Gen Z Is Influencing Hotels to Rethink Strategies: A Skift Deep Dive
25.08.2023 - 13:59
/ skift.com
/ Fred Lalonde
This deep dive will investigate the factors likely to remain part of Gen Z long-term. We expect next-generation travelers to shed some youthful traits as they become parents or otherwise expand their lives. So we’re only interested in their traits that will last over time.
“Everything you think you know about millennials? Concentrate it tenfold, and you get Gen Z,” said Fred Lalonde, co-founder and CEO of Hopper, an online travel agency with an outsized share of Gen Z customers. “Other generations are a continuum, but the millennial-to-Gen-Z span is a cliff. The next generation is completely detached from many old habits.”
The caricatures of Gen Z are well-known — and easily dismissed. So Skift spoke to experts and some Gen Zers themselves to paint a (hopefully) nuanced, sophisticated picture.
Most definitively, Gen Z grew up in an age of always-on broadband internet. That will likely mold their assumptions and expectations for years to come.
Another trait likely to define Gen Zers, even as they age, is a craving for community. Post-millennials are about twice as likely to say they feel lonely as Baby Boomers. That’s remarkable, given that youth is a peak time for socializing. So hoteliers can fill a hospitality gap by embracing these individuals as they are, welcoming them, and creating ways for them to connect.
Another theme: Gen Zers in many countries are likely to have a relatively low rate of independent living compared to earlier generations. The inadequate housing supply in many cities is a problem that won’t be solved overnight. As people in this demographic start families later or buy homes later, they may retain their lifestyle of owning less and experiencing more.
Yet another trait likely to endure is the post-millennial consciousness of the climate emergency. Gen Z is relatively the most exposed of all of us to the forecasted perils of the coming decades. Surveys suggest that this demographic cares more about sustainability than any past generation.
They see the physical and digital worlds as a seamless spectrum, expect connectivity at all times, and crave authenticity. While it’s not surprising that social media is a key resource for them, there are nuances in how Gen Zers use social media that many hoteliers miss.
“With millennials, there’s a lot of representing your own image on social media, which is very much a one-way street,” said Margaux Constantin, a partner in McKinsey’s travel, logistics and infrastructure practice. “With Gen Z, what we’re seeing is they’ve been a little bit overexposed to this one-way social media communication. So they’re much more about dialogue.”
Gen Zers typically hunger for what comes off as genuine because they crave authentic emotional and