lifestyle hotels, millennials and the creative class by economia creativa consultancy june 2015

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Lifestyle Hotels,

Millennials & the

Creative Class

www.economiacreativa.eu

Lifestyle Hotels, Millennials & the Creative Class

2

Creating New Ways ECONOMÍA CREATIVA CONSULTANCY creates development

strategies, policies and brands that shape the future of places and

businesses around the world

www.economiacreativa.eu

[email protected]

Lifestyle Hotels, Millennials & the Creative Class

3

About the Authors

Please cite this publication as:

Economía Creativa Consultancy (2015), Lifestyle Hotels, Millennials and the Creative Class,

Economía Creativa Consultancy Creative Insights, Economía Creativa Consultancy Publishing

You can copy, download or print Economía Creativa Consultancy content for your own use, and you can include excerpts from

Economía Creativa Consultancy publications, databases and multimedia products in your own documents, presentations, blogs,

websites and teaching materials, provided that suitable acknowledgment of the source and copyright owner is given. All requests

for public or commercial use and translation rights should be submitted to [email protected]

Antonio Carlos Ruiz Soria

Economist, Principal Researcher

Antonio Carlos is Economia Creativa's co-

founder and Managing Partner. He is

expert in creative tourism, digital and

collaborative economy.

He advises companies, public institutions

and non-for profit sector on innovation,

marketing, investment and

positioning. He is currently Policy

Expert at the European Commission

European Crowdfunding Stakeholders

Forum.

He is public speaker and delivers

workshops at international events,

including academic environment

He holds and advanced degree in

Economics from Seville University

(Spain)

Justyna Molendowska-Ruiz

Researcher

Justyna is Economia Creativa's co-

founder. She is project leader and

responsible for the social media strategy,

event management and production.

Her work at Economia Creativa focuses

on digital marketing, research (creative

economy, tourism and hospitality),

photography, creative thinking and

editing, company data management and

events organization.

She holds a MSc in Horticulture from

Lublin University (Poland)

Lifestyle Hotels, Millennials & the Creative Class

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Foreword

“One’s destination is never a place but a new way of seeing

things”

Henry Miller

“The secret of change is to focus all of your energy, not on

fighting the old, but on building the new”

Socrates

he 21st century world is defined by change,

technology and creativity. The native digital

generation, millennials, and the creative class as defined

by Richard Florida, are creating a new way of living,

working and travelling. It’s a new lifestyle.

Hotels, destinations and tourism operators have to rethink

their offerings and being open minded to break old

boundaries.

T

Lifestyle Hotels, Millennials & the Creative Class

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The rise of the lifestyle hotels

Many touristic areas and hotel operators

still focus their model on sun & beach

tourism and ‘traditional luxury’. This

model was profitable till the end of 2010,

however due to stronger competition, ICT,

the improvement of flight connections and

changes in people’s behaviour this model is

not feasible any more.

Hotels, operators and destinations have to

evolve and enter the 21st century creative

movement like Enjoy Lifestyle hotels in

Portugal, the Boutique Experiential Hotel

Network.

Travelers demand unique experiences,

authenticity and meaning. They want to

rediscover places, cultures, people and

ultimately themselves.

The concept of luxury has also evolved.

What we can define as ‘traditional luxury’

is related to wealth and opulence does not

appeal to the new affluent and creative

class and even less to millennials. Instead,

‘new luxury’ is related to stimulation,

diversity, innovation, environment, a sense

of belonging and style. New luxury is,

therefore, a lifestyle.

That is the reason why lifestyle hotels are

emerging in vibrant cities such as London,

New York, Paris, Amsterdam, and many

others, but also in areas that used to be

typical sun and beach touristic spots.

Before Now

Luxury Wealth and

opulence

Stimulation,

diversity and

innovative

environment

Social Class External factors

Based in wealth

and background

Creative class

Ever evolving

Non-conformist

Hotel Place to rest

Comfort

Quality of service

Place to

rediscover

yourself,

Experience

Lobby Hall Happening place

Co-working

Events

Experience Focused in

Rooms and

amenities

Whole hotel,

neighbourhood,

city

Destinations Mass Tourism

Low added value

Passive offerings

Creative Tourism

High added value

Active offerings

What are lifestyle hotels?

Although lifestyle hotels share certain

similarities with boutique hotels, they are

more focused on contemporary design and

architecture, with higher level of

technology and life enrichment-wellness

services.

The most important characteristic of

lifestyle hotels is that they create a unique

relationship between travelers, the local

community, the hotel itself and the

destination in which creativity, self-

expression and identity are the key

elements. They do not just offer a place to

stay; they offer a place to ‘discover your other

side’ as Dream Hotels has stated.

Traditional vs. New Touristic Model

Lifestyle Hotels, Millennials & the Creative Class

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“Who knows what you’ll discover along the

way. A new lifelong friend? A funky mom-and-

pop coffee shop? The perfect photography spot?

An undiscovered local bar? Whatever you seek,

we release you to find it”. NIGHT HOTELS

“We don’t just offer beds to lay your head on

for a night or two – we provide an

introduction to another you. And hey, it’s our

pleasure (and yours) because really it’s your

dream, we just provide the room service. It’s

time to be someone new. To push the

boundaries of your expectations for a hotel

stay. To discover the other side of yourself!”

DREAM HOTELS

The concept of hospitality in lifestyle hotels

has to be as free and open as their guests.

Leading operators have understood that the

food and beverage offerings have to be

vibrant and trendy: from signature cocktail

bars to rooftop and terraces that open the

hotel to the outside world. Often

outsourcing is a great option to bring a

fresher taste and cool feeling to keep the

enthusiasm that new travelers demand.

Millennials and the creative class

Millennials and the creative class are non-

conformist, open minded and original

people who look for human interactions, are

rebellious for change and yearning for a

sense of inspiration.

They demand destinations and hotels where

things are happening. They live their lives

with a YOLO (You Only Live Once) spirit

and do not divide their time as

working/leisure as baby boomers do.

Millennials and the creative class are

constantly connected, they live and work in

a digital way and like to share their

experiences. CitizenM Hotels have

understood this and developed the ‘hive’

lobby room concept creating the perfect

atmosphere for co-working and sharing a

conversation.

Millennials and creatives take with them

their crowd and community way of life

when they travel. They want to feel local

and share life experiences with the

neighborhood they visit.

‘Hive’ lobby at CitizenM Hotels

Lifestyle Hotels, Millennials & the Creative Class

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They want to know what is going on. That is

why many lifestyle hotels feature on their

web and social media what’s on in the

neighborhood. They also describe the

neighborhood itself giving friendly

recommendations to their guests about the

coolest places to visit and best coffee in

town as you can see below at 25 Hours

Hotel Bikini Berlin.

Lifestyle hotels and the creative ecosystem

Lifestyle hotels promote the development of

a creative ecosystem of artists, designers and

entrepreneurs often from their own website.

Because every day is important, they

showcase a calendar with all what is

happening in the hotel and neighborhood.

Like Mundo (see picture) many lifestyle

hotels organize artistic and creative events

that are open to everyone (often free) not

only for hotel’s guests: from jazz concerts to

rooftop night yoga, or coaching sessions in

the lobby for local startups and

entrepreneur clients.

This helps lifestyle hotels to be heard by the

city not just seen by guests because people

share pictures on their social media. And

more importantly, this contributes to create

a local and authentic atmosphere in the

hotel, a sense of community.

It’s all about being social

From the lobby to the rooftop, from the

website to the social media, lifestyle hotels

tell original and imaginative stories to

connect travelers and the local audience

offering an open platform for self-

expression, acceptance and diversity. The

online and social media presence for lifestyle

What’s on in the neighbourhood

ACE Hotel in New York supports local creative

entrepreneurs’ community

Events at Mundo hotels

Lifestyle Hotels, Millennials & the Creative Class

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hotels goes much more than search engine

optimization and community management.

It’s all about being social and creating a

community, a sense of belonging to an

innovative, youthful and iconoclast crowd.

Storytelling mainly through images is the

most universal and at the same time

personal way to communicate what is

happening. Often, as CitizenM does,

lifestyle hotels feature picture galleries that

guests’ have shared on social media. That is

why visual social media networks such as

Instagram or Pinterest are becoming

mainstreams.

Conclusion

Millennials and the creative class are shaping a new way of living, working and, of

course, travelling. They are non-conformist and search meaningful and authentic

experiences that challenge and inspire them.

Destinations, hotels and tourism operators who would be able to anticipate their needs

and behavioural changes will profit from the new touristic model that has emerged in

the 21st century.

Lifestyle hotels are a consequence of the new demand for ‘happening’ places that

connect people and contribute to build relationships and share lifetime experiences.

Neighbourhoods and destinations themselves are an essential part of the offering for

lifestyle hotels since millennials and the creative class are seeking for places with

identity and want to discover new cultures and traditions. Therefore, lifestyle hotels

have to open their horizons and collaborate with local entrepreneurs, artists and local

authorities to develop a creative ecosystem.

Storytelling through social media networks that emphasizes the images such as

Instagram is the best way to connect with a digital-addict audience.

Social media gallery at CitizenM

Lifestyle Hotels, Millennials & the Creative Class

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