30 % of Hotel and Restaurant revenue now comes from the millennial generation
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EatingOut
| Hospitality Today | Summer 2018
30 % of Hotel and Restaurant revenue now comes from the millennial generation
News & Trends
Hoteliers and restaurateurs estimate that a third of their annual revenue now comes from the millennial generation , according to the latest research from leading international law firm CMS , in a report out on July 4th , Finding the balance : human touch vs high tech .
With the majority of millennials ( 60 %) either living with their parents or as part of a couple with no children , their spending power on holidays and eating out ( 26 % of their total income ) is of huge significance to these industries . On average millennials go on 2.5 weeks holiday a year and eat out at a restaurant four times a month . Research conducted by FTI Consulting on behalf of CMS in May 2018 surveyed hotels and restaurants in 10 countries worldwide and over 5,000 millennials in 18 countries , on the effect of the millennial generation on their industry .
Hotel operators looking to target millennials , locally and internationally , need to “ focus less on family-style accommodation and more on romantic getaways or rooms aimed at travelling friends ”. Supported by digital media , millennials are on the constant look out for attractive offers and deals .
Thomas Page , Head of Hotels & Leisure at CMS , said : “ The significant spending power of millennials is having a big impact on the sector . Millennials already account for 28 % of revenues for hotels and 29 % for restaurants , according to our research . But in responding to the most tech-savvy generation yet to reach adulthood , hotels and restaurants need to be wary of stereotypes . There is no “ typical millennial ”, and for many the human touch still trumps high tech when they ’ re considering where to stay or eat .”
Nevertheless with 90 % of respondents believing that their businesses are underestimating millennial expectations of the hospitality sector , there is a rush to ensure that they are future proofing their businesses ( 83 %).
When millennials select a hotel or restaurant , the tech available at a venue ( 4 %) ranks lower than traditional elements such as cost ( 38 %) and location ( 17 %), even for business travellers .
However , tech does play an important role with the most popular hotel tech being highspeed WiFi ( 66 %) an app for hotel services ( 49 %), music streaming ( 37 %) and an in-room tablet for room controls ( 35 %).