The hospitality industry must evolve to meet changing generational demands on travel habits according to a new study

New research shows that the travelers of the future, Generation Z and Millennials, increasingly want more from travel abroad: more trips, longer stays, higher spending and more functional features than ever before. Accommodation features that align with these trends, such as wellness facilities, co-working spaces, and other functional amenities, are now not just “nice to have,” but essential to remain relevant in the future.

edyn, the pioneering hotel group that is revolutionizing the extended-stay industry with 41 assets and 4,600 keys in 8 countries, has sponsored the Center for Business and Economics to define “The Future of Travel and Hospitality.” Central to its findings is a survey of 2,000 consumers from five different European countries, coupled with open source economic research into the past, present and future shape of the travel and hospitality industry.

The report reveals generational changes in consumer habits that will transform the sector:

  • Generation Z to make longer trips: Gen Z consumers are expected to increase their expected length of stay by 26% between 2019 and 2023, the largest relative increase of any age group surveyed.
  • Younger generations are looking for more functional features: Generation Z and Millennials showed a higher preference for additional hosting features in every way possible. 51% of millennials and Gen Z consumers say remote work facilities were important to them when choosing accommodation, compared to just 15% of previous generations. Other features mentioned include wellness/gym facilities, membership schemes, and extended stay options.
  • Desire for more led by Gen Z and Millennials, but reflected in a broader population: The survey reveals that European travelers are looking to take 1.4 times more trips, stay an average of 1.3 nights longer and spend 14% more per night than before the pandemic in 2019.
See also  Overhydration: This Is What Happens If You Drink Too Much Water

The document also quantifies a number of more specific generational differences:

  • 34% of Gen Z and Millennials say they plan to take longer trips than before the pandemic, compared to 15% of previous generations.
  • 56% of Gen Z and 51% of Millennials would like to live in multiple cities year-round, compared to 31% of previous generations.
  • Millennials and Gen Z are willing to pay 17% more for extended-stay options, compared to an overall average of 10%

With an extended-stay model that specifically meets the growing demand for longer stays, functional features and remote work facilities, edyn, supported by Brookfield since 2018, has seen these trends play out at its own locations, with 88% occupancy. % for the second quarter and Q3 2022. It has also had an average stay per visitor of 4.2 nights, which is longer than the average hotel model of 2-2.5 nights. More than half of the guests in the group stay for more than a week.

The hybrid hospitality platform has seen continued strong momentum in 2022. It announced three acquisitions this year, with three new openings planned for 2023 in Zurich, London (Kensington) and Berlin. The group plans to open new properties in Lisbon and Paris during 2024 to meet the growing demand. With design-led locations, leading F&B offerings from local restaurant associations, and a calendar of various events for locals and guests to enjoy, edyn is creating experiences for this new traveler.

While many have speculated that the pandemic was a catalyst for the evolution of the travel industry, this report demonstrates that we are now witnessing a profound generational shift in traveler behavior and preferences. While this is an exciting development, the industry as a whole will need to adapt quickly. At edyn, we have evolved our legacy of extended stays into a broader hybrid offering that has kept pace with these changes in demand led by a community-based lifestyle experience. The sector as a whole continues to make strides, despite undeniable recent challenges, to adapt to the resilient demand for experiential travel. Against this backdrop, the trends outlined in this paper point to a new chapter for hospitality, and we are eager to see what the future holds. Stephen McCall, CEO, Publisher

Download the report

See also  Kate Walsh says she doesn't 'want to send the message' that it's 'not okay to have wrinkles'

about edyn

edyn is a pioneering hotel group that is revolutionizing the extended-stay industry. edyn was founded on the philosophy that traveling should be a rich voyage of discovery, providing unique experiences that inspire whether traveling for business or pleasure. For almost 25 years, the group has expressed this vision through the development of a unique and diverse portfolio of properties that reflect the evolution of the travel and hospitality industries. The group owns and operates a wide range of properties in the UK and Europe, including its Locke and Cove brand of lifestyle serviced apartments, offering serviced apartments for the modern traveller. For more information please visit: www.findingedyn.com

kelsey traynor
edin