Special RepoRt : Millennials
As they become A bigger piece of revenue steAms for leisure And business , here ’ s whAt 20- to 34-yeAr-olds wAnt in A hotel stAy .
contributed by CHriS SCOTT
They ’ ve been vilified for allegedly being arrogant , entitled , coddled and fickle , but the hospitality industry is working hard to arm itself in the battle to attract the Millennial demographic as both customers and employees .
From new in-room designs to refashioned bars and restaurants and hightech marketing and service initiatives , hoteliers are paying close attention to make sure Millennials are selecting their brands . The challenge they face , however , is to strike a balance between serving the needs of established customers with Millennials ’ very different demands .
“ The biggest thing for Millennials is that they want to feel they ’ ve had an ‘ experience ’ when they visit a hotel property ,” notes Corey Nyman , director of operations for The Nyman Group , a hospitality and restaurant consultancy based in Las Vegas . “ And while they ’ re fickle , they ’ re also very aware . They recognize when they are having that experience they ’ re looking for .”
Millennials are comprised of people born between 1980 and 1994 ( the U . S . Bureau of Labor Statistics ) or between 1976 and 2001 ( PriceWaterhouse Coopers ) or between 1984 and 1996 ( Expedia ). Their attitudes toward life and work often fuel their decisions when it comes to their spending activities . Business travelers between ages 18 and 30 said they will spend more of their company ’ s money on high-end meals ( 42 %) versus travelers between the ages of 46-65 ( 26 %), according to a recent study by Expedia and its travel management division , Egencia . Millennials are also more likely to extend a business trip into a personal vacation than older workers , are more likely to express their displeasure with their experience with hotels in online forums and are more frequent users of smartphones and other mobile devices , according to the Expedia survey . They also like traveling with their pets , customizable room amenities and can ’ t be too far away from their technology .
Attitudes and access Millennials ’ attitudes about life and work and their familiarity with informationgathering systems and protocols have almost forced hotel operators to change the way they operate . Because connectivity is crucial , many hotels are offering free Wi-Fi throughout their facilities and room upgrades that offer alternative seating arrangements to the more traditional desk-and-chair setup . Instead of formal dining rooms , several brands are offering one-stop , 24-hour food stations where Millennials can pick up a snack or meal to take back to their rooms .
“ Millennials like being ‘ alone together ,’ and hotels are making adjustments in design by setting up areas for them to hang out away from an open lobby ,” explains Nancy Nodler , hospitality practice leader for Gensler Inc ., a Houston-based design consulting and architectural firm . “ Throughout the facilities , there is now flexible seating that promotes socializing .”
Nodler adds it might cost a hotel between US $ 3,000 and US $ 5,000 per room to update in-room amenities specifically for Millennials , although some brands are taking even bigger steps .
Starting from scratch Marriott International has teamed up with Scandinavian retailer Ikea to open the stylish , focused-service Moxy brand in Europe that also is poised for a U . S . debut this fall . The similarly niched Radisson Red concept is focused on the guest experience and IHG ’ s Hotel Indigo specializes in providing “ a unique experience that reflects the culture ” of the neighborhoods . Starwood ’ s Aloft Hotels has offered non-traditional and modern design features and services since 2005 . Amsterdam-based CitizenM Hotels touts its ability to offer affordable luxury in six international cities with an emphasis on modern design and Millennial-friendly gathering areas . And Stockholm-based Scandic Hotels also touts its new Millennial-friendly HTL brand as offering an affordable alternative within the hearts of ( eventually ) four European cities .
“ Hotels are modifying their facilities to cater to Millennials , even changing their pillow menus and sheet menus to attract them ,” Nyman says . “ This group believes experience trumps price , and they also opt to travel in groups , which can make it a challenge to meet the needs of the group versus the individual .”
www . hotelsmag . com September 2014 HOTELS 35