BRAINTRUST, the Spanish multinational consultancy specialising in tourism, among other sectors, has analysed the impact that the arrival of new generations of travellers is having on the hotel industry.
"There is a change in the concept of accommodation with the new generations. Beyond location and price, young people understand accommodation as a means rather than an end. This type of traveller seems to care little about the additional services offered by a hotel or the personalised treatment. Living the destination as a local attracts the attention of these new generations that will force the hotel industry to rethink and reconvert its offer", says Ángel García Butragueño, Co-Director of the Tourism Barometer and Head of the Tourism and Leisure Division at BRAINTRUST, which advises tourism companies on the knowledge of travellers and how they can maximise their strategies and take them to the bottom line.
33% of young people's budget is spent on accommodation, which they use as a means and not as an end in itself.
Accommodation is the category that generates the most spending among NextGen travellers, although much lower than other travellers. The average NextGen spend per trip is €683, of which 33% is spent on accommodation.
The new generations of travellers are always looking for the lowest price, they buy online, 52% book their accommodation from their mobile phones (compared to 36% of previous generations), they manage their consumption through apps and they don't need special treatment when it comes to being attended to.
Being less loyal to accommodation (54% compared to 63% of the over 40s), their choice is based on location, communication with places of interest and the possibility of enjoying different experiences, which leads them to be attracted by less traditional spaces than hotels, an aspect that shows that other types of accommodation, such as tourist homes, are here to stay.
Well-connected accommodation offering experiences
While city and beach hotels remain the most popular types of accommodation among travellers in general, NextGen travellers are more likely to book hostels, holiday homes, bed & breakfasts and hostels than older travellers.
Eco-friendly accommodation and gastro-hotels are also more interesting for NextGen travellers, and also make more use of adult-only concepts, for example.
In contrast, restaurants or additional hotel services are less relevant for young people.
Technology a key element
As expected, the young people surveyed by BRAINTRUST declared that technology is a fundamental element in their lives. Thus, 67% say they buy products online, 63% watch series and films through streaming platforms, 58% make use of apps, and almost 30% organise their lives through electronic devices that make their daily lives easier.
This propensity of Millennials and Z's to use technology is also reflected in the organisation and management of their trips, being the ones who make the most use of mobile phones, whether to look for restaurants, addresses or places of interest, as well as to share their experience on social networks.
The new generations are a public that travels throughout the year and help to deseasonalise the economy.
One of the objectives of the tourism sector in Spain is the longed-for deseasonalisation of travel, which used to be concentrated in very specific periods, such as summer, Easter and Christmas. The study conducted by BRAINTRUST reveals that the young public is one of the great allies to achieve this deseasonalisation, in fact, only 28% of their trips are made in the months of July and August, not falling any month of 5% with percentages close to 10% in traditional valley months such as October, March, June or December.
It is therefore a clear target for tourism companies that should be taken into account and be the subject of their communications, although they should transform them for travellers who are more promiscuous and less loyal to brands, and more frequent users of blogs, forums and social networks.
For José Manuel Brell, Co-Director of the Tourism Barometer and Head of Studies and Quantitative Models at BRAINTRUST "The interest in new accommodation models is determined by the search of these young people to experience something different on their trips. Differentiating with elements that go beyond price, creating new and clearly experiential concepts, where the inclusion of the traveller in local communities, the use of technology in the management of the trip, or the ease of booking and payment, will be key to the success of the hotel industry in the coming years".
