The millennial generation in the world is growing, so there values, demographic needs, and habits. The changes in their preferences are sparking, particularly in the hospitality industry (Aleks, R. and Saksida, T., 2019). The specific generation is born between 1980 and 2000, the early 1980s or early 2000s generation is a rapidly growing population and engaging world business. This new wave of travelers has spread significant influence over the hospitality industry. The youngest generation wants to explore new avenues, explore new experiences, and want to interact with different destinations (Carpenter, M.J. and Charon, L.C.D., 2014). Designers and architects have used this opportunity to create design elements and offer space to incorporate valuable preferences of the millennial generation. Industry sources have discussed that millennial travelers contribute to more than 50% of all the guests of the hotel in 2020 (Chen, P.J. and Choi, Y., 2008). This critical reflection intends to address the significance of catering to millennials regarding the hospitality industry. It will explore its impact, stakeholders, and cultural factors with related evidence.
Collective consciousness has proposed the impact of baby boomers as a new force, while copious millennials are found to be more vital labor force than any other generation. The significantly different values, lifestyles, and beliefs from baby boomers generation have made millennials to dominate the hospitality industry (Dev, C.S., 2012). According to Talent’s development at Stamford, Erin Haid discussed that “millennials want companies to work according to their values and get connected to their preferences. They need better opportunities to grow and a clear path to accepting challenges”. Another evidence about millennials’ effect on the hospitality industry is described by Mike Oshins, the professor of Hospitality Administration Boston, “millennials like transparency and they need to work on a broader level in the hotel industry, reflecting different values like self-help, etc.
The impact of millennials on the hospitality industry, in general, can be seen from different perspectives, such as their way of work and understanding. They look for challenging and exciting work, and their role in the hospitality industry is different than previous generations. Guelph funded study at Dalhousie University proposed a comparative study to find out the work values in X and Y Generation. The study found that the oldest millennials, on average, had seven jobs till their 30s as compared to baby boomers and X generations. The study identified different novelty for millennials and their role in hospitality. The generation appeared to be tech-savvy but committed to work (He, J., Morrison, A.M. and Zhang, H., 2019). The roles of millennials in the hospitality industry have proven their flexibility for different purposes, expertise in locations, and priorities. Their impact on catering is witnessed from their flexible schedules and accommodation of personal needs. The effect of millennials on hospitality can be seen from their passion for working; for instance, they are more likely to leave if they think they cannot develop at a specific place and vice versa.
The impact of millennials on sustainable companies is due to the community growth they are seeking. The accomplishment of standard job duties and spirit of work is developing as culture becomes enriched. The Star Wood management program evaluated the role and performance of the millennial regarding the hotel industry. In hospitality organizations, millennials’ expectations represent their decisions about hospitality technology. Brands are engaged in targeting millennials in every segment of life because their preferences drive leading brands to get the benefit of technology (Kim, D.-Y. and Park, S., 2019). Through new processes, new technologies, the scope of management will increase, and new engagement ways will develop, according to a study. The hospitality industry is specific to discuss millennial consumer expectations because they appear best guests to guide hotels.
According to the US Census Bureau, millennials are the largest growing demographic segment is millennials. The reason behind this is the immigration surge in the US from abroad. Another reason is the decline in the baby boomer generation when they reach their golden age. Pew Research Center has presented that a high number of millennials in 2030 will be 8.11 million. In the hospitality industry, this reason will increase investment due to their value as consumers (Kostuch Media Ltd. and Kostuch Media Ltd., 2015). They are future and perceived as a vital changing force for the coming times since they possess a great experience to think like a guest and use technology. The distinct culture millennials are come up with aligns consumers’ expectations (Kostuch Media Ltd. and Kostuch Media Ltd 2015).
The hospitality business significantly considers the changed scenario to cater to this tech-savvy generation. The five-star hotel industries are rethinking their stuff according to the millennial’s demand. The hotel and travel industry is lucrative and hugely attractive. Global millennials are two billion, and from Asia, 60% of them belong, and in India, only 400 million reside (Mejia, C. and Lavendol, V., 2015). They are strong enough and the highest spending power, so big corporate travels. The director of Deloitte’s travel hospitality discussed that the impact of millennials on hospitality is significant since they focus more on experience and genuinely care for the shared values.
Kim, D.-Y. And Park, S (2019) discussed the effect of millennials in the hospitality industry regarding stakeholders and organizations. The well being and employee performance in the hospitality industry is analyzed in this study that how central workforce and its attitude is drawing attention in research. The study examined prior literature regarding human resource practices and its influence on millennials that is influencing behavior in the workforce. Responsible leadership contributes to a productive workforce, and employees can make a difference in the hospitality industry. The qualitative study proved that the practical value of hotels is due to millennials and their wellbeing fosters to develop a responsible leadership.
Sofronov, B (2018) proposed a study to identify change due to millennials in the tourism industry and the significance they made. The study undertook a broader picture of social media and technology-based framework as well as internet access. Millennials are affecting buying elements due to their informed approach to decision making and the whole influence of technology. The perceived authenticity was discussed by the author that symbolizes millennials significant and different from other demographics. Millennials are found to be more interested in the hospitality and travel industry due to sustainability and a sense of fulfillment that the hotel industry understands.
He, J., Morrison, A.M., and Zhang, H (2019) analyzed the impact of millennials on tourism and hospitality industries. The focus of this study was to highlight the significance of the latest trends and differentiated buying preferences of the millennial generation. The research surveyed different employees of the hospitality industry to know about the wellbeing millennials get when they receive favorable behavior. The assessment of employees’ experience through their perception has provided a clear insight for their commitment to work. The characterization of employees’ assessment was positively related to work experience and interest in the hospitality industry.
Warda, S.Y (2019) discussed the tourist behavior under the shift of a generation. The study facilitated the latest accommodation and anticipation trends in the hospitality industry. Due to the unique, influential segment of tourism, the millennial generation is in the spotlight due to their preferences. The impact of millennial behavior on social media and travel choices has also significantly impacted stakeholders and related organizations. The study investigated past literature and conducted a survey for Emirati travelers to know their travel patterns. This research has provided useful insights about valuable preferences of millennials¸ their influential activities, destinations, and leisure time. The scope of this influence is exemplary for the hospitality industry since it develops suggestions for future businesses.
Kostuch Media Ltd (2015) developed a discussion about the impact of millennials on the hotel industry and the values. The research focused on critical values millennials possess and their behavioral perspective, which is a differentiated factor. Hotels are a vital body that targets this particular group specifically, to know their interests and values and offer predictable products. The experiential part in this regard is to focus on the critical behavioral aspects which are seen from self-help, challenging nature, and sustainability factors of millennials. The hospitality business for millennials is valuable and attractive because they are well versed in branding.
Different contextual factors influence the hospitality industry when talking about millennial impact. The youngest travelers today seek the opportunity to interact with others and explore a different destination. The contextual factors in terms of high five star hotels and design elements can be discussed concerning millennials. The property and geography location is a valuable factor that targets millennials, for example, Pasito Blanco Resort is engaging differential design patterns to get involve the traditional design looks to target guests with the feeling of early Spanish villages (Mejia, C. and Lavendol, V., 2015). Different shared areas involve diverse experiences for travel generation. The traditional lobby, hotel design, and communal spaces are key factors that engage millennials in various design elements.
The emphasis on wellness is another factor, millennials focus. For instance, in some studies, the significance of exercise for health is found as valued by millennials, so hotels put more emphasis on such programs and offer facilities to attract this health-conscious generation. Hotel designers undertake the scope of work and accommodation to millennials with a specific focus on millennials. The hiking trails, biking, and yoga pavilions are developed in hotels to target this generation. For example, Antigua Carlisle Bay is introduced for guests with a unique mind and a passion for excursion (Verity, C., 2016). The millennials are mainly catered to rethink traditional procedures because they can likely be pay off by focusing on their demographics. The hotel industry primarily caters to millennials by keeping in mind their preferences and presuming as a forward-thinking generation.
Millennials prioritize their experience over products, and this notion mainly works in five-star hotels. The demand and emphasis on offering unique products to valuable customers is also a big challenge for marketers because, due to transitioning social media, preferences change most often. The buying of a product is not simple, but it is aligned with the elements and contextual factors that motivate millennials to purchase. The hoteliers are shifting their approach of marketing to align with that of millennials’ perception. Earlier, customers were satisfied with the standard services, but now hoteliers have to undertake an extra mile to satisfy the new generation and provide an outstanding intangible experience.
The attractive point for millennials is justified when they are offered with an exceptional experience, not only the functionality of the product. The cutting edge technology today is a necessary value for money, not only an option (Warda, S.Y., 2019). The contextual factors today are mostly being appeared in the form of the latest technology, for instance, virtual reality, a personalized approach, and a digital concierge. The virtual reality in the hospitality industry is all about investing in technology by hotels to allure guests. These devices are equipped with the latest travel guides and postcards, thus offering guests a firsthand experience of their travel. The hotel industry tends to increase this experience, thereby creates a sound environment for millennials.
The value of a personalized approach is significant when viewed in terms of imperative factors. In the hospitality industry, the innovative way is used to customize products and services, so guests’ data is used. The usage of millennials’ data offers valuable insight to get them back and understand the routine behavior that would, in turn, be helpful to take a personalized approach. Millennials also believe in technology more than any other generation, so a sharp rise in communication applications is seen. Hoteliers also take this opportunity to develop a primary source of communication; for example, IHG and Hyatt hotels employ third party channels for communication to provide specialized experience to guests.
Many contextual and cultural factors are on their way to impact the hotel industry under the particular influence of millennials. They also focus on aesthetic preferences and thoughts more than any other generation. In North America and Western countries, millennials are culturally diverse larger than in any other country. In the US, 42.8% of millennials are in minorities and speak more than one language. Only 24.6% speak English at home. This evidence suggests that millennials are sensitive to culture and languages more than generation X and baby boomers. It also necessitates the influence of multiculturalism. Due to diverse backgrounds and language, their interest in experience is more significant than any other generation in the hospitality industry.
Pew Research Center described millennials as a generation that accounts for 2 billion people, and it is the most diverse generation in the US. These consumers are also the significant generational cohort showing economic growth, employees’ sourcing. Chen, P.J., and Choi, Y (2008) discussed the work values of millennials in a study. The focus of the research was generational differences in relation to the hospitality industry. The study explored how different generations perceive benefits in hospitality work management. The survey was used to investigate hospitality organizations in the US. The work values defined by millennials were personal growth, security, and comfort, and work environment. It was inferred that work value structure in the hospitality workforce is based on cultural factors that are persistent in millennials. The study was limited to US tourism destinations, and the managerial staff was investigated.
Aleks, R. and Saksida, T (2019) illustrated that the millennial generation is valuable in terms of their perception and viewpoints regarding business. The study discussed that millennials prefer their travel experiences, yet they are diverse in the case of culture. The selection of knowledge is deeply linked to the personal approach, and they develop a particular identity for them. Authors discussed the way of living, incorporating digital technology in daily life, and the ability to enhance life’s value. The notion of culture and its impact on millennials can be seen in education. Valuable experience and thinking style helps drive different perceptions and diversity.
Carpenter, M.J., and Charon, L.C.D (2014) mentioned the role of millennials in the hospitality industry. The study found out differences in thinking and adopting culture. In Brazil, 99% of millennials tend to use their smartphones in the restaurants, but a fifth of Japanese millennials are not involved in this activity. In a report by Oracle, hospitality was discussed with a broader point of view for millennials. Their impact on the hotel industry was analyzed by their focus on technology and its use in hotel premises. It was found out that millennials willingly use mobile phones in restaurants, while only 6% reported that they do not use these digital devices in hotels. Mexicans and Brazilian millennials always keep their phones, and many of them use phones to interact with other hotels.
Taking into account the cultural factors, millennials focus on engaging with the latest brands and value the marketing approach. This structural significance provides the idea of value to traditions and culture. They also focus on creativity, knowledge, identity, and creativity (Mejia, C. and Lavendol, V., 2015). This style of work and understanding engages more people and demonstrate the value of the hotel given guests. The method of understanding and reflecting identity is seen in the hospitality sector; therefore, it generates personal viewpoints about culture.
Millennials are operating n a modern digital environment, and it is safe to say that social media and technology are present in their DNA. The digital transparent world is getting engaged in the brand value with a broader sense of the hospitality industry. The high technology modern advertisement practices are significant in building brand value and generate bottom-up or top-down approaches. This massive information group of the consumer is transforming the whole framework that has provided a larger scope to marketers. In particular, in the case of the hospitality industry, the need to target millennials is catered due to their success in the hospitality and travel sector. The focus of the brand portfolio and need is tailored to the millennial’s demand, not their ancestors. This shift of thinking has provided a valuable approach to target millennials, in the specific context of the hospitality industry, due to the key features, they possess.
It is recommended that due to the intensive significance of millennials in the hospitality industry, they should be targeted with their preference. Since they grew up witnessing the global financial crisis, it will empower their thoughts, rights, and opinions. The generation has a significant drive for innovation, and being appreciative and loyal; it can be productive for the hospitality industry when targeted accurately.
The hospitality industry can make adequate consideration of millennials by engaging them in management and valuing their perspectives. It is recommended that they should have a significant opportunity for career progression (Mejia, C. and Lavendol, V., 2015). They should be offered development and training opportunities.
The millennial generation is also more diverse ethically than any other generation so they can contribute well in economic growth. They should be valued in terms of identifying key focused areas. Advertisement can also effectively target them by knowing their interests and incorporating changes they want in the hospitality industry (Kim, D.-Y. and Park, S., 2019).
The food industry has a significant impact on millennials and the other way round due to the emergence of the culture of food. This influence has changed the traditional methods of food and hotel management because today, a more attractive approach is used to target customers. The emerging trends due to the latest technology have customized food patterns and beverages, such as black ice cream or rainbow food. The foodservice companies are significantly targeting millennial generation, so they offer a massive scope to the hospitality industry. Restaurants and hotels can provide brand experience enhancement programs to cater to more millennials. They love and discover new experiences, and this aspect can be captured by offering them a flexible approach and customized options. Unique and authentic quality brands can approach millennials. They cannot be segmented towards brands because they seek out unique experiences and have a massive quest to personalize. The reflection has provided me an insight to understand and map the preferences of millennials. This approach is significant for me to learn the behavior of the hospitality industry in segmenting a demographic on its interest basis.
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