I’ll say this… I feel bad for millennials on multiple levels.
I guess we should start here…
The problem with millennials staying in, uh… “lousy” hotels is that they look at travel as a commodity, 100% and it’s all about price. So automate everything, give efficient/tiny room, and keep it under $100. That’s *that* hotel space, and the brands are using lots of data to figure that out. Some of that data suggests loyalty will beat out airbnb, and that’s a big bet.
So, data suggests millennials may want a hostel or airbnb, and even for biz, they choose economy and don’t max out per diems, or go over them.
You don’t really need a separate brand for millennials. At all. Really. Classic service and hospitality is always where it’s at. You can try to find their price point in concept lifestyle hotels that may attract loyalty…. but loyalty is a tough gig nowadays.
As for not needing that millennial brand…. It has been said expertly here:
Which brings me to Tru by Hilton.
For one thing, if you think the below Hilton “millennial branded hotel concept” is a “hostel” concept *in any way*, it’s not. Because, just this month, Hilton is weighing a hostel like brand in addition to Tru: http://www.bloomberg.com/news/articles/2016-03-08/hilton-exploring-addition-of-hostel-like-brand-nassetta-says
…& Hilton has done *multiple* PR / interview / articles to make the point: http://www.theguardian.com/travel/2016/mar/09/hilton-new-chain-hostel-like-hotels-for-millenials
They’re making it clear that Tru is not a hostel brand by announcing they are considering a hostel brand.
So Hilton has that happening, in addition to breaking ground on the 1st of 105 hotels in the pipeline, that are the below. As I said, I make no commentary, just find it interesting, and as they say…. I’ll just leave this here.
I will say… a few things. Fine. Below. Four eyes hit this blog, and none of those eyes scroll, so I don’t think it’s inappropriate. =)
The design is very Facebook and Tripadvisor…. just make it look like we had no design sensibility and throw everything in plus the kitchen sink, which I think is literally there. The sitting area that includes multiple types of chairs plus a hammock swing? Wow. It looks a bit like 7 Eleven, the video feels like a Portlandia skit, and the 3 word, meaningless phrases feel like bad market research that is mildly insulting to the millennial sensibility (though I cannot say as I am not one). But data is driving this, and I am afraid as browbeat and market researched as millennials are, they’ll stay here and suffer it, make the market researchers right, because it’s about the $75-90 range, and nothing else? It’s still going to be wild to operate.