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HOTEL BUSINESS REVIEW

SEPTEMBER FOCUS: Hotel Group Meetings

 

Millennials Are Changing Meetings

By Kelly Parisi Solutions Development Manager, Spear One | September 2015

A generation of ‘immediate gratification’ often comes to mind when considering the Millennial stereotype. Rapidly-changing needs and preferences. Consumed with technology and over-socialized content. Distrust of traditional media and advertising. Yet, the Millennial demographic should not be overlooked. According to *Forbes*, Millennials represent over a quarter of the population in America and hold $200 billion in annual buying power. To date, about 55 million "Millennials" (16-34 year-olds) form the largest share of the U.S. civilian workforce – surpassing 53 million in “Generation X” (35-50 year-olds), 44 million “Baby Boomers” (51-70 year olds), and 5 million of the “traditionalist” generation. With these non-traditional innovators influencing the market, hotels are wondering how to evolve and cater to this new audience. **Millennials Are Important for Brands** *Elite Daily*, an online news platform with over 74 million monthly unique visitors, published “Millennial Consumer Study” in 2015, surveying 1,300 Millennials on various consumer-related topics. The study debunked a common myth, revealing that Millennials (60 percent of those surveyed) are actually very loyal to brands. If hotels ignore Millennials now as they are just starting to buy, it will be harder to capture their loyalty in the future. How do you capture their attention? Understand their values and interests? Hotels must act fast to recognize these new buyers’ needs and adapt accordingly. And while points, perks and brand consistency are nice, Millennials are asking hotels to reach beyond the traditional loyalty program. **Authenticity and Your Own Backyard** The “Millennial Consumer Study” indicates, *“The Millennial generation proclaims itself to be a unique, creative and purpose-driven generation.”* While finances are tight for Millennials as they carry massive student loan burdens, Millennials spend between 10-20% of their income on “fun” activities. Beyond business travel, travel for “fun” should be personally fulfilling, or as *Elite Daily* termed it, “purpose-driven.” Millennials want to feel connected to their environment – they want to be part of something bigger in their search for purpose. One successful approach is for hotels to offer an authentic, destination-specific experience to guests, rather than providing the same product in every location. Millennials do not want to feel as if they could be in any city, anywhere. They’re not looking for an ‘off the shelf’ product. Some examples of this include: - Design hotels with local in mind – feature décor and artwork by local artisans. Build a hotel that locals would be proud to call their own. - Offer a ‘neighborhood’ page on your website, where you highlight an insider’s guide to the best your area has to offer. Avoid the typical landmarks, attractions and common restaurants and deliver a blogger-like ‘feet-on-the street’ perspective to events and happenings. Remember, Millennials connect to people over logos, so share individual business-owner, chef or artist information along with attractions. - Serve locally-sourced food in hotel dining outlets, featuring information about how the hotel contributes to the food economy in the area. - Share guests’ local experiences around your hotel on digital signage, showcasing the traveler’s perspective of what your destination has to offer. ![alt text][1]
*Conrad Hotels & Resorts demonstrates
experiencing local culture, balancing the
adventurous journey with a luxurious stay.* **“Inspired Experiences Begin Here”** The tagline of Hyatt’s Andaz brand demonstrates a targeted Millennial approach. The brand realizes that the decision to travel is not just about the hotel - it is about the destination and the distinct experiences offered. Millennials want you to enrich their lives. It’s more than the number of room amenities or fancy shampoo and slippers they will be receiving. They want to walk away changed. What experiences can a hotel offer that guests cannot experience anywhere else on their own? It needs to be more than lei making from 2-3pm in front of the pool bar and more like ukulele lessons from a native Hawaiian who also explains the historical significance of the song. The Incentive Research Foundation (IRF) defines these as “self-defining experiences”. A recent whitepaper “Rebounding the Recession: 10 Trends Paint a Picture of The Future of Incentive Travel in 2015” states that for people under 35, self-defining experiences will be focused on the unusual, unattainable or exciting (e.g. Las Vegas’ Suspended Dining experience 300 feet in the air). What does this mean for meeting planners? The IRF suggests that planners will turn to venues that offer multiple options – Whether it’s balancing the needs of the spa crowd with the club crowd or creating intimate dinners with an option for exuberant behind-the-scenes meet and greets with the chef, planners will be challenged to create places and spaces that create self-defining experiences for multiple demographics. **Socializing with Millennials** According to the PCMA Education Foundation’s study “What the Millennial Generation Prefers in Their Meetings, Conventions and Events,” younger subsets of Millennials (18 – 24) prefer text over email, twitter and Facebook communications and online communication. However, the study revealed that face-to-face interactions are the most preferred among the audience, ranking above email, texting and social media. In addition to making the venues comfortable for Millennials, the value of participating in face-to-face meetings, events or conventions must be continually promoted to Millennials. Hotels can respond to these needs by offering smaller, more intimate venues with casual settings. The study also revealed that Millennials consider themselves visual learners. Hotel brands looking to stand out to these customers should focus on widescreen photography on their websites and social media posts that reveal intriguing visuals of the property. Millennials also look to social media and real-time feedback to see what others are saying about different hotels. Unlike prior generations, Millennials rely heavily on blogs. *Elite Daily’s* “Millennial Consumer Study” showed that 1 in 3 selected blogs as a top media source before making a purchase. ![alt text][2]
*Rock Resorts explains “true luxury is
understanding what makes a destination
special unto itself”.* Beyond visual content and utilizing the proper media channels, Millennials expect more from brands than just pushing content at them. Millennials expect brands to engage with them – show excitement for their upcoming stay, ‘like’ their pictures at the pool, ask them when they are coming back. If you really want to be cutting edge, follow the example set by Loews Hotel Group – the first major hotel chain to support tweet-initiated room booking. According to the “Millennial Consumer Study”: *62% of Millennials say that if a brand engages with them on social networks, they are more likely to become a loyal customer; 43% say that Facebook is the social network that most influences their spending habits, followed by Instagram (22%) and Pinterest (12%).* **Technology and Convenience** Millennials are described as a computer savvy generation that appreciates technological innovation and creativity. The “Millennial Consumer Study” points out that 87 percent of Millennials surveyed use between two and three tech devices at once on a daily basis. These devices are the means for Millennials to consume mass amounts of media as they try to stay connected to friends, family and colleagues through social networks. IRF research has shown that the sharp rise in devices per attendee continues to push the limits of WiFi capabilities within hotels. The IRF predicts that hotels “will be less pressured to find in-room entertainment for guests, and instead, be more pressed to increase bandwidth to meet the needs of those using personal mobile devices to obtain entertainment of their own choosing.” Content needs to be made relevant and available on the devices where Millennials are spending their time. As Millennials influence the travel and meetings industry to evolve their technologies, convenience is at the heart of their needs. Millennials will continue to ask for amenities such as: - Free WiFi in rooms, common areas and meeting space - Lounge-style settings with device charging stations and comfortable, casual seating (and/or coffee shops like Starbucks) - To-go or flexible food outlets for guests to enjoy quick dining options, rather than table-service restaurants, often viewed as overpriced - Mobile app experiences that truly engage guests (e.g. Conrad’s Concierge app allows guests to customize their amenities prior to their stay or Ritz-Carlton’s app recognizes when you’ve arrived at a Ritz-Carlton property and sends location-specific advice) **A Generation of Deal-Hunters** Millennials have had access to the internet for so long, they can’t remember what life was like without a plethora of resources at their fingertips. With so much information easily accessible, Millennials like to do a lot of research online before making decisions. They have seen countless marketing promotions throughout their lifetime, making them a generation that will stop at nothing to get the best deal. In a Cvent study of more than 800 meeting planners, the cost of venue was the number one cited reason for not using that same venue again next year, compared to customer service for older generations. The analysis also indicated that younger planners are drawn to the convenience of an event management platform, over sourcing directly through a venue. These statistics confirm that hotels need to remain price competitive to attract Millennial guests and planners. Planners are educated in all the extra costs – resort fees, internet fees, gift delivery charges and more. Hotels should be prepared to negotiate these items to secure the business. Hotels should consider how they are perceived to a guest or planner on all resources available, not just the ones they control like their website and corporate social media accounts. Booking and review sites like TripAdvisor, Expedia, Orbitz and countless others as well as guest complaints or photos have a huge impact on potential customers. Addressing any negative press proactively is even more important with Millennial buyers on the hunt. **Youthful Attractions Will Not Resonate Long-Term** Hotel brands should not consider taking a ‘party-vibe’ approach as a way to connect with Millennials, but purely a way to connect with younger guests. Studies consistently cite Millennial desire to give back to their communities, engage with brands on social media and adopt the latest technology, but none suggest that Millennials connect with nightlife and loud music any more than generations past. Brands that push the envelope with sassy advertising campaigns may capture short-term gain with younger guests, however Millennials are looking for a deeper connection to a brand. To earn long-term loyalty, brands will have to work harder and take a truly personalized approach to make an impression on the individual. It’s true – Millennials are requesting a lot from brands. While Millennial planners appreciate the power of face-to-face interactions, it’s clear that most brand interactions are done in the digital world. With the emergence of social media, hotels now have a whole new set of opportunities to create thoughtful, personalized experiences for guests. Hotels should be taking a more holistic approach to engaging guests before, during and after their stay. When hotels take steps to evolve their spaces and technologies to satisfy Millennial needs, they will become even greater settings for meaningful face-to-face meetings and connections. [1]: http://www.hotelexecutive.com/images/business_review/parisi1.jpg [2]: http://www.hotelexecutive.com/images/business_review/parisi2.jpg

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