Hospitality Today Summer 2018 (#39) - Page 18

30 % of Hotel and Restaurant revenue now comes from the millennial generation
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EatingOut

| Hospitality Today | Summer 2018

30 % of Hotel and Restaurant revenue now comes from the millennial generation

News & Trends

Hoteliers and restaurateurs estimate that a third of their annual revenue now comes from the millennial generation , according to the latest research from leading international law firm CMS , in a report out on July 4th , Finding the balance : human touch vs high tech .
With the majority of millennials ( 60 %) either living with their parents or as part of a couple with no children , their spending power on holidays and eating out ( 26 % of their total income ) is of huge significance to these industries . On average millennials go on 2.5 weeks holiday a year and eat out at a restaurant four times a month . Research conducted by FTI Consulting on behalf of CMS in May 2018 surveyed hotels and restaurants in 10 countries worldwide and over 5,000 millennials in 18 countries , on the effect of the millennial generation on their industry .
Hotel operators looking to target millennials , locally and internationally , need to “ focus less on family-style accommodation and more on romantic getaways or rooms aimed at travelling friends ”. Supported by digital media , millennials are on the constant look out for attractive offers and deals .
Thomas Page , Head of Hotels & Leisure at CMS , said : “ The significant spending power of millennials is having a big impact on the sector . Millennials already account for 28 % of revenues for hotels and 29 % for restaurants , according to our research . But in responding to the most tech-savvy generation yet to reach adulthood , hotels and restaurants need to be wary of stereotypes . There is no “ typical millennial ”, and for many the human touch still trumps high tech when they ’ re considering where to stay or eat .”
Nevertheless with 90 % of respondents believing that their businesses are underestimating millennial expectations of the hospitality sector , there is a rush to ensure that they are future proofing their businesses ( 83 %).
When millennials select a hotel or restaurant , the tech available at a venue ( 4 %) ranks lower than traditional elements such as cost ( 38 %) and location ( 17 %), even for business travellers .
However , tech does play an important role with the most popular hotel tech being highspeed WiFi ( 66 %) an app for hotel services ( 49 %), music streaming ( 37 %) and an in-room tablet for room controls ( 35 %).
18 EatingOut | Hospitality Today | Summer 2018 News & Trends 30% of Hotel and Restaurant revenue now comes from the millennial generation Hoteliers and restaurateurs estimate that a third of their annual revenue now comes from the millennial generation, according to the latest research from leading international law firm CMS, in a report out on July 4th, Finding the balance: human touch vs high tech. With the majority of millennials (60%) either living with their parents or as part of a couple with no children, their spending power on holidays and eating out (26% of their total income) is of huge significance to these industries. On average millennials go on 2.5 weeks holiday a year and eat out at a restaurant four times a month. Research conducted by FTI Consulting on behalf of CMS in May 2018 surveyed hotels and restaurants in 10 countries worldwide and over 5,000 millennials in 18 countries, on the effect of the millennial generation on their industry. Nevertheless with 90% of respondents believing that their businesses are underestimating millennial expectations of the hospitality sector, there is a rush to ensure that they are future proofing their businesses (83%). Hotel operators looking to target millennials, locally and internationally, need to “focus less on family-style accommodation and more on romantic getaways or rooms aimed at travelling friends”. Supported by digital media, millennials are on the constant look out for attractive offers and deals. When millennials select a hotel or restaurant, the tech available at a venue (4%) ranks lower than traditional elements such as cost (38%) [][ۈ MJK][܈\[\][\˂X\YKXYو[ Z\\H]TZY8'HYۚYX[[[\قZ[[X[\][HY[\XۈHX܋Z[[X[[XYHX[܈ Hو][Y\™܈[[ IH܈\]\[Xܙ[\\X\ ][\ۙ[H[X \]H[\][ۈY]XXY[ [[\]\[YYH\Hق\[\\ˈ\H\8'\X[Z[[X[8'K[܈X[HH[X[X[[\YX[^x&\HۜY\[\H^H܂X] 'B]\X\^H[[\ܝ[B]H[[\[XZ[Y BYYQH JH[\܈[\X\Š IJK]\XX[Z[ JH[[[\BX]܈H۝ IJK