Hospitality Industry Must Evolve to Meet Changing Demands in Travel Habits

Remote working and living across different cities are firmly on the outlook of the younger generation

London – New research shows that the travellers of the future, Generation Z and Millennials, increasingly want more from foreign travel: more trips, longer stays, greater expenditure and a larger number of functional features than ever before. Accommodation features that cater to these trends, such as wellness facilities, co-working spaces, and other functional amenities are now not just a ‘nice to have’, but rather essential for staying relevant in the future.

edyn, the pioneering hospitality group that is revolutionising the extended stay sector with 41 assets and 4,600 keys across 8 countries, has sponsored the Centre for Economics and Business to define “The Future of Travel-Hospitality”. Central to its findings is a survey of 2000 consumers from across five different European countries, alongside economic open-source research on the past, present, and future shape of the travel-hospitality industry.

The report reveals generational shifts in consumer habits that are set to transform the sector:

• Generation Z to take longer trips: Generation Z consumers are expected to increase their expected length of stay by 26% from 2019 to 2023, the largest relative increase of any age group surveyed.
• Younger generations seek more functional features: Generation Z and Millennials showed greater preference for additional accommodation features on every possible count. 51% of Millennials and Generation Z consumers say remote working facilities were important to them when choosing accommodation, compared to just 15% of older generations. Other features mentioned include wellness/fitness facilities, membership schemes, and extended stay options.
• Desire for more led by Generation Z and Millennials but reflected in broader population: Survey reveals that European travellers are looking to make 1.4 times as many trips, stay for an average of 1.3 nights longer, and spend 14% more per night than before the pandemic in 2019.

The paper also quantifies a range of more specific generational differences:

• 34% of Generation Z and Millennials say they plan to take longer trips than they did before the pandemic, compared to 15% of older generations
• 56% of Generation Z and 51% of Millennials would like to live in multiple cities throughout the year, compared to 31% of older generations
• Millennials and Generation Z are willing to pay 17% more for extended stay options, compared to a general average of 10%

With an extended stay model that specifically caters to the growing demand for longer stays, functional features, and remote working facilities, edyn, backed by Brookfield since 2018, has seen these trends play out at its own locations, with 88% occupancy for Q2 and Q3 2022. It has also had an average length of stay per visitor of 4.2 nights, which is longer than the average hotel model of 2 – 2.5 nights. More than half the group’s guests stay for over a week.

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

Stephen McCall, CEO, edyn said: “While many have speculated that the pandemic was a catalyst to the travel sector evolving, this report demonstrates that a profound, generational change in traveller behaviour and preference is now upon us. While this is an exciting development, the industry at large will need to adapt, and quickly. At edyn, we have evolved our extended stay legacy into a broader, hybrid offering which has kept pace with these changes in demand led by a community-based, lifestyle experience. The broader sector continues to move forward, despite undeniable recent challenges, to accommodate resilient demand for experiential travel. In this context, the trends outlined in this paper are set to underpin a new chapter for hospitality, and we can’t wait to see what the future has in store.”

The report can be viewed in full here.

About edyn

edyn is a pioneering hospitality group that is revolutionising the extended stay sector. edyn was built on the philosophy that travel should be a rich journey of discovery, providing unique experiences that inspire, whether travelling for business or leisure. For almost 25 years, the group has expressed this vision through the development of a unique and diverse portfolio of properties reflecting the evolution of the travel and hospitality industries.

The group owns and operates an extensive range of properties across the UK and Europe, including its lifestyle aparthotel brand Locke, and Cove, which offers serviced apartments for the modern traveller.

For more information, please visit: www.findingedyn.com   

edyn is a hotel corporate premier member of BLLA – view their listing here!