UK-based HotelREZ Hotels & Resorts recently released a guide on millennials, highlighting the generation's preferences and advising how to best market to them.
According to the guide, "How to Market to Millennial Travelers," millennials are expected to number 78 million by 2030 (defined as those born between 1980 and 1999). That makes catering to millennials important based on numbers alone.
To first market to millennials you need to understand them, of course. Millennials are technology-driven, social beings, visual learners, socially responsible and, well, arguably more demanding than any generation before them, the guide suggests.
For example, 93 percent of millennials are avid Internet users, while 80 percent sleep right next to their smartphone.
As you may have heard, millennials love social media, too. About 75 percent like to retweet or share content on social media, and 75 percent have at least one profile on a social networking site. Heck, 48 percent of millennials check Facebook right when they wake up.
It's also telling that social networking sites such as Instagram are more appealing to millennials than any other generation. About 76 percent of millennials are visual learners, as the guide notes.
Millennials also appear to generally be more socially conscious than generations before them. More than 70 percent consider it "imperative" to address social issues, while 61 percent have volunteered for a non-profit some time in their life.
And when it comes to service, millennials want it instantly, a natural tendency given they grew up as technology began to boom.
Millennials as Travelers
It's been well documented that millennials like to travel. In this respect, there are few things to keep in mind, according to the guide.
Hoteliers will be happy to know that millennials-despite constantly looking for great deals-spend more per business trip than any other generation. If you offer great food, that's a bonus-42 percent spend company money on high-end meals, compared to 26 percent of non-millennials. On top of that, 62 percent have extended a business trip into a personal holiday at one point.
Millennials have driven the rise of experiential travel in the past few years. In that regard, it should come as no surprise that 78 percent want to learn something new when they travel, while 70 percent expect special places to offer an immersive experience.
Millennials are also spontaneous travelers. They are two to three times more likely than other generations to plan a trip within two weeks of departure.
That doesn't mean millennials aren't thorough, though. On average, millennials scan through more than 10 sources before finally booking travel services, and they are most annoyed by missing or hidden information on sites they visit (65 percent say it's the largest nuisance for them when booking travel).
Millennials and Recent Travel Trends
As a hotelier, it's important to be aware of what millennials value, as well as recent trends in the travel industry.
And when millennials and trends come together, you've hit the jackpot.
Millennials are behind the movement away from front desks, for example. Mobile check-in is becoming more and more popular, and 36 percent of millennials prefer automated self-service check-in kiosks (compared to 19 percent of non-millennials). In response, hospitality companies such as Starwood Hotels & Resorts and Marriott International are now allowing travelers to check in and open their room doors via smartphones at select properties. CitizenM and Yotel have installed self-service kiosks at their properties.
Millennials are also less reliant on concierges, generally preferring social media and smartphone apps.
Here's a new term for you: "isolated togetherness." That is, working independently, yet doing so in a public setting such as a café or hotel lobby. Speaking of hotel lobbies, more than one-third of millennials (36 percent) prefer to work in a hotel lobby when traveling, compared to 17 percent of other generations. In effect, more hotels are featuring lobbies that have comfy chairs, inviting sofas and plenty of coffee tables.
Millennials are also inspiring some unique hotel designs. "Pod hotels" are becoming more popular, offering luxurious amenities at budget prices in response to millennials' willingness to stay in smaller, pod-like rooms. "Poshtels," or hostels that put an emphasis on decor, are also emerging. Companies like Generator Hostels in Europe still cram guests in, but they provide upscale rooms and services such as free Wi-Fi (the rise of "glamping," or glamorous camping, coincides with this trend).
And, of course, millennials-being the environmentally conscious beings that they are-value green-friendly hotels. In fact, they are the first generation to basically demand that hotels meet green standards.
How To Market to Millennial Travelers
While HotelREZ's guide was primarily directed toward independent hoteliers, that doesn't mean it applies to only independent hospitality companies.
While independent hoteliers may have the upper hand when it comes to satisfying millennials, many of the marketing tactics advised apply for all.
For example, traditional advertising tends to turn off millennials, according to the guide. When scanning the Internet, they avoid sponsored webpages (67 percent reported they have never clicked on a sponsored story).
And while word of mouth is still a big business-driver for hoteliers (95 percent said they trust their friends for product information more than anything else), social media is on a similar level. Three-quarters of millennials post on social media at least once a day when traveling (which is why it's no surprise that travelers can now win trips from hoteliers by sharing photos and posting about hotels on their social media accounts).
Speaking of sharing photos, 75 percent of Facebook posts worldwide are photos, which means if you aren't sharing a bunch of photos of your hotel on your Facebook page, you are behind the curve. To be more effective, post high-quality photos, the guide suggests.
And, given millennials' desire for immersive experiential travel, it would behoove hoteliers to offer authentic and locally sourced experiences.
Last but not least: Stay green, hoteliers. Many millennials are particularly wary of global warming, evidenced by the fact that 62 percent of them acknowledge and appreciate businesses that make a clear effort to reduce waste.
As for you independent hoteliers, if you aren't attracting millennials, you are doing something wrong, given you have distinct advantages over large hospitality companies when catering to the generation.
"Some of the key trends identified in our guide are that Millennial travellers expect high-tech facilities yes, but they also crave authentic and exciting accommodation experiences. And it's here that independent and smaller hotels can really shine," said Sharon Wimborne, marketing and e-commerce director for HotelREZ.
"As an independent, a hotel has both the flexibility and leverage that other bigger chain hotels sometimes don't. They can offer guests a genuine, unique one-of-a-kind experience. It is normally easier to add on the high-tech facilities and services to this offering than trying to build authenticity."
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