Example Of Millennial Customers In Hospitality Industry Essay

Type of paper: Essay

Topic: Hotels, Internet, Services, Business, Sociology, Information, Brand, Media

Pages: 9

Words: 2475

Published: 2020/09/22

A significant change in the world in recent history is the millennial becoming the future leader. The generation that was born between 1982 and early 2000’s are defined as millennial, and they are over 1.8 billion globally out of seven billion populations worldwide. The number is larger than any other generation. A study from Oracle shows the millennial as consumers having high power of consumption. Their annual spending is expected to reach $2.45 trillion in 2015 and $3.39 trillion by 2018. The travel spending by this generation rose 20% since from 2012. Majority of the hotels, travel agencies, and airlines will benefit from this industry due to they start to enter into the peak earning, spending and travel years.
Recent times in the consumer history have seen more focus taken on the Baby Boomer generation as an important market segment of their enterprises. The Baby Boomers are a population segment whose years of birth range between 1946 and 1964, a post-Second World War baby boom. This group was wealthy, active and physically fit. It received high incomes and extravagant consumerism. However, a new generation is coming up. The millennial refers to a generation born as between 1980 to around 2005. It seems to surpass the Baby Boomer’s record of 76 million with their population of 79 million (Teresa Lee, 2013, pg 3). Their numbers are set to increase to 78 million as the Baby Boomer is likely to reduce to 58 million. Their rising numbers explain why there is shifting attention of enterprises to the millennial. All businesses are competing to capture their business. Though this tech-savvy generation may not travel at the same rate as their parents, speculation is rife that the generation may be the next big thing in the hospitality industry. The younger part of the millennial generation is still dependent on their parents and guardians. The more adolescent Millennials are a segment of the generation that is estimated to reach its spending peak between 2017 and 2025((Teresa Lee, 2013, pg 4). Regardless of their dependency the generation has recorded a 20% increase in travel and hotel spending. The group is already controlling the hundreds of billions of expenditure.
Judging from their expenditure and trends of this generation, one understands why study of their tastes, preferences and attitudes are a major concern to hospitality players. As a student of the hospitality industry, this study enables get hands-on information, statistics and trends that will allow one become a valuable player contributing adequately towards revolutionalising this industry. The main body will explain the facts about the millennial, their consumer behavior attributes, differences between millennial and other generations, and its importance to the hospitality industry. It will further delve into explaining statistics and present a case study of an enterprise focusing on the millennial.
First start with the definition of millennial and then explain the facts about millennial and how they behave. The discussion will look at why the group is unique from other generations and why it is important to discuss it. Afterward, will discuss why millennial becomes the core customers of the hospitality industry in future support from the literature review and statistics. In addition, a case study about Marriott launch a new hotel brand for millennial will be used to demonstrate this trend. The case study is talking about the hotel giant Marriott create a new hotel brand named Moxy was opened in early 2014 in Europe and this brand mainly focuses on millennial. The case study will look at the features of the changing hospitality enterprise and how it is becoming a focal point for the Millennial.


Millennials refer to the cohort of Americans born between 1980 and the mid-2000s (Neil Howe and William Strauss, 2000, pg 1584). Millennials are sometimes called Echo Boomers. The name shows that the period witnessed increased rates of birth extending to the early 2000s.It has witnessed an increased use and familiarity with communication, media, and digital technologies. It has been described as the most tech-savvy generations in history. It boasts use of sophisticated communication gadgets, increased use of social media and the internet. It can also be referred as Generation Y. The millennial report shows that the main focus of the millennial generation is the quality of life. The Millennials value family closeness through staying close their family members and friends, working in creative jobs and having free time for recreation. However, they could like to be significant in the community through having a positive influence in among communities and society. Although there are differences in the virtues of Millenials depending on social and economic backgrounds, the some trends seem to cut across majority of the Millennials.

Trend Characteristics of the Millenials

Hospitality players must study, understand and adopt the changing trends in order to attract the millennial market segment. The generation is breaking away from conventional protocols, formalities, keen waiter (ess) and meal courses that characterized previous generations. They want quality, speed of service, flexibility, convenience and fun. Below are some of the trends characterizing the millennial world:
a) Instantaneity and Flexibility of Service
Millennials often seek immediate gratification of their needs. The tech-savvy generation accesses information and services with an instantaneity. The Millennials will often want to obtain information on service available, make orderers and find services accessible. The Millennials will wish to find information they require online. Millenials appreciate speed of service, efficiency, quality food and limited or no service charges. They also like automated shops and inns. According to Teresa et al., (2013) 36% of Millennials like automated kiosk check-ins without staff interaction compared to 19% of the older generations (Teresa Lee, 2013, pg 6). The Millennials will want to access hospitality advisory via a smartphone application rather than seeking services of a traditional concierge
b) Real Time Information
This generation wants to access information as it happens from their comfort zones. They want to obtained information via social media such as Twitter, Facebook, Instagram, etc. this group will share experiences and photographs which will apparently enlist reactions from their friends. Hotels sharing information on social media reach as many members of this generation than from other media. Clients will share good and bad services from hotels in real-time. The updates will obviously affect interests in the facility.
c) Peer Review
Millenials rely on their peers for advice. Teresa Lee notes that averagely, a Millennial will have a look at 10.2 sources before making a decision of booking. Review sites such as TripAdvisor or Yelp are the most widely used, it is now crucial to get real facts about restaurants and hotels. Hotels should be careful on their services as experiences will be shared among peers almost immediately. Majority of the Millenials confessed that they relied on friends approvals and recommendations in choice of products and services. Negative experiences were more widely shared than positive ones
d) Social Creatures – Online and Offline
Millenials are more social in the virtual sense than in real life. They connect, interact and share on social media. An average millennial will prefer to text or message a friend to real dialog. The Millennials will thus share their fun presence via similar media. Such sharing reaches many people as opposed to a call or live dialog. Hotels need to make positive impressions to avoid getting bad publicity as bad experiences are shared more than positive ones. Hotels that use advanced social media tools gain more Millennials than the rest. Hotels should also increase their social media presence so as to respond to the needs of this generation faster.
e) Different Booking Structure
Millenials will appreciate short booking window compared to other generations since they make snap decisions. The hotels should, therefore, accommodate the trend. They will use technology at their disposal to make reservations and hotels need to have such provisions. Hotels should regularly review information available on the internet as it is the one forming basis for millennial decisions. They should create interactive websites and develop apps that will facilitate booking in their facilities. The hotels should also optimize on online payments.
f) Millennials traveling for Business
The mature and maturing millennials are becoming involved in business. They will travel to meet clients, build networks and teams, and hold conferences. The hotels should provide rooms fitted with office facilities, to enable them work from their rooms. They should have conference facilities, the Internet, and video links. This provision allows the business class to obtain relaxation, socialization and be able to work at the same time.
g) Required Essentials and Wanted Amenities
Millenials are looking for clean rooms, sizeable beds, free internet or Wi-Fi, bar with spinning deejay, fast food restaurant and sports bar. A facility offering such services at reasonable prices tends to have more millennial clients than those providing conventional hotel services.
h) Volunteer Travel/Social Responsibility/Outdoor Activities
Many millennials are becoming involved in community events such as volunteer projects. They also like engaging in outdoor activities such as hikes and excursions. There is also a growing trend of visiting country hotels and eco-friendly properties. Resources offering outdoor team building activities are also becoming popular among corporate millennials.
i) Pod Hotels
Pod hotels are becoming increasingly popular due to their small room size, luxurious designs and presence of high-tech features. Yotel started pod hotels concept. Teresa Lee in her article Top 10 Trends of the Next Generation of Travel: The Millennials, notes that this concept has been increasing in popularity following the explosion of brands such as CitizenM and Qbic. The brands demonstrate the changing the landscape of hotels, and travel gives the Millennials uniquely and willingness to discover something new in life (Teresa Lee, 17).
j) Authentic Local Experiences
Millennials like to have a homely feel. They prefer properties where they get to feel at home away from home. They will prefer to stay in a place where they are in touch with local phenomena. They appreciate places where they learn, interact and share. The Millennials want to shed that tourist feeling and identify with the locals. That is why there is a rising trend in demand for holiday apartments as opposed to conventional hotel rooms. Some Millennials will want to stay with others in hostels facilities. The hostels enable them to socialize, share and learn with and from others.

Hospitality for Millennials: A Case Study of Moxy Hotels by the Marriott Group

The hospitality giant, Marriott group, has developed a brand that targets to offer hospitality services to the Millennials. The Marriot group in conjunction with Norwegian Hotel Development and Management Company developed the Moxy brand. The company started by building six facilities in Europe.
The six properties are located in urban markets in urban areas where they will be strategically positioned as guest houses, public spaces, and hangouts. The brand is also targeting university neighborhoods as potential areas for their expansion.
The Moxy hotel model has smaller rooms than other hotels; has more luxury amenities present and is more affordable than other hotels. The hotel's spacious lounge is used as a breakfast area in the morning. The room becomes a bar in the evening. Such adaptability helps maximize space.
The hotel has a plug-and-play meeting rooms designed to accommodate young travelers on business tourism. This design meets the need for informal meeting areas that break the monotony of formal office set-ups. The customers can relax there, and play their content for viewing or presentations.

The hotel has Instagram- type wall the lobby to keep the customers updated on trending information on social media.

The hotel plans to use social media to advertise and communicate with guests and clients to reach its target clientele. The management plans to mount an aggressive, interactive social campaigns and communication strategies. They have launched an interactive website. The site connects social media platforms in order to engage clients effectively and increase its brand visibility.
The hotel team has developed a model that will enable them reduce costs as well as maintain their services at a level affordable to many Millennials. With a self-service with cashier, no room service, and no doormen, the hotel can cut costs and give a lower price model compared to other hotels. (Ed Watson, 2014, pg4)
This hotel model is also convenient for those clients who may want to socialize and learn from others. The dining area, which converts into a bar, allows clients to have common meeting point where they can interact with each other.
The hotel does not have exclusive full service. This feature is preferable for many millennials who have not yet distinguished themselves into classes. The model fits clients looking to have a feel of a natural social set-up.
Customers at Moxy facilities can harness the abundant online resources available on their website. They can make reservations and make online payments from wherever they are. The information about services and pricing model will help prospective clients make informed decisions. The Moxy management has deployed an aggressive online team that responds to queries and guides clients from the online portal.This model is also eco-friendly and leadership in energy and environmental design (LEED) compliant. This compliance in itself is not only a marketing tool but also a cost-cutting measure.
Millenial generation is undoubtedly the focus of any enterprise seeking a vast and diverse market base. With their increasing numbers and rising incomes, this generation will control the economy for the decades to come. Such enterprises must develop policies and strategies that will attract the members of this market segment.
The hospitality industry can reap much from this generation. Hotel owners and their staff must realize that this generation cannot be ignored or wished away. The industry players need to study the trends associated with millenials and tailor services that fit millennial preferences. They need to study their consumer behavior, diversity, and culture. The data obtained will help them tailor-make products and services that will be consumed by this group.
Since the Millennials are connected with technology, hospitality player must use and continually keep up to date with developments in the field. They must make their brands visible on social media platforms, provide real-time updates, create interactive websites and adopt modern online payment solutions.
The industry must continually engage in obtaining feedback from this dynamic group in order to improve provision of service continually to them. They must realize that this group makes real-time updates on social media on their experiences with hospitality facilities. These communications can ruin or promote their brands. Therefore, they must continually endeavor to provide quality service and excellent customer care.
The Millennials have a significant potential that the hotels must exploit. Brands that will not adopt the changes as illustrated by the dynamics of millennial trends, will end up closing shop due to unprofitability. The Millenials are interested in new things. The hotels must, therefore, reinvent themselves each passing day. They can achieve sustainability and profitability for next decades.

Annotated Bibliography

“Millennialweek.com”, (2014). Millennials: By the Numbers. [online] Available at: a http://www.millennialweek.com/MILL-FactSheet_52914_v2.pdf [Accessed 5 Dec.2014].
This web page provides valuable statistical information and trends of the millennial in the US. The site has information ranging from general demographics, behavior, marital statistics, educations access and level,, access to technology, social media presence and statistics thereto and employment figures
Morrisey, J. (2012). “Young Travelers Drive Changes in Hotel Industry.” [online].Nytimes.com.Availableat:http://www.nytimes.com/2012/03/13/business/young- travelers-drive-changes-in-hotel-industry.html?pagewanted=all&_r=0 [Accessed 4 Dec. 2014].
Janet explores the changing face of the hotel industry to accommodate customers ofthe age of 20s and early 30s. She discusses various innovations that are geared towards attracting such clients. These include remodeling of hotels, Wi-Fi connections, quality finishes and furnishing, fitness centers, use of plug-in devices among other attractions. She also discusses events that attract Millennials to such facilities.
"Millennials - Mashable." Millenials. [online] Available at : http://mashable.com/category/millennials/ Accessed 12 Jan. 2015].
The site provides definitions and synonyms of Millennials and tries to offer general characteristics of the Millennials. It topical information related to the Millennials..
Schawbel, D. (2013). “Why You Can't Ignore Millennials.” [online] Forbes. Available at: http://www.forbes.com/sites/danschawbel/2013/09/04/why-you-cant-ignore-millennials/ [Accessed 4 Dec. 2014].
“The Millennial Legacy,” (2014).”What is a Millennial? - The Millennial Legacy”. [online] Available at: http://themillenniallegacy.com/the-millennial-generation/ [Accessed 2 Dec. 2014].
The article defines a millennial and explores a few characteristics of Millenials. The blogger also talks about the contribution of Millennials to the world view.
Teresa L. (2013). “Top Millennial Traveler Trends” - Hotel Interactive .., [online] Available at: http://www.hotelinteractive.com/article.aspx?articleid=28911 (Accessed January 13, 2015)
Teresa Lee defines Millenials and discusses the top ten millennial trends that are shaping the hospitality industry. In an in-depth analysis of each trend, she brings out crucial factors that hoteliers have to look at in order to capture the millennial market segment. She backs up her argument with data and relevant statistics
Tuttle, B. (2013). Marriott & IKEA Launch a Hotel Brand for Millennials: What Does That Even Mean? | TIME.com. [online] TIME.com. Available at:ikea-llaunch-a-hotel-brand-for-millennials-what- does-that-even-mean/ [Accessed 4 Dec. 2014].
The site is about the launch of a hotel facility targeting the Millenials. The Marriott group launches the Moxy brand that has amenities and services sought by the group. It discusses the features of the establishments and how they fits the millennial world.
Oracle, (2010). Are Banks Ready for the Next Generation Customer?. [online] Availableat:http://www.oracle.com/us/industries/financial-services/gen-y-survey-report-165297.pdf [Accessed 3 Dec. 2014].
Schawbel, D. (2013). “Why You Can't Ignore Millennials.” [online] Forbes. Available at: http://www.forbes.com/sites/danschawbel/2013/09/04/why-you-cant-ignore-millennials/ [Accessed 4 Dec. 2014].
“The Millennial Legacy,” (2014).”What is a Millennial? - The Millennial Legacy”. [online] Available at: http://themillenniallegacy.com/the-millennial-generation/ [Accessed 2 Dec. 2014].

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