Niagara College Canada
Class: BABH9101 (Integrated Hospitality Operations).
Essay 1: Who is Generation Z? Why is it important for the hospitality industry to
understand the behaviour and preferences of these consumers?
Studen: Uyen Nhi Le
Student ID: 4481353
GENERATION Z: THE FUTURE KEY OF THE HOSPITALITY INDUSTRY
Who is Generation Z?
Following millennials, Generation Z was born in the late 1990s and early 2000s, with
some of the oldest graduating from colleges and joining the workforce by 2020 (Meola,
2022). This generation has been growing up within a highly technologically
sophisticated world where knowledge is always available at their fingertips. As a result,
the majority of Gen Zers are familiar with the breadth of the digital market, whether it be
in terms of media, software, or hardware, unlike some Millennials who still only use
digital technology to a limited extent.
The potential consumer
Generation Z seems to be a potentially significant new customer for any firm. According
to Fromm (2022), the disposable income of Generation Z in 2022 is 360 billion US
dollars; back in 2018, Gen Zers spending power is 148 billion US dollar and accounted
for 40% of the global consumers (Raynor, 2021). At a very young age range of clients,
Gen Zers are believed to play a vital role in global consumption. Even though some are
not purchasers (children still depend on their families), they significantly impact their
parents' purchasing. With its large population and strong spending power, Gen Z can be
considered a potential consumer for any business.
Opportunities come along with challenges; Gen Z is more complicated to reach than
previous generations. In contrast to Boomers, Gen Xers, and early Millennials, they are
typically reluctant to engage through ordinary marketing and advertising platforms.
Instead, to seek better offerings and experiences, they rely on social media and wordof-mouth recommendations from family and friends. Therefore, it is vital to understand
their preferences and behavior of these promised consumers.
GenZers – The vital market segment in the hospitality industry
Hospitality is a "people" industry where guests are people who interact with the service
provider (Barrows, C., Powers, T., and Reynolds, D.,2012). Understanding consumer
behavior is pivotal for organizations because it can assist them in reaching better
service and product decisions. Businesses can adapt their offerings to further satisfy
their core demographic's needs and demands by understanding why people purchase
specific products and how they use them. It is undeniable that understanding of
costumers’ behavior and preferences is fundamental for the hospitality industry,
especially for its current and future customers – GenZers.
According to Desmond Wee's research (2019), the German word "Ohnmacht" refers to
the condition of GenZers. It leads to their forming of life's quality. The study defined
"Ohnmacht" as a state of hopelessness and skepticism in a new international order
tormented by crises affecting the political, financial, nuclear, environmental, terror, and
humanitarian spheres. The ideal lifestyle, based on the ultimate consumption of comfort
and convenience (goods, services, education, etc.), and mediated catastrophes, which
were greatly aided by media and new technology, appeared to be at odds with one
another. Therefore, the synthesis of anxiety, mistrust, and pessimistic worldviews and
how they interact with travel expenditure, enjoyment, and quality of life need to be
comprehended more carefully. This is critically valuable as recreation and travel time
have become significant elements among several young people's living standards in the
industrialized world. GenZers are the next generation of the tourism industry and should
be understood by any hospitality business in order to meet their trends and demands.
Moreover, Generation Z shapes the global outlook of traveling (ETC), which directly
affects the hospitality industry. For example, environmental problems are one of the
biggest worries among GenZers today; many of them gravitate towards greener travel.
They influence how people view the world and bring new adjustments that the
hospitality industry needs to be aware of, possibly even changes to please potential
customers.
Conclusion
The hospitality industry operates in a setting in which one of the most fundamental
components is the customers. Generation Z is becoming a significant client segment of
this industry with the new standards that the hospitality industry needs to understand. If
any hospitality businesses do not comprehend the behavior and preferences of
generation Z, they will eliminate themselves soon or be rejected to consume by their
future customers.
References:
- Meola, A. (2022, April 21). Generation Z: Latest Gen Z News, Research, Facts.
Insider
Intelligence.
Retrieved
September
27,
2022,
from
https://www.insiderintelligence.com/insights/generation-z-facts/
-
Barrows, C., Powers, T., and Reynolds, D. (2012). Introduction to Management in
the Hospitality Industry, 10th edition. Hoboken, NJ: John Wiley & Sons. Chapter 1.
https://infoperhotelan.files.wordpress.com/2016/10/intro-to-management-inhospitality-industry1.pdf
-
Fromm, J. (2022, July 20). As Gen Z’s Buying Power Grows, Businesses Must
Adapt Their Marketing. Forbes. Retrieved September 25, 2022, from
https://www.forbes.com/sites/jefffromm/2022/07/20/as-gen-zs-buying-powergrows-businesses-must-adapt-their-marketing/?sh=4de9a7422533
-
Raynor, L. (2021, January 21). Gen Z And The Future Of Spend: What We Know
About This Generation, The Pandemic And How They Pay. Forbes. Retrieved
September
25,
2022,
from
https://www.forbes.com/sites/forbesbusinesscouncil/2021/01/21/gen-z-and-thefuture-of-spend-what-we-know-about-this-generation-the-pandemic-and-howthey-pay/?sh=4d8cb66721eb
-
Desmond, W. (2019). Generation Z talking: transformative experience in
educational
travel. Journal
of
Tourism
Futures..
https://www.researchgate.net/publication/335905208_Generation_Z_talking_tran
sformative_experience_in_educational_travel
-
TOPOSOPHY, L. (2020, July). STUDY ON GENERATION Z TRAVELLERS.
https://etc-corporate.org/uploads/2020/07/2020_ETC-Study-Generation-ZTravellers.pdf