The millennial generation is set to take over as the most influential generation in American history. According to the U.S. Census Bureau, there are more millennials than there were Baby Boomers. With such high numbers, it’s inevitable society will bend to meet the needs and desires of such a large and influential group in order to better appeal to their emerging spending habits.
We already see it happening in the hotel industry where the major hotel companies are rolling out new hotel brands to better meet the needs of the newest generation of traveler.
Digital Natives vs. Digital Immigrants
But it’s not just the size of the generation that is important; it’s the way they interact with the world and each other. Millennials have matured at a time unprecedented in human history. Technological change has affected them in ways unseen with previous generations. Commonly called digital natives, this generation, and their younger Generation Z brethren, have never known a world without the internet. They’re more intertwined with technology, have an inherent understanding of how to use technology, and have different goals for how it’s used. Older generations, called digital immigrants, must adapt in this new digital era to utilize the myriad new technologies being commonly utilized by the mainstream.
Behind the scenes, the hotel industry and the hotel technology serving it are seeing a similar shift. A reflection of shifting generations, millennial hoteliers have reached the age where they’re taking over hotel ownership in ever increasing numbers. Moms and dads are passing the torch to daughters and sons, and based on conversations we’ve had with newer, younger hotel owners,
Independent Hotels on Rise
Younger people are often looking to develop more independent hotels. It allows them to put their personal imprint upon hotels while playing into the boutique hotel trend. As millennial ownership is growing, so is independent hotel ownership. According to a recent United States Construction Pipeline Trend Report from Lodging Econometrics (LE), 21% of the has no brand affiliation. One contributing factor is that independent hotels are outperforming branded hotels according to data from . For example, STR notes that in 2015, independent hotels grew RevPAR by 7.1 percent, while branded hotels grew by only 5.9 percent.
When operating hotels, many younger hotel owners generally prefer interacting with technology in ways they’re accustomed. Rather than using legacy systems, younger folks are more interested in using products better suited for running an efficient and effective business. Tools with modern PMS software are generally a better reflection of how operators want to interact with their businesses compared to legacy systems.
Increasingly, hoteliers are turning to hotel property management software that leverages the power of mobility to help increase operational efficiencies. Hotel operators know the more employees can get done, the more money potentially flows to the property’s bottom line.
Here are some critical features a modern and robust hotel PMS has that engage mobility. Call it «hotel in the cloud.»
• New hospitality management software beams information to and from a housekeeper’s mobile device. This can result in finding more efficiencies for hotel housekeeping by eliminating phone calls to and from the front desk.
• A quality web based property management system can provide an on the run look at front desk activity, current state of the business and more. It can even run critical reports. This mobile dashboard allows management to get out of the office and run their business even while off property. That means owners can run things more quickly and efficiently since they needn’t be on site to complete tasks. [
• A Mobile Guest Engagement gives guests control by allowing them to pick their own room, which gives hoteliers valuable access to data to help them get to know their customers better and learn what customers really want for their specific hotel experience.
• Millennials generally prefer to work with software featuring more modern interfaces they are already accustomed to utilizing daily. Older, legacy systems require a different approach that Millennials are generally unfamiliar or uncomfortable using.
The good news? No matter one’s age, now is the perfect opportunity to leverage the mobile capabilities and data mining of a smart, cloud based, hospitality management software to help hoteliers run a more effective and efficient business. It can also help guests feel more welcome, and help make some staff functions easier, which in turn can benefit the property’s brand.
