Ms. Knutson

Sales & Marketing

Reaching the Generation X : The 3rd Hump in Your Generational Marketing

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

Tiger Woods is one of us; so is Venus Williams. Our generation includes the Spice Girls, N'Sync, Friends, and the Brat Pack. We have Richard Gere, and his Pretty Women, Julia Roberts. We are the Fresh Prince of Bel Air and residents of Melrose Place. And yes, we must also claim Desperate Housewives and Paris Hilton. We are the members of Generation X and we are one TV Nation. Not the first group of Americans to grow up on TV, we are the first group for whom TV served as a regularly scheduled baby-sitter. We were the first to experience MTV and the Fox network and we are still an audience many marketers are eager to reach. But we are also the most media-savvy generation ever.

Often stereotyped as white, middle-class, college-educated suburbanites, the reality is that we are extremely diverse. Most of us grew up after the Civil Rights and gay rights movements and in the beginning throws of Hispanic and Asian immigration. And while we all may not have supported these movements, we are certainly more understanding and tolerant than previous generations.

Born between 1965 and 1985, we number about 50 million. We were often latch-key kids marked by divorce, single parents. Crack cocaine, AIDS and missing children on milk cartons were part of our everyday experiences. And while we cheered the Cold War end and the fall of the Berlin Wall, we became disillusioned with Watergate and other institutional scandals.

In this article, one of a four-part series on generational marketing in your hotel, we look at the third "hump" of your property's four-humped guest camel - The Generation X (Gen X). A Xer himself, Canadian writer Douglas Coupland has said Generation X is not a chronological age but a way of looking at the world. There may be more truth than fiction in this statement. Defined by diversity, today's 20- and 30-somethings are cynical and skeptical of traditions and institutions (including hotel brands). Having grown up at a time of broken promises, they are street-smart and ad-savvy. Xers can smell hype a mile away and have to be convinced in a Missouri-type way of "show me". Their expectations have been tempered by disillusionment and they realize that work will be a difficult challenge. They are, after all, a dearth in the population curve that follows the massive Boomer cohort. But at the same time, they are more educated, have more lifestyle options, are entrepreneurial in nature, and need rewards as a balance in their active, hectic lives.

So what products and programs can your hotel offer that will be in sync with the values of this generation? Here are some ideas to get your creative juices flowing:

Increase options

Members of Generation are addicted to choice. They want options because they are educated, widely traveled, media saturated and know what is out there. A broader menu that incorporates international fare is an option for your restaurant. Add niche type enrichment activities such as cycling (which is the fastest growing individual and club sport in the country) to the more traditional tennis and golf options at your resort. Wine, food, or garnishing classes are other food related ideas for meeting and convention activities. Day spas and other health related programs are valued. Even if your hotel doesn't have an onsite fitness facility, think outside the box and discover a unique venue, on or off property.

Use Word-of-Mouth or Peer-Promotions

This cohort distrusts anyone not a Xer him or herself. They are also at the center of society now that they are rising to positions of power. Half of Gen X household heads are already in high-paying professional, technical, or managerial positions. Although Gen X households currently account for just 13% of the total Affluent population, they constitute 20% of the Mass Affluent and more than one-third of the Emerging Affluent markets. In other words, they can help generate your revenues. To increase the effectiveness of this targeted membership campaign, consider developing an ambassador-type program of other Gen X guests.

Promote Life Balance

With their extremely busy schedules, this cohort needs breaks to rejuvenate. A global study by Expedia.com found that about one-third of employed Americans don't take all their vacation days; they leave about three days on the table. This presents an opportunity for your hotel to capture an additional one to three extended weekend packages. There is increasing evidence that vacations are not simply a luxury; they are really necessary for good health. The key, then, is to promote your property as a getaway that enhances well being - something every Gen Xer needs.

Honor Diversity

Celebrate the pride that Generation X takes in its diversity and eclectic tastes. Include members of various ages and ethnic heritages in your advertising. Observe new holidays or celebrations in your property's events calendar. Such events will be attractive to Gen X because they arouse a sense of adventure and passion. And if a Xer thinks the hotel is offering a great deal, expect to see his or her friends as word spreads. For them, value sells and service sells even better. Xers take pride in themselves and see themselves as a group of diverse individuals, not as a unified one-size-fits-all market segment.

Use Multiple Media

There is an old marketing axiom that says you must deliver your promotional message at least three times mixing them in unique ways to break through the clutter. This is particularly true for this media-savvy generation. But remember that Gen Xers examine everything they are handed, keeping what is believable to them and pitching out what they don't believe. What they perceive as insincere messages does not cut it with them.

Whereas baby boomers are quite loyal to brands, those of Generation X are known to shift loyalties at the first snafu on the part of a hotel. With their cynicism, they want to carefully evaluate all their choices and reach their own lodging decisions - when to go, where to stay, what to do, and whom to tell about their experience. This discriminating pattern often discourages brand loyalty, keeping hotel managers on their toes. Rob Frankel, author of The Revenge of Brand X offers his opinion as to the cause of this: "Gen X is called Gen X because they had no unifying cause. Consequently, consumerism moved into the vacuum. The way to target Gen Xers is by trying to convince them that other Gen Xers are doing the same thing; something they can join and to which they can belong."

Your REVPAR will thank you!

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...

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