Are hotels ready for Generation Z?

Three cheers for Millenials! We are now the number one focus of many hotel chains around the world and almost everything these chains do, market, develop or offer is aimed to convince us burgeoning world conquerors to become loyal to their message and brands. We are the generation that has lived through the Great Recession, have seen the birth and development of internet and iPhones, we are the ones holding the purse strings and we love to share everything we see/hear/own through social media. Thanks to the sharing economy we are able to see more of the world on a smaller budget, move through cities with locals in their cars, have dinner in private homes and share home appliances with only a tap of our finger.

It is impressive how hotels are putting in a lot of effort to convince us, the Millenial generation that is, to spend our hard-earned cash at their properties, but you may wonder what they are currently doing to secure the interest and loyalty of the future travellers. We may think we are the most connected generation out there and travel companies may be pointing their arrows firmly on us, but what about the next travellers who are currently influencing our decisions? Who are the future travellers frothing at the mouths to get started and follow in our footsteps? That’s right — Generation Z is almost upon us.

Who are Generation Z?

Typically Generation Z is defined as the generation born between 1995 and now. They are the fully digital generation. Having grown up in a world full of uncertainties, they are witness to war and terror threats on a daily basis. Growing up with parents who have struggled and fought their way through a recession, they are both realistic and ambitious, intent on making a career and making sure they do it themselves to secure their (financial) future. They will be a generation that looks more to the future and will have a firmer grasp on financial awareness as well as an intense sense of purpose. They want to work together to create something, be part of something however at the same time they are afraid to miss out. Where the Millenial generation wanted to share everything and see everything, Generation Z will be searching for individual experiences, once-in-a-lifetime opportunities and will be more restrictive with what they share and with whom.

Even in methods of communication, they are very different. Where Millenials grew up with IM, 3D and two devices for connection and communication, Generation Z is growing up with Whatsapp, Snapchat, 4D and five devices. They are visual creatures and will be triggered through images and emoji. And considering their approximate 8 second attention span, any news, promotions or marketing messages need to be fast and spot on to capture their interest.

Thanks to the incredible amount of search engines, comparison websites and OTA’s available, which all offer a mind boggling amount of information, reviews and personal pictures, Generation Z will become a generation that will most probably base their decisions on personal experiences over marketing texts. Which is why hotels need to be on top of their game when it comes to responding to a continuous stream of content which they are faced with from different sources. Unable to respond in a timely fashion or failing to offer personalized solutions could mean the difference between gaining a customer or losing twenty. And because of the constant growing selection of hotels available, the Generation Z traveller will feel no need to be loyal to a single brand. Which means an additional challenge for hotels, as they will need to convince these travellers over and over and over again.

Hotel Developments

Developments in hotels (both big and small) appear to happen in waves. From introducing air-conditioning in hotels (30’s), providing coffee in bedrooms (mid 50’s), the rise of the mini-bar (60’s), the development of electronic key cards (still not common everywhere!), paying with credit cards (80’s), all the way to embracing the internet and creating webpages in the 90’s. As many things, once one person — or hotel — takes the lead, it’s only a short matter of time until the rest of them follow. But where are we now?

Increased room sizes (or more efficiently designed), personalised themes, free Wi-Fi, lobby bar concepts and multi-outlet charging stations are gracing the many hotels around the world. Signature restaurants, scents and special partnerships to provide in-room entertainment or refreshments, it’s not just common, it is often time expected. But with all these developments, what’s left to develop?

A hotel is a hotel is a hotel. There are facets of a hotel that will never change. Bedrooms, bathrooms, lobbies, restaurants and maybe gyms, shops or bars. But if you can no longer add to the items that make a hotel… well a hotel, or what if your Generation Z guest no longer cares about the locally produced pillow mint that is placed on their organically sourced goose feather pillow, what will you do next? What will set you apart? Where could hotels potentially win?

(Inter)active Experience

• Generation Z wants to be part of the surroundings, they want the experience to have a lasting impression on them and they don’t want to simply be a spectator. They want to talk with the employees, discover together what is on offer and not simply be talked to like a tourist listening to a tour guide waving a little flag around. Even when there is a limited amount of space or time, iBeacons in a hotel can offer tech savvy guests an alternative method to gather information and guidance on their devices. There is no need to wait in line and they get the instant gratification and content about their locale they want.
• Many hotels are involved in local volunteering projects however they only talk about this on their blogs or maybe the odd LinkedIn or Facebook page, but it is seldom that guests are invited to join them. Considering Generation Z has a strong sense of social collaboration, allowing them to partake in your hotel’s volunteering activities will give them a unique opportunity to become part of your community and maybe even team.
• 24 hour assistance will, in the not too distant future, become a must-have feature even for hotels. As communication moves from phones to online chat functions, hotels would do well to investigate what capabilities are available for continuous, round the clock support and maybe even concierge services. It will allow for the hotel to get a deeper insight in who their guests really are and offer them an even more personalised service in the end.

Visual Marketing

• The Generation Z traveller has limited time and even less attention. They will not be the ones leafing through you luxuriously designed glossy pamphlet, instead they will be swiping through your website or even on Pinterest and Snapchat to see what you have to offer. But you’ve only got one shot. So what marketeers need to remember is that when it comes to attracting this traveller, it needs to be said in one shot and needs to be visually stunning, appealing and should make the person yearn for more through all their devices, from phone to watch to tablet. They are already this generation’s influencers and their reach will only grow in the years to come.
• Snackable content, easy to digest and inspiring can be a challenge for hotels as they are often limiting themselves by only offering images and impressions of their beds, their tropical swimming pools or well-equipped gyms. These can be construed as stiff and old fashion. No matter how pretty your bedrooms are, you can’t tell whether the mattress is comfortable or whether the airco unit is leaky and creaky. Instead, people are looking for an expression of the personality of the hotel, what it will be like to walk through the door and be welcomed into that home away from home. What people will they be seeing, what is the hotel doing extra and how can they be a part of this.
• Don’t be afraid to offer a lot of smaller pieces of content. The Generation Z traveller is well adapted to large volumes of bits and pieces of information. They have grown up filling their minds with quick impressions and can easily handle a continuous flow of new images.

Value Pricing

• Generation Z is more price conscious than their parents and are likely to compare hotels more than ever. They are well adapted in online research and they will probably be more likely to move to package provider if hotels cannot offer value for money in their eyes. Simply a “Best Price Guarantee” is no longer enough because it means nothing in the grander scheme of things. If your price doesn’t include a value add, an incentive, or even a social element — a best price guarantee are merely words on a page with numbers.

Whatever next step hotels will make, and I am sure there will be many, when it comes to offering experiences, their marketing messages or their pricing, it would be wise to remember that the Generation Z will be a generation that will consider environmental impacts, socio-economic impacts and will base their decision on what is best for their wallet as well as their futures.