Marriott International has gone from producing high-thread-count bedsheets to a YouTube Web series designed to entertain younger travelers. It’s one way the hotel giant has tried to appeal to Millennials, those born between 1982 and 2000, who have surpassed Baby Boomers in sheer numbers.

Marriott made its biggest play yet for Millennials last week by agreeing to buy Starwood Hotels and Resorts in a $12.2 billion deal that will make the combined company the largest hotelier in the world.

Marriott CEO Arne Sorenson, who will lead the merged companies, said part of Starwood’s appeal was its strong presence in the lifestyle brand category. Its hotels, such as W Hotels and Aloft, are known for their edgy design, creative food and beverage offerings and hip public spaces — all features that appeal to younger travelers.

The move highlights the growing influence of a generation of travelers with particular tastes. They want the latest in technology, common areas that double as work and play areas, loyalty programs that provide instant gratification, and interesting food and beverage options.

“Millennials aren’t so interested in staying in their room, but congregating in compelling spaces with great design, music and a unique point of view,” says Jason Pomeranc, CEO of SIXTY Hotels, a lifestyle brand that recently opened a property in Miami.

From major chains to smaller boutique enterprises, hospitality companies are redesigning properties, introducing new technologies and even creating brands to appeal to this demographic.

The numbers show why: There are 83.5 million Millennials, more than one-quarter of the nation’s population, according to U.S. Census Bureau figures released over the summer. That compares with 74.8 million Baby Boomers.

A Pew Research Center analysis of that data found that more than one in three American workers are Millennials. This year, they surpassed Generation X, those born between 1965 and 1979, to become the largest group within the American workforce.

“They are becoming the earners, the spenders, the travelers, and importantly, the workers,” says Tina Edmundson, Marriott’s global officer for luxury and lifestyle brands.

What makes them even more attractive to the hotel industry is that they are nearly twice as likely to travel for business as Baby Boomers: 46% of Millennials are willing to do so vs. 26% of their older counterparts, according to a recent study by the Global Business Travel Association.

“By 2025, these guys are going to make up three-quarters of the workforce,” says Guy Langford, vice chairman and U.S. leader of travel, hospitality and leisure at Deloitte. “We have to understand what impact they’re going to have in 10 years’ time.”

Among the latest brand offerings either targeting or at least welcoming the so-called Millennial mindset:

Marriott introduced Moxy Hotels and AC Hotels specifically for Millennials.
Best Western, known for its budget offerings, unveiled Vib, a chic urban boutique hotel.
Hyatt debuted Hyatt Centric this year, a moderately priced lifestyle hotel.
Hilton will open its first Canopy hotel next year in Iceland. Each hotel will have décor and food and beverage offerings inspired by the local community.

Some hoteliers say they’re not going after a particular age. They’re going after an attitude.

“I think you can get caught up in being very targeted and specific to a demographic vs. a psychographic,” says Brian McGuinness, global brand leader of specialty select brands such as Aloft and Element at Starwood.

The targeting of the Millennial mindset is visible in the hotel experience. Lobbies feel like living rooms, technology lets guests open their rooms with their Smartphones and local bands play in lobbies.

“Some of their activities and preferences are influencing the behavior of a much bigger generation set,” Deloitte’s Langford says. “You have generations adopting Millennial behavior.”

While most hotel companies introduce lifestyle and boutique hotels to appeal to Millennials, some see other opportunities.

Josh Lesnick, chief marketing officer of Wyndham Hotel Group, says the Millennial mindset could transform the budget hotel segment.

“We’ve all talked about how Millennials have huge aspirations, love to travel, value experience over products and goods,” he says. “What isn’t talked about a great deal is that most Millennials do not have a huge discretionary income to afford a lot of the products that have been developed out there.”

Lesnick says the influence of Millennials could force hoteliers to make budget hotels feel more like lifestyle properties.

“Between Millennials and the growing global middle class, we have the opportunity to take a product and give it the feel of a midscale or upscale product at an economy price point,” he says. “That’s what we call the democratization of travel.”

Source: http://www.usatoday.com/story/travel/hotels/2015/11/23/hotels-marriot-target-millennials-over-baby-boomers/76093970/