CHANGING TRENDS OF HOSPITALITY INDUSTRY: EMERGENCE OF MILLENNIALS AND GEN Z AS FUTURE CUSTOMERS AND THEIR INFLUENCE ON THE HOSPITALITY INDUSTRY
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Vidyabharati International Interdisciplinary Research Journal 12(1) 336-342 ISSN 2319-4979
CHANGING TRENDS OF HOSPITALITY INDUSTRY: EMERGENCE OF
MILLENNIALS AND GEN Z AS FUTURE CUSTOMERS AND THEIR INFLUENCE ON
THE HOSPITALITY INDUSTRY
A. Ramgade1 and A. Kumar2
1
Dr. D.Y. Patil Institute of Hotel Management & Catering Technology, Pune, India
2
Dr. D.Y. Patil B-School, Pune, India
1
atul.ramgade@gmail.com, 2atul.kumar@dpu.edu.in
________________________________________________________________________________
ABSTRACT
In today’s global scenario world is witnessing major changes on various fronts. Even Hospitality industry is influenced
by this. As hospitality industry is extremely competitive it is necessary for the hoteliers to keep a track of these changes
and trends which are happening in this industry. One of the ways to ensure the success of the hospitality industry is to
forecast the needs of new generations of guests and travelers, also it is inevitable that the future belongs to new
generation such as the millennials and Gen Z and so the hoteliers must be aware of their tastes, likes & dislikes
because they are going to be the future of the hospitality industry. This paper tries to analyze the trends and needs
pertaining to the millennials and Gen Z from the hospitality industry’s perspective as they are likely to be the major
portion of hotels future customers and they also possess more power to influence any other generations ever.
________________________________________________________________________________
Keywords: Millennial, Gen Z, Tech Savvy, Hospitality Industry.
Introduction 2020. Millennial are those who were born after
1995, they are around 31.5% 32% of the total
In the last two decades, lot of attention was
global population. India has the world’s largest
given to the Baby Boomer generation by the
youth population with 356 million people in
hotel industry. But lately the hospitality
the age group of 10-25 years as per the 2014
industry has become a niche market for
United Nations report also by 2020, India has
millennial and generation Z thereby creating a
become the world’s youngest country with
challenges to the hotels related to service
64% of its population in the working age
quality. The future belongs to Gen Z though
group. Millennial are those people who were
the present generations are Millennial, and
young adolescents in the year 2000 while
these generations are more aware and well
Generation Z are the ones who are born in or
informed about their primarily need and wants.
after 2000, the oldest of whom would currently
They normally like to have things to be basic
and simple without much complication. This be about 18-20 years of age.
Gen Z have grown up in a world which has
generation being driven by the technology like
been dominated with innovative technology.
speed and anticipate things to be fast and
Most of them have born after the invention
without any fuss when it comes to product and
of Google and Smartphone; this generation
services. Also they would like to have
think in 4D, wear watches not to tell time,
advanced technology without any compromise.
but to experience feeling of holding a paper
Lot of hotels today are creating customized
map in their hands. Gen Z is constantly
services as per the needs of the Millennia’s.
connected, with 41% of them spend on an
Millennial like experiences than the product for
average more than 3 hours a day on
which they would like to spend money on and
computers for non-college related activities
In order to break the monotony Hoteliers must
they prefer to use 5 screens at one time for
bring about novel ideas to there are services,
multi-tasking, They are continuously on
also considering the current scenario sales and
social networks considering this to be their
marketing strategies of hotels must shift from
social life. Gen Z likes apps with privacy,
traditional ‘targeted’ customers to millennial
such as Snapchat, vine and Instagram.
and the Gen Z, which is a larger demographic.
Facebook is not that popular with this
Those who were born after 1996 are called as
group, as quarter of them have left
Gen Z and they belong to about 32% of the
Facebook in 2014.
total global population of the world and this is
expected to be 7.7 billion by the end of the year
March 2021 336 www.viirj.orgVidyabharati International Interdisciplinary Research Journal 12(1) ISSN 2319-4979
It is believed that 73% of this generation can be staycation packages which are specially
gets connected to the Internet within an designed for millennia’s different activities are
hour of waking up. Gen Z belongs to do it planned for rejuvenating the guest and altering
yourself (DIY) culture. They are their hectic schedule such as workshops on art,
continuously witnessing the technology spa Shine signature massage for weekend,
become obsolete, for example DVDs, camp on fitness boot, parrot watching long
answering machines, game consoles. They brunch spread and Feast etc.
are also known to be independent learner
Objective of the study
and self-educators, and are comfortable to
learn things via YouTube or Google. They To study how Millennia’s and Gen Z are
lack patience, and like visuals to text, they influencing the Hospitality Industry
communicate through emoji. This To study and understand how hospitality
generation are constantly worried about industry is catering to the needs of
missing out on things, a term dubbed Millennia’s and Gen Z
“FOMO” (fear of missing out),this is the
Methods
reason that today’s hoteliers should connect
with these generations, try to understand For this study data was collected through
their technology needs and habits as major secondary sources like books, journals,
hotels business will come from them. Today Websites and Research Articles.
we all talk about disruption, considering this Literature Review
vital point hotels should increase technology
features in their rooms such as extra electrical As per Stephan (2018), when evaluating hotel
outlets, strong Wi-Fi connectivity, mobile service, millennials are not just looking for
device charging ports and self-service tablets, white-linen service and bellboys to carry their
digital booking, check-in and check-out via luggage up to their room or a concierge but
smartphones and dial-inns inside rooms. when they enter a hotel, they want to feel
In order to remain competitive current hoteliers completely at home, connected and be part of
must thrive upon the emerging novel trends in an experience (Mhlanga and Tichaawa,2016).
order to stop to disappoint the guests and be As per Woods and King (2010) Gen Z requires
ahead of their competitors. Hotel must work a digital experience which has a direct impact
very hard on improving on guest satisfaction as on their engagement and satisfaction. Mobile
76% of millennia’s spend their own technology is what today’s generation thrive on
experiences rather than things. to interact as per. According to Kovaleski
Now a days there is a tendency to mix business (2008) social media plays a key role in how
with leisure this is becoming very evident on this generation evaluates hotel experiences
Domestic as well as international stage. As per because they are online customers, and the
a survey around 55% millennial like to extend masters of social media their demand of a hotel
business trips in order to have extra leisure experience should be tailored to their needs
time. Hotels located near malls and tourist because throughout the world hotel referrals
places, have come up with special weekend are made via social connections, this has made
packages, consisting of brunch served at the the hotels to offer the best possible experience
poolside for transportation services to visit to this generation guests.
shopping areas. As per (Dimitriou and Blum, 2015) technology
This generation of international travelers rely is key for hotels to win millennial loyalty.
on ratings of reviews for making booking Watkins (2015) says that with digital
internationally. Hotels must manage their experience, millennia’s do like eco-friendly
online reputation for all reviews. This new hotels and its practices to become part of their
generation have come out with a new concept hotel experiences. As per (Dimitriou and Blum,
'Bleisure which deals with work, business and 2015) green practices and environmentally
leisure together and so hotels are planning friendly programs followed by hotels are
services and facilities to meet both this preferred by Millennia’s concept such green
requirements at the same time example of this washing green washing practices, helps in
March 2021 337 www.viirj.orgVidyabharati International Interdisciplinary Research Journal 12(1) ISSN 2319-4979
gaining the trust of millennial. Woods and dining experiences that to at affordable
King (2010) states that the millennial prices so that in return these, satisfied
generation is obsessed with the speed, during millennia’s and gen Z will actively and
the process of check in and check out out of a positively promote their businesses
hotel, millennial are often found to be much
Eco-friendly Practices
less patient than previous generations.
Millennials and Gen Z like a hotel lobby where Gen Z is still in a growing economic force, but
they can sit and drink coffee surrounded by one thing is very profound about this
other people, rather than having a coffee generation that is this generation is very much
machine being installed in their room as per aware of environmental issues and its effects
(Stephan, 2018). and so they more concerned about the
ecological balance. Most of these guests are
Current trends pertaining to Generation Z looking for sustainable authentic experiences.
and Millennials The hospitality industry, in order to attract
Millennials are always on a look out for these guests, has to adopt practices which will
experiences rather than a product itself and meet the expectations of these generations. As
they are always looking to break monotony of a part of best environmental practices hotel
work-life so they expect this through the chains are replacing the plastic items with
experience that they gain while staying in the biodegradable products nowadays many hotels
hotel. Many International hotel brands today have completely replaced plastic with paper
are specially designing and renovating their alternatives. The management of many reputed
properties to cater to this fast paced, young chain of luxury hotels have already started
travelers. using Green Solutions which are designed for
energy, water and waste reduction, at the same
1. To attract these generations many hotels
time also improve and lessen its impact on the
today are renovating their lobbies, rooms
environment, today’s young generation are
and interiors through the addition of
very sensitive towards the environmental issues
bright, vibrant colors.
they participate.
2. The new trend adopted by many
international hotels today is the installation Many International chains of luxury hotels are
discouraging use plastic items at the hotel and
of pool table for guests in the lobby, this is
have replaced them with alternate wherever
accompanied with buzzing bar playing
possible. Use of plastics has been completely
karaoke sessions, musical program and live
band which also encourages young and avoided Today’s generation participates in
these environment friendly practices which
upcoming musicians and musical bands to
consists of reusing of guests towels in order to
perform on weekends Gen Z and
conserve water, also not to use plastic bottles,
Millennia’s are very fond of these young
straws and plastics items.
performers.
3. Since the Millennials work very hard Technology Advancement
during the working days, and relax and Today’s young generation is already tech
travel and do excursion and explore new savvy so they prefer to use advanced
many hotels are coming up with weekend technology. Star hotels have started to
and vacation packages for them. implement advanced technology already, even
4. Some International brands of hotels are Al are being installed to execute various tasks
introducing novel high energy vibe party in the hotels, even to make the check in and out
on the poolside with the arrangement of procedure fast I Pads are seen and used at
dining options for these young, travelers. reception desk, also in the hotel rooms tabs are
5. If today’s Hoteliers need positive being used for the guests for adjusting the light,
promotion on social media channels to order food, and to watch TV, even the Food
6. and good business they will continuously 8 Beverage will be on on-screen menu.
have to delight these young generation by Millennials and Generation Z have been very
implementation of quick and speedy check- prevalence on Facebook, Instagram, and
ins check-outs along with gourmet, F&B
March 2021 338 www.viirj.orgVidyabharati International Interdisciplinary Research Journal 12(1) ISSN 2319-4979
Snapchat, this probably is the reason that they strategies based on their demographics,
are more connected with the world in personality traits and habits, these generation
comparison to the older generations, and so the travel a lot, are early adopters of technology
Millennials consider travel as their birthright as they like personalized interactions and are
per the research 68% of them give travel they spontaneous. The majority of Millennials today
also share their photos in-person experience of are self-sufficient, tech-savvy travelers who are
the destination and on social media ,such is the comfortable using apps or mobile websites.
influence of Social media that around 84% of Hotels need to make sure that their offerings
the Facebook users said that their friends’ posts are up to date and user-friendly. At business
have influenced them to make their future meetings and conferences, these generations
travel plans. expect hotels and conference centers to have
high quality tech equipment and a
Expectation of Millennial and Gen Z from
knowledgeable support staff. While past
hotels
generations relied on travel agents, today these
Gen Z are born in the era of internet, generations use the Internet to do their
smartphones, and on demand content, their research. Millennials are well researched when
expectations from the hotels is to offer them it comes to travel whether it’s lodgings,
same technology and services at the time of activities, or loyalty programs. These sites not
check- in and out they prefer mobile check-in only enable users to find the best deals on
and keyless entry in to their rooms, they expect flights and hotels but offer browsers social
to be entertained with services such as Netflix, proof for each destination. Millennials and Gen
Hulu, YouTube, in their room TV they also Z rely on their peer’s online testimonials to
prefer using messaging apps to order and guide their purchasing decisions 92% of
communicate. travelers trust reviews and make informed
The expectation of Gen Z from the hotels decision based on their online research.
would be to get digital in-room assistants when Millennials and Generation Z are more likely
they check in the hotel at the same time they to pick a travel destination and activities based
would expect everything to be instantly on what their peers share online over
available to them since they are digital natives branded travel ads. As a result, Millennials and
so the hotels need to rethink about their Gen Z have made an indelible mark on the
product and services and make changes as per travel and tourism marketing industry and have
the behavior, habits and traits of Gen Z, since transformed what is means to be successful in
this breed of generation are prone towards marketing in travel and tourism. Millennials
sustainable food choices and their shift is and Gen Z not only use social media for
towards healthier and organic foods inspiration and research, they also use it to
The young generations of great chefs and share their own travel experiences. These
food& Beverage servers also have different places or activities are focused on the kinds of
ideas related to food. Hotel industry should content that Millennials are most likely to share
consider the next few generations as the such as adventure activities and excursions,
industry's greatest assets, and so there will be restaurants, and the outdoors. One of the
continuous challenge to the hoteliers related to biggest changes is that for today's travelers,
F&B because Generation Z have already began social media and sharing has become part of
to show their social and economic presence the guest experience. Travelers share photos
throughout the globe. and reviews both before and during their
Millennial and Gen Z are those who are in the travels not just after all these new technologies
range of age between 18 to 34 they are act as successful marketing tools for the
expected to represent 50% of travelers by 2025, hospitality Industry.
hospitality industry needs to define their
March 2021 339 www.viirj.orgVidyabharati International Interdisciplinary Research Journal 12(1) ISSN 2319-4979
Chacteristics of Generation Z
Discussion 3. Last-minute bookings: A survey done
minute bookings
on these younger generation showed that
1. Modern website and mobile
technology: Millennials take the help of 49 percent of these travelers took last last-
minute vacation because they are
Chabot to do their reservation they also
Spontaneous, and this is there travel pattern
check online the details as related event
they are at a look out for taking advantage
spaces, parameters, A/V setup, F&B
of discount and off season offers available
options available, and other amenities of
on last-minute they are alwalways looking for
the hotel. Around 46% of Millennials do
leisure activities such as concerts, nightlife,
their booking through a smartphone or
local cultural
ltural programmes.
tablet, they are keen to interact via text and
4. Personalize: This generation of traveler
placee food orders on mobile. They T also
like personalization so Hotel should take
prefer Mobile check-in in and check-out,
check they
advantage of this to the fullest by
consider Wi-Fi more like water for the
segmenting them as per their past
shower and if it’s not fast they will be very
preferences for rooms, food or even
nasty on social media, they
hey also expect Wi-
Wi
specific drink this should be entered into
Fi support to be powerfulowerful during the
the CRM software of the hotel as a
process of attending conference in the
promotional activity and customer
hotels.
retention.
2. Limited-frills hotel: This generation of
guest unlike the past generation are looking 5. Engage with the local community:
Since the Young generation are fond of
for simple budget-friendly
friendly hotel as their
local and authentic food and culture they
interest is mostly towards local food
expect this from the hotels what hotels
excursions, adventure, outdoor activities art
must do is get in contact with the event
and cultural and Travel so they are not
management agencies and local
willing to pay for luxury hotel
accommodations.
March 2021 340 www.viirj.orgVidyabharati International Interdisciplinary Research Journal 12(1) ISSN 2319-4979
organizations for local cuisine, recreational It's no longer enough to have free internet in
opportunities, and cultural events . your properties. Offerings now need to extend
6. Friendly food strategy: Since to seamless Wi-Fi for multiple devices, hiccup-
Millennials and Gen Z are ready to pay free video streaming, and Internet functionality
they should be provided with local, that integrates with hotel systems such as
authentic food, at the same time options of mobile check-in and room access, bill
sandwiches, pizzas, pastas, desserts and payment, and even ordering capabilities. With
cold bakery should be made available at the Gen Z being always online and completely
hotel lounge during the peak hours of the comfortable with social media, it's vital for
hotel. hotel to have strong, active presences on social
7. Social media savvy: As it is evident that media that guests can connect with at any time
almost 97 percent of Millennials post their like up-to-date profiles, frequent postings,
travel and hotel experiences on social interactive communication on multiple
media this creates a huge impact for this channels, and a solid social marketing strategy.
they commonly this is because of the Hoteliers need to come out of their comfort
explosion of social media over the last zone and plan for more creativity in food and
decade therefore what type of content beverage options also making it more organic,
being shared on social media plays a very healthier through sustainable and responsible
important role on the minds of the manner. The management of the hotels must
audiences work on the principle of ‘what’s next’ if they
intend to stay ahead in this competition, they
Conclusion
have to continuously work on how to attract
The future hoteliers need to implement and retain these younger generation.
ecofriendly practices and waste disposal in
their hotels as these new generations are very Practical Implication of this Study
conscious about environmental issues, also Millennials and Gen Z are the largest living
food & beverage options must be as per the generation today, hospitality industry must
liking of millennial and Gen Z ,a lot of gear up and be ready to cater to their needs this
attention on technology, amenities and study will help the hoteliers to know the trends,
entertainment must be provided to this likes, and dislikes preferences and
generation of guests. Hospitality Industry requirements of this generation, and identify
should take advantage of their FOMO through factors influencing hotel experiences for
social media, they should be able to convince millennial tourists this will also help the
them that they are going to miss out on lot of hoteliers to welcome them and keep the hotels
things if they don’t visit your hotel this can portfolio up-to-date in order to turn them into
create a lot of impact on the business of the loyal customers of future, the findings of this
hotel. To appeal Generation Z and Millennials study could help hotels to understand the
alike, hoteliers also need to have an online nuances of this niche market and be prepared to
presence which is supported by social proof, offer a hotel experience that meets their
brand ambassadors, and user generated content. expectations
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