Catering to Millennial Travelers: How the Hospitality Industry Is Adapting to Their Preferences
In today's ever-evolving hospitality landscape, one demographic stands out as a significant and growing force in shaping industry spending: millennials. Their unique preferences and values influence how hotels and restaurants operate, making it essential for businesses to adapt to their demands. In this blog post, we will explore how millennials impact spending in the hospitality sector and how hotels change their purchasing practices to meet these evolving customer needs.
A Dominant Force in Hospitality Spending
Born between 1981 and 1996, millennials represent the largest adult cohort worldwide, comprising 23% of the global population. Their influence on the hospitality industry is undeniable, as they have shown a propensity for travel and exploration. In 2019 alone, they spent a staggering $200 billion on travel, projected to increase by approximately 10% per year by 2025. This generation's penchant for exploration presents a significant opportunity for hotels and restaurants to capture their attention and loyalty.
Understanding the Millennial Traveler
Hotels and restaurants have recognized that to cater to these travelers effectively, they must address three key areas:
- Customized Experiences: They seek unique and personalized experiences that resonate with their tastes and preferences. They value authenticity and are likelier to choose destinations that align with their values and interests.
- Digital Convenience: Millennials are tech-savvy travelers who rely heavily on digital platforms for booking, check-in, and other aspects of their journey. Seamless digital experiences are not just a perk; they are an expectation.
- Relevant Social Media Information: This group often uses social media and peer recommendations when selecting travel destinations and accommodations. Hotels that actively engage with these platforms and provide valuable content can attract this influential demographic.
Sustainability Matters
According to an article by Kent State University, sustainability has become a paramount concern for millennials when choosing where to stay and dine during their travels; sustainability has become a paramount concern for millennials. They evaluate the environmental impact of hotels, restaurants, and activities as part of their decision-making process. Organic food, in particular, plays a pivotal role in their choices.
Organic food may entail higher hotel procurement costs but aligns with their environmentally friendly dining preferences. Surveys by Hospemag indicate that 65% of consumers are willing to pay up to 10% more to dine at an environmentally-friendly restaurant. This willingness to invest in sustainable options satisfies millennial preferences and drives higher hotel margins.
In the rapidly evolving world of hospitality, millennials are undeniably a force to be reckoned with. Their preferences for customized experiences, digital convenience, relevant social media engagement, and sustainability have reshaped the industry's landscape. To remain competitive and capture the loyalty of this influential demographic, hotels, and restaurants must adapt their purchasing practices to meet the demands of these travelers.
Incorporating sustainability practices, offering personalized experiences, and enhancing digital convenience are key strategies to help businesses thrive in this changing landscape. By aligning with millennial values and preferences, the hospitality industry can meet customer needs and drive higher hotel occupancy rates and profitability.
As the largest adult cohort in the world, they are here to stay, and their influence on hospitality spending will continue to grow. Adapting to their preferences is not just a trend; it's a smart business strategy that will pay dividends in the long run.
Article collaborator: Erin Fay.
About BirchStreet Systems
Founded in 2002, BirchStreet is the leading global provider of enterprise procure-to-pay solutions for the hospitality sector. BirchStreet's software platform provides leading global hospitality brands with a full suite of procurement applications, including eProcurement software, accounts payable automation, invoice management, inventory management, recipe management, supplier payments, and reporting and analytics. BirchStreet's customers leverage the company's solutions to access a broad network of suppliers and manage billions of dollars of spend annually across a wide variety of categories, including food and beverage, operating supplies, maintenance services and capital projects. For more information, please visit www.birchstreetsystems.com.
