Hotels spending fortunes on room renovation programmes and the latest in-room entertainment systems might want to think again.
Gen-Y travellers are not that interested in the room and prefer to hang out in chic bar and lobby areas where they can socialise using their technology of choice, both on and offline.
So says Rob Davidson, a senior lecturer at Greenwich University School of Business, speaking at the BDRC Continental Hotels Insight Forum 2011 on Gen-Y traveller likes and dislikes.
They don’t particularly want to deal with a person and are happy to check in online.
The savviest of readers might be thinking, so what, but, according to Davidson, much of the audience at the event was frantically scribbling down notes.
The point he was stressing is that Gen-Y is different – in how they regard hotels and how they consume hotel products.
“Every industry is trying to get inside their heads. They are commonly regarded as quite high-maintenance but we can’t ignore them because they are emerging as the biggest cohort in society.”
Marketing channels also play a huge role in terms of recognising Gen-Y and treating them differently because they are more likely to listen to each other than listen to what previous generations are telling them.
“They are the most connected generation ever and not impressed by hotels with a few wifi hotspots. They want it everywhere – the same as fresh air.”
Marketing messages need to be short on words and big on images, as that’s how they have been brought up.
While the hospitality industry has understood it has to adapt, it is struggling to achieve a balance between Gen-Y and the three other generations of customers travelling for business and leisure.
Davidson’s insight was affirmed by a panel of Gen-Y travellers who highlighted the importance of technology, chill-out areas and trendy design elements.
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About Linda Fox
And we want the wifi for free…. nowadays.. I am only booking my hotels based on free wifi availibility … Btw, i am 61
I am the marketing director and one of the co-owners of a family owned hotel in Branson, Missouri. We realized a few years ago that we needed to offer Free WiFi to our customers as one of our amenities. Seeing these postings makes me realize we are doing well in this area! It is a tough market, and maybe I should make more of the fact we offer this to our customers!
As a retired teacher that went on many conferences with and without my students all over the country, I was always so aggravated to find that we had to pay for the WiFi at the four star hotels where our conferences were held.
I am hearing that more of these higher priced hotels are charging for coffee, housekeeping, and other amenities. Being an independent hotel in a very competitive market, we wouldn’t think of charging for these items! I am realizing more and more what a great value our hotel is in the Ozarks!
Pay-for-use wifi is tackier than a coin-op massage bed.
And less attractive than a giant stain on that faded shag carpet.
..and gen-x’ers as well. Wifi is my top priority for hotel booking.
Wow,
Believe me when I say that it is not just because I am from Silicon Valley… do I appreciate this post soooo much. I have been working at this assumption for 6 years now at my own business in the the hub of the up and coming business district in Guadalajara, Mexico! People that I suppose are my competition.have nothing to compete with my business ready B&B or whole house rental. I do hear however that “people are on vacation. Why would you possibly want a computer…let alone the fastest wi-fi available and few phone service…..or a TV?? ARE you crazy?” Yes…from the same people!!!
The reason is…..it costs too much!!! Yes it does. But it is worth every penny, in my humble opinion. I get my best guests who are well connected with smart phones ( if they don’t wish to use my free local cell phones) fast wi-fi,….and yes…smart TV’s. Some younger people like movies too….just in HD and great videos they have on there smart phones. So much more for longer business or tourist stays!
Thank you! I don’t feel like I am wasting my money. I live in Mexico…where people are afraid of. I understand the border areas…but this is the central highlands…hardly a drug route at 5200 feet. It is a perfect climate..and we are well prepared for the Pan American games 2011 in 12 days…all 42 countries that will want to be well connected! I have but a few opening left because it is their first question…location (in the middle of all new venues) and “modern connectivity to the rest of the world! Got it.. One HAS to have it in this century!! And when you see where I live and how lovely the west side of the city is, a 15 minute taxi for 4 US dollars to see the great historical sites of down-town is well worth the money..considering my rates are lower than the much less expensive down-town core. Thanks again for not making me feel like I am wasting my money on “yuppie things”!!!!
James Dickinson
http://www.dickinsonguesthouse.com
http://www.facebook.com/dickinsonguesthouse/tapatia135
http://www.airbnb.com/dickinsonguesthouse B&B
http://www.tripadvisor.com/Dickinson Guesthouse B&B
There’s a lot more to a hotel stay than just free wifi!
The Appraiser
Hotel Evaluations, Sydney Australia.
I agree that a hotel could offer much more than just only Wifi, but when we will arrive in March 2012 in Sydney after 24 hours travelling by plane, i am just interested that my hotel has to offer free Wifi in order to stay in touch with home, before we are off on our Australian circumnavigation cruise with the Dawn Princess…
I totally agree with this post. That’s the reason we only work with hotels that provide free wifi. This is as high on our requirements list as the English level of our guides. But the good thing is all good and high quality hotels provide free wifi as a standard no matter how remote they might be.
Have hoteliers not heard of “cloud computing” and virtual offices? It’s not just a generational issue. Most new wealth in our digital, creative, knowledge economy is being created by small, footloose businesses many of which are virtual. Walk into any Starbucks and you will see nimble, agile, adaptable entrepreneurs sipping lattes while WORKING. At certain times of the day, they are quieter than the public libraries. They have created their companies by outsourcing and their social network is scattered across the globe with many services being provided by BRIC and other rapidly developing economies. It is this activity that will accelerate demand for tourism.
Wifi is as essential a piece of infrastructure as electricity. And what hotel do you know of that still uses whale oil lamps.
Conscious hosts are those that are awake, aware, and alert and have moved out from behind the front desk long enough to realise what today’s traveller wants and needs. Connectivity is now what makes the world go round.
Free – secured – WIFI in all hotels: that’s all I have to say!
Totally agree with this article. We find that more and more guests expect free internet during their stay and all Best Western hotels offer free internet access.
In this age of technological reliance free wireless internet should become a standard absolutely everywhere, and not just at Hotel de France
I worked in a luxury hotel where the very wealthy older generation owners set the wifi price. It started out at $14.95 per device per day but was later revised to $7.95. Guests paying upwards of $800/nt were rightfully outraged when told their family would be stung per smartphone, laptop and iPad. The majority of the front office team was so embarrassed by this that they’d share the VIP access code to any guest who seemed nice and trustworthy enough!
Hotels themselves are very slow to realize this and cater to their future clients – I’m seeing younger travellers especially annoyed about wi-fi charges in already expensive hotels. One of the major features of our service is the ability to filter out all the places without free wireless – so far it’s a hit and will only become more important in the future.
This is definitely true. Even the traditional ryokans (Japanese inns) that Japanese Guest Houses represent are starting to offer free wifi. Of course it seems a little odd to connect to the internet in a 300 year old building but such is the future.
I checked into a 4 diamond hotel that advertised free-internet access in every room and discovered a router with a long LAN line attached to it behind the TV set. Several of my colleagues were arriving in the same hotel the next day so I contacted one of them and had him bring 4 old routers with him. For at least that week the entire hotel was a Wi-Fi hot spot. Not having reliable, free, Wi-Fi service goes beyond one generational market but, is simple bad for business and embarrasses your brand. Interactive television services(ITS) revenue is the next cost center to take a major hit with 4g unlimited devices coming on line. This is why companies like Direct TV are partnering with Block Buster On Demand to keep ahead of the competition. If your brands ITS is not staying a head of the curve forming relationships with NetFlix or Block Buster On Demand there time will be coming to an end. ITS revenue sharing will come from pop-up add revenue rather than pay-per-view. Guests expect the same amenities they have at home on the road without having to give thought to them.
I agree that charging $12 per 24 hours for WiFi is a big slap in the face. I would rather pay $15 for a martini (and I will buy multiple) than be charged anything for wifi. Something about my generation believes that wifi is a right; apologies for the entitlement but don’t shoot the messenger.
I’ve always found it strange that the upper upscale and luxury properties charge a daily rate for wifi while a more midscale property will almost always have wifi included.
I’m right on the cusp of Gen-Y and do not see the demands of the upcoming generation will be easier. The saving grace for hotels that don’t want to provide free wifi is that soon most of us will have tablets with 3G and it won’t matter where we are sitting.
I’m 50, and I want free, fast WiFi in my hotels. Period.
Yes, of course I’ll make exceptions in remote areas. Duh. But that’s not where the problems are. The problems are at the “full service hotels” where I have to schlep myself down to the lobby or to some coffee shop to get my work done.
What a way to make your guests feel welcomed, Mr. Hospitality Industry, along with those obnoxious US$5 bottles of water you leave out. No, I am not on an expense account, nor am I a fool.
I could give a rat’s patootie about pillow menus (there are too many damned pillows on the beds at most swank hotels, anyway, and they just get taken off the bed and piled on the floor. Great sanitation move, by the way.)
Paying for wifi is a crime. Paying top dollar for a hotel room AND wifi on top of it is a capital offense.
Hotel Industry is generally slow to adapt and it is not surprising to see this in the case of WiFi.
Keeping in mind that Hospitality industry is huge and there will always be early adopters, the ones who who adopt in mid stage and then the ones who are always behind. It takes time to steer such a big ship.
Keeping track of the what the customer wants and implementing the solution has to be quicker so guests are not inconvenienced and the satisfaction levels are high.
to ask for free wifi is short sighted – free basic wifi, yes, but not free wifi in general…
We are a hotel booking agency and more and more of our clients are requesting hotels that have free WiFi. Even if it’s for a couple of hours to get the main bulk of emails done.
I can understand why some hotels charge as guests can download or stream large amounts of data such as tv programmes whilst staying away, but the majority just want to check their email or keep in touch with home. But surely something can be done for those downloading large amounts of data?
Technology has come so far surely one of the WiFi providers can look into bandings dependant on the amount of data downloaded and charge accordingly?
Ok well interesting comments, and some sound, quite frankly a bit, ahem, spoilt…Wifi isn’t a human right. Here are the 30 declared by the UN – a wee bit more important that wifi..
http://www.un.org/en/documents/udhr/
Keep it in perspective.
Suppose a question I would ask is where do hotels make money from?
Am assuming it’s something like…
1. Cost of room/yield management
2. Room service
3. Bar/hotel shops
4. Hotel restaurants specially b/fast
5. Porn
6. Wifi
7. Hotel movies
8. Laundry
9. Concierge services
Now that order isn’t set in stone and I’m sure each property is different, but you get the general gist. So if you take out the wifi income, what replaces it? Am assuming it goes straight on the cost of the room? Is that how a hotel would do it?
My point being, is that you end up paying for it one way or another…
ps and if you want to talk outrageous charges you see the rates on the QM2 (a big boat thing). Eye watering and so slow…
Stay at B&Bs! We’ve offered free wifi forever. And we don’t charge for water, or cookies, or parking, and our windows open. And breakfast is going to be more than a dry muffin and a styrofoam cup of mediocre coffee!
Wow sounding spoiled for saying we want free wifi when we travel? How do you make up for that loss of revenue if you take that away? How about the loss of revenue when the guests book elsewhere since you DON’T offer free wifi, how do you make up for that HUGE loss of revenue. Jeesh, that seems obvious!