Virgin Red Points Index: Gen-Z travellers getting bang for their buck through points hack

As January draws to a close and Brits begin to long for a holiday getaway, savvy Gen Z savers are proving they get the most bang for their buck when it comes to experiences and holidays abroad, with more than a third (34%) of adults born after 1996 using loyalty points to help fund their overseas travel.

This comes as Virgin Red launches its third annual report, ‘The Points Index: Holiday Getaways’ which takes stock of the nation’s mood for trips abroad, whilst also looking at how public spending and behaviours towards loyalty programmes have changed in the past 12 months.

The report also reveals new intergenerational spending habits on travel, and of those who have funded their travel abroad, 64% of millennials have used points to get money off big-ticket expenses such as flights, compared with 48% of boomers.

Almost three quarters (70%) of Gen Z say they wouldn’t be able to afford a holiday if it wasn’t subsidised via a rewards incentive to get the price down, compared with just half (51%) of Brits overall who say they are in the same position.

Virgin Voyages

The study of 2,000 adults revealed the ways in which we use loyalty points to make money go further, and it turns out loyalty programmes make substantial differences when it comes to opening new routes to travel. Of those using points towards subsidising travel, 88% say they have used their points earnings towards flights, and a further 41% towards hotel stays.

The reality for many Brits is that loyalty points form a crucial part of everyday spending habits (71%), and are being used to make things cheaper in the future for 80% of us. While 49% find them essential in daily shopping and more than a third (34%) say they have collected more loyalty points in the past 12 months compared with last year.

What’s more, Brits are increasingly using loyalty points to subsidise travel, as 28% of consumers want to see even more travel incentives available via loyalty schemes on hotel stays and flights, and nearly half (46%) are looking at ways to earn more points per spend, in a bid to recoup rewards to upgrade on holiday purchases.

For younger generations looking to escape the faltering economy and jobs market, the craving for ‘bucket-list’ travel experiences is rising most among Gen Z (68%) and millennial (61%) respondents revealing they are most likely to use loyalty points towards a once in a lifetime experience. This contrasts with just 16% of over 65s.

Virgin Hotels

Virgin Red members are taking advantage of their points, with internal data from Virgin Red showing a rise in redemptions across October, November and December, with members cashing in their loyalty points for rewards such as flights, train tickets, wine and gift cards.

Virgin Red’s survey also found 46% of Brits have changed their spending habits to mitigate the impact of the cost-of-living crisis on their wallets, with 90% of those surveyed confirming they are part of a reward programme, and a quarter of those polled participating in five or more separate programmes.

Andrea Burchett, Chief Loyalty Officer and Managing Director at Virgin Red said: "We’re seeing real trends with how people are spending their points. Millennials, and Gen Z in particular, are demonstrating a remarkable ability to maximise the benefits of loyalty programmes by adopting a more tech-savvy approach.

“They are drawn to digital platforms, mobile apps, and gamified experiences that reward their engagement in innovative ways.

“For these younger shoppers, it's not just about savings — it's about the experience, the convenience of integration with their digital lives, and the opportunity to personalise their rewards.

As we continue to cutback our daily essentials, this data shows consumers refuse to lose out on travel, particularly amongst Gen Z, and our sense of adventure has not been lost among Brits. Particularly those saving up for once-in-a-lifetime experiences.”

Virgin Atlantic

Looking at their future travel plans, 27% of younger respondents want to go on more adventures, based on their bookings in the past 12 months. While 45 % of Brits are opting for more ‘once in a lifetime’ travel experience, rather than smaller trips away.

Penny conscious Gen Z travellers are also looking at ways to juggle the potential financial challenges of booking overseas travel with escapism. This digital savvy generation is planning ahead to beat the financial pressures of overseas holidays, with 22% of 25–34-year-olds now booking trips earlier.

For those who have caught the travel bug, 23% of millennials now say that saving for a holiday is a financial priority for them.

Luke Dyson

Andrea Burchett continues:“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 (71%) say 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.”

Travel experiences also remain high on the agenda for Virgin Red members, with internal data revealing that four of its top five spends in 2024 were on travel, including Virgin Atlantic flight and Virgin Trains Ticketing redemptions.

Maggie Hellicar, Virgin Red member, said: “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 with the credit cards. If you spend over a certain amount a year, it makes a massive difference if you’re looking to upgrade or book an extra seat – they’re really useful. You’ll be amazed at how quickly they add up!”