Ms. Knutson

Sales & Marketing

Reaching the Millennial Generation: The 4th Hump in Your Generational Marketing

By Bonnie Knutson, Professor, The School of Hospitality Business/MSU

We are Sasha Cohen, Reggie Bush, the Olsen twins, and the McCaughey septuplets. Born after 1985, we already number 75+ million, and are growing. By 2010, we will be 100+ million strong. And with our numbers, we will become a very powerful economic force as we travel, stay in your hotel, and become members of your loyalty program. Because we were the first generation to grow up immersed in a digital-driven world, we are often called Generation Y (Gen Y), the Net Generation or iGen. But we are also known as Echo Boomers, because we are primarily children of the Baby Boomers. We have even been labeled the Einstein Generation because we are adept at multi-tasking.

No matter what you call it, this generation is defined by technology and exploding media options. In a 2007 survey of US college students (your guests of today and tomorrow), 97% own a computer and 94% own a cell phone. Three-fourths of them use Instant Messaging and have a Myspace or other social networking account. In other words, they are connected 24/7...across the street, across their town, across the country, and across the world. The line between business and leisure has all but disappeared for this generation. And all this media saturation has produced a generation of educated, savvy consumers with a global view of life.

The Gen Yers also acknowledge the realities of the uncertain world in which they live. Columbine, Diana, and 9/11 were lexicons in their daily lives. Drugs, gangs, amber alerts and metal detectors became part of their existence. Even Mother Nature invaded their consciousness with global warming, Tsunamis, and Katrina. And to top it all off, they are the first generation who cannot envision a future in which they are economically better off than their parents. Thus, they tend to live in the moment, but still have an eye for the future.

So how can your hotel attract and retain this generation as loyal guests? What can your property offer that will be in sync with their values and their generational markers? Here are some ideas to get your creative juices flowing:

• Market on Their Schedule. Millenials are the first remote generation. Growing up with on-demand instant gratification, they want what they want, when they want it and how they want it. This means that your hotel must market to them 24/7. This generation does not understand, nor do they accept, the old brick-and-mortar concept of a business being closed. They live via the Internet and they want to see the complete experience your hotel offers - from accommodations, amenities and services to surrounding places of interest. Or, as Bruce Speechley, from IBM Global, says, the Net Generation wants to "be able to experience the vacation before arriving."

• Connect with Multiple Media Channels. By 2010, this group will be a significant sector for the lodging industry. While there will be a lot of them, they will be fragmented and difficult to reach by traditional media channels. They live by email, IM (instant messaging), chat rooms, blogs, PDAs, MP3s, iPods, Wiis, and social networks such as Face book and MySpace. To reach this hyper-technological group, your hotel needs to creatively send your hotel's messages via these new media channels embracing them in a virtual community. And if it is not downloadable, forget it!

• Lifestyle Your Property. The notion of a lifestyle hotel experience is hot with this generation. To see this concept in action, look at ALOFT's website with its "get set to a-go-go adventure" and "a-go-go blog". Or catch NYLO's where the brand defines itself as "a groundbreaking concept that completely redefines urban-style lodging" and connects with the Millenials' desire for personalization with its tagline, "at last, a hotel as unique as you are." The key point here is customization. This generation likes everything personalized because they grew up in a world that was all about them.

• Connect with them young. Since birth, they have been inundated with choices. From running shoes to hamburgers to television channels, they have always a myriad of options at their finger tips. Thus, they use brand image and brand reputation as a criterion filter for what they buy and where they stay. For example, think about how your gift shop can feature or promote top quality brands....Tommy Bahama or Izod, for example. The same goes for your menu...premium Angus beef, Godiva chocolate, and even Heinz ketchup will connect with their need for brand image. As one iGen member put it, "The way to distinguish ourselves is by our stuff..."

• Wrap the hotel in fun. If they spend their time doing something, these this generation wants it to be fun and exciting. A progressive dinner at multiple stations with a variety of international fare and entertainment activities would be attractive. Setting up virtual brand communities via a guests-only blog or social network website is this generation's version of the old loyalty program. Since these hotel brands activities are online, iGen members can access them 24/7. This increases both the value of your hotel brand with the status of being a player. As stated in a 2007 Advertising Age article, the Internet is the number one source for information and entertainment for this generation. It will become your hotel's primary avenue for communication with this age group. Remember, they grew up online, can multi-task, and their key words are fun, interactive, and connectivity.

• Retro Revisited. If you are an aficionado of clothing trends, you've no doubt noticed the prevalence of hip hugger jeans, tie-dye shirts, and now, cinched waists. Why? There is a growing interest among many Gen-Yers in retro-oriented culture. Much of this attention is thought to be influenced by a desire to escape (if only for a short time) to a simpler, safer time - within the reality that we all must live in today's world. Such longing offers potential to revive retro in hotel products, services and activities - comfort foods on menus, Monopoly tournaments online or even in the dining room, or music from bands of past generations. (What about setting up a program whereby guests could download the "oldies" to their iPods?)

• Make them part of Team Hotel Early On. From the time they were toddlers, this generation has been programmed to be part of a group. From play-dates to school uniforms to team-teaching to community service, members of the Millennial generation gravitates towards habits of group activities. They believe it will be their generation, working together, that can solve many of today's problems. This attitude extends to loyalty programs. At a time when hotels are facing new competition, many have declining REVPAR or occupancy rates, and water is becoming as valuable as oil in some parts of the country, their collective belief in the future can yield creative strategies for positioning your hotel for success. Get them in a focus group, on a web blog or on special event groups. They are cooperative, smart team players who see themselves on the cutting edge. Active and world-traveled, this Net Generation will change its shape and the direction of the entire lodging industry. And if you want to get a glimpse of what that future might look like...you can just look at the Millenials of today with their corporate uniform of jeans, sneakers, a hoodie and blazer. They are sporting the identifying white chord of an iPod around their necks. In their briefcase, they carry a Wi-Fi laptop, BlackBerry, and digital camera. Slung over their shoulder is a Yoga mat because they are into wellness. And in their free hand is a hot cup of designer coffee - a half-caffeine, nonfat, tall Latte with a touch of foam and sprinkled with Madagascar cinnamon. Welcome to the hotel of the future.

Bonnie J. Knutson is a professor in The School of Hospitality Business in the Broad College of Business at Michigan State University. She is an authority on emerging lifestyle trends and innovative marketing. Her work has been featured in The Wall Street Journal, USA Today, and on PBS and CNN. She has had numerous articles in industry, business, and academic publications. Bonnie is a frequent speaker for executive education as well as business and industry meetings, workshops, and seminars. Dr. Knutson is also editor of the Journal of Hospitality & Leisure Marketing. Ms. Knutson can be contacted at 517-353-9211 or drbonnie@msu.edu Extended Bio...

HotelExecutive.com retains the copyright to the articles published in the Hotel Business Review. Articles cannot be republished without prior written consent by HotelExecutive.com.