Know your Luxury Consumer: the Millennial Mind
The luxury consumer has been evolving with the times and these changing mindsets are often a big problem for brands. It is important to understand this evolution and adapt yourself accordingly. Hospitality is all about providing remarkable service in two aspects: firstly, catering to the expected needs of the guests, and secondly, to anticipate and fulfil their unexpressed and sometimes unexpected requirements.
The luxury consumer is soon taking the form of the millennial, a generation born between 1981–1996. It is estimated that millennials will make up over 50% of the world’s hotel guests by 2020, and this is where our focus should lie. [Source]
How Luxury has Evolved
1. Changing Definitions
Today, luxury does not only mean quality and high comfort. Personal fulfilment and personalized experiences take priority. Millennials are interested more in experiences that set them apart. This includes learning new things, improving their overall well-being, and prompting them towards a better living. For the millennial mind, all of these are interconnected with the technology of the day.
2. The Search for Self — Actualization
In Maslow’s Hierarchy of Needs, a 20th century psychological theory, self-actualization is at the top while esteem is one step lower. Skift and Marriott’s research reworks the long-held beliefs about luxury, reporting it to be linked more to self-actualization rather than the previous association with esteem. Millennials are leading this change. Where customers would previously seek validation, they are now looking for personal fulfilment.
Millennials have been at the forefront of mapping the current way in which people travel. This can be divided into three basic parts of the journey: before, during, and after.
Before the Journey
People are increasingly relying on their devices to help plan and manage their travel plans.
When first thinking about a personal trip, one in three travellers say they haven’t typically decided on a specific destination.
This openness of destination is a ripe opportunity for brands to help turn their customers’ decisions in their favour. Brands can thus generate footfall even before the travel plans has been put into action.
Customers are more interested in brands that help them make their travel plans easier. 67% of guests are more likely to go ahead with a brand that provides relevant information about their prospective destinations.
During the Journey
Service is a skill, and hospitality is a spirit. — Anna Dolce
As seen in one of my previous articles, guests consider an empowering service to be the most impressive trait of their luxury experience. Luxury hospitality should take this important aspect into consideration while serving guests.
Millennials and luxury guests wish to be pioneers of their own journey. They look for authentic experiences of the local culture which can be shared with their circles.
After the Journey
The trip may end but the journey goes on. Millennials value the unique and authentic experiences of their travels, revisiting them often. Providing such an experience is a critical selling point for these luxury consumers. They look for the journey that can be talked about and shared on social media. Luxury brands can shape their services to help create such occasions for their guests, thus increasing positive reception.
After the journey is over, brand loyalty can be boosted by keeping the consumers regularly updated with social content, seasonal greetings, offers, and overall engagement. The special memories will also extend to the hotel when the guests remember their journey, thereby establishing a bond between them.
The luxury business is evolving with millennials leading the consumer trends. Brands can tap into the developing consumer insights to provide newer services along with the traditional anchors of quality, elegance, and high comfort. Adapting dynamically to the market is key for a sharp growth in the evolving luxury world.
