Catering to Multiple Generations in the Hospitality Industry
Forget the one-size-fits-all flexible travel packages for any generation of travellers from all over the world, the trend-setting digital natives are seeking authentic and uniqueness in their experiences, whereas baby boomers are often eyeing for luxury and high-quality service.
The hospitality industry faces a unique challenge: Can a brand successfully cater to these diverse needs without losing its identity? In this post-event narrative, we hear from Cheryl Ng, Country Director, Singapore, Rakuten Insight and Chris Legaspi, Chief Commercial Officer, Archipelago International on building a unique proposition for their marketing strategies and striking a balance between consistency and adaptability to stay ahead of disruptions in the travel resurgence.
Understanding the Generations
As stated by Cheryl, constant research validation of each generation is an imperative as their needs and demands will change over time. Brands can tailor their messaging while maintaining consistency through core brand values and a unified story.
Chris also stresses that hotels should focus on strategic brand management to maintain a clear positioning, strong adaptability, and consistent communication. This involves understanding and segmenting the market to identify the specific needs of different generational groups, such as luxury and comfort for older guests or tech-savvy amenities for younger travellers. By creating distinct offerings catered to every segment while preserving their brand identity, they can meet needs from different generations.
However, this requires careful management to avoid becoming too broad and compromise on their brand identity. A well-defined strategy will enable a hotel brand to thrive in a competitive market while meeting the multifaceted needs of its clientele.
Cheryl mentions that the way of communication and receiving and sourcing for information varies between every generation. For example, the Boomers will likely get their information from friends and family and traditional mediums like news whereas the Gen Z might get their information from social media.
Despite the diverging needs of these different generations, cost concerns are common amongst them. Cheryl stated that travel costs will be tied to one's household income and the country of origin they are based in as the purchasing parity of their own currency versus another will vary.
She went on to elaborate that Gen Alpha mostly have budget constraints since the travel costs are paid by their parents or primary caregivers. However, their view on sustainability is stronger than the Millennials and Gen X because of the era that they live in and their growing consciousness towards sustainability in today's environment.
Gen Z on the other hand, are quite disparate. Like any other generation, there are split between budget conscious and luxury travellers. In terms of sustainability, their views can vary based on their awareness, income and education level.
Generation Z is the emerging group of travellers who prioritise sustainability efforts before they are willing to spend according to Rakuten Insights
Strategic Brand Management
Chris mentions that brands should leverage the strategic framework of segmentation, targeting, and positioning (STP) to identify and serve its target market effectively. This involves crafting a unique value proposition that highlights the brand's distinctive benefits, ensuring it resonates with its target audience. Utilising a combination of marketing channels is crucial to reach potential consumers from every generation, with digital platforms playing a key role in engaging younger guests, while traditional methods may appeal to older demographics.
Furthermore, the brand can establish points of difference and points of parity to differentiate itself from competitors while ensuring it meets the expectations of its category. Emotional branding can also play a significant role in creating strong connections with guests, enhancing brand loyalty across various generations. By building brand differentiation and emotional appeal, a hotel brand can create a compelling narrative that captures the wallets and hearts of their customers.
Marketing Across Generations
A robust customer engagement strategy rests on many factors: the individual brand story and how it has been communicating to its target audience. Each marketing channel has its own pros and cons and the content marketing that a brand pushes for is also different. In general, hotels which leverage on authentic content and are transparent about their brand perform better in their marketing campaigns. A right mix of social media and marketing channels will allow them to stay ahead of change in the markets that they are located in. For example, if your brand has footprint in China, then you should be engaging with Gen Z and Gen A through Douyin and Xiaohongshu, but this will deviate from the travel market in Thailand.
On the other hand, Chris mentions that the approach to brand marketing for Gen Z differs significantly from Millennials, particularly in the hotel industry. Gen Z is more brand disloyal and more eager to differentiate themselves through unique experiences. They are digital natives who expect seamless online interactions, making it essential for hotels to have a strong presence on social media platforms like Instagram and TikTok. Gen Z values authenticity, meaningful experiences, and sustainability, choosing brands that align with these values over others. They are attracted to hotels that offer unique, immersive experiences and are transparent about their practices.
Influencer collaborations and user-generated content that are authentic and relatable can effectively engage Gen Z. In contrast, Millennials, while also valuing experiences, tend to be more brand loyal if they perceive genuine value and personalized rewards. They appreciate loyalty programs and bundled experiences that offer all-in-one packages. Millennials use a broader range of social media platforms, including Facebook and Twitter, for travel research and bookings. They are also more likely to be influenced by peer reviews and testimonials.
The rising need for travel companies to leverage social media marketing to attract Gen Z and Alpha travellers (Image Source: freepik)
Overall, while both generations are digitally savvy and value experiences, Gen Z's focus on authenticity, sustainability, and unique experiences requires a more tailored marketing approach compared to the more value and loyalty-driven strategies that resonate with Millennials.
Engaging Gen Z and Gen Alpha
For Chris, to effectively engage Generation Z and Generation Alpha in the hotel industry, a digital-first approach is crucial. These tech-savvy generations rely heavily on mobile devices and social media for travel planning, making a strong online presence essential. Hotels should focus on mobile-optimized websites, active social media profiles on platforms like Instagram and TikTok, and strategic listings on travel platforms.
Interactive and visual content is key to capturing attention. Video content, gamification elements, and user-generated content can significantly boost engagement. Authenticity and value-driven messaging are equally important, with a focus on sustainability, transparency, and unique local experiences resonating well with these environmentally and socially conscious generations.
Influencer partnerships, particularly with micro-influencers, can build trust and provide social proof. Personalization through AI-powered services and highlighting tech-forward amenities appeal to their desire for seamless, technology-integrated experiences.
Lastly, offering flexible, value-focused options is crucial. Gen Z and Gen A appreciate competitive pricing, clear value propositions, and flexible booking policies.
Cheryl’s opinion resonates with Chris, as she mentions that catering to these groups of young travellers really depends on the core brand value. For example, McDonald's brand story has remained consistent through the decade and captured loyalists equally from both Gen Z and the Millennials.
Different factors that Generation Z shoppers consider before they hop on every purchase according to Rakuten Insight
The Future of Brand Marketing
Cheryl mentions that Gen Z receives a lot more information and content these days compared to the other generation, and they are quick to attune to what is authentic vs what is AI generated. If the content is not proven to be authentic, they will likely swipe pass and get distracted by other more attractive visuals.
Chris states that Gen Z and Gen Alpha are open to AI's role in enhancing marketing efficiency. For Gen Z, AI should enhance personalization and maintain transparency, while for Gen Alpha, the focus should be on finding the intricate balance between embracing AI and producing genuine, human-centred content.
Our Contributors:
Cheryl Ng, Country Director, Singapore, Rakuten Insight
Chris Legaspi, Chief Commercial Officer, Archipelago International