This Week's BLLA Commentary
A few weeks back we touched on the topic of Generation Z. This age cohort is of great importance as far as hospitality professionals are concerned, as they are the next and largest generation with buying power. The tastes and habits of the demographic will surely shape how boutique hoteliers, designers, technologists, and the industries who supply these will have to adapt to a new kind of traveler.
The Gen Z Influence
Every generation is shaped by a few consistent, major factors. The state of the economy makes sense to mention first, but other elements like technological developments, changes in legislation, even climate can affect the makeup of a generations’ demographics. The status of our society molds money making and spending habits. Advertisers who are in tune with the lifestyles of their target audience have a track record of maintaining wider profit margins and see higher ROIs.
The year is 2018, and “millennial” tops the list of charged buzz words. The good, the bad, the ugly, the (alleged) lazy, it’s all highly publicized and discussed in terms of this demographic of 20 to 30 somethings. However, discerning brand leaders are looking beyond the lightning rod for debate to Generation Z, the next generation with buying power.
Generation Z is composed of people who were born from the mid 1990s to the early 2000s. (Yes, we’re old). They are the most technologically in-tune demographic that’s ever existed, and at 25% of the US population (1) they’re the largest cohort of any age group.
The era of the internet means advertisers have ways to market to very specific audiences. It is necessary then to have a thorough understanding of what future consumers are looking for. The recent disruption of the economy (in the form of recession) blurred the lines between business and leisure travel and saw the distinct rise in the “gig” economy. Younger generations are motivated (or forced) to find less conventional ways to generate revenue. This materializes in the form of increases in 10-99s and decreases in W-2s. The gig economy means the nine-to-five structure Americans have grown accustomed to has been toppled by circumstance, making it necessary to be able to generate revenue from anywhere, at any time.
Here in lies the paradigm shift. If I have to work when or wherever I am, my travel habits cannot be attributed solely to business or leisure. This means offerings from travel and/or hospitality brands must cater to and service every area of my life. Things that were considered perks not long ago, like free wifi for instance, are now given and necessary.
Read the full article here.
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