Are We Too Focused on Millennials?

PHOENIX—At the Lodging Conference in Phoenix this week, experts on the resort and hotel development panel debated the importance of the millennial generation in the hotel industry. While some panelists agreed that too much time is spent discussing such a small segment of the market, Ben Seidel, the president of Real Hospitality Group, said that he believes they are changing the industry. The panelists included Robert Hee, managing director of Canyon Equity; Greg O'Stean, chief development officer of the Americas at Carlson RezidorHotel Group; Brian Quinn, SVP and chief franchise officer of RLHC; and Dustin Schmidt, EVP of real estate at RD Olson. Daniel P. Hansen, president & CEO of Summit Hotel Properties, moderated the panel.

In defending the attention to millennials, Seidel said, “We are spending a lot of time on specific age group, but they have changed the way that we view things. Their pricing decisions are different than ours.” Schmidt agreed, saying that RD Olson is a big believer in creating a unique and singular experience in its hotels. “Millennials are loyal rewards members, but they want something unique,” he said. “It has to be authentic and unique.”

Real Hospitality group has done tremendous research on Millinnials, because it believes that the generation was the catalyst for a demographics shift. The company largely focused on how millennials interact in the workplace, in part to change their own office structure, and also conducted market research. They find out that the millennial generation looks at total cost versus the experience they are getting, rather than the cost of each individual unit.

The idea of creating a unique product dominated the discussion. O'Stean said that they think about that idea in the development stage. “ We meet with the developer and ask what is unique about this market, and what is your vision,” he said. “We want to be the opposite of other brands. We want to capture the DNA of the brand, but still make something unique.” Quinn agreed, adding that “unique” is every detail down to hand picking interesting employees that fit into the market. We used to cover up tattoos, and today, in the right markets, we're looking for employees with tattoos, he said.

The discussion ended with advice from each of the speakers. While all of them spouted the importance of great locations in a great market as a strong base, others warned to pay attention to the local municipalities and to look at where the business is coming from. But, Seidel gave the final word, which seemed to encapsulate the heart of the conversation: “Differentiate yourself from the next guy.”