6 | Mazars USA Ledger

3 GREAT WAYS HOTELS CAN CATER TO MILLENNIAL GUESTS

REAL ESTATE

By Bisnow, sponsored by Mazars

February 2018 | 7

Millennials have surpassed baby boomers as the largest living generation1, and they are spending a larger share of their incomes on experienc-es2 like travel and dining than on possessions. Winning over this generation, which controls a growing share of the nation's disposable income3, is important for hotels' profitability and long-term viability. But gaining millennials’ repeat business can prove challenging, as millennials show lower brand loyalty4 than their predecessors.

In 2010, millennials’ hotel expenditures grew 20%. By 2018, they are expected to overtake baby boomers as the largest hotel spenders5. Starwood, Hilton and Hyatt have all launched millennial-oriented lines6 in the U.S. Technology, design and food are three key focus areas for hotels attempting to maximize their millennial appeal7.

1. Technology Many millennials are digital natives8, and rely on their smartphones, laptops and tablets to

”Millennials gravitate toward spaces with eclectic designs and architectural features. Because the “sharing generation” spends

so much time cultivating its social media image, a hotel with Instagram-worthy features is highly desirable.”

shop, entertain themselves and stay connected to friends. To reach millennials, hotels need to hone their social media marketing strategies and optimize their websites' user experience. Free WiFi with seamless connectivity has become a standard amenity9, and in-room charging stations and adapters for every device are critical.

Some hotels are going further, designing apps with comprehensive functionality10 that allow users to manage check-in and billing. Guests can also order room service, book cabs and commu-nicate with other guests through the app. Some hotels have taken advantage of Internet of Things technology, connecting everyday devices to the cloud to control them and harness their analytics.

Some hotels use IoT tech to turn guests' smart-phones into universal remotes11 that control room access, in-room lighting, temperature, music and entertainment.

“We hear from our clients that technology is im-portant to their guests," said Mazars USA partner Donald Bender, who leads the firm’s hospitality practice. "Apps, keyless entry and easy access to WiFi and in-room charging without unplugging a radio or lamp are the amenities guests are looking for today.”

2. Aesthetics

Millennials gravitate toward spaces with eclectic designs and architectural features. Because the “sharing generation” spends so much time cultivating its social media image, a hotel with Instagram-worthy features12 is highly desirable.

According to Bender, by creating photogenic spaces, hotels are engaging in online promotion, because guests can influence people in their

network to visit. Even indirect recommendations from friends are more powerful and trusted13 than direct advertisements.

3. Food

Traditional hotels feature restaurants with safe food14 to ensure their appeal is broad. But millen-nials are more culinarily adventurous15, and are more likely to venture out to the molecular gas-tronomy pop-up down the street to post pictures of their dishes for friends to admire.

Hotels need to reimagine their menus with inno-vative offerings and bold flavors16 to encourage young people to dine on-site. They also need to

rethink the standard sit-down model for an on-the-go, instant-gratification-seeking customer.

According to Bender, millennials demand treat-ment that feels personalized and customizable17. Hotel managers, cognizant of this, are providing for all lifestyles and dietary restrictions with vegan, gluten-free or locally sourced18 fare plus grab-and-go and fast-casual concepts.

By investing in these areas, hotels will also eventually reach older generations, which look to millennials to discover cool places.

To view all Mazars sponsored pieces for Bisnow, visit https://www.bisnow.com/blogs/mazars

Donald is a Partner in our Long Island Practice. He can be reached at 516.620.8420 or at Donald.Bender@MazarsUSA.com.

1 http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/

2 https://www.cnbc.com/2016/05/05/millennials-are-prioritizing-experiences-over-stuff.html

3 https://www.morganstanley.com/ideas/millennial-boomer-spending

4 http://adage.com/article/news/millennials/310152/

5 https://www.tnooz.com/article/sabre-millennials-may-be-the-largest-hotel-spenders-as-soon-as-2017/

6 https://www.usatoday.com/story/hotelcheckin/2013/03/21/hotels-battle-for-style-loving-gen-y-millenni-

als-country-inn-suites-revamp/2004805/

7 http://business.time.com/2013/03/08/marriott-ikea-launch-a-hotel-brand-for-millennials-what-does-

that-even-mean/

8 https://www.nngroup.com/articles/millennials-digital-natives/

9 http://www.nytimes.com/2012/03/13/business/young-travelers-drive-changes-in-hotel-industry.

html?pagewanted=all

10 https://www.washingtonpost.com/lifestyle/travel/six-ways-hotels-are-targeting-the-millennial-market-

and-benefiting-us-all/2017/06/29/244c0646-5852-11e7-a204-ad706461fa4f_story.html?utm_term=.

bab31c5036c9

11 https://www.hospitalitynet.org/news/4079748.html

12 https://www.washingtonpost.com/lifestyle/travel/six-ways-hotels-are-targeting-the-millennial-market-

and-benefiting-us-all/2017/06/29/244c0646-5852-11e7-a204-ad706461fa4f_story.html?utm_term=.85d-

66ba83413

13 http://www.nielsen.com/us/en/press-room/2015/recommendations-from-friends-remain-most-credi-

ble-form-of-advertising.html

14 https://www.thestreet.com/story/12993463/1/the-top-five-reasons-to-never-eat-at-a-hotel-or-resort-

restaurant.html

15 https://www.benchmarkresortsandhotels.com/press_media/food-and-dining-trends/

16 https://www.radissonblu.com/en/foodtrends

17 https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/jefffromm/2017/07/27/

why-experience-innovation-matters-when-marketing-to-millennials/&refURL=https://www.google.

com/&referrer=https://www.google.com/

18 https://www.socialtables.com/blog/event-technology/two-ways-millennials-influencing-hotels/