Hotel CEOs talk Wi-Fi, Millennials and mobile keys
Travelers don’t just want to sleep in hotels anymore. They want to work, eat, drink, socialize or just keep to themselves with their electronic devices there.
Hotels are finding new ways to adapt, including experimenting with technology, design and amenities.
USA TODAY assembled five top hotel executives last month at the Americas Lodging Investment Summit in Los Angeles in the L.A. Live JW Marriott hotel to discuss these changes and challenges. Participating in our fourth annual roundtable were: Wyndham Hotel Group CEO Geoff Ballotti; 21c Museum Hotels President Craig Greenberg; Hyatt Hotels and Resorts CEO Mark Hoplamazian; InterContinental Hotels Group CEO Richard Solomons; and Preferred Hotel Group CEO Lindsey Ueberroth.
USA TODAY’s Nancy Trejos moderated the discussion. The text has been edited for clarity and length.
Q: It seems that everyone is trying to go after Millennials, those born in the 80s through the early 2000s. Why go after a group of people who don’t really have that much purchasing power yet?
Ueberroth: We actually did a study on Millennials. They are definitely a growing powerhouse, but to build a brand around Millennials is an interesting concept. The reality is, they are not spending their own money. They are spending other people’s money right now. And they are influencing the Baby Boomers who have the time and the money to spend.
Ballotti: When you look at the four segments, they are the second fastest spending and the fastest growing. The research last year said the Millennials’ spend on travel grew 20 percent, which I don’t think it did in the Generation Xers or the Boomers. These people are spending our corporate money, and they are out traveling, and we need to market to them, and we need to appeal to them.
Q: Studies have shown that Millennials don’t actually have brand loyalties. So why do all this–create brands and social spaces and improve technology–if they are not loyal?
Hoplamazian: First of all, we are talking about an age group of 16 or 17 years in breadth. There is a big difference between how an 18-year-old is behaving and a 34-year-old is behaving. The idea of trying to create a brand around this group is really sort of curious. It doesn’t really make sense because, first of all, you need to stay agile and adapt as people evolve. That’s becoming clearer to all of us. I actually don’t agree necessarily that Millennials are not brand-loyal. They develop and evolve their brand loyalty in very different ways than the Boomers did or Gen Xers.