Learning to fly – What Generation Z wants from the hospitality industry

Image: Eva Ballarin is the superwoman behind HIP. She set up an incredible event and with impeccable attention to detail. Madrid, Spain
(Eva Ballarin, Anne Boysen)

I’m in Madrid, Spain, where I recently held a talk at one of the most cutting edge conferences for innovation in the hospitality industry, Hospitality Innovation Planet. This is only their second year, and the size and quality of this event parallels SXSW and Web Summit. Except that food&beverage related conferences are a lot tastier than pure technology events. Having sampled the most heavenly flavor combinations and learned how new technologies such as AI, blockchain and big data are on their way into the restaurant and hotel industry, I have no doubt that innovation is happening in this sector. In fact, I believe food and hospitality is the next frontier in disruptive innovation.

Here are three reasons why innovation in the hospitality industry is worth watching:

1. The Experience Economy: It’s not only about ingesting the food on the plate or experiencing hedonistic moments far away. It’s about amassing a multitude of experiences that define who you are. It’s about etching them permanently in time with your camera and uploading it for a world to see. We particularly see this transformation in consumer behaviors with generation Y and Z.
2. The Internet of Things: Until recently only virtual and digital companies had the benefits of big data and personalized marketing. This was because user data was primarily collected via the digital footprints people leave via keyboards and touchscreens. Soon products and experiences can be mass-customized because “smart technologies” (think sensors, cameras etc.) will be embedded into the physical environment. This will open new opportunities for brick-and-mortar type businesses and allow for a much more seamless and personalized experience for the user. As long as it’s not getting too “creepy”. Everybody wants convenience, but nobody wants to be spied on. Where will we draw the line?
3. Increase in travel and social interaction: Remember those predictions when the first web cameras came out that nobody would travel anymore? Yes, I’m chuckling too. We travel more than anytime before. We socialize more than anytime before. The more technology disconnects us, the more we will find solutions to defy the solipsistic realities these same technologies make possible. We’re social animals. We’d rather mesh the digital and physical worlds together than create artificial ones. Most of us anyway. Think of the future as physical travel experiences overlayed with synthetic content from MR/AR projections.

In my speech I discussed how Generation Z trends and driving forces translate into new strategic opportunities for the hospitality industry. I discussed these trends in the context of the four Ps of the Marketing Mix: Price, Product, Place and Promotion. I chose this approach because the younger generations are transforming all four of these areas. Here are the slides from the presentation: