Closing the Deal with Gen Z

Episode Transcript

Mark Lewis Brown: [00:00:00] They’re doing much more planning than I would do prior to going someplace. And I agree. Half the fun for me was to show up someplace and see how it goes. You knew you had a place to stay. You knew you had your airfare and then the rest was a game. And it’s a lot different now. And you could even see it in some of the videos where they’re like, Bang, bang, This is my day in Portland and they’ve seen 20 things and taking pictures. I would have been exhausted half the way through going out.

Robin Trimingham: [00:00:34] Welcome to the Innovative Hotelier podcast by Hotels magazine with weekly thought provoking discussions with the world’s leading hotel and hospitality innovators. Welcome to the innovative hotelier brought to you by Hotels magazine. I’m your host, Robin Trimingham. It’s no secret that Gen Z is the first generation to grow up fully online, and their research and booking behavior is poised to revolutionize the travel industry as they gradually become the largest traveler demographic. In fact, a recent report published by American Express has revealed that 79% of Gen Z and millennial respondents would agree that they see leisure travel as an important budget priority, and 84% would rather take a dream vacation than purchase a new luxury item. So given the rapidly expanding rate of this relatively new traveler group, I thought it would be interesting to take a closer look at their characteristics and to get an understanding of how to design travel experiences successfully and market to them. My guest today, Mark Lewis Brown, is the president and CEO of Zucchetti North America, and he’s here today to offer ideas and insights for closing the deal with Gen Z. Join me now for my conversation with Mark F.O.H is a global food service and hospitality company that manufactures smart commercial grade solutions. Headquartered in Miami, the company designs and manufactures all their restaurant and hotel products. They have showrooms and distribution centers located throughout the globe, and their products are always in stock and ready to ship from any of their distribution centers worldwide. Welcome, Mark. It’s great to get a chance to talk to you today.

Mark Lewis Brown: [00:02:38] Thanks, Robin. It’s great to be here.

Robin Trimingham: [00:02:40] I’m actually really looking forward to this conversation because I think we could all do to learn and understand a little bit more about Gen Z. Can you start us off here, though? What are a few of the key characteristics of this traveler demographic that you’ve been coming across?

Mark Lewis Brown: [00:03:05] Well we know that they’re the first digital native users out there, so they started right off with their phones and computers and any other technology they’re using. And just to talk about how old they are, they’re 9 to 24 years old. There’s about 68 million of them. So that’s huge. And many of them, the demographic and the group is huge. And many of them are just coming of age now and to the point where they can travel. They’re finishing their schooling and they’re travelers. So and they’ve grown up in the world with a different view than many of us did and how they and how they act. They’re also they love to travel. They’ve been taught to travel. Their parents have traveled with them, and they’re part of the pandemic. So many of them didn’t have the high school ending like a lot of the other kids did.

Mark Lewis Brown: [00:03:55] Yeah. It was filled with other things, and their parents and their parents traveled with them. I have two Gen Z’s at home, so I can tell you that we traveled. They were very much part of the traveling world and a lot more than I was, I can tell you that. And they they’re obviously using social media and they’re operating much differently than the previous millennials are. And they’re valuable group for the hotel industry.

Robin Trimingham: [00:04:24] Obviously, every single generation that comes along before us and after us is going to be completely unique in its own way. Why do you suppose it is? The travel is so important to this group at such a relatively young age?

Mark Lewis Brown: [00:04:42] Well, I think that they’ve they’ve seen it everywhere they go, right? If you look at TikTok, I have to say, I use as well. My kids got me into it. Tiktok is very quick to realize and a lot of the other apps are, too, what you like. So they’re going to keep showing you that. And so my daughters like to travel and they’re constantly getting videos of cool places and unique places that I think in the past you and I might not have ever considered going. But now, because of the way social media is, it’s showing us a lot more than what we would have seen previously. And you see some of these beautiful, beautiful videos of tier locations and they’re out there looking at those and making decisions based upon those kinds of things instead of the standard like, I’ll go to New York City kind of thing. It’s a purpose. There’s more of a purpose there.

Robin Trimingham: [00:05:34] That’s raises a very interesting point because even personally, I have to agree with you, drone footage of these really remote, beautiful, almost impossible to get to places. They really do make it look like it’s just around the corner and feasible to go there. How then is technology playing a role in shaping the planning and booking of their travel experiences?

Mark Lewis Brown: [00:06:04] Well, just like you mentioned, the technology does show us where we’re going is has changed with drones and all that. They’re also using their smartphones, their smartphone users. That’s it’s mobile first. That’s how they book. Unlike the older generation like myself, I use the computer. I might use the phone a little bit, but then I graduate to the computer where it’s just the opposite for them. They might use their computer, but they’re going to use their phone and go on the apps that are only on mobile. Right. And get the get the the information and all that there. So obviously, Facebook and Instagram are still being used. But and this is from the hopper, I think Hopper published this report that Facebook and Instagram are the main places they’re going versus and then TikTok, TikTok and Snapchat are next. So they’re using apps and and unconventional media. Then what the rest of the world could use.

Robin Trimingham: [00:07:05] I find this very, very interesting because when I started booking trips, this is going to make our viewers just laugh themselves silly. I can remember, Oh, I absolutely use the Internet, but the Internet was doing the for doing my research. And then I would pick up the telephone and call the travel agent and make her deal with it all, you know, and book the thing online. Oh, no, no, we’d never do that. You needed a person to do this for you.

Mark Lewis Brown: [00:07:31] You don’t want to take a chance. You know, you need the expert to do this..

Mark Lewis Brown: [00:07:36] And yeah even we used to start with a guidebook, right? So.

Robin Trimingham: [00:07:39] Well, that too. Yeah, you’re absolutely right. So what is the data saying, then? How is all of this impacting Gen Z booking patterns?

Mark Lewis Brown: [00:07:52] Well, they’re obviously they’re using their phone once again. They’re much more price conscious. So they’re looking at the whole picture.

Mark Lewis Brown: [00:08:04] So it’s not only the airfare and the hotel, but they’re comparing like, I want this experience. How much is it going to cost and putting all these experiences together to get their final cost. So they’re looking to cut costs where they can so they can add more experiences. They’re not where I think a lot of the world goes out right now and says, I’m going to go to Daytona Beach and really what do you do? You you book the hotel and the airfare. And a lot of people would go there and make their plans later. But the Gen Z’s, they know what they want to go see. They want to look for those Instagram locations where they can take pictures and have experiences. So they’re price conscious and they check more often, too. They’re always looking and comparing and seeing what’s out there, and they’re highly influenced by ratings and reviews and what individuals are saying. It’s not even the combined ratings that you might see on some of the websites. They’ll what’s really important is that those individuals that are there and making videos, they’re ratings, too, Right.

Robin Trimingham: [00:09:08] You’re making me think of a secondary question I’d love to ask you. I agree with what you’re saying, by the way, because my experience of Gen Z has been exactly the same, that they they seem really to want to control the entire experience before they’ve even packed their suitcase For somebody, I’m going to say my generation, if you will, it was travel was about adventure. Travel was about going somewhere new and not knowing what was going to happen. We would figure it out when we got there. Just the way you said, do you feel then that they that being in control is super important to these guys?

Mark Lewis Brown: [00:09:50] Yeah absolutely. I think that they’re doing much more planning than I would do prior to going someplace. And I agree half the fun for me was to show up someplace and see how it goes, right? I mean, you knew you had a place to stay. You knew you had your airfare and the rest was a game. And it’s a lot different now there. And you could even see it in some of the videos where I’m up in Portland, I was just looking. I just saw some things on Portland where they’re like, bang, bang, this is my day in Portland and they’ve seen 20 things and taking pictures. I would have been exhausted by half, half the way through. So there’s a lot of times this coffee shop, I’ve got to go to this ice cream store, I’ve got to take a picture here. And so there’s a lot of planning.

Robin Trimingham: [00:10:35] Going on with all of that. Would you say then that it’s more effective to market to Gen Z using an OTA or a direct booking method?

Mark Lewis Brown: [00:10:49] Well the Otas are always going to be there. They’re always something that you have to pay attention to. I don’t think I don’t think they’re out there. Of course they’re going to try to attract the Gen Z group, but I think that they’re probably being used more as a tool to get to get information on where they want to go and potentially where they want to stay. There are some hotel groups, I think like the Moxy Hotels by Marriott. They’re obviously trying to attract that group. And but ultimately, the attraction comes when you get right to the hotels website, and that’s whether it’s the moxy or it’s an independent hotel, because when you get them on your website, that’s where you can really use your own pictures and social media and all that to attract them by showing them, you have to show them what the experience is going to be because they know the beds there. It’s more about what’s what else is there, What else can I get Some good pictures. Are there things that are going to go good on Instagram? And then where are they located? Are they close to all the other things I want to go to? And but you have the most control of your website. I think ultimately more of the Gen Z is going to end up there. You can offer packages. There are several hotels that have done it well, the Jupiter Hotel in Portland is very much looking for the Gen Z group and it shows in what they’re offering for their packaging and how they’re doing it and even showing going as far as showing where their little where you can take your picture and add it to social media.

Robin Trimingham: [00:12:20] Yeah, we have a couple hotels here where there are definitely spots. Oh, take your picture here. I’m wondering about all of this, though, because you’ve talked about how much they’re using TikTok and Instagram to make travel decisions. If you’re a traditional hotelier that’s used to traditional marketing methods and a website where you could book direct or an OTA, how do you effectively market a hotel product through one of these other ones, Tik Tok, Snapchat, whatever?

Mark Lewis Brown: [00:12:58] They’re going, right? So you can put your own videos on TikTok and. Promotions listed and websites listed and all that. Also, you can use your guest to help you, right? So promoting your guest to do a video or pictures or whatever of your property and you can link everything to your direct booking engine from from a lot of these social media platforms which you can’t do really from, from an OTA. And I’m not saying that you still need to pay close attention to the OTAs. You could still put pictures in the OTA that are attractive to the Gen Zs. So there’s still ways to do both. You can also work with I’ve seen hotels, work with influencers, people that have a large base, lots of followers and use them to promote their hotel. So there are ways to do it and I’m sure they’ll grow and change. But you just and also hire a Gen Z to help you. They’re the best.

Robin Trimingham: [00:13:54] Established in 2002 is a woman owned global food service and hospitality company that manufactures smart, savvy commercial grade products, including plateware, drinkware, flatware. Hotel amenities and more. Driven by innovation F.o.h. Is dedicated to delivering that wow experience that restaurants and hotels crave all while maintaining a competitive price. All products are fully customizable, and many are also created using sustainable eco friendly materials such as straws and plates made from biodegradable paper and wood and PVC free drinkware. F.o.h. Has to establish brands front of the house focused on tabletop and Buffet Solutions and Room 360, which offers hotel products. Check out their collections today at f.o.h worldwide.com. Does working with influencers work? Is Gen Z willing to buy into? They should listen to an influencer. Or are they more savvy than that? What do you think?

Mark Lewis Brown: [00:15:05] Yeah, that’s a good question. They influence influencers. They do work. They get paid to do it. It’s a every. Gen Z would love to be an influencer, right? So my daughters have it’s amazing. Several other people they follow that truly do influence them. So I personally think it does work. I think it’s all about what is their base? How many people do they connect with and what are the people? So is it an influencer that does travel all the time or is an influencer who does a million different things? You’ve got to decide the influencer that does all kinds of different things. You’re just picking out a few people here and there where a travel influencer has a lot more power when it comes to travel, obviously. I mean, I follow a couple of travel influencers that are flying different airlines, and I like to I travel a lot. So internationally I like to see what maybe I’ll try something different this time, see what I see online.

Robin Trimingham: [00:16:04] What about top things that are influencing Gen Z’s choice of destination? Is there a difference between domestic and international travel when it comes to all of this?

Mark Lewis Brown: [00:16:18] Well, they’re very into culture and learning about new cultures. I know my daughters have been we’ve been to Italy and Mexico and they’ve been around in the culture. They love learning about the culture and about the differences in the world. So I think cultural things are important internationally, probably more than they would be here in the US. I think in the US you’re looking at they’re looking at more environmental things and beaches and things like that. They’re looking for those instagrammable locations and also social issues matter to these folks as well. So remember, they’ve been part of the world where there’s a lot of a lot going on socially with climate change. There’s there’s all kinds of aspects like that they’ve seen. Those kind of things are important to them. So my daughters pay close attention to that and they’re also visiting places they’ve seen on TV as well because they still watch TV. Then they compare it to to what they find on social media and and also the LGBTQ situation right now. I know that a lot of a lot of these Gen Z’s are really sensitive to that and they want to stay in places that are supporting it, just like climate change. So they’re looking for the they can just be even subtle things that show the support of these of the hotel industry.

Robin Trimingham: [00:17:43] I get the opportunity in my position to chat with everybody about all kinds of issues affecting travel. It’s interesting that you talk about their awareness of social issues and climate change. Are they really making booking decisions based on whether or not a hotel has an effective ESG program in place?

Mark Lewis Brown: [00:18:10] I think it does have an influence, But I think what’s important is that if you’re publishing that and you need to make sure you’re following through with it, because with the Gen Z, there’s nothing worse than them making the decision to visit, but then getting there and finding out it was not accurate.

Robin Trimingham: [00:18:28] That’s interesting. Yeah.

Mark Lewis Brown: [00:18:31] The first ones to point out those kind of deficiencies in a video. Yeah. So there and there they are making decisions that way. I mean, my daughters are the first ones to tell me we’re getting an Uber push the electric button. It’s there are those people that are pushing the buttons of other give you the carbon setback or the electric car or whatever. It’s part of their life.

Robin Trimingham: [00:18:54] How are they allocating their travel budget? We’ve talked about them wanting to go a lot of exotic places and do a ton of things. Is there any like data on how much they’re spending on in these different categories?

Mark Lewis Brown: [00:19:12] I don’t have specific spending, but we know that we know they’re like everybody else. They want a good price for the best product, so they want to go luxury. But with the way they’re traveling, you can’t afford luxury just because of the cost of the luxury. But they also want to add so much to it. Food is real important. They’re foodies and so previously they’ve got a lot of plans while they’re there. So they’re very price conscious. So and they’re looking for also experiences that are potentially wrapped into a package or something added on to their their travel decision.

Robin Trimingham: [00:19:48] So you talked about price being important. How important is price transparency and how how should we go about explaining this to Gen Z? Because if you go to a traditional resort, you’ve got the price on the website and then when you get there, there’s the resort fee, there’s the city fee, there’s the state fee, there’s and it just adds up and up and up. And you get this hotel bill that is significantly larger than what you were originally thinking.

Mark Lewis Brown: [00:20:23] That’s right I mean, yeah, and price transparency for them is is huge and it does influence their travel decisions. I think they’re one of the first groups, if you think about it, that have used delivery services. Right. And my daughters and I’ve heard this straight from their mouth, it started out free, Right? Delivery is free. But now delivery includes a delivery fee of service fee, a tip. And they’ve seen this pricing discrepancy. Right. So they know about it already. And you’re right. In the hotel world, I was just at a resort. I ordered a $20 pizza that cost $45 when I signed the bill in my room. That’s a rip off. And it’s you should have just gone and bought the pizza or ordered pizza directly. So they’re thinking past they’re going to they’re going to think past all these fees and how they can avoid them. And and I think it’s the right time to I think we’re seeing a lot about the hotel fees, resort fees. And even out in the media right now, the government is even looking at those because 45, $50 I know I just parked a car for $70 a night in Seattle.

Robin Trimingham: [00:21:38] And for $70 a night, you can get an Airbnb in some places..

Mark Lewis Brown: [00:21:44] My daughter were appalled. So yeah.

Robin Trimingham: [00:21:48] So how would you say is the best way to design a travel promotion that actually is goig to attract Gen Z?

Mark Lewis Brown: [00:22:02] What I’ve seen that I think and I know is effective is making sure that in the travel promotion, whatever you’re doing is addressing them specifically. So it could be you could do something within the hotel or something in the area. I’ve seen things like includes a map of of the number one instagrammable photo locations, two bottles of sparkling local water, things like that, where they feel like they’re just getting something additional. And those are those things are easy to do on booking engines and hotel websites and don’t take a huge amount of work. But they should also push the eco friendly all of the other pieces on there that they want to see on the website. It’s a very it should be a very easy and easy thing to do. I’ve seen hotels. There’s a hotel in Albuquerque, the hotel Zaza, that I would say does one of the best jobs when it comes to marketing, to these Gen Z folks. They’ve and they’ve taken an old hotel on Route 66 and turned it into a really cool happening place. And with things like come find the gold banana. They put they have a couple of golden bananas around. And what that does is when you pull it, it opens the door to the speakeasy and they they’ve got a little speakeasy they’ve made and they’ve out by the pool. They’ve got a big, big screen with movies playing and they’ve just got all these spots for the Gen Z folks to hang around and, and they get the, the social media out that their guests have just issued tons of videos from them and they’re just doing a great job.

Robin Trimingham: [00:23:43] Sounds like a really fun place. It’s a.

Mark Lewis Brown: [00:23:46] Moderate place. It’s the perfect price level. It’s a good example. If you go look about what Gen Z is looking for.

Robin Trimingham: [00:23:53] So we’ve got a couple minutes left here. Let’s talk about where everything is heading with AI, because I’ve talked to different people involved in developing apps and that can make recommendations based on what you’re already doing with your phone. Where do you think all of this stuff is heading?

Mark Lewis Brown: [00:24:16] Wee see it every day already, right? And things that we do a lot of times we don’t even realize that’s what it is. Like the chat bots and and those chat box obviously are collecting data, giving suggestions, trying to reduce the support required by by people and it’s going to continue to grow. So I think it’s a space that the hotels need to make sure that they’re playing in. I think it’s very early. Like I don’t think I don’t think you’re going to see anything specific to a hotel right now other than you can go into the chat, into chat and ask for a hotel list of hotels and location, and it will pull you up a list and give you details and all that. But a lot of that’s being pulled from the Internet, right? So it’s just making sure you have some of these things on your website or or on the Internet. But it is it is something that the hotels are going to have to stay on top of because it does appeal to the Gen Z there. And I think since we’ve seen it recently, you figure how long this has been out. We’ve all tried it, right? We’ve all gone in and just to see what it does and it is the future for sure.

Robin Trimingham: [00:25:25] Yeah. No, absolutely. Every day there’s new uses for this that actually is really helpful. So someday Gen Z, dare I say it will be our age. What do you think travel will look like by then?

Mark Lewis Brown: [00:25:43] Well, I don’t. I think that the whole thing, we’ll look back at it or they’ll look back at it just like we have like, can you believe that? We used to book the hotel on a website. You know, I think it’s completely open about how they’re going to experience the travel, experience, travel, and hopefully they’ll be able to get places quicker and easier than we we are right now because obviously I think we’ve all experienced the pain of traveling.

Mark Lewis Brown: [00:26:11] The pain of getting there. And also I think they’ll probably see have more accurate data to make sure that what they’re looking for an experience is what they get. I think everybody in our in our age bracket has all been burned before. Right? Because we we we didn’t get what we were expecting. And I think that’s changing. I think now expectations are clear, and I think that will get better and better. You’ll know exactly what you’re getting. And is that good or bad? I’m not sure. I sometimes I don’t mind getting a surprise as long as it’s not a bad surprise. But I think surprises are going to be less and less.

Robin Trimingham: [00:26:50] Well, I think that making experiences be better quality can only be a good thing because you have to deliver what you’re promising. Mark it’s been a. Pleasure to meet you. Want to thank you so much for your time today. You’ve been watching the innovative hotelier join us again soon for more up to the minute information and insights specifically for the hotel and hospitality industry, you’ve been listening to the Innovative Hotelier podcast by Hotels magazine. Join us again soon for more conversations with hospitality industry thought leaders.