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HOTEL BUSINESS REVIEW

FEBRUARY FOCUS: Hotel Social Media

 

9 Ways to Respond to the Millennial Imperative

By Michelle Wohl VP of Marketing & Client Services, Revinate | February 2015

They're as ubiquitous as Boomers, and they're on the road. The Millennial cohort, now as large a segment of the U.S. population as the Baby Boom, is the fastest-growing travel segment, according to American Express Business Insights, and Millennials will soon comprise the majority of travelers worldwide. While Millennials are like everyone else in a lot of ways, there are some strong differences in their affinities and desires that make it imperative that hoteliers change their ways. Understanding how to please this group of more than 1.7 billion members is critical to the hospitality industry. We combed all the research and identified nine themes that drive Millennial travel. Let's look at effective ways to engage this new generation of travelers by responding to each of these themes. **Technology = Ease** According to Nielsen, Millennials have a more positive view of how technology is affecting their lives than any other generation. More than 74 percent feel that new technology makes their lives easier.(i) And then, they get to the hotel. Waiting in line to check in or trying to flag down a waiter poolside seems so old-fashioned to this crew. There's a better way. Marriott's mobile app lets guests to check-in prior to arrival and lets them opt in to receive alerts when their rooms are ready. Getting off the plane at noon and receiving a text that the room is ready for check-in would delight any Millennial. Ritz-Carlton released a mobile app that provides mobile ordering at poolside or for room service, as well as app-based service requests. It may seem odd that an old-school, luxury hotel brand that is known for excellent service would let guests replace the personal touch with a touchscreen, but this ties into another Millennial theme: More Tech, Less People. **More Tech, Less People** For Millennials, luxury often means not having to deal with a live person. They are more comfortable making requests digitally instead of asking a concierge or making a phone call. In fact, the majority of them would just as soon be served by robots, according to a survey by Software Advice.(ii) Indulge them by letting them order up more towels or get a restaurant recommendation in real time with an app instead of making them go downstairs or talk on the phone. While you might not understand the difference, ask any Millennial how often he talks on the phone, and you'll likely hear, “Only when my parents call me.” This doesn't mean that Millennials don't go for traditional luxury services. They do - in a big way. In fact, they're more likely than older travelers to seek out hotels with luxury services such as dry cleaning, massage and spa services, according to a Chase Card Services survey.(iii) If you can make ordering these services seamless via mobile or in-room technology, it's a big win. This preference for machine over human extends to complaints, as well. These consumers are more likely to complain online about issues with a hotel rather than seeking out a staffer and asking for a fix. Because of this, it's crucial for hoteliers to monitor social media to resolve problems before guests leave, according to the EY Global Hospitality Insights 2014 report. **Alone Together** They might not want to talk face-to-face with others, but they enjoy being hanging out in public places. Describing Millennial culture in its 2014 report, E&Y wrote, “Although Millennials place less importance on face-to-face contact than prior generations, they have a strong desire to be actively social, including via telecommunication and social media. This hybrid of simultaneous social interaction in both physical space (sharing) and virtual space (communication) describes a phenomenon of isolated togetherness.” To put it more simply, although they may look like they're focused on their phones and not each other, this group does enjoy being around others at the same time. To meet this desire, some hotels are expanding their public areas to include more seating, casual dining while working and lounges. PentaHotels is a great example of a hotel brand that appeals to Millennials. It promotes its pentalounge - a combined lobby, reception, bar and cafe - as a "lifestyle lobby." Each pentalounge is designed as a lively gathering place for hotel guests and locals. I stayed at a PentaHotel in Hong Kong recently and was amazed by the amount of different public spaces that were available: a game room and a library, in addition to multiple lounges and restaurants. The guest room itself was lovely, but I only needed it for sleeping and showering. **Always On - WiFi** Everyone wants good, free WiFi. There's no generational difference in that: It was most-desired amenity overall in a recent Hotels.com survey.(iv) That said, the WiFi experience seems to be a more important influence in repeat bookings with Millennials. Gallup's 2014 Hospitality Industry Study found that reliable internet access and problem resolution were the key criteria in repeat bookings for Millennials, while Generation X valued the hotel staff's ability to resolve problems and service reliability. Baby Boomers and Traditionalists - the oldest generation -- valued responsive employees and problem resolution.(v) **Better Natures** Millennials want to spend money with companies that are improving the world. They have seen the rise of companies like TOMS, which gives a pair of shoes to a child in need for every pair it sells; or Ben & Jerry's ice cream, which aims to create prosperity for everyone that's connected to its business: suppliers, employees, farmers, franchisees, customers, and neighbors. Unlike the sometimes cynical Gen X'ers, Millennials do think that they can influence change, so they value companies with philanthropic programs. Entrepreneur Magazine reports, “More than 85 percent of Millennials correlate their purchasing decisions and their willingness to recommend a brand to the social good efforts a company is making. Businesses interested in selling to Millennials can't afford to ignore the opportunity to create social good.” Seven out of 10 of these young adults identify themselves as social activists - and they believe that shopping counts as activism. According to a 2011 study of Millennials by Take Part and ad agency TBWA, four out of five say they're more likely to purchase from a company that supports a cause they care about. Moreover, the majority are willing to spend a bit more on products from socially responsible companies, according to the Nielsen Global Survey on Corporate Social Responsibility.(vi) And three out of four believe that corporations should contribute to society.(vii) To address this Millennial theme, be as specific as possible about your corporate social responsibility endeavors and, if possible, tie them directly to the guest experience. For example, Kimpton Hotels & Restaurants has partnered with Dress for Success, the organization that provides professional clothing, training and job-hunting support to disadvantaged women. Kimpton does a great job of quantifying its contributions while getting guests involved: When guests use the code DFS when booking, $10 of the daily room rate goes to Dress for Success, and guests can get a 15 percent discount, as well. Environmental responsibility is also important to this cohort. Almost every hotel offers guests the option of re-using towels and linens, so properties need to come up with more initiatives. Take a tip from Banyan Tree and its youthful brand, Angsana. Sustainability is at the heart of the brand promise. You can't visit a property without a reminder of the good that the brand does in its local community. When I checked into the Angsana Long Co, I was provided with a bracelet made by someone in the local community as a symbol of the tie the hotel keeps with its local community. **Business and Pleasure** Younger business travelers want to take advantage of the trip to do some sightseeing, as well as take care of business. Eighty-four percent of them are likely to add a few says onto a business trip to explore the area at their leisure, according to a 2013 survey conducted by Hilton Garden Inn.(viii) This represents a good opportunity for hotels: 96 percent were likely to book extra days if the hotel gave them a discount. In the Hilton Garden Inn Discovery and Connection Survey, Millennials cited experiencing new things as the best benefit of business travel, while 37 percent were excited to meet new people while on the road. With this in mind, hotels can differentiate themselves by providing much richer information that the typical lists of restaurants and nearby attractions found in guest-room information books. Just don't expect them to stop by the concierge desk to find it. In line with the More Tech, Less People theme, take the time to build out your mobile app to link to a variety of rich-media sources for local information. **Just for Me** Millennials want to personalize their hotel experiences in the same way that they do their phones. The more unique offerings a hotel can provide, the more loyal these customers will become. Two-thirds of Millennial high-frequency travelers rated “unique rewards” as an important factor when choosing a hotel loyalty program, compared with just 43 percent of their older counterparts, according to Deloitte's Winning the Race for Guest Loyalty study. Instead of points, Deloitte found, Millennials highly valued soft benefits such as VIP treatments and exclusive experiences. Hotels should also look at opportunities for surprising and delighting Millennials when they are on site, because Millennials will likely share the experience with their networks. Hotels can access public profile information to see likes and dislikes and use that information to create a memorable experience. For example, a San Francisco Giants fan in town during a televised game would be floored if he opened his door after a long day of meetings to find two beers and a bag of peanuts, along with a note from the GM wishing the Giants luck tonight. You can be sure that he would share a photo of the amenity on Facebook and Instagram, and tweet about the experience as well. **Experiential** Millennials have grown up with more information about other cultures and easier access to affordable travel than any generation before them. Through social media, social gaming and free communications platforms like Skype and GChat, Millennials can engage with people all over the world. As a result, they are more comfortable with and even drawn to meeting new people and experiencing new cultures. Two thirds of Millennials told Deloitte that unique experiences mattered, and they prefer authentic experiences to hygienic ones. In fact, a study by Skift has shown that Millennials are more likely than other generations to participate in peer-to-peer rental services such as AirBnB or Uber. Since experiencing local sites and people is important to Millennials, hotels should do everything to appeal to their desire for authenticity. Some Kimpton hotels, for example, leads guests on a morning run, sharing local knowledge about the area. Another hotel, Amansala, in Tulum, Mexico, provides cooking demonstrations of local specialties. **Last-Minute** How does having the world's information constantly available in your pocket change things? Millennials, who have never had to dig up information, don't always plan travel the way older generations do; they assume that what they need will be always available - and that includes hotel rooms. EY Global Hospitality Insights 2014 believes that capturing demand for same-day rooms via local sales channels will grow in importance along with the growth in Millennial travel spending. Even legacy travel aggregators like Expedia and Orbitz now have "available tonight" sections, while mobile-only or mobile-first startups including HotelTonight and Jetsetter cater to younger travelers. Hoteliers can help sell unsold rooms through these channels and can take advantage of millennials' love of last-minute offers by including an advanced check-in offer with upgrade possibilities. Responding to Millennial culture may require a bit of a shift in the way we've always handled marketing and guest relations. But remember, everyone is digital now. Many of these ideas will be welcomed by all your guests, even if they're not part of the soon-to-be Millennial Majority. *References* *(i) Nielsen. [Millennials: Technology = Social Connection][1]. February 26, 2014.
(ii) [The Value of Robotic Room Service][2] IndustryView 2014
(iii) [Millennials Indulge in Luxury Hotel Services][3]. June 10, 2014.
(v) Travelers Rank Complimentary Breakfast and Free WiFi as Most Valuable Hotel Amenities. April 8, 2014. [http://press.hotels.com/en-us/news-releases/travelers-rank-complimentary-breakfast-and-free-wi-fi-as-the-most-valuable-hotel-amenities-in-global-survey/][5]
(v) [http://www.gallup.com/businessjournal/173537/hotels-engage-gen-Millennial-guests.aspx][6]
(vi) Nielsen Global Survey on Corporate Social Responsibility, Q3 2011 and Q1 2013
(vii) TBWA and Take Part, The Future of Social Activism. [http://pndblog.typepad.com/pndblog/2013/09/infographic-the-future-of-social-activism.html][7]
(viii) Millennials Take New Approach to Work-Life Balance, According to Hilton Garden Inn Survey. June 26, 2013. [http://news.hiltonworldwide.com/index.cfm/newsroom/detail/23578][8]* [1]: http://www.nielsen.com/content/corporate/us/en/insights/news/2014/Millennials-technology-social-connection.html [2]: http://www.softwareadvice.com/hotel-management/industryview/robotic-service-report-2014 [3]: http://www.businesswire.com/news/home/20140610006008/en/Millennials-Indulge-Luxury-Hotel-Services-Chase-Marriott#.VGuI5vZ0xjo [4]: http://www.businesswire.com/news/home/20140610006008/en/Millennials-Indulge-Luxury-Hotel-Services-Chase-Marriott#.VGuI5vZ0xjo [5]: http://press.hotels.com/en-us/news-releases/travelers-rank-complimentary-breakfast-and-free-wi-fi-as-the-most-valuable-hotel-amenities-in-global-survey/ [6]: http://www.gallup.com/businessjournal/173537/hotels-engage-gen-Millennial-guests.aspx [7]: http://pndblog.typepad.com/pndblog/2013/09/infographic-the-future-of-social-activism.html [8]: http://news.hiltonworldwide.com/index.cfm/newsroom/detail/23578

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If any provision(s) of this Agreement is held by a court of competent jurisdiction to be contrary to law, then such provision(s) shall be construed, as nearly as possible, to reflect the intentions of the parties with the other provisions remaining in full force and effect. HotelExecutive's failure to exercise or enforce any right or provision of this Agreement shall not constitute a waiver of such right or provision unless acknowledged and agreed to by HotelExecutive in writing. The section titles in this Agreement are solely used for the convenience of the parties and have no legal or contractual significance. This Agreement may be assigned in whole or in part by HotelExecutive. This Agreement may not be assigned in any manner by you without the express, prior written permission of HotelExecutive.

Any and all disputes or controversies of any kind, including but not limited to any performance, duty, obligation or liability arising under or related to this Agreement which are not first resolved informally, shall be determined by binding arbitration in San Francisco, California, in accordance with the rules of the American Arbitration Association. The final award in any such arbitration proceeding shall be subject to entry as a judgment by any court or competent jurisdiction, provided that such judgment does not conflict with the terms and provisions hereof. The jurisdiction of the arbiter (or arbiters) with respect to legal matters shall be limited only by the statutory and common law of the State of California and the United States.

Notwithstanding the foregoing, any and all disputes, which the parties cannot informally resolve, regarding the scope of issues or matter with the jurisdiction of the arbitrator, shall be resolved by a separate dispute resolution process whereby HotelExecutive, in its sole discretion shall elect the dispute to be resolved by either (1) a court of competent jurisdiction in the State of California or (2) a panel of three new arbitrators.

This Agreement shall be governed by and construed in accordance with the laws of the State of California notwithstanding any conflict of laws provisions. You and HotelExecutive agree that the venue for all legal disputes, controversies, actions of any kind arising under or related to this Agreement shall be San Francisco, California. You and HotelExecutive further agree that in case of any litigation regarding this Agreement, you irrevocably and unconditionally (i) consent to submit to the exclusive jurisdiction of the state and federal courts in the County of San Francisco, California for any litigation or dispute arising out of or relating to this Agreement, (ii) agree not to commence any litigation arising out of or relating to this Agreement except in the California Courts, (iii) agree not to plead or claim that such litigation brought therein has been brought in an inconvenient forum, and (iv) agree the California Courts represent the exclusive jurisdiction for all litigation relating to this Agreement.

11. MEMBERSHIP FEES

Hotel Business Review Subscriptions

If you choose to purchase a subscription, member subscription payments can be made in U.S. Dollars, as well as a variety of international currencies. Membership terms are Annual Recurring, and Monthly Recurring. The Annual Recurring subscription is an annual commitment and subscribers will be charged each consecutive billing cycle. Annual Recurring subscriptions can be cancelled after the first billing cycle and within 30-days of the billing date for a full refund. Monthly Recurring subscriptions are ongoing and subscribers will be charged each consecutive monthly billing cycle. Monthly Recurring subscriptions can be cancelled after the first month and within 7 days of the monthly billing cycle for a full refund.

12. PAYMENT AUTHORIZATION

Payment for the services provided to you in, at, through or in association with HotelExecutive may be made by automatic credit card, debit card, direct debit, bankwire or Paypal and other approved payment means offered in, at, through or in association with HotelExecutive, and you hereby authorize HotelExecutive and its agents to transact such payments on your behalf.

You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

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