Hotels adapt to woo millennials

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/asean&beyon/Hotels-adapt-to-woo-millennials-30289096.html

Low Shi Ping
China Daily
HOME ASEAN&BEYON AEC SUN, 26 JUN, 2016 1:00 AM

HONG KONG – From ordering food via an emoji-only online room-service menu to hiring bicycles to explore a city or selecting rooms beforehand, hospitality brands have gone all out to offer an eclectic range of services to woo the millennial group of tech-savvy travellers.

It is no secret that the coming of age of this segment of the global population has dramatically affected the hospitality industry.

Broadly defined as those born between 1980 and 2000, millennials make up approximately 1.8 billion, or more than 25 per cent, of the world’s population.

“As they enjoy increasing spending power, this is obviously a huge opportunity for the travel industry,” said Martin Rinck, the president of Asia Pacific at hotel and resort chain Hilton Worldwide.

In Asia, home to 60 per cent of the global millennial population, it is estimated that they account for about 35 per cent, or US$210 billion, of the $600 billion that Asians spend on international travel every year. This figure is forecast to rise to $340 billion by 2020, according to Brand Karma, a new-media company focusing on the hospitality and travel industry.

In the past few years, many hotel chains have hopped on the millennial bandwagon and created new brands and experiences to attract this segment.

One of the earliest hospitality brands to focus on millennial guests was Aloft, by Starwood Hotels & Resorts, which launched its first property in 2008.

Vincent Ong, senior director of brand management at Starwood Hotels & Resorts Asia Pacific, said: “Back then, we noticed a strong inclination (among millennials) toward the distinctive passion points of technology, music and design — these now define the Aloft experience.”

Today, there are more than 100 Aloft properties globally, with 20 in Asia and another 25 scheduled to be launched in the region.

Another group that has entered the fray is Shangri-La Hotels and Resorts. It created the Hotel Jen brand which has properties around the region, including two in Singapore.

David Lam is the director of sales and marketing for the Singapore hotels. He said that when the company first identified this gap in the market, research found that the millennial travellers’ preferences differed from those of other generations.

“Their focus on experience, efficiency and authenticity provided us with an opportunity to create a brand that would cater specifically to these needs,” said Lam.

Tru by Hilton, a hotel brand which touts itself as “reinventing the mid-scale market”, is another product of this market segment.

Hilton Worldwide’s Rinck said the creation of the prototype took off mid-2015 with a team who sought to “rip up the traditional playbook”.

Other groups, such as Carlson Rezidor’s Radisson Red, are targeting those with a “millennial mindset”, particularly in China. Its first contract was signed in Shenyang in China’s northeastern Liaoning province in 2014.

Thorsten Kirschke, the Asia-Pacific president of Carlson Rezidor Hotel Group, explained that “Red reflects the tastes of the next generation of travellers” and “often these guests do not wish to be defined by a certain age”.

M Social Singapore is another millennial-oriented concept, which opened its doors on June 9. The brand was created by Millennium Hotels and Resorts, and is positioned as “a meeting place for global citizens with a millennial mindset”.

Inside, the hotel is chockablock with unique elements such as interiors by French designer Philippe Starck, self-check-in kiosks, and communal tables at its Beast & Butterflies restaurant to allow guests to mingle.

Paul James, senior vice-president of global marketing and branding at Millennium Hotels and Resorts, said: “What we do know about millennials is that they were introduced to travel by their parents, and see it almost as a birthright.

“According to Phocuswright, 66 per cent of millennials rate travel as ‘very important’ to them,” he said, referring to the travel market research company.

When millennials hit the road, it is worth remembering that these are “digital natives”. As the first generation to have grown up with the Internet, they are extremely tech savvy and expect to be constantly connected, especially to social media.

Whether it is Facebook, Instagram, WeChat or any other platform, many turn to these to make decisions and share their experiences.

Carlson Rezidor’s Kirschke said: “We have found that 97 per cent will post (photos and writeups) while traveling, and 75 per cent will post at least once a day.”

Naturally, the hospitality groups have launched their own online marketing channels to reach out to millennials. At Hotel Jen, each property has its own regularly updated blog that details eateries, cultural hotspots or advice on what to do.

It also developed a video city guide for each of its hotels, giving ideas on what travellers can do in 24 hours.

“These proved incredibly popular with over 600,000 views across all of our hotels,” said Hotel Jen’s Lam.

A lot of the engagement with the millennials is carried out via mobile technology as well. For instance, Radisson Red has developed an app that allows travellers to check in and out of its hotels and enjoy secure keyless room entry by using their smartphones.

The Red app, as it is known, also allows guests to make requests for the rooms, such as extra pillows or towels. It also has a chat feature that enables guests to connect with each other to receive local nightlife recommendations, or share a ride to the airport.

Another trait of millennial travellers is the value they place on experience and authenticity, to enable them to learn something new when they travel. “Social cachet is the new souvenir,” said Starwood’s Ong.

For instance, Canopy by Hilton is another brand of the Hilton group that targets millennials in Asia. It is designed to reflect the local flavour and culture of each hotel’s location.

“The brand is all about being local, through design, food and beverage, art and know-how. So no two Canopy hotels in any city will be alike,” said Rinck.

The hotels understand that control and autonomy over their travel experiences are equally important for millennials — in short, the freedom to do what they want, when they want.

Radisson Red has a 24-hour access restaurant and bar that offers freshly prepared but pre-packaged options, including sandwiches and salads. The menu items feature locally sourced food and beverages for guests seeking an authentic experience.

In addition, millennials are not afraid to express their individuality, usually through eclectic styles that mix and match.

Ong pointed out that “they buy based on the cool factor, not status”.

Responding to this, many hotel brands have developed rooms with distinctive interior design to appeal to millennials. M Social Singapore has rooms with warm colour tones, luxurious pashmina throws and thick carpets.

Aloft incorporates open, flowing design with an urban-industrial feel, colours that contrast with the surroundings, modern furnishings and crafty touches like scrolling displays on a large video wall.

Beyond the hospitality brands, even business-to-business companies are spying opportunities.

Qooco, an education and technology company, provides mobile language learning and vocational training solutions for employees of the hospitality industry.

Its CEO David Topolewski explained how the industry needs to change how it trains staff, switching from classroom-based to mobile-learning methods.

“Top brands such as Mandarin Oriental, Pullman and Crowne Plaza are all using mobile learning to upskill their staff,” he said. “As hotels leverage technology to reach their guests, they should do the same when reaching out to their own employees.”

Providing successful services for millennial travellers is no easy task, however. Their needs are evolving quickly, which means brands must stay alert to keep up with the new trends.

Ong said he is convinced of a convergence between the speed of travel and connectivity. “The future generations will view traveling to another country just as we view a trip to the movies.”

Millennium’s James noted that the industry will need to embrace change in unprecedented ways. “It will be the only constant in travel,” he said.

“Millennials’ tastes will change, technology will change and Generation Z, well, that will be a different story again,” he said, referring to those born after the millennials.

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