Massive trends are shaping society, readjusting behaviors, preferences and priorities for millions of Americans. Many of these trends will continue to become more pervasive, making it imperative for clubs to understand and acknowledge how they can impact their own environments.
TECHNOLOGY
Technology has dramatically changed how we interact with each other and the world around us. New technologies are becoming more familiar with mainstream audiences through increased adoption by the hospitality industry.
Voice Assistants Voice assistants continue to emerge as popular ways to receive important information. Google Home, Amazon’s Alexa and Apple’s Siri and other products are expected to reach 8 billion units by 2023, up from 2.5 billion in late 2018, reports leading global research firm Juniper Research. The firm predicts that smart TVs with voice assistants will grow dramatically—by 121% over the next four years. These assistants will increasingly be used for commerce, resulting in $80 billion of purchases and money transfers by 2023. A majority of voice purchases will be of digital goods; however, voice purchases of traditional goods will increase as smart TVs with screens that provide visuals to buying these items become more popular. The firm predicts that the rise of voice assistants will negatively impact the prevalence of apps as many app functions will be replaced by voice commands and reduce screen time.
Facial Recognition. While controversial, facial recognition has important uses in a hotel environment according to hospitality knowledge platform Revfine.
Security. Facial recognition technology can seamlessly allow patrons to access their hotel rooms while identifying threats to law enforcement or individuals who have been previously removed from the premises.
Customer service. Staff can use the technology to quickly identify individuals and repeat guests, even before they arrive. It can be coupled with a member rewards system that can identify members quickly.
Payment Authorization. Guests can check out and confirm payment using an image of their face, streamlining the process.
Research and Information. Hotels can quickly count how many individuals are on site and can even assess moods via facial expressions.
Data Security
Consumer and legal standards have risen regarding executive management of data security. This year, the Federal Trade Commission’s (FTC) Consumer Protection Bureau published changes to the FTC’s rules on data security, ordering senior management to present the organization’s written information security program to the governing body. The FTC references a study that found a 35% decrease in likelihood of data breaches when a company includes the Chief Information Security Officer (or equivalent) in the top management team when they have access to the board.
In 2019, more than 4 billion data records were breached as part of cyberattacks. The average cost of a data breach is now roughly $8 million per U.S. company, reports the 2019 Cost of a Data Breach Report by the Ponemon Institute and IBM. Tech entrepreneur and CEO of TravelerPlus Pritom Das offers 5 data security trends to protect your records for 2020.
Cloud-based Security. Cloud-based security software is a growing $460 million industry. These products have advantages over traditional security tactics like reduced costs, improved protection, increased threat intelligence and quicker compliance with governance and industry standards.
Encryption. Encryption advancements are helping protect important data. Cryptography ring signature, which can be performed by a member of a group of users who have the key; zero-knowledge proof, which allows one party to prove to another that they know a piece of information without revealing the information itself; and other methods increase data protection.
Cyber Insurance. As cyber risks increase, so has the cyber insurance market, reaching $2.4 million in premiums in 2019 according to Stanford University’s Cyber Policy Center. This sector is expected to increase two-to-three times by the end of this year.
“Passwordless” Authentication. Gartner estimates that 90% of mid-size companies will use a passwordless authentication system in more than half of their use cases. This methodology uses technology like one-time password generators, biometric authentication and knowledge-based permissions to gain entry.
Cybersecurity Talent Shortage. By 2021, there will be 3.5 million unfilled cybersecurity jobs, reports Cybersecurity Ventures—up 350% from 2014.
WELLNESS
The health and wellness industries continue to grow and evolve. The global health club industry totaled $94 billion in revenue in 2018, according to the International Health, Racquet and Sportsclub Association, with the U.S. market reaching $32.3 billion from its 62.5 million members. In 2015, the U.S. health club market generated $25.8 billion.
Top Reasons to Exercise by Age
While more people are exercising, they are doing it for different reasons. According to MindBody’s Fitness in America study, roughly one-third of people ages 18 to 25 say their top reason for working out is to look better, followed by losing or gaining weight at 29.5%, and to feel good at 29%. The next age tier, individuals ages 26 to 45, have a near-even split of their top fitness goals. Losing or gaining weight ranks first with 30.7%, followed by looking better at 30.2%, and feeling good at 30.1%. The top reason for people ages 46-65 changes from the other groups, as living a long/healthy life ranks first at 33.9%, following by losing/gaining weight at 31.5% and feeling good at 30.3%.
Biggest Wellness Trends Per Google Searches
New wellness trends are sprouting up and can now be tracked via Google search rates. Recent searches for CBD skincare are up 367%, says men’s digital magazine company Gear Hungry and Wellness Coach Daniel Munson. These products utilize cannabidiol, the non psycho-active strain of cannabis, for their anti-inflammatory properties. Sound bath healing searches are up 285%. This technology uses sounds tuned to specific frequencies to increase relaxation. Virtual wellness searches have jumped by 242%. This category includes home equipment that expand possibilities for users to get a full workout from the comfort of their own home. Searches for breathing apps have increased by 219%. These apps make it easier to practice breathing techniques that can calm the mind, boost energy and increase cognitive function. Wellness retreat searches have grown by 182%. More vacations are now focused on leaving daily stresses behind and improving one’s physical and mental health.
Spas
American spas in 2018 generated $18.3 billion in revenue from 190 million visits—both record highs—according to the International Spa Association. With this rise comes new trends.
Bulky, one-size fits all spa offerings are being replaced by reduced, more flexible services that focus on customer satisfaction.
More men are visiting spas, reaching a roughly 50-50 split between men and women spa patrons. In 2005, just 29% of spa customers were men. Spas are responding with new treatments, larger stations for men to change, unisex bathrooms and locker rooms, and events.
New technologies are infiltrating the spa industry like Endosphere Therapy, which uses a hand-held device that delivers vibrations to rejuvenate muscle and skin tissue. Phone charging stations are being added to manicure and pedicure treatments in order to keep patrons connected and virtual reality headsets with serene audio and visuals are being added for guided meditations.
VALUE & EXPERIENCES
Appealing to the Five Senses Online retail sales surpassed general merchandise sales for the first time in American history, reports the U.S. Commerce Department. While losing ground, brick and mortar retail is utilizing the advantages of having customers arrive to their physical spaces by leveraging the five senses.
By using multi-sensory experiences, stores can trigger emotional responses from customers before it’s realized, says Darren Coleman, founder of research company Wavelength Marketing.
Sight. Visual components like lighting give cues to customers, highlighting where to look. Coleman recommends avoiding displaying too many products and too closely in order to simplifying consumers’ decisions. Maintain visual constancy as well.
Touch. Roughly half of consumers dislike online shopping because they can’t touch or try on products. Touching a product makes customers more likely to buy it. Even touching a product, such as a Coca-Cola bottle, can trigger taste sensations.
Smell. The sense of smell directly effects memory and emotion. Fragrances can help retailers tell their story, from Starbucks to Under Armour to furniture stores.
Sound. Music can evoke different emotions for customers when they are on premises. Wrangler now plays music videos to complete the store’s vibe and Burberry showcases up-and-coming acoustic bands for its millennial customers.
Inspiration
Affluents, especially young ones that represent the future luxury consumer, need inspiration to buy brands. Here are several strategies from Unity Marketing to inspire customers to buy luxury brands.
Rejection is good? Rejection can increase a consumer’s desire for a brand. Studies in the Journal of Consumer Research suggest that there are instances when a consumer views more positively a brand after experiencing rejection. The rejection should be from an aspirational brand, relate to the consumers ideal self-concept, is experienced before the consumer is able to self-affirm, is delivered by someone who reflects the brand, and the rejection occurred recently. Keywords like “some” and “may” could increase this sentiment.
Exemplary service. Some affluents believe they are entitled to what they want, when they want it. Therefore, high quality service with high personal touch can provide the difference in making one purchase over another.
Make customers happy. The overall goal for luxury brands is to increase sales by transforming goods into experiences. Understand what makes customers happy, provide excellent customer service and tell brand stories that connect to affluent consumers.
CONNECTEDNESS
Face-to-face communication is rich with information, as 93% of communication is considered nonverbal, according to studies dating back to the 1960s. This type of communication is also more effective. Harvard research has shown that a face-to-face request is 34 times more successful than one made via email. And while social media has connected people from all walks of life around the world, a 2019 NBC News/Wall Street Journal poll found that 57% of respondents say social media does more to divide than unite (35%). Even open office spaces, which set out to create collaborative and interactive environments, have fallen under scrutiny for their effectiveness. A 2018 Harvard Business School study discovered that open offices reduce face-to-face interactions by roughly 70% and increase email and messaging by roughly 50%.
Online Communities. Despite the sentiment that social media divides people, the tech platform can effectively connect people in a positive manner. Online communities have emerged more prominently in recent years. These groups are generated by individuals who want to share experiences and passions with others or by companies that want to gather, energize and grow their current and prospective customers. Seventy-six percent of internet users worldwide engage with online forums, blogs and/or video blogs—up from 72% in 2017—reports a survey by GlobalWebIndex.
Why are they growing?
They give users a space to connect and belong. Online spaces give users the ability to connect in the digital world. Interestingly, the number of individuals who share information about their personal lives through traditional social media has declined by 35% over the past five years.
They encourage meaningful and respectful conversations. Research shows that communities provide an environment more conducive to meaningful and respectful conversations. Users tend to feel more comfortable in communities than across their entire social network.
Communities are trusted. Many community users feel anonymous, which encourages them to be more expressive online.
They provide marketing opportunities. Community users are receptive to brand participation on their communities. These “micro-tribes,” can yield high value consumer groups because they exhibit high brand loyalty and advocacy compared to the greater public.
Eatertainment Connects People and Industries
According to a report by restaurant guest management technology company SevenRooms, one-in-four Americans want more “eatertainment” venues. These destinations provide a mix of activities like golf, bowling and games in a restaurant setting. The survey also found that 21% of Americans are willing to pay more at an eatertainment venue than a traditional nighttime venue. Food and beverage generate 75-80% of the revenue for these establishments, reports Food Newsfeed.
Leading industry performers like Topgolf continue to expand into new arenas, capitalizing on its ability to mesh golf and games in a fun F&B setting. The golf/restaurant hybrid may lead the way in eatertainment with an IPO reaching up to a $4 billion valuation, according to Bloomberg. Topgolf serves more than 20 million customers annually across 50 worldwide locations, introducing a wide range of people to the game. Topgolf has expanded to more traditional driving range settings and also indoor lounges equipped with simulators and other games, and pop up events under its Topgolf Live brand, which offers a variation of the classic Topgolf experience inside a professional sports stadium.
Other eatertainment standouts include Punch Bowl Social, which provides numerous traditional and innovative gaming experiences, like virtual reality, in a bar setting. Punch Bowl Social sales increased by 34% in 2018, according to Technomic. Bowling eatertainment company Pinstripes saw its sales increase by 21.4%.