Opinion: Are Points and Status a Generational Issue?

As a loyalty program junkie, I’ve earned enough points to consider naming a star after myself. But does loyalty mean anything when half the plane is also “elite”? Let’s take a closer look at loyalty programs and how they’re faring in this new age of crowded lounges, generational shifts and artificial intelligence.

Loyalty programs were originally designed as revenue drivers for airlines and hotels. Selling points to credit card companies became a lucrative business, while the benefits to travelers—status perks, upgrades and exclusivity—were meant to foster brand loyalty. But things have shifted. According to McKinsey & Company, loyalty program members are becoming increasingly disloyal, with fewer travelers recommending their favorite programs to others.

Photo: Courtesy of SkyTeam

As someone who experienced the golden age of loyalty programs, I’ll admit: I loved racking up free airline trips and those oddly unappetizing hotel fruit baskets. Yet I often wondered if these perks really offset the wear and tear of constant travel. A few extra peanuts in first class don’t exactly erase the memory of a middle seat between two chatty strangers. Like many road warriors, I treated maximizing points like a side hustle. But what’s the value of points and status to today’s diverse workforce?

Phocuswright reports that 66 percent of travelers aged 55 and older have memberships in airline loyalty programs. For 18-to-34-year-olds, that number drops to 34 percent. However, younger travelers are more likely to redeem their points for flights (67 percent compared to 51 percent of older travelers). These numbers suggest loyalty exists, but its form and purpose have changed.

Boomers meticulously tracked their points, hunting for upgrades. Millennials, on the other hand, rely on apps that compare options instantly. Gen Z? They’re more likely to ask, “What’s a loyalty program?”

For me, loyalty programs were about more than just points. Shorter lines at airports, guaranteed overhead bin space, and access to lounges were my rewards for sticking with a single airline. My hotel status brought complimentary breakfasts, room upgrades and late checkouts. And let’s not forget that smug feeling of boarding the plane early while others struggled with overhead space. It wasn’t just loyalty—it was convenience wrapped in a sense of superiority.

Photo: Courtesy of American Airlines

Recently, I’ve noticed a change in how I use loyalty programs. On a last-minute trip, my status allowed me to switch flights easily, secure a good seat, and avoid baggage chaos. At my hotel, a free breakfast saved me $30 a day. These small but tangible perks felt more valuable than accumulating points for a future vacation.

But let’s address the elephant in the airplane: If everyone is special, is anyone special? Have you seen those upgrade lists on popular business flights? They’re longer than my grocery receipt when I shop hungry. Half the plane seems to have elite status. By the time your name is called, the “upgrade” might just be a slightly wider armrest in the back of coach. Exclusivity feels more like a crowded club where everyone’s on the VIP list. Do I feel loyal? Or just like another cog in the loyalty machine?

This brings us to a critical question: Is loyalty about sticking to a brand or enhancing the travel experience? Boomers, who grew up in the heyday of loyalty programs, might value recognition and exclusivity. Millennials and Gen Z travelers, accustomed to a gig economy and on-demand services, seem to prioritize flexibility and cost-effectiveness over brand loyalty.

And what about you? Do you stick with the airline you’ve sworn loyalty to, even when the flight costs more? Or do you jump ship? It’s a balancing act every traveler must weigh. Suppliers must evolve their strategies. Current programs may not resonate with younger generations. Instead, programs could emphasize personalized offers and real-time benefits.

Photo: Courtesy of Henry Deng / Unsplash

Each traveler must decide what they value most: lowest cost, best experience for the money, or elite status. For some, loyalty programs remain essential. For others, direct bookings and instant gratification take precedence.

So the next time you’re juggling loyalty cards, ask yourself: Is this program making my travel life easier—or just heavier? Because loyalty isn’t just about a program. It’s about making travel work for you. And if that means sharing the lounge with half the airport, at least the coffee is free.

Greeley Koch, managing director of 490 Consulting, is a recognized thought leader in the travel industry. His clients include corporations, airlines, lodging providers and tech companies. He also teaches as an adjunct professor at New York University’s Tisch Center of Hospitality.