In '17, "millennial"s will become the largest hotel spenders
Sabre’s vice president of marketing for hospitality solutions Sarah Kennedy Ellispresented a sneak preview of some research into millennial trends in hospitality.
“It’s known that millennials will become the largest spending travel demographic by 2020. But we’re seeing that, in hospitality, the trends are sharper, and we think that by 2017 or 2018 millennials will be the hotel industry’s most important market.”
Other insights from the soon-to-be-released report are that European millennials are currently converting more slowly than their North American peers.
North American millennials currently account for nearly half of the shopping traffic and are generating 35% of revenues.
In Europe this group only accounts for revenues of between 25% and 32% of the total.
One trait that millennials on both sides of the Atlantic have in common is that they all generally spend less time on sites than other groups.
“They know how to navigate a booking engine,” she said.
Bottom line, “consumer demand” will drive the capital investment decisions which hotels need to take when it comes to kitting out their properties for the millennials.
The fact that the big hotel chains are launching small boutique hotels to appeal to millennials is a sign that the traditionally conservative hotel industry has woken up to the fact that, in a few years’ time, most of their guests will be more interested in superfast wifi than waiting half-an-hour for room service to bring up a club sandwich.