HOME > Latest News > Article > Maximizing Millennials, Gen X, and Gen Z Spend at Your Luxury Property
Latest News
Article

Maximizing Millennials, Gen X, and Gen Z Spend at Your Luxury Property

By Christina Daly, Director of Sales and Marketing for RESORTPASS
21 October 2022
5 min read
Share Article

Consumer spending is seeing a shift in generational spending from the Baby Boomers to the younger generations. Millennial, Generation X, and Generation Z consumers have become the new “go-to” group looking for exciting Instagramable adventures to explore with those in their closest social circles easily.  

By the end of 2022, Gen Z will make up 20 percent of the U.S. population and have a spending power of $360 billion, according to “What Clicks With Gen Z,” a 2022 white paper from Creatopy, a San Francisco-based ad design platform.

This major shift has the hospitality industry on alert. Research shows that Millennials travel more than other generations. According to Expedia, U.S. Millennials travel 35 days a year, followed by Gen X’ers at 26 days a year. According to Copyrise, 200,000 million global tourists are Millennials, spending $180 billion on travel yearly.

This shift will dramatically impact how luxury hoteliers attract and service each segment of their guests. The upcoming generations have experienced the Internet through most, if not all, of their lives. They wander the globe by scrolling through social media and sharing every experience. This FOMO- loving generation values unique experiences worthy of sharing on social media over purchasing things or products. This is especially true of the Millennials and Gen X’ers, who are seeking memorable moments with friends and family while providing free marketing by sharing their experiences to their vast online networks. 

Luxury properties are home to some of the most stunning views, the finest restaurants, relaxing spa experiences, and the most desirable amenities. Hoteliers are capitalizing on this growing demand for picture-worthy experiences by offering custom packages to local and visiting guests on day guest marketplaces like ResortPass. Guests can reserve a cabana for their family and friends, spend the day in the spa with royal treatments, or lay by the pool for the day while enjoying s’mores and creative beverages without having to book a room. These high-spending guests want the ease of access to your luxury resort without having to get on a plane or take a long road trip to do so. They can have the ultimate hotel experience of fun, pampering, and relaxation without having to travel or book a room.

This means that pools, fitness centers, and spas will no longer sit empty during slower seasons and off-peak times of the day. While day guests are lounging at the pool or having a massage, they are purchasing meals and drinks – thereby adding to your F&B revenues. The revenue produced is twofold: new booking revenue from the day passes or package plus the additional boost in food and beverage. Partners of ResortPass are generating upwards of $1 million in annual booking revenue through the channel, not including the average spend of $250 on food and beverage per booking.  

For example, The Ritz-Carlton, South Beach in Florida, offers packages as high as $1,000 and provides day passes for up to eight people that include all amenities, a pool deck platform with a daybed and two chaises lounges, a mini fridge, and optional valet parking. 

Some luxury hotels focus on options that attenuate wellness and spa offerings, which is particularly attractive to today’s health-conscious Millennials and Gen-Xers. For example, the Miraval Austin Wellness Resort & Spa in Texas features two infinity pools, yoga classes, spa services, and horseback riding. Starting at $347, its Relax and Renew Escape Package includes the use of the spa and two pools, as well as unlimited daily yoga, meditation, fitness classes, and wellness lectures; hands-on culinary classes; and lunch, smoothies, and beverage service. 

And the 14,000-square-foot Spa at the Fairmont Century Plaza in California boasts a host of relaxation, rejuvenation, and cleansing treatments, with varying price points and options for both singles and couples through the hotel’s spa amenities day pass programs.

Another upscale hotel that promotes well-being is the Omni Scottsdale Resort & Spa at Montelucia in Arizona. It features a variety of day pass options that offer premium poolside cabanas and personal attendants. Starting at $350, the hotel’s Oasis Cabana day pass excursion includes all amenities for up to six people and a private shaded cabana with sofa seating, two lounge chairs, a minifridge, and a TV. 

Luxury hotels can customize these day pass enhancements based on demand and time of day, and year. These properties can successfully attract and market to a growing segment of upscale Millennials and Gen Xers guests who will enjoy all that your hotel has to offer. 

About ResortPass 

Top luxury hospitality brands trust ResortPass as the #1 marketing and technology solution to maximize ancillary revenue. 

From city-center hotels to destination resorts, properties of all types are generating up to $1M in new revenue by offering custom packages to high-spending local and visiting day guests. Utilizing the full suite of features, hotels can also upsell cabanas, events, and activities to overnight guests pre-arrival or during their stay through a beautifully branded white-label booking site.

With full control of availability and pricing in one centralized location, luxury hotels are boosting ancillary revenue beyond the room with ResortPass!

Over 1,000 hotels and resorts have partnered with ResortPass, including top brands such as Hyatt Hotels, Marriott International, Fairmont Hotels, Omni Hotels & Resorts, Four Seasons, Hilton Hotels, Kimpton, Ritz-Carlton, St.Regis, and many more. 

Learn more at: https://zcu.io/21sG

About the Author 

Christina is the Director of Sales and Marketing at ResortPass, the leading marketplace and technology solution that maximizes ancillary revenue for hotels and resorts. Christina has over 15 years in the hospitality industry, specializing in digital marketing and revenue management.

Christina Daly, Director of Sales and Marketing