Gen Z Is Influencing Hotels to Rethink Strategies: A Skift Deep Dive

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by Lindsey Francy Mar 22, 2023 News
Gen Z Is Influencing Hotels to Rethink Strategies: A Skift Deep Dive

The factors likely to remain part of Gen Z will be investigated. Next- generation travelers are expected to lose some youthful qualities as they become parents. We are only interested in their characteristics that will last.

Do you know anything about the new generation of people? Fred Lalonde, co- founder and CEO of Hopper, an online travel agency with an outsized share of Gen Z customers, said to concentrate it tenfold. The Gen-Z span is a cliff. The next generation is completely out of touch with the past.

Gen Z's caricatures are well-known and easy to dismiss. Skift spoke to experts and Gen Zers to create a picture.

Skift Future of Lodging Forum See Who’s Coming

Gen Z was raised in an age of always on broadband internet. It will likely mold their assumptions and expectations for a long time.

A craving for community is a trait likely to define Gen Z. Younger people are more likely to feel lonely than older people. Youth is a good time for socializing. By embracing these individuals as they are, welcoming them, and creating ways for them to connect, hotels can fill a hospitality gap.

Gen Zers are more likely to have a low rate of independent living than earlier generations. It will take time to solve the housing supply problem in many cities. People starting families later or buying homes later may retain their lifestyle of owning less and experiencing more.

Post-millennial consciousness of the climate emergency is likely to continue. Gen Z is the most exposed to the predicted dangers of the future. According to surveys, this demographic cares more about sustainable living than previous generations.

  • A bed at the Generator hotel in Washington, D.C., frequented by Gen Z. Source: Generator.
  • climbing wall evo hotel utah
    A climbing wall in a 100,000-square-foot former warehouse space that’s now home to Salt Lake City’s Evo Hotel. Photo by J. Watt. Source: Evo Hotel.
  • Curiocity Maboneng in Johannesburg, South Africa
    Curiocity Maboneng in Johannesburg, South Africa, lets Gen Z connect with other travelers and locals through a mix of communal lounges and co-working spaces. Source: Curiocity.
  • A bed at the Generator hotel in Washington, D.C., frequented by Gen Z. Source: Generator.
  • climbing wall evo hotel utah
    A climbing wall in a 100,000-square-foot former warehouse space that’s now home to Salt Lake City’s Evo Hotel. Photo by J. Watt. Source: Evo Hotel.
A climbing wall in a 100,000-square-foot former warehouse space that’s now home to Salt Lake City’s Evo Hotel. Photo by J. Watt. Source: Evo Hotel.

Post-millennials are the first people to have always had round-the-clock internet connectivity.

They see the physical and digital worlds as connected and authentic. Even though social media is a key resource for them, there are differences in how they use it.

There is a lot of representation of your own image on social media, which is very much a one-way street, according to a partner in McKinsey. Gen Z has been exposed to a lot of one-way social media communication. They're more about dialogue.

Gen Zers crave authentic emotional and intellectual expression, even if the content is created in synthetic ways and with re-use, as a relief from a world filled with fakery.

Sharon Silverstein, the head of U.S. vertical at Snap, said that Gen Z prefers authenticity and living in the moment. The most picture- perfect photos aren't the only ones shared. The funny, silly, real moments that make a trip unforgettable are what they appreciate.

Gen Z likes to discover things first and is part of an active peer community.

"TikTok introduced me to a lot of local restaurants that I would've never found myself at." Local food reviews are one of my favorite types of videos.

There are activities, food, and photo spots at TikTok.

Click to enlarge.

MMGY Travel Intelligence's senior research account manager said that social media is a good way for brands to reach this generation. We don't know if this will be the only thing that Gen Z will find out about brands in the future. There is a tendency for this generation to use social media for travel information and inspiration.

The Gen Z cohort likes to follow social media celebrities. They don't have to be famous.

TikToks have documented their stays at fancy hotels, but those are mostly luxury hotels. It appeals to me if it is someone I am following.

Abena is a non celebrity example. TravelingTuesdays has also led trips sold by the online travel agency TrovaTrip.

ParisHilton is one of the well-known entrepreneurs. Paris Hilton and other content creators were featured in a 10-minute video on TikTok.

When Paris Hilton posts something about one of our brands, it creates this relatability. When Gen Z expands their types of travel, they will think of us first. It's branding as a long term play.

Gen Z takes on the role of being their own travel agent. The group relies on reviews and travel opinions to make their decisions.

Gurnoor Minhas, a fourth-year student at the University of British Columbia who recently returned from study abroad, said that something with a comedy spin or more relevance could be more appealing to Gen Z. Keeping things simple could help prevent marketing from getting lost in the details.

Gen Z Values Relatability

  • The lobby of the Hyatt Regency SoMa in San Francisco was recently redesigned by BHDM to reflect the blended needs of next-gen travelers. Photo by Reid Rolls. Source: Hyatt.
  • Gen Z often see travel as a set of experiences that help shape who they are. Smart hoteliers help travelers find like-minded people. Outside of Tokyo, BEB Tsuchiura is a hotel run by Hoshino Resorts aimed at appealing to cyclists specifically. Source: Hoshino Resorts.
  • Having a sense of exploration is key for Gen Z. Exterior view of the Ion Adventure Hotel in Selfoss, Iceland, part of the Design Hotels brand. Source: Marriott International.
  • Image of the Highland Base Iceland at Kerlingarfjöll in Iceland’s central highlands. Source: Blue Lagoon.
  • The lobby of the Hyatt Regency SoMa in San Francisco was recently redesigned by BHDM to reflect the blended needs of next-gen travelers. Photo by Reid Rolls. Source: Hyatt.
  • Gen Z often see travel as a set of experiences that help shape who they are. Smart hoteliers help travelers find like-minded people. Outside of Tokyo, BEB Tsuchiura is a hotel run by Hoshino Resorts aimed at appealing to cyclists specifically. Source: Hoshino Resorts.
Gen Z often see travel as a set of experiences that help shape who they are. Smart hoteliers help travelers find like-minded people. Outside of Tokyo, BEB Tsuchiura is a hotel run by Hoshino Resorts aimed at appealing to cyclists specifically. Source: Hoshino Resorts.

Relatability is frequent theme among Gen Zers.

Sarah Ogilvie is a linguist at the University of Oxford and she has compiled a data bank of 70 million words. The analysis shows that this group uses words that are more authentic than the average person. Real, true, and honest are some of the popular Gen Z words. In the book Ogilvie co-authored, Gen Z, explained: The Art of Living in a Digital Age, you can see more context.

The hotel sector could be affected by this pattern. Post-millennials show more desire to connect with local communities than previous generations, and traveling has become part of their self-expression and self-discovery.

The shift from just consumption of experiences to exploration of identity is quite a different one. The economy feels like buying goods for young people.

The psychologist Abraham Maslow has a "hierarchy of needs", which he suggests is more about self-actualization for living with the best experiences, than it is about self-transcendence. Gen Zers try to align their values with their spending decisions.

It has been true for young people for a long time. Gen Z is more lonely than previous generations. The new brand standard is emotional. Hotels can help compensate for some of the loneliness next-gen travelers may feel by creating welcoming spaces.

Skift Future of Lodging Forum See Who’s Coming

Hostelworld, an online travel agency that caters to Gen Z, has been trying to help act as a go-between for travelers and hostels.

Johnny Quach, chief product officer and chief marketing officer, said, "When you look on a listing, we show you how many people are going to be at the hostel and what nationalities those people are going to be."

When you make a booking, it's really powerful. We put you in a room with everyone who is going to be there at the same time in the city and everyone who is going to be in your hostel around the time you are there.

Hyper-social hostels and rental lodgings are popular with Gen Z because of their affordability. This may indicate a change in the types of experiences that occur.

Traditional hotels want to appeal to Gen Z. Viceroy's Hotel Zena, in Washington, D.C., is themed entirely around women's empowerment, and some of the design inspiration came from the Gen Z daughter of its designer.

The hotel brands that make space for niche interests could be the less obvious beneficiaries. The E- Sports Hotel is an example of a hotelier responding to online gaming. There are also traditional sports. BEB5 Tsuchiura is a property that is related to a cycling trail in the Ibaraki prefecture.

According to a Mastercard-CrescentRating Muslim Gen Z: The Next Generation of Travelers report, two-thirds of Muslim Gen Z travelers want to experience culture or nature in their destination. The Muslim market is missed by many hotels.

Many hotels will likely turn to community management and year-round programming in order to get in touch with subgroup.

There are activities such as a cosplay, role-playing, or Comicon convention. Music festival travel site Lyte and Muslim travel site HalalBooking are examples of partnerships that will be made by hotels.

People have always been interested in self-discovery. Gen Zers have been exposed to an endless array of personality types and sub- groups of interests thanks to the internet.

Gen Z tends to define sexual and gender identities in different ways than previous generations.

The hotel groups took notice. In Australia, Hilton has supported the program that runs an alternative school formal for queer teens, as well as training staff with the help of Minus 18.

If Gen Z inclinations match, hotel marketing will gain traction.

The InterContinental Hotels Group launched a marketing campaign that shows real-looking people in real-looking situations. It is a powerful message for Gen Z when they are told they can be cared for as they please. No matter who you are, no matter how you show up, you will be appreciated.

The issue is much more than that. TikTok needs to translate into operational delivery.

Making it seamless for hotel guests to stream their content from their accounts with video and music services is becoming a table stakes.

Another Gen Z expectation is making it easy for guests to order food from outside delivery services. Throughcollabs and drops, marketing partnerships with Gen Z favorite brands can be helpful.

Updating how your service is delivered can be an evasive action long-established brands can take to remain relevant.

According to research done at the hotel, Gen Zers prefer hooks and pegs on the wall to hang their stuff, and they don't want doors to the closets in the guest rooms because they like to see their stuff.

Hyatt is rethinking some of its public space. The most recent renovation project at Hyatt Regency So Ma in San Francisco was led by Dan Mazzarini. The lobby has been transformed into a multi-use space that can transition from coffee to cocktails.

There is an area ripe for a refresh.

"As we think about the future of loyalty, we think about Gen Z because of its focus on individualism and identity, because we want to connect more on the emotional level."

The points programs have traditionally been points driven. How can we combine points with benefits that are aligned with people's interests? We might be able to invite you to access something that you wouldn't normally have access to. We can help you connect to your purpose and desire to make a difference.

Gen Z Seeks Experiences

  • The Broken Shaker cocktail bar at the Freehand Hotel, frequented heavily by Gen Z, in New York City. Source: Freehand Hotels.
  • Co-working is important to some Gen Z travelers in an age of blended, or bleisure, travel and hybrid working. Selina La Fortuna in La Fortuna, Costa Rica, offers co-working. Selina runs the Remote Year program, too. Source: Selina.
  • The Omo brand of hotels in Japan aims to appeal to next-generation travelers. Omo Aksaka is in Tokyo. Source: Hoshino Resorts.
  • The Broken Shaker cocktail bar at the Freehand Hotel, frequented heavily by Gen Z, in New York City. Source: Freehand Hotels.
  • Co-working is important to some Gen Z travelers in an age of blended, or bleisure, travel and hybrid working. Selina La Fortuna in La Fortuna, Costa Rica, offers co-working. Selina runs the Remote Year program, too. Source: Selina.
Co-working is important to some Gen Z travelers in an age of blended, or bleisure, travel and hybrid working. Selina La Fortuna in La Fortuna, Costa Rica, offers co-working. Selina runs the Remote Year program, too. Source: Selina.

One long-term reality facing Gen Z is a housing affordability crisis in many cities, which can make young people treasure travel even more.

Younger generations may live longer with their parents in group houses or small apartments. In the UK, an intergenerational commission predicted that people born after 1980 would need to save six times more for a house deposit than people born earlier.

Marriott International's customer experience team led research on Gen Z and looked at access versus ownership as a theme. Many Gen Z people are taking advantage of the ability to blend work and travel in order to be more mobile.

We wondered if you could live with us anywhere around the world full-time for a while. The woman said, "I said that." We are looking at our products and wondering how we can make them easier to use.

choosier travel decisions can be made due to tighter finances. Gen Z tends to explore their identities even if it means visiting their favorite haunt. You are more likely to hear about it on Facebook than on TikTok.

Skift Future of Lodging Forum See Who’s Coming

A generation that isn't just happy being in a place and looking at it wants to personally be part of hotels' stories. They want to feel relevant because they can't afford to live outside of their homes. Gen Z wants their experiences to be educational and have values that support their beliefs.

Utah is home to the largest age group of Gen Z. There is a new adventure-themed hotel in it.

Tommy Trause said that the future of hotel building was about building community. An emotional response to a location should be amplified by a hotel.

Fire pits with benches, a coffee shop, a rock climbing wall, and design-forward lounges push traditionally pristine, uncomfortable hotel furniture to the side of the building.

Salt Lake City has a great scene for vintage furniture and that's why we have some pieces that are already worn-in. They are already worn-in and add to the comfort.

India is a young country. The majority of its residents are under 35. To appeal to this crowd, Thomas Cook India has been trying to add more than just flights and hotels. Food tours, deep-sea diving, and hot-air ballooning are add-ons. The new ad campaign for Thomas Cook India was told in 15-second bites.

Gen Z can connect with other travelers and locals through a mix of communal lounges and co-working spaces. There are connections to experiences around town such as skateboarding and a family dinner.

Portland, Oregon, is a place that draws in Zoomers for its green spaces, liberal culture, and affordability. The city was named the top city in the U.S.

According to the director of sales and marketing, Gen Z makes up the largest portion of guest stays at the hotel. Guests get access to the shed, which includes free use of cameras, fishing gear, binoculars, and yoga mats. Bocce ball and cornhole can be played on the board games.

  • The Yunik Hotel in Chengdu China has a lobby experience that mingles with a bar and retail atmosphere to greet its core Gen Z clientele. Source Yunik Hotel.
  • Cultural connection is important to Gen Z. Every floor of the Hotel Indigo Dubai Downtown was curated by a different local artist. The hotel has more than 200 pieces of art telling the neighborhood’s story. Here is one guestroom. Source: IHG.
  • A street art mural aims to bring IHG’s Guest How You Guest advertising campaign to places where Gen Z will find them. This mural is near the Brooklyn Bridge in New York City’s Dumbo neighborhood. Source: IHG.
  • The Yunik Hotel in Chengdu China has a lobby experience that mingles with a bar and retail atmosphere to greet its core Gen Z clientele. Source Yunik Hotel.
  • Cultural connection is important to Gen Z. Every floor of the Hotel Indigo Dubai Downtown was curated by a different local artist. The hotel has more than 200 pieces of art telling the neighborhood’s story. Here is one guestroom. Source: IHG.
Cultural connection is important to Gen Z. Every floor of the Hotel Indigo Dubai Downtown was curated by a different local artist. The hotel has more than 200 pieces of art telling the neighborhood’s story. Here is one guestroom. Source: IHG.

They have a heightened awareness of costs at their early career stage. There are ways in which hotels can make experiences more accessible.

There is an option for direct bookers to pay for a trip over a period of six months. It has been a hit with Gen Z.

Budgets will become less of a restraining influence on travel decisions as people get older. Gen Z wants to research trips.

Hopper is an online travel agency that claims to have a higher share of Gen Z users than its competitors.

Fred Lalonde is the CEO of social commerce. Don't think of gamified discounts. For doing certain activities, such as interacting with a game, sharing a mobile app, or booking trips repeatedly, you can earn a certain amount of money.

Lalonde said, "Social commerce is underpinned by what's called mounting loss, which essentially means you play games and earn credit that's only redeemed in one app, boosting conversion."

Next-gen travelers are part of the "swipe-and- buy" squad due to their "always on" purchase behavior. They prefer brands that give options and have a sense of community.

Critics will call Gen Z "fickle" if they see such behavior. Young people have been quick to drop something if they don't like it.

The point is that some aspects of Gen Z are overlooked by the hotel industry.

In Asia Pacific, we see our younger travelers go to a market and stay in a Marriott for two days and then stay next door at the Ritz-Carlton for a night to take selfies. They are building their own collab.

Post-millennial guests could benefit from partnerships with photography services like Flytographer and experiences-booking agencies like GetYourGuide.

Hotel companies may want to find ways to make the experience more pleasant.

Smith said that he was proud of the way that he had invested to have a best-in-class service recovery time on social media. If you let us know on social that you're staying with us for something exciting, like a birthday or because you love the view, we'll respond to you and sort that out very

A hotel group needs to make sure its mission and brand platform are in line with the new tastes of an emerging demographic.

The chief commercial officer of Four Seasons said that both young people want to align themselves with brands that share their values. True luxury is not about impersonal service.

Hyatt has responded to emerging preferences by tweaking its portfolio to offer design-led brands, such as the ones in its JdV collection of independent hotels.

Gen Z Redefines Personal Wellness

  • Wellness matters to many Gen Z travelers. Wild Rice Retreat is an example. The new “center for arts and wellbeing” sits on the shores of Lake Superior in Bayfield, Wisconsin. Source: Wild Rice Retreat.
  • Barrel-shaped saunas at the Equinox Hotel at Hudson Yards in New York City. Source: Equinox Hotels.
  • A member of Gen Z at a guest room at the fitness-themed Equinox Hotel in New York City. Source: Equinox Hotels.
  • Many members of Gen Z seek to be closer to nature on their trips. Wild Rice Retreat is an example. The new center for arts and wellbeing sits on the shores of Lake Superior in Bayfield, Wisconsin. Source: Wild Rice Retreat.
  • Wellness matters to many Gen Z travelers. Wild Rice Retreat is an example. The new “center for arts and wellbeing” sits on the shores of Lake Superior in Bayfield, Wisconsin. Source: Wild Rice Retreat.
  • Barrel-shaped saunas at the Equinox Hotel at Hudson Yards in New York City. Source: Equinox Hotels.
Barrel-shaped saunas at the Equinox Hotel at Hudson Yards in New York City. Source: Equinox Hotels.

“Wellness” has tended to mean “spa” to previous generations of hotel-goers. But Gen Z has redefined wellness as well-being, given the burnout it’s often experiencing at an earlier age.

Gen Zers show a greater willingness to explore health more than just physical fitness, setting aside the fact that it has a higher rate of Obesity than previous youth.

After the Pandemic caused a renewed emphasis on living life to its fullest, there was a renewed emphasis on living life to its fullest.

Gen Z is interested in getaways that include forest bathing, fruit harvesting, and cooking courses that involve plant-based ingredients.

Many Gen Z students took a gap year because of the Pandemic. The proportion of students wanting to travel seems to grow as the world moves to online learning.

As many as 130,000 U.S. students took gap years in the 2020- 2021.

Gen Z travelers are changing the way they view their health to be more than just a massage.

ChrisNorton said that the hotel's focus on sleep and nutrition appeals to Gen Z.

The Gen-Z generation focuses on self-care and the idea that an individual can have it all. They are strong proponents of a work-life balance and inspired sober-curious movements around the world.

Hyatt's sober-curious program Zero Proof, Zero Judgement gained traction among Gen Z. It's all in moderation. According to VacationRenter, the 10 most-booked destinations for last-minute spring break travelers are less toes-in-the-sand and beer-in-hand than feet-in-a-Museum. Dubin, Amsterdam, Paris, and Barcelona were the top destinations for reservations between March 11 and 24.

According to Michael Cady, the chief marketing officer of Charlestowne Hotels, Gen Z's partiality towards wellbeing is one of the primary trends that will surface in the next few years.

Cady said that Gen Z travelers will be more compelled to embrace non-traditional and one-of-a-kind travel offerings.

He pointed to the retreat as an example. There is a center for arts and wellbeing on the shores of Lake Superior. Art classes, meditation, and painting classes are open to guests. All of the cabins feature large windows with views of the woods.

Cady said that the accommodations were designed to bring the outside in line with Gen Z's priorities.

Caring for Others and the Planet

Vanguard brands pushing for radical cuts to their carbon emissions — even if their ambitions are imperfect — are prepping for a time when a rising group of consumers is willing to pay more for travel with a reduced climate impact.

Eva Stewart said that Gen Zs want to feel a part of something greater than just what a brand sells. To build a community of people who believe in shared purpose, companies need to think of values they want to promote.

Most hotel companies haven't convinced Gen Z they're making legitimate reductions in carbon emissions Some post-millennials have doubts about the effectiveness of carbon offset purchases.

The newest generation is constrained by early career circumstances. Many people have yet to establish financial stability, which makes it difficult for them to make travel and accommodations decisions.

Jonathan Chan is a fourth-year student on an exchange program. It's the only thing that matters.

As their spending power increases, it remains to be seen if Gen Z's travel purchase choices reflect their values. Young people are like everyone else in that their words and actions don't always match up.

Generations of consumers have high expectations for brands. Buying into a brand's ethos is just as important as buying a three-night stay in a boutique hotel.

It's possible that many Gen Zers will continue to judge brands by their environmental impacts and reject inauthentic posturing for a long time to come.

Tomorrow’s Travelers

Hoteliers may be tempted to procrastinate in responding to the ascent of Gen Z.

Financial stability is yet to be realized by many Gen Zs.

According to McKinsey, post-millennials will make up a third of global spending power in the next two decades.

It's hard for hotel companies to be in sync with demographic changes because of the long timescale of hotel brand building.

Understanding the long-term qualities of Gen Z is important. A reputational advantage may be generated by hotels that adopt tactics, designs, and philosophies that appeal to this group.

Gen Z considers traveling to be more than just learning about other cultures. They see it as a way to improve themselves. The irony is that this generation, so famously "always online", may be more enthusiastic about real-life travel experiences than their predecessors because they tend to be more intentional about their trips.

Gen Zers will gravitate towards hotels that allow them to be themselves, underpin their missions with relevant actions, and foster connection. Young people are supposed to challenge everyone to be better.

Skift Future of Lodging Forum See Who’s Coming