Experiences vs things. It’s become one of the dominant tropes of sales and marketing in recent years, and one that’s been wholeheartedly embraced by the travel industry.
The idea that younger travelers are valuing experiences increasingly over possessions has created a wealth of opportunities for travel businesses. For a start, there’s the general perception that travelers in the millennial and Generation Z bracket are simply likelier to spend more on travel 1. But there are also the finer details of exactly what that emphasis on the travel ‘experience’ means. And one area that’s continuing to see upheaval is accommodation.
In fact, millennials make up more than one-third of the world’s hotel guests, and it is anticipated that they will reach more than 50 percent by 20202. Here’s why the depth and quality of accommodation supply is vital for travel businesses who want to capitalize on the importance of experience.
Making ‘experience’ tangible
It’s a truism that younger travelers prioritize experiences. Over the past three years, the Strauss-Howe generational theory has taken a seemingly unbreakable grip on sales and marketing the world over – and not least in travel. Whether or not you accept the idea that wholesale buying behaviors can be lumped together into a label like ‘Gen Z’ or ‘millennial’, there are some compelling insights to be taken from the theory. Report after report has emerged over the last two years finding that younger travelers (generally those born after 1982) spend more3, value experiences and demand more choice4.
60% of millennials tend to gravitate toward purchases that are an expression of their personality5.
All this has contributed in no small part to the groundswell around personalization – a term that’s sometimes unhelpfully vague and expansive, but seems certain to keep gathering steam in 2019. If that’s too long a list of marketing buzzwords for you, here’s where it gets concrete for travel marketers: access to hotel supply that makes those demands and experiences a reality is essential. And that means diversifying with a wider range of accommodation that can create more personal, specific experiences.
New hotel products for new travel habits
The hospitality industry has certainly invested in the idea. Since the early years of this decade there has been a steady increase in hotel brands that specifically target younger travelers with an ‘affordable luxury’ premise, such as Marriott’s Moxy, which the company describes both as “millennial-focused” and an “experiential hotel brand”6. The exact positioning differs each time, but what all these brands – and, increasingly, the hotel sector at large – have in common is a growing focus on quality of experience and attention to detail. And, in turn, access to a range of accommodation that allows these travelers to realize their idea of a great experience is key to conversion.
Why choice matters
Obviously, hotels innovating is no new thing; they’ve always had to move with the times. But it’s vital for travel businesses that market accommodation to do the same. And that means continually reviewing supply. The broad result of experience coming to the fore is that travelers are more demanding than ever, and that what makes a ‘great hotel’ is more diverse than ever. In fact, 86% of millennial travelers were inspired to book a trip based on content they viewed online7. And that means choice matters more than ever.
Whether it’s having the right accommodation to offer a traveler looking for a ‘transformative’ trip off the beaten path, or being able to source a hotel for a traveler with a long list of must-have amenities, depth of supply is essential to staying ahead – as is quality throughout your supply.
For more detail on how to be sure of getting the depth and quality you need in your supply, read our guide on what to look for in a hotel supplier.
[1] travelweekly.com/Travel-News/Travel-Agent-Issues/Millennials-traveling-and-spending-more-this-summer
[2] hotelmanagement.net/sales-marketing/3-ways-hotels-can-connect-millennial-travelers-and-drive-sales
[4] thearf.org/category/articles/plurals-and-millennials-in-a-cross-platform-universe/