If you’re off the radar, the term ‘Millennials’ refers to the demographic force that follows Generation X. Also known as Generation Y, this group describes anyone born between 1981 and 1996.
Millennials’ contribution to the hospitality sector
The Millennial Generation plays a crucial role in the hospitality and tourism industry. Members of this generation bear certain characteristics that could impact various aspects of the industry. For instance, members of this generation are more ethnically diverse compared to the previous generations.
Besides, most Millennials entered the workforce at a time of an economic recession. They’re also tech savvy, given that they grew up during the rapid evolution of the internet technology.
With these factors in mind, together with other socio-political events, members of the Millennial Generation have acquired certain traits that have trickled down to shape the hospitality. This group wants better value and they expect premium services.
Members of this generation embrace high customer service demands. For the hospitality industry, recognizing and addressing those demands can help develop stronger traction with the catering market. Here is how the Millennials are impacting various aspects of the hospitality industry:
Millennials and the food service sector
One of the areas where the Millennial Generation has made a huge impact is the food service sector. This generation has led to the development of the foodie culture, which focuses more on dining and food service compared to other categories of travelers.
With increased focus on food, hotels and local attractions should change the way they approach their food service to their guests. To Target the millennial generation, hoteliers must serve what piques their interest. The following are some of the ways millennials are transforming the food service sector:
Millennials love eating out
Members of the Generation Y focus more on experiences and dining with their peers at restaurants helps them derive much more social experience than the previous generations. They use meals as a way to connect with others. Besides, Millennials love more takeout, mostly through online ordering. This has led to the emergence of food delivery businesses serving the hotel industry.
Millennials are more concerned about what they eat
Since they constitute a large portion of the overall population, the Millennial Generation prefers to eat healthy. Members of this generation shy away from food filled with fat and preservatives. They prefer organic, vegan, and gluten-free options.
This has made restaurants redefine their food service brands in line with the taste of the Millennials. Many restaurants today focus on listing ingredients and calories on the menus, which has been prompted by the Millennials’ focus on what they eat.
Millennials can spend more on food
Millennials are not stingy, especially when it comes to paying for what they eat. Together with their preference for healthier options, members of this generation are willing to pay more to have their healthy food items. Whether they eat out at a restaurant or picking the stuff from the grocery store, Millennials are after new experiences and they’re willing to pay more.
Millennials are changing marketing strategies
Since they grew up during the internet boom, members of the Generation Y are more into digital avenues than TV to get information about hotels and restaurants. Millennials also consider word of mouth from family and friends when making decisions. This preference has led an increased focus on positive reviews for hotels, boarding facilities, and restaurants.
Millennials have influence on restaurant technology
Millennials have impacted the way we order food and how we pay. Online ordering, for instance, will soon overtake in-store ordering. Hoteliers have to embrace this change in the food service sector, courtesy of the millennial generation.
Overall Impact of the Millennials on the Hospitality Industry
In addition to what they have done to the food service sector, the Millennial Generation continues to impact the overall hospitality industry in ways never witnessed before.
Millennials want to break away from the norm. They want to try something different from other generations. According to a survey (Source: Resonance) done by Resonance Consultancy in 2018, up to 85 percent of Millennials want to step out of their comfort zones and try something new while traveling.
Additionally, Millennials embrace both domestic and international travel. In 2016, U.S. Millennials alone spent almost $50.4 billion (Source: Luxury Travel Advisor) on local travel. This served as a driving force to the overall growth for local tourism. International travel is equally on the rise.
Overall, Millennials have influenced various aspects of the hotel industry through technology, loyalty programs, amenity offerings and more. The Millennial Generation prompted the idea of home sharing, which led to people listing their apartments and homes for those who are on vacation to rent.
This was a drawback to the hotel industry, as traditional facilities struggled to offer home amenities and ideal locations. However, recent studies have found that millennials are shifting from the home-sharing concept in favor of traditional facilities, as they focus more on security and safety whenever they seek accommodation services.
Final Thoughts
As many experts agree, the millennial generation has had a major impact on the hospitality sector, more than any other generation. The changes brought by this group have proved beneficial even to the older generations. Additionally, they have set a good foundation for the future generations, which will be even more tech savvy. As the Millennials continue to grow with changing needs, the hospitality industry must learn to adapt with them and their needs.
Author Bio:
Alexander Mirza, The Founder & CEO of Mogul – Humanizing Travel. Its platform Staymogul.com provides booking, service and talent solutions for the hospitality industry
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