Gen Z’s Impact on Hospitality: Redefining Hotel Experiences
Generation Z is transforming various industries, including travel and hotel design. Hotels are adapting to Gen Z’s preferences, which are more complex than they first seem. While Gen Z is budget-conscious, they are not solely driven by price. According to a Booking.com survey shared with Newsweek, 84% of American travelers aged 18 to 34 are willing to spend more on strategically located accommodations, and 86% would pay extra for comfort. Comfort and convenience are key for 90% when considering a trip’s value, while 91% emphasize balancing quality and price. Despite the focus on budget, 90% believe that memorable experiences justify expenses.
Research in Hospitality Management indicates that authenticity and personalization are vital in creating experiences desired by Gen Z. Environmental and community values are significant considerations for this group. The Otherwander Soho, a pod hotel in London, aims to meet these expectations, appealing not only to Gen Z but to a broader Gen Z psychographic. Fredrik Korallus, CEO of Otherwander Soho, highlights that design is crucial. Customers seek interesting, comfortable, and shareable design, emphasizing authenticity and local connection, drawing inspiration from London and Soho.
The Otherwander Soho offers a cutting-edge digital experience with online check-in and a QR-enabled digital key, the Wanderpass. This digital journey includes vending facilities for food, drinks, and amenities, catering to consumers who expect seamless digital experiences. According to a University of Nevada study, guest-facing technologies like self-check-in are important for Gen Z, who are willing to pay more for these conveniences.
Aiming to offer luxury touches at affordable prices, Otherwander Soho provides community, comfort, and privacy. Shared bathrooms feature terrazzo vanities and spacious shower cubicles with rain showers, complemented by complimentary soap, shampoo, hair dryers, slippers, and towels. The ‘nests’ offer fresh, filtered air, individual temperature controls, and mood lighting with effects that shift with the time and mood of the space, creating a futuristic atmosphere.
Interior spaces provide total black-out, sound dampening, and fresh air for exceptional sleep experiences. Communal social spaces, called ‘huddles’, facilitate mixing, mingling, working, and relaxing, popular among target customers.
Korallus’s research shows younger travelers seek stylish, impactful design that is visually pleasing and shareable on social media. Hana Ben-Shabat of Gen Z Planet points out Gen Z’s cost-consciousness. They prefer spending on location, design, and community spaces, favoring activities and experiences they value. Therefore, hotels should focus on enhancing aspects Gen Z appreciates while keeping costs affordable.
Andrés Serra from Optimise Travel emphasizes Gen Z’s desire for control over booking and check-in, quick entry, multiple device charging, and clear expectations. Health and wellness are priorities, leading to minimized plastic use and free filtered water.
Gen Z values social justice, including environmental concerns. Marta Soligo of the University of Nevada highlights Gen Z’s interest in environmental impact and minimalism in travel choices. Hotels increasingly pursue sustainable standards to appeal to Gen Z travelers.
However, hotels must address practical needs. Serra notes design and social spaces can’t compensate for poor ventilation, noise, or inconvenient bathrooms. Christina Lindley of VPRG Consulting stresses the importance of comfort, safety, and privacy. She warns against assuming Gen Z is a homogenous group, as their travel preferences vary.
Melissa Chenggis from The Edit emphasizes that affordability shouldn’t mean sacrificing design or experience. While communal spaces add value, private areas must be highly functional, with intelligent storage, privacy, and noise control. Chenggis advises providing control to travelers, offering well-designed private and communal spaces at a price that aligns with space compromises.