Baby Boomers and even Generation X are increasingly perplexed by the changes seen in the spending habits of the new millennial generation. Many companies are reinventing themselves to appeal to a generation who are projected to have an annual spending power of $200 Billon US Dollar within the next five years, and companies are actively seeking ways to capture their interests (and wallets).
I recently transitioned from the fashion industry to the hospitality industry. I was curious to find out how the future looked in terms of spending trends and the findings are promising!
According to a recent study millennials are 39% more likely to spend their earnings on experiences, rather than objects (such as expensive clothing, jewelry, cars, etc.). This is great news for the hospitality industry as travel is increasingly important for millennials, although at the same time the established hospitality industry will have to adapt fast to be part of the change as we, the millennials, are reinventing the “where to stay and where to sleep experience” so that we pay less and get to visit more new and exotic places. This is said to be frustrating for the older generations as this is going against consumer patterns which our economy have been playing off for decades.
Being a millennial myself, it seems that I am the living proof- I rarely spend money on expensive shoes but would much rather splash on a nice holiday, staying at a top hotel and spend money making memories, rather than an over flowing wardrobe!
This is why, we believe its important for the hospitality industries to invest in their staff, the hotel interior, the service and so on to really make the most out of this exciting new trend.