Noesis, the hotel investment advisory firm, Noesis recently launched a report titled, “Millennials– How they influence the Travel and Hospitality industry”. The report revealed the evolution of the hospitality and travel industry with regard to millennials when compared with different countries.
As per the findings, on average, millennials in China and Singapore take four vacations within a year for a duration of four days. While the millennials in India and Indonesia would take only two vacations for a duration of five days. Most of the millennials use OTAs to book or plan their vacation. The millennials in China are more brand conscious compared to those in India, Indonesia, and Singapore who travel more for an experience.
With a median age of 28.4 in India, millennials have already become the primary breadwinners in their homes and would account for 75 percent of the workforce by 2030. “Here the hospitality industry has a major task for the next couple of years to adapt and change to this ever-demanding generation where there is no single solution,” Nandivardhan Jain, CEO of Noesis commented.
Taking cues from the report, Jain shared a few suggestions for the hospitality industry. “Millennials are tech-savvy, they are well connected and use many Internet of things (IoT) in their daily lives. They are likely to spend less time in their rooms as compared to the previous generation. Therefore designing the room, using optimum utilisation of space is of utmost importance. Apart from that they also work remotely and need a place to work. From the dining point of view, they extensively use online platforms such as Tripadvisor and Zomato for reviews. These reviews help them decide what to eat and where to eat, it can be a takeaway or a good dining experience,” he commented, adding that adventure sports, nature trails, local experiences, and recreational activities are on their to-do list.
Globally, millennials roughly account for 23 percent of the world population. While in India, millennials are around 34 percent which is 440 million of the country’s population. Due to steady advancement in their professional careers, higher disposable income, and flexible work hours, they have more spending power. Hence they hold great potential for the travel and hospitality industry.
The report also showcased how the hospitality industry is adapting itself to accommodate the millennial segment. Some of the well-known brands have already started operating specifically targeting millennials. Moxy is a millennial hotel by Marriott, similarly, Tru is developed by Hilton, 25hrs by Accor, and Indigo hotel by IHG.