Smart Hotel Brands Are Already Thinking About Generation Z

In an increasingly competitive hospitality space, it pays to be well ahead of the game when it comes to cultivating loyal customers—even if some of them might still in the womb. While the U.S. lodging industry is focused heavily on catering to millennials with more personalized and customized experiences for loyalty guests, as well as spending an estimated $6.4 billion in 2015 on capital expenditures to improve amenities and services like tech upgrades, better Wi-Fi connectivity, and new food concepts, they should be thinking about generation Z, too. Members of generation Z, generally defined as those born after 1995, share some characteristics as their millennial counterparts, but they are not the same. Members of this generation are true digital natives, and they are often described as being more pragmatic, more cautious, more money-conscious, and more globally minded than their predecessors. The eldest members of generation Z are now in their sophomore year of college. While they're just beginning to demonstrate their economic influence, their sheer numbers—70 million and counting—and estimated spending power—$200 billion annually when you consider their influence on parental and household purchases, according to Mintel—make them incredibly important to marketers in every industry, including hospitality. In November, Goldman Sachs analysts issued a note to clients saying that while there's been a lot of focus on millennials in the media and investment community, generation z might actually be even more significant. "Over the past several years, educators, employers, researchers, retailers and the like have spent significant time and resources dissecting the millennial mindset. But the time has already come to focus to gen Z, which promises to be just as, if not more, influential," the analysts noted. But is it too early to start building brand loyalty with this consumer group? Not at all. In fact, a 2015 study about generation Z from Cassandra Report shows that 77 percent of generation Z consumers feel it's important for brands to reach out to them with offers, promotions, and messaging. Additionally, 32 percent of younger consumers from around the world say there are brands to which they will always be loyal, although 23 percent of millennials said they would cut ties with brands if they received poor customer service. "A