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In today’s evolving hospitality sector, catering to the needs and wants of Gen Z is crucial for sustained revenue growth. Born between the late 1990s and early 2010s, Gen Z represents tech-savvy and socially conscious people who value personalized experiences. To harness their spending potential, hotels must embrace an innovative revenue management strategy.
By adapting to digital interaction, unique offerings, sustainability, dynamic pricing models, and more, hotels can create a loyal customer base with Gen Z. It ensures both customer satisfaction and profits. Here are 9 key revenue management strategies tailored to captivate and retain Gen Z.
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Key Statistics
1. The Generation Z population makes up 26% of the global population.
2. 41% of Gen Z take action after seeing a sponsored ad.
3. 43% of Gen Z would take part in a product review.
4. 55% of Gen Z choose eco-friendly brands.
5. 97% of all Gen Z learn about new products from social media.
6. As per American Express Travel’s 2023 Report, 79% of Gen Z agree that they see leisure travel as a vital budget priority.
7. 84% of Gen Z would rather take a dream holiday than buy a new luxury item.
How the Travel Preferences of Gen Z can Affect your Revenue Management Strategies?
What is revenue management in hotels? What is the goal of revenue management? Want to cater to Gen Z? But what are the Generation Z traits? How can revenue management help you cater to Gen Z? The travel needs of Gen Z can affect revenue management strategies within the hospitality industry in many ways. Generation Z personality has distinct tastes when it comes to travel and hotels.
They cherish authentic values and look for unique experiences. During their visit, they prefer budget-friendly, highly-rated hotels, and enjoy outdoor activities like hiking, local cuisine, customs, and internet access. To capitalize on this, hotels must focus on curating authentic offerings, providing one-of-a-kind experiences, and more that align with their values.
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What drives Gen Z? Gen Z’s strong digital presence requires seamless online booking and regular updates on social media. Dynamic pricing is crucial as well, as Gen Z often hunts for deals and value-driven options. The eco-conscious nature of Gen Z means that adding eco-friendly practices and sustainable initiatives in revenue management is more helpful than you think. It will help to –
1. Increase bookings
2. Maximize revenue
3. Boost profits
4. Improve loyalty and much more…
9 Tips for Hotels to Create the Perfect Revenue Management Strategies for Gen Z Travellers
We have already discussed the revenue management history in previous articles. Here are 9 revenue management strategies for hotels aiming to attract Gen Z travelers and convert them into loyal customers.
1. A robust presence online
Do you know what your competition is doing? Are they offering low hotel rates? They are targeting Gen Z with low prices and similar amenities. Gen Z are digital natives and mainly rely on the internet to plan and reserve their hotels while traveling. Having a good online presence is vital for luring Gen Z to your hotel. Having a website, social media channels, and listings on travel websites improves your hotel’s reputation and visibility.
Gen Z will be more likely to be drawn to hotels that have a strong online presence and interact with searchers through social media platforms, websites, and travel blogs. You can highlight special deals and experiences that cater to the tastes of Gen Z as well, such as local culture, eco-friendly facilities, and more.
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2. Online hotel reviews
The old ways of making hotel bookings are no longer used and the revenue management process is followed. Gen Z is a digital native. Online reviews and feedback from other travelers on social media are more likely to be trusted than standard marketing.
Make sure your hotel has ratings and reviews on websites, social media, and other business listing platforms. Because more than 95% of Gen Z check online reviews before making a hotel booking. Looking for the best revenue management software? Use the best revenue management system like Revseed for OTA management. Everyone wants to stay at a hotel or eat at a restaurant that has received good internet reviews and ratings from previous customers, of course. Searching for the best revenue management software for hotels? Click below.
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3. Tech-savvy hotels
Most of us have grown up with tech and are used to having instant access to all required data. We cannot ignore the fact that most of us use the internet often. We must talk, get data, look for local attractions, and if required, be productive while traveling. Imagine being forced to spend the day in a new place without access to the internet! It’s difficult, let’s face it.
The usage of smartphones and other devices for different tasks is also more prevalent among Gen Z. So, hotels that offer fast WiFi, cutting-edge features like smart keys, and the ability to accept online bookings and payments are more likely to appeal to Gen Z. It is one of the top revenue management strategies.
[Suggested Read: How Machine Learning Affects Revenue Management and Pricing]
4. Work-life balance
Gen Z tends to object to being confined to a specific schedule or location for work and desires to be productive every day. Flexibility and work-life balance are vital to them. More people are choosing to work and travel at once as remote work options increase. Digital nomads are drawn to the freedom of working from any location while also getting to know other cultures.
If you know your guests, then only you can provide the best offerings. Hotels can provide pleasant and dedicated workspaces inside the hotel as well as fast internet access across the property. Hotels can market their perks as a method for visitors to unwind and recharge after work, such as fitness facilities, pools, spas, and outdoor areas. It is one of the best revenue management techniques.
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5. Social media Generation Z trends
Looking for social media trends this week? Knowing your guests is the key! Gen Z is the first to have grown up fully in the digital era, making them highly active and reliant on social media. They often turn to it as their main resource for details and trip ideas.
For contact, data, leisure, and even decision-making regarding travel, they rely on it. In order to reach and entice Gen Z, hotels must have a robust social media presence and revenue management strategies.
We all enjoy talking about our experiences on social media, don’t you think? As a hotel owner, you may select a few scenic spots at your resort that guests would want to show to their social media followers. It must be aligned with your revenue management function.
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6. Marketing
Diversify your revenue management pricing strategies and marketing efforts. No marketer would argue that one of the most effective marketing strategies is storytelling. It also connects deeply with your audience. And yes, Gen Z may use it as well. The majority of us have become used to taking in content in many formats. Storytelling may be delivered in a variety of ways, such as through social media, interactive experiences, and films, which makes it more memorable and engaging.
Anything that draws our attention on the surface attracts our attention more. Therefore, telling your brand’s story in a video and posting it on social media will always be beneficial. You can make a video tour that shows the hotel’s unique features, history, amazing interiors, awesome deals, and more. Most revenue management systems are aligned with your hotel’s marketing goals.
7. Time flexibility and meal deals
Revenue management in the hospitality industry is crucial. While direct booking is one of the best revenue management strategies, hotels should consider giving flexible benefits. Due to their hectic schedules and diverse lives, Gen Z may need to eat breakfast early or late based on their trip plans or time zones. So, they might not feel relaxed during regular meal times.
They might select modest dining options that feature regional cuisine or modern cultural trends. Hotels can give guests a more tailored dining experience and leave a good impression by providing flexible food options. For instance, providing all-day dining options can convince guests to stay longer at the hotel and to only order food and drinks from the hotel restaurant.
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8. Tailored recommendations should be based on RM
There are many revenue management benefits. Do you want to forecast what your customers want? And know how to tackle the low-demand periods? In order to improve customer service and foster trust, you should suggest nearby attractions, activities, or cuisine to guests while they are staying at your hotel. Gen Z is known for enjoying authentic experiences that show the local cuisine and culture. As per American Express’s Travel Report, 88% of Gen Z agreed that dining and shopping at local small businesses brings a more authentic experience
So, it conveys that you care about your guest’s tastes and interests when you suggest such locations or events to them. This makes a good first impression and motivates them to tell others about their experience. Promoting specific restaurants or foods can help hotels make more money as well. In other words, you can work with nearby restaurants or travel firms to provide guests with exclusive prices.
9. Following sustainability trends
Gen Z gives the planet and the future some thought. There should be sustainability in operations. In some cases, even more than the older ones. They are aware of it, whether it is through social media, learning, or the internet. Surveys have shown that Gen Z ranks climate change and global warming as one of their top worries.
They prioritize social responsibility objectives and eco-friendly travel options, hotels, and other green tourism activities because they care. You may also think about helping local causes that are vital to the community. It must be aligned with your revenue management strategies. Want to know the hotel revenue management definition? Read our other articles. Searching for a hotel revenue manager for hire? Read till the end.
[Suggested Read: 7 Ways Your Hotels Are Missing out on Revenue Opportunities]
Create Successful Revenue Management Strategies from Gen Z Travel Trends
Overall, the hotel sector needs to change to appeal to Gen Z, which continues to grow to be one of the world’s most significant consumer groups. If you want to stay competitive and draw in Gen Z travelers, it’s critical to know their tastes. There are several ways to appeal to this age and build lasting connections, from developing new experiences to using social media.
You can give your guests an amazing time and develop a loyal customer base for your hotel by adopting Gen Z tastes and altering your marketing methods as required. That is not all! You need to create your revenue management strategies around these methods to increase hotel bookings and profits.
Why is it vital to increase hotel bookings? Looking for the best revenue management tools? What do Hilton, Hyatt, and Ramada hotel chains have in common? They all work with Revnomix, the best revenue management company in India, to boost hotel revenue and automate with us just like these major hotel brands. Contact us today!
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Top 9 Revenue Management Strategies for Gen Z in Hospitality
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Finding key revenue management strategies tailored to captivate & retain Gen Z? Contact Revnomix, the best revenue management company, to boost hotel revenue.
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Revnomix Solutions
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