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Hotel Advertising

Hospitality sector gears up for Q4 rebound and ‘Generation Clean’

Buymedia has worked with the top hotels for over 5 years. There have been many changes to the hospitality industry in that time, but none as cataclysmic as we have seen in the last 5 months.

How can hotels adapt when they are forced to close down? How can hospitality businesses pivot when their pipeline of revenue has been severed?

Yet these heroes of hospitality have come through finding new revenue streams, innovative procedures while continuing to bring amazing experiences to their guests.

We’ve been honoured to be part of that journey, helping our hotel clients find new markets, build new customer profiles and discover new ways and channels to reach these customers.

This is part of a series of investigations into how the industry is changing, how the habits of the hospitality consumer is changing and what they now expect from hotels.

This article from the World Advertising Research Centre in July 2020 explores new hospitality trends, the outlook for the future and new customer personas and expectations that are emerging.

Despite being one of the hardest hit industries, the hospitality sector remains positive in its outlook, anticipating recovery to begin as early as Q4 of this year.

According to new research by Amadeus, 80% of Hospitality Sales and Marketing Association International (HSMAI) members expect to see signs of hotel recovery in their primary markets by Q4 2020.

Asked what they believe will be the most effective strategy in recovery plans, communicating updated safety measures (54%) topped the list while targeting the correct market segment came second (25%). Few believe special promotions (7%) or discounted rates (4%) would be effective as markets reopen.

The study also found that 76% of HSMAI members are starting to prospect new types of account business and traveller segments where they were not previously focused.

A new global customer segment of travellers is also emerging. Dubbed ‘Generation Clean’, this new cross-generational segment of traveller prioritises health and hygiene when hotel shopping in this new era. From the survey, 38% believe a change in health and safety will be the most significant trend during crisis recovery, and a further 47% also see this as the most impactful long-term trend.

Another trend is one of experience over convenience as the influx of online events now available is a clear indication that the experience economy is here to stay. After months of confinement, consumers will focus on trips that deliver meaningful experiences. Hotels have an opportunity to build packages for different traveller types, from the solo adventurer, couples, groups – and beyond – that appeal to this need.

The research also found that the key to recovery for some hoteliers will be to branch into new priority markets, given the significant impact that COVID-19 will continue to have on destination choices in the near and mid-term future.

“Previously, New Zealand was not a key market for our property in Australia. Now that it’s one of the first markets that may offer booking potential, we are taking the time to understand booking behaviour and buyer personas and build strategies around this,” said Helen Radic, HSMAI marketing advisory board member, APAC.

Many acknowledge that hoteliers will need to significantly adapt their business models to capitalise.

If you would like to get advertising insights that are specific to your hotel, customers and geography please drop us a line and we’ll be happy to help – production@buymediahq.com.

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