How to attract the millennial business traveller
By Brian Garvan
Uploaded 02 January 2018
Hoteliers should take advantage of recent research into loyalty schemes and consumer trends to attract and retain younger frequent travellers, says Brian Garvan of Wanup.
The hotel industry is continuing to develop at a fast pace and
remains a significant part of the UK economy. In London alone,
hotel performance in 2017 saw a year-on-year occupancy growth of
2.3 per cent forecast this year, according to research from PwC.
But for hospitality businesses to remain strong, hoteliers must
ensure they are delivering in the best way possible, to help both
attract and retain potential guests.
To understand the hospitality industry further, Wanup commissioned
an important research project earlier this year to unveil
previously unknown findings surrounding European business travel, a
key part of the market that is enjoying continued growth. Speaking
to 6,000 individuals across Europe who frequently travel for work,
we revealed significant trends surrounding millennials, loyalty
schemes and more. These findings are important for the hotel
industry, particularly hoteliers aiming to develop as the industry
grows and guest expectations change.
We recommend considering the use of loyalty schemes and improved
hotel experiences to ensure a property stays relevant and popular
for the hotel guest of tomorrow. Below we have included a few
simple steps for hoteliers to consider to best deliver to their
target audience.
• Traditional hotel experiences and perks
How can you make your hotel brand stand out from the competition?
Although guests differ in interest and age group, offering a
standard range of perks at check-in will help to engage and show
off the standard guest experience at your property. Free wi-fi is
always expected these days, but why not consider offering
complimentary breakfast and gym access, or late check-out for those
who arrived in the evening?
Our recent research has indicated that many travellers away for
business view themselves as 'bleisure' tourists, looking to take
advantage of where they're staying when not working. If your hotel
is based by the beach or near an active area, consider offering
in-destination perks such as a discount on surfing lessons or sun
lounger hire, or perhaps treat those travelling alone to a
complimentary drink with dinner.
These more traditional hotel perks will help spark a retained
interest in your brand. But to ensure retention of existing
customers and to secure new ones, hoteliers are advised to consider
a much more personalised approach for their guests.
• Take advantage of profile based loyalty
schemes
Our research found that 86.3 per cent of British business
travellers prefer experiences over hotel points from their loyalty
club, an important indication regarding how schemes should be
developing for customers. We also found that for guests to remain
brand loyal they are looking for personalisation, exclusive
experiences and less restrictions, which we feel independent hotels
and smaller chains often implement best as they know their customer
first hand.
Currently 24.3 per cent of travellers prefer to stay in a boutique
hotel when away on business, but this will significantly increase
in the future if more independent hoteliers can offer a more
personalised stay. Find out more about your guests to help with
this - Wanup's recent survey showed that almost 80 per cent of
European business travellers - a key target audience for many
hoteliers - would sign up to a loyalty scheme if hotels knew their
specific needs and offered a more personalised service.
Ensure you collect data about each guest when they sign up, with
questions including their age group, interests and which elements
of the hotel they are most interested in. You can use this
information to reward them with personalised perks during their
stay, such as tickets to local events based on their interests, or
to email those interested in particular experiences, such as a
wellbeing themed stay, to announce a new offer to help entice them
back to your property.
Loyalty schemes certainly represent the future of the hotel
industry, so ensure you're at the top of your game and using them
to successfully offer the personal services and perks your guests
really want.
• Digital perks
How do you best target the hotel guests of tomorrow, the
millennial audience? Consider creating an app for visitors to
organise stays at their fingertips. Wanup can reveal that 70.3 per
cent of millennials book transport via an app, compared to a lower
57.9 per cent of Generation X. A hotel app will encourage younger
guests to book this way and even favour your property over another
with a traditional phone/ website booking system.
If targeting millennials is your main priority, Wanup's research
suggesting that this age group would like to see entertainment
subscriptions as a reward from a loyalty programme should certainly
be on your radar. Technology is clearly driving forward an
important element of the future of the hospitality industry, so
ensure that your business plan supports this research to ensure
you're reaching out to millennial guests. For more insights you can
request a copy of the full Travel Loyalty report here.
