When it comes to high-end lodging, high occupancy rates are checking in for a long stay. A recent report by PKF Hospitality Research, LLC (PKF-HR) predicts that 2014 will see occupancy for hotels returning to levels that haven’t been seen since the Great Recession. Despite high development rates nationwide, especially in areas such as South Florida and New York, the report forecasts that demand will significantly outweigh supply in the next few years, leading to a high-profit run for the lodging industry that hasn’t been matched in decades.
President of PKF-HR Mark Woodworth is quick to note another unique feature of the resurgence, “In the past, lower-priced, limited-service hotels were typically the first properties to be built following a recession … This time around we are seeing the greatest development activity in the upper-priced segments.” This is promising news for private clubs, as they stand ready to offer a unique, upscale boarding option for members and their guests. Yet, given the game-changing patterns of the increasing lodging demand, managers would be wise to note the generational and societal shifts that are directing customer’s tastes for luxury guest rooms, in order to ensure their club is top of mind.
The world today is fast-paced and forward-looking, and private clubs must strike a balance between respecting heritage and engaging new membership. As Baby Boomers continue to retire and seek meaningful ways to use their leisure time, Millennials are rapidly gaining control of the country’s travel markets and spending power. Millennials differ from their predecessors in many key ways, including decreased brand loyalty, intimate familiarity with technology, and an interest in individualized experiences.
According to the 2013 Portrait of American Travelers, 63 percent of travelers now report using a smartphone, a nearly three-fold increase since 2010. Research by SmartBrief Media Services found that 57 percent of travelers would not stay at a hotel without a wireless Internet connection, while another 26 percent stated that they would only do so if their employer were paying for the room. These preferences reflect a need for clubs to consider strategies for incorporating technology into their amenities, distinguishing themselves as a viable option for lodging. In order to make younger members and guests feel comfortable and rewarded for staying at the club, managers can install wireless Internet capabilities or advertise existing networks, and make use of digital formats for club communications and reservations.
However, the rising force of Millennials does not mean that clubs can afford to ignore Baby Boomers, especially members who have shown a long loyalty to the club. Thousands of Boomers retire every day, creating a significant customer base for institutions such as private clubs that can appeal to a more traditional consumer. Unlike Millennials, Boomers tend to strongly favor brands that meet their needs, and there are many small changes a club can make to ensure they are catering to their older guests. Hotel News Now emphasizes the importance of features such as bright, ambient lighting as well as handicap accessibility to make sure aging lodgers feel welcome. The key is to avoid reminding Boomers of their limitations, to make them feel young, and to make use of the generation’s fondness for social gatherings. Comfortable seating, the addition of communal areas, and increased room connectivity in suites can all go a long way in keeping Boomers engaged with each other and with the club’s brand.
Of course, Millennials and Boomers aren’t just sharing the market for high-cost guest rooms, many times they are sharing the rooms themselves. Multi-generational family travel is on the rise, according to Hotel News Now, and, especially for travel groups led by older customers, that often means that a large number of guests will want to stay in the same room or suite. Club managers can appeal to that desire for a family experience by incorporating space-effective furniture such as bunk beds in certain rooms, and by promoting family-oriented activities for club guests. SmartBrief Media reports a unique initiative by the Four Season Hotel Boston that attempts to make the storied brand accessible to multi-generational travelers: the hotel’s “Raid the Fridge!” program allows guests’ children to choose a free late-night snack to enjoy during a special session once a week. Such a gesture can help guest families feel more at home at the club without detracting from club’s high-end appeal.
Another heritage-rich brand, the prestigious Ritz-Carlton hotel chain, has become a trailblazer in recent years for adapting its brand-narrative to younger demographics. A profile of Ritz-Carlton by Skift reveals many key initiatives by the company that aim to blend the old with the new, including incorporating the local landscape into design and architecture choices as well as employing digital messaging that focuses on the creation of memories at the historic hotel. By following in that lead, and keeping mindful of Millennials’ preferences while respecting older customers, clubs may be facing a considerable source for revenue, member satisfaction and member recruitment as the demand for lodging continues to grow. With such a strong emphasis on community, it is vital that clubs do not alienate any segment of their valued guests, but instead create an experience both exclusive and engaged with the surrounding world, worth revisiting for years to come.
Curtis Rogers is NCA’s associate manager of marketing communications.