creating experiences that connect · under the latter brand allow guests to order food from local...
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Creating Experiences that Connect: Reaching Multiple Generations Through HospitalityWILLIAM J. FERGUSON Chief Executive Officer, Ferguson PartnersCo-Chairman and Co-Chief Executive Officer, FPL AssociatesChicago
MARK J. MOMONGAN Managing Director, Ferguson PartnersChicago
CARLEIGH PRICE Director, Ferguson PartnersSan Francisco
MICHELLE RUTLEDGE Director, Ferguson PartnersToronto
CHARLES BARTONSenior Director, Ferguson PartnersLondon
MARTIN EASTGATEDirector, Ferguson PartnersJapan
CAMILLE LEE, PHDSenior Director, Leadership Consulting Ferguson PartnersChicago
DOMINIC COTTONEManaging Director, Leadership Consulting Ferguson PartnersChicago
CREATING EXPERIENCES THAT CONNECT: REACHING MULTIPLE GENERATIONS THROUGH HOSPITALITY
2
Hospitality owners and operators aiming
to appeal to consumers across age
demographics are considering hiring or
appointing leaders who endeavor to partner
with brands to create unique experiences
for customers.
Hospitality companies can no longer
provide uniform hotel designs and services
and expect their efforts to drive consumer
interest. Modern travelers prefer that
hotels offer their guests memorable and
personalized experiences, rather than
traditional amenities. While Millennial
travelers emphasize the value of “enriching
experiences”1 more so than other
generations, Gen-Xers and Baby Boomers
also enjoy when hotels offer services or
programs tailored to make their vacations
special.2
Owners and operators often collaborate with
brands to deliver these unique experiences.
Companies that introduce new brands or
refresh existing ones immerse customers in
environments that expose them to diverse
cultures and traditions. Companies seeking
an alternative strategy might consider
personalizing branded loyalty programs to
appeal to consumers as individuals.
C-Suite leaders and Board Directors who
aspire to partner with brands to meet the
demands of modern travelers are assets
to owners and operators. Leaders with a
professional background in hotel operations
1 https://www.hospitalitynet.org/news/4089643.html
2 https://www.hospitalitynet.org/opinion/4092297.html
and/or content marketing combine both
specializations to create experiences that
extend across physical hotels and social
media pages. C-Suites and Boards may
consider recruiting individuals with these
skills from outside the hospitality industry, as
their diverse professional experience helps
them devise new ways to convert travelers
into brand-loyal consumers.
Working with brands to build clientele
The projected increase3 in U.S. travel
spending for 2019 bodes well for the
hospitality industry. Millennials continue
to exceed other generations in their
travel spending; one in three Millennials
were willing to spend $5,000 or more
on their vacations in 2018, more than
members of other age demographics.4
Many hospitality companies have
already begun to appeal to these
eager consumers by tapping into brand
marketing to provide unique vacation
experiences.
Hilton’s Canopy5 and Hyatt’s Hyatt
Centric6 brands, for example, target
Millennials but seek to immerse all guests
in a local experience. Hotels under the
former brand host beer tastings featuring
3 https://www.prnewswire.com/news-releases/americans-summer-vacation-spending-expected-to-hit-record-101-7-billion-in-2019--300872806.html
4 https://www.travelport.com/company/media-center/press-releases/2018-05-17/us-millennials-most-likely-take-spend-more-vacations
5 https://www.hilton.com/en/canopy/
6 https://www.hyatt.com/brands/hyatt-centric
FPL GLOBAL | 3
beers from nearby bars, while hotels
under the latter brand allow guests to
order food from local restaurants. Hotels
under Marriott’s Millennial-focused
Moxy brand take a more international
approach; their minimalist rooms and
trendy locations invoke the ambiance of
European hostels.7
Brands do not need to be aligned with
large hotel companies in order to craft
experiences that engage consumers.
Smaller brands can also tap into market
trends and use creativity to serve
consumers’ needs. Mesa Lane Partners’
Autocamp8 and Under Canvas’s9 flagship
brand appeal to Millennials’ increasing
interest in camping10 by offering luxury
cabin and RV accommodations steps
away from national parks. While
not armed with as many assets as
Marriot or Hilton, these smaller brands
communicate their brands’ stories to a
receptive audience and immerse that
audience in a unique experience to yield
profits.
Companies seeking to satiate consumers’
appetites for new experiences in a more
cost-effective manner than launching
new brands might update branded
loyalty programs in order to offer
personalized information and rewards for
7 https://www.wsj.com/articles/how-hotel-companies-launch-a-new-brand-1483198564
8 https://autocamp.com/
9 https://www.undercanvas.com/about/
10 https://www.forbes.com/sites/larissafaw/2018/04/17/where-millennials-are-now-shacking-up-its-not-where-you-expect/#ece952b2b10b
guests of all ages. IHG’s Kimpton Hotels
& Restaurants brand has a rewards
program that tracks guests’ purchases,
allowing the brand to engage with
consumers on social media and send
them gifts of items they enjoyed during
their stays.11 The Marriott Bonvoy12 and
Hilton Honors13 loyalty programs also
amplify guests’ vacations by offering
members-only access to concerts,
professional baseball games and other
recreational events.14
Inventive leaders in the C-Suite and
Boardroom who strive to tie brands
and experiences together advance an
owner or operator’s consumer outreach
strategy, particularly if the leaders have
experience in operations or content
marketing. Leaders with skills in either
or both specializations create effective
campaigns that engage consumers both
during their vacations and when they
utilize social media. Marriott’s Moxy,
for instance, shares visitors’ Instagram
photos from their stays on its main
website,15 creating a seamless transition
between in-house operations and online
marketing.
Owners and operators should consider
11 https://blog.guestrevu.com/3-innovative-loyalty-pro-grams-to-be-inspired-by
12 https://moments.marriottbonvoy.com/
13 https://hiltonhonors3.hilton.com/en/index.html
14 https://experiences.hiltonhonors.com/iSynApp/show-HomePage.action?sid=1101241&isynsharedsession=ntwd-7fxHGFh6xWQr4GJj8SzY2w1hqrQ8UNcwGl-WjDdEdaSACl-02r4aCDzYhNvUm
15 http://moxy-hotels.marriott.com/en
CREATING EXPERIENCES THAT CONNECT: REACHING MULTIPLE GENERATIONS THROUGH HOSPITALITY
4
looking outside the industry for
individuals who possess these skills
and who bring unique insight as to how
to respond to consumers’ demands.
For example, Hilton hired Noelle Eder,
a former Executive Vice President at
Capital One Financial Corp., as Executive
Vice President and Chief Information
and Digital Officer in 2018 to “oversee
technology functions supporting global
growth and guest experience(s).”16
Four years earlier, Hyatt Hotels Corp.’s
Board of Directors appointed Pamela
Nicholson, CEO of Enterprise Holdings
Inc., to a seat on the Board.17 Both
companies leveraged the experience
of executives outside of the hospitality
industry to enhance their operations and
create new strategies that would appeal
to consumers before, during and after
their stays.
Conclusion: Using experiences to engage consumers
Millennials may be renown18 for valuing
unique vacation experiences over
traditional hotel amenities, but they are
not the only travelers with this proclivity.
Gen-Xers and Baby Boomers also
appreciate when owners and operators
16 https://newsroom.hilton.com/corporate/news/hilton-ap-points-noelle-eder-as-chief-information-and-digital-officer
17 http://investors.hyatt.com/investor-relations/corpo-rate-governance/board-of-directors/person-details/default.aspx?ItemId=99ef0631-f002-43aa-86ee-802796d2eeb6
18 http://eventbrite-s3.s3.amazonaws.com/marketing/Mil-lennials_Research/Gen_PR_Final.pdf
provide personalized information or
services that leave guests with favorable
recollections of their stays. Owners
and operators who recognize this trend
potentially increase their number of
brand-loyal consumers and, by extension,
the number of positive associations with
their hotels.
Leaders who aim to partner with brands
to create experiences that connect with
travelers across age demographics
benefit C-Suites or Boards at many
hospitality companies. These leaders
merge content marketing and operations
to devise new campaigns that guests
will remember long after their return
flights home. Companies may consider
recruiting qualified leaders from
outside the industry who aim to exceed
consumers’ expectations during their
stays – and assist them in making
memories that last.
FPL GLOBAL | 5
Ferguson Partners Hospitality Practice
MICHELLE RUTLEDGEDirector, Ferguson Partners
Toronto +1 (647) 417 3157
WILLIAM J. FERGUSONChief Executive Officer, Ferguson Partners
Co-Chairman & Co-Chief Executive Officer, FPL AssociatesChicago
+1 (312) 893 2332 [email protected]
MARK J. MOMONGANManaging Director, Ferguson Partners
Chicago+1 (312) 893 2336
CARLEIGH PRICEDirector, Ferguson Partners
San Francisco +1 (628) 213 7705
CHARLES BARTONSenior Director, Ferguson Partners
London+44 20 3178 5973
MARTIN EASTGATEDirector, Ferguson Partners
Japan+81 3 3436 6175
CAMILLE LEE, PHDSenior Director, Leadership Consulting
Ferguson PartnersChicago
+1 (312) 893 2314 [email protected]
DOMINIC COTTONEManaging Director, Leadership Consulting
Ferguson Partners Chicago
+1 (312) 893 [email protected]
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© 2017 FPL Advisory Group. The Ferguson Partners recruitment practice consists of five affiliated entities serving FPL’s clients around the world: Ferguson Partners Ltd. headquartered in Chicago with other locations in New York and San Francisco, Ferguson Partners Canada Co. in Toronto, Ferguson Partners Europe Ltd. headquartered in London with a Japan branch located in Tokyo, Ferguson Partners Hong Kong Ltd. in Hong Kong, and Ferguson Partners Singapore Pte. Ltd. in Singapore. Ferguson Partners Europe Ltd. is registered in England and Wales, No. 4232444, Registered Office: 100 New Bridge Street, London, EC4V 6JA. Ferguson Partners Singapore Pte. Ltd. is registered in Singapore, Business Registration No. (UEN) 201215619H, Employment Agency License No. 12S6233. FPL Associates L.P., the entity which provides consulting services to FPL’s clients, is headquartered in Chicago.
