market, with travellers in the region 50% more likely than those in Europe or the US to increase travel spending. For marketers, the findings suggest that travel remains a resilient category, with experience-led offerings, personalised discovery and embedded digital journeys becoming increasingly important ways to engage younger consumers.

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