A Luxury Institute executive at Luxury Daily's Luxury FirstLook: Strategy 2013 conference said that affluent millennials will be moving into the prime of their luxury consumption years as baby boomers are moving out.
During the "Marketing to Generation LuXurY" session, the executive discussed the typical millennial demographic and how marketers will have to adjust their strategy to target this group. All in all, the millennial demographic feels more confident, more entitled and is comfortable with technology.
"The situation is that baby boomers are moving off the stage as the leaders in luxury consumption, as Gen X and Gen Y are moving into their luxury consumption years,"said Milton Pedraza, CEO of the Luxury Institute, New York.
Paul James, global brand leader for the St. Regis and The Luxury Collection, was unable to attend the Luxury FirstLook 2013 conference. Mr. Pedraza spoke on his behalf.
In with the new
The up-and-coming luxury consumer responds to different marketing strategies than the baby boomer and older luxury consumer.
For example, when marketing a hotel chain to a younger demographic, brands should look to incorporate entertainment into the hotel experience.
Overall, the younger generations are not as restricted by boundaries and value travel more than other generations.
Hotels are just not places to stay to them, but places for entertainment and culture.
These generations see no boundaries. In turn, marketers must create massive value to appeal to them - not just in a product or service, but in the engagement as well.
Starwood Hotels & Resorts tapped into the mindset of its millennial consumers by integrating technology with their customer service.
Starwood enabled its preferred guests to upload their member card to the Passbook application for the iPhone's iOS 6 and Android devices for instant access to account information and reservations at all nine of its brands.
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