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How to build a luxury hotel that appeals to Millennials and Gen-Z?

With millennials and gen-Z rising as the largest segment of business travelers, luxury hotels will look a lot different in 2022 and onwards.

To stay relevant and offer what appeals to the younger travelers, hoteliers are now endeavoring to ramp up their guest journey and become a millennial hotel that complies with young adults’ values - from experiential offerings, communal spaces, innovative technology to eco-friendliness. In a sense, the shift in consumer preference for hospital rooms has taken hospitality design to a new level.

Younger Travelers Driving Hospitality Industry

Having made up more than half of the global workforce by 2020 [1], millennials and gen-Z have significantly altered guest behaviors and transformed the global business travel landscape. “Bleisure”, a derivative term of blended business and leisure trips, indicates that young travelers are more eager to enjoy traveling and look for jobs that allow them to travel while engaging with peers for leisure. Social media notably impact this web-savvy cohort more than other generations, and they are much more inclined to unique and Instagrammable designs and traveling experiences.

With pervasive applications of technology and rapidly shifting traveling preferences, young travelers expect so much more in terms of hotels' accessibility, convenience, and design. Along with unbounded trends and fast-changing traveling patterns, the millennial generation opens up a wealth of possibilities and opportunities to luxury hotels - hoteliers are in a position to succeed when they get a hold of the “millennial mindset.”

The Rise of Millennial hotels: 4 Hospitality designs that Younger Travelers Want in a Hotel Nowadays

To stand out from the hyper-competitive market, hoteliers are anticipated to adapt and take into account the preference and desires of young travelers in hospitality design. The following summarizes what this young and vibrant traveling cohort expects as well as how top-notch luxury hotels seize the market with their prudent hospitality designs.

1. Cultural and authentic experiences by the hotel

Younger travelers are experiential. Taking every trip as a getaway, millennials crave authentic culture, educational experience, and connection with the local people. K11 Artus in Hong Kong [2], which emphasizes art-centered urban experiences and a contemporary luxury environment, offers private tours for guests to explore the fast-disappearing traditional Chinese craftsmanship through K11 Craft and Guild Foundation. Indulged in culturally enriched ambiance, young art lovers would explore Hong Kong from an in-depth perspective with artistic touches.

Image of the Library at K11 Artus via www.lifestyleasia.com

2. Communal spaces

Community spaces for socializing and engagement weigh heavily on young travelers’ journey. Grown up with ubiquitous usage of the internet and social media, young adults are deemed the most social generation. Therefore, emphasis on communal areas that bring people together would add value to the design of millennial hotels. As the millennial hotel brand from Marriott, Moxy Hotels [3] is furnished as an industrial-chic luxury hotel with a communal ironing nook. Unlike conventional hotel room design, Moxy Hotels takes an innovative approval to appeal to younger travelers who crave style and socializing.

3. Smart Technology

To bank on the support and loyalty of the millennial travelers, pioneering hoteliers incorporate smart technology into hotel room design for tech-savvy guests. Modern technology, such as AI-powered technology in-room (e.g., Amazon Echo, Google Home, etc.) and AI-powered chatbots, are in the cards. For instance, Aloft Bangkok [4] has tapped into state-of-the-art technology to elevate the hospitality experience - features like robotic butlers for room deliveries and voice-activated rooms that run baths and set alarms are at guests’ disposal.

4. Environment-conscious

Raised in a networked world with access to information worldwide, millennials and gen-Z are more environment-conscious than other cohorts. Young travelers tend to place a high value on sustainability and eco-friendliness, which drives them to look for hotels that agree with their values for better life outcomes. To conform with the ideals of young adults and invest in ESG development, hoteliers are motivated to contract with material providers who can prove their products are sustainable and easily installed.

When it comes to eco-luxury, Alila Hotels & Resorts [5] in Bali and China envision charming young travelers with their unique hospitality design. They are mandated to reach a “zero-to-landfill status,” fostering a composting system and introducing a permaculture organic garden from which chefs source ingredients.



Image of Alila Anji via www.scmp.com

Questions and Answers

Q1: What is hospitality design?

A1:  Hospitality design centers on the environment and ambiance of the service industry to improve guests’ journey.

Q2: What do millennials and gen-z want from hotels?

A2: This generation looks for hotels that agree with their values, including experiential offerings, communal spaces, innovative technology, and eco-friendliness.