On Wednesday, Amitava Chatterjee, Director of Digital/Travel, Hospitality and Leisure at Deloitte Consulting and Justin Tallion, Ph.D., Professor at University of Guelph spoke for one of HITEC’s educational sessions. This covered the difficulty companies face when creating marketing strategies due to the large technology gap between Baby Boomers and Millennials.
What was found is that in the next few years Millennials will have more buying power than ever before. Companies are shaking things up and trying to appeal to these guests with brands like Moxy. Moxy is said to be a “fun, edgy, and social” hotel, “all with a youthful spirit.” And, as Chatterjee and Tallion explained brands face the difficulty of changing not only their product but also pricing strategy. They state that Baby Boomers are satisfied with paying for anything extra while Millennials expect unique and tailored extras without an additional cost. However, this will not always be the case as Millennials get older and have more spending power.
And, not only do operators have to worry about making giant business development changes in the next coming years, but they should also know that even their best work may not bring Millennials their way. More and more value is being placed on review sites such as Trip Advisor, bringing transparency to the hospitality industry. Good or bad reviews either on Trip Advisor or social media sites are the first place Millennials look when booking a trip. Baby Boomers place significantly less importance on online reviews, generally looking at Brand.com sites for amenities and forming their own opinion based upon this.
So, what is the solution for appealing to a declining Baby Boomer market and an increasing Millennial market? Chatterjee and Tallion both agree that operators should look to have a baseline of technology within hotels, satisfying the needs of both markets. Operators should then choose whether to appeal to the tech-savvy delta consumers.
Alexzandria Williams is a University of Nevada, Las Vegas Rebel working towards a degree in Hospitality Management. Williams is the President of the UNLV chapter of HFTP. Experience in working in restaurants in both marketing & events at STK and the Nevada Restaurant Association made becoming a Point of Sale Product Specialist at SkyWire a smooth transition. Williams works on creating documentation and implementing products.