As the fastest-growing customer base for the travel market, millennials exert a wide-reaching impact on hotels, airlines and other hospitality and travel brands.
Those defined as the millennial generation, also known as Generation Y, were born between the early 1980s and the early 2000s. This group makes up 27 percent of the U.S. population and 25 percent of the labor force; they’re not yet a force to be reckoned with.
But by 2020, millennials will make up nearly half the U.S. workforce, and by 2030 they’ll be outspending baby boomers. And because they’re passionate about travel — and they travel at a higher rate than any other age group — their preferences and tendencies are likely to influence the travel market for decades to come.
This young generation sees travel as a birthright, and they have a strong desire to explore off the beaten path, seeking travel opportunities that will give them unique experiences, not cookiecutter trips to well-trodden destinations. They’re after adventures in remote locations. They expect internet connectivity (in part to share their experiences on social media) and technological advances in every arena.
This growing segment comes with its own set of standards and tastes, and companies are working hard to win millennials over now in anticipation of their future reign as a powerful customer base.
© Ace Hotel
Among millennials’ expectations when it comes to accommodations is the ability to meet other people staying at the hotel. They’re also interested in staying near public transportation (while older travelers want to be near landmarks or the airport), and they’re more likely to avail themselves of dry cleaning, spa services and other perks. They also tend to be more interested in pet-friendly accommodations.
What’s more, millennials want authentic experiences and prefer hotels that sport the look and feel of the destination rather than generic corporate branding. They have high demands for technology like WiFi connections, which they expect to be fast and free.
Armed with this knowledge, hotels are responding. Millennials expect a knowledgeable staff that can give them insider advice on local neighborhoods; hotels react by emphasizing off-the-beaten-path ideas and unique experiences. Others are organizing local excursions and activities for groups of hotel guests.
Hotels know they need to rethink their interior design, too. Millennials are drawn to modern, open-concept spaces rather than ones broken up by walls and partitions. Young travelers are also more willing to utilize a hotel’s common areas to socialize and meet other travelers, so hotels are putting emphasis there. Guestrooms are minimal, encouraging guests to head down to the lobby.
Seattle’s Hotel Max, for example, features a first-floor restaurant that sports a 9-foot custom grill, local beer and craft cocktails. The hotel’s minimalist guestrooms encourage guests to hang out instead at the complimentary daily craft beer hour in the modern, art-filled lobby. The Ace Hotel brand draws a young audience by emphasizing affordability without sacrificing hip interiors, plush bedding and a convenient urban setting.
Lobby bars are common, and many of them emphasize millennial-valued craft cocktails. The Fairmont last year completely revamped its bar program worldwide, bringing together a handful of its most skilled hotel bartenders to craft a menu of signature drinks that would be adventurous yet approachable for a traveler in any of its hotels around the world.
© Fairmont Hotels & Resorts
Major hotel brands like Hilton and Marriott are spinning off subbrands that emphasize customized experiences and digital connectivity: Canopy by Hilton, Moxy by Marriott and Aloft by Starwood, to name a few.
“Millennial travelers are seen more as explorers than tourists, and Aloft hotels are specifically designed with them in mind,” writes Casey Key, SEO manager, HotelPlanner.com, on the company’s blog. “Aloft features free WiFi, areas for working poolside or in the bar, and even a robotic bellhop that appeals to tech-savvy millennials. Now, guests who are too busy to talk to a human can order from an emoji room-service menu by texting a string of emoji with their last name and room number to Aloft TiGi (which stands for Text it. Get it.). The pilot program is available at Aloft Manhattan Downtown, Aloft Liverpool and Aloft London Excel, and will expand to Aloft properties in Asia next.”
In a move to appeal to the community of millennial travelers, AccorHotels’ new JO&JOE brand breaks with convention, blending the best of homesharing, hotels and hostels. JO&JOE reflects a collaborative process that incorporated input from guests, students and experts to create an innovative “open house” concept attracting locals and travelers alike. Touted as “a house where you will simply live life to the full,” each property will encourage guest interaction, offering group events from yoga classes and concerts to workshops, a bar featuring local craft products, and a collaborative kitchen along with traditional dining options. Accommodations vary from hostel-type areas guests share without sacrificing personal privacy to out-of-the-ordinary spaces featuring unique formats such as sleeping hammocks, yurts or caravans. What’s more, the brand’s social media app will enhance the overall experience, allowing locals and travelers to connect, meet and initiate events. AccorHotels plans to open 50 JO&JOE properties by 2020 in destinations popular with millennials such as Paris, Bordeaux, Warsaw, Budapest, Rio and São Paulo, all in city-center locations near public transportation and points of interest.
Major airlines are not normally known for their innovative edge, but small shifts in the industry seem to signal these companies are targeting millennials, too.
This generation values technology, and its members expect WiFi availability everywhere — even at 30,000 feet. Honeywell’s third annual Passenger Connectivity Survey showed the quality of an airline’s WiFi is a deciding factor when booking a plane ticket, with some three of four airline passengers saying they would switch airlines to have access to better, faster internet — similar to what they have at home.
This development directly relates to the power of millennials, credited as the driving force behind WiFi improvements. A full 70 percent of millennials in the Honeywell survey said WiFi is a deciding factor in their flight picks; they expect a constant connection, one that allows them to keep in touch with friends, family and co-workers or to simply be entertained while flying. And 89 percent want WiFi fast enough to stream content.
© Trip Tribe
Airlines are listening, with many implementing modern satellite-based WiFi through companies like Global Eagle, Gogo, Panasonic, ViaSat and Honeywell. Airlines like Lufthansa, Qatar Airways, Vietnam Airlines and Air Caraibes are working with Honeywell to install a faster internet system called GX in the near future.
Airlines know the millennial generation is drawn to local food and craft beverages. Several have implemented local chef-driven menus and offer beer, wine and spirits sourced from their hub cities. Delta Air Lines, American Airlines, Alaska Airlines and more are jumping on the bandwagon.
While millennials want unique travel experiences rather than pre-packaged, generic trips, they’re not wholly opposed to booking a trip with a travel company or tour operator; they’re simply after off-the-beaten-path experiences.
Tara Cappel, founder of tour company For the Love of Travel, is a millennial herself. Her company aims specifically at this age group. “Some of the ways we cater to our generation’s wants/needs are including both off-the-beaten-path and must-sees in our itineraries; promoting connection with new places, people and ideas; ingraining social responsibility into our trips and core values,” she says.
Travel startup Trip Tribe recognizes millennials want unique group travel opportunities, so it offers the ability to meet fellow travelers before booking as well as recommended trips based on travel preferences.
“Group travel has largely been an offline booking experience — travelers having to thumb through catalogs, call 1-800 numbers or meet with an agent in person to book a tour,” says co-founder Meg Aidekman. “But millennials are pushing for the convenience of online everything — from banking to grocery shopping and, of course, dating. So Trip Tribe is taking not only the booking experience online but also the social dynamic of travel online — because it’s not just where you go, it’s who you go with.”
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