Given shifting demographics and changing technology expectations, hotels have been trying to find new ways reinvent the hotel experience.
Generational breakdowns by year and size. Graphic from Pew Research.
While millennials, those born between 1980 – mid 90s, are perhaps the most visible or talked about reason for hotels exploring rebranding, they’re certainly not the only reason.
Generation Z, those born from approximately 1995 – 2010 (ages 6-21 in 2016), is an equally large, influential population. They are often described as “true digital natives, more pragmatic, more cautious, more money-conscious, and more globally minded” than previous generations. (If you’re curious, Alpha Generation comes next and consists of all those children born after 2010.)
Then let’s add the changing face of technology as well as consumer expectations: wide spread wireless high speed access, on-demand everything, and unique one-to-one experiences.
Oh – and let’s do it all on a budget.
“For [Generation Z], traveling becomes a marker of adulthood,” saysMelanie Shreffler, senior editorial director at Cassandra Report. “Seventy-seven percent of 14 to 18 year-olds say that traveling without supervision is a marker of adulthood—and 42 percent of those teens feel like they are adults. That’s a significant number.” And in addition, Generation Z still has significant influence over purchasing decisions made by their Gen X parents and/or Baby Boomer grand parents.
The Cassandra Report’s Generation Z study shows 84 percent of kids aged 7-17 influence their family’s overall spending. “When it comes to family vacations and travel, 32 percent of parents say their kids hold a lot of influence on vacations and spending, and 54 percent of parents say kids have some influence,” Shreffler said.
But just because the following concepts were initially intended for the Millennial or Emerging Generation Z market, don’t think that other generations won’t appreciate them. “Baby boomers and even the Silent generation give us very high scores for the new approach,” Mike Dearing, managing director of Marriott Hotels, shared with Fast Company .
Which brings us to the innovation and re-thinking hotels like Marriott are exploring. Examples include:
Check out the Moxy’s public “Living Room” space where guests can mix, mingle and congregate. Photo credit Marriott via Washington Post.
Cozy and Cool micro-hotels. Designed to appeal to millennials, Marriott’s “Moxy” hotels are sensible, sleek spaces “defined by attitude rather than affordability.” Rooms will typically be smaller than the average hotel room (approximately 200 square feet), with glitzy common areas, … or as shared in the Washington Post, “open bars, all-night cafes and a buzzing living space where things are always happening.”
Marriott’s Innovation Lab Hotel in Charlotte, North Carolina. Throughout the property, guests will find “beta buttons” and “beta boards” where customers can give an immediate “thumbs up” or “thumbs down” to every part of the customer experience. “The Charlotte hotel is really our innovation lab. This is where we’re testing our best thinking and new concepts. We’re staying in constant dialogue with our guests to figure out what works and what they connect with best,” Dearing said.
For example, through the Innovation Lab, Marriott found that guests preferred the homey feeling of rooms with hard wood floors rather than carpeting. That new finding has been incorporated in the last 20 Marriott renovation projects.
A Localized, Brand Experience.
Marriott found that while Boomers expected consistency of experience (ie: The Marriott burger you get in Denver is the same burger you get in Philadelphia), Millennials were looking for unique, culturally difference experiences based on where they were at. So Marriott has been cracking the code on how to evoke the “Marriott Brand Experience” with a localized twist: a Marriott guest stay that’s still unique to Omaha or Seattle or Miami.
One way Marriott is doing this is through amenities: the services and resources available in the hotel. For example, a local chef may partner with the Marriott to include a new cafe or restaurant that reflects the local area’s unique cuisine or flair. The Innovation Lab also found that Millennials sought out opportunities to meet people: like taking a gym class or mingling in the coffee bar area with cozy, comfy chairs and seating areas designed to invite conversation.
Finding new ways to maintain brand value, and yet appeal to the changing tastes of the traveling market will be vital. How is your brand finding ways to adapt?
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