Waiting in the wings to take the reins from Millennials is the coming-of-age Gen Z. Born between 1997 and 2012, Gen Z is the voice of the future.
So, why aren’t business managers appealing to this market demographic when those old enough to sway travel decisions are as eager to travel this year (71%) as Millennials? What’s more, Gen Zers plan to spend more on travel this year than any of their predecessors.
Utilizing this opportunity and appealing to the travel group that’s slipped through the marketing cracks is an excellent way to boost the profit potential of your short-term rental and multifamily properties. To do this, you’ll need to tailor your service to the expectations and demands of Gen Z.
Top Gen Z travel trends
It’s no surprise Gen Z is the most adventurous travel group, as it’s also the youngest. Gen Zers have fewer responsibilities and are rightfully making the most of this through exploring different cultures and continents.
Over half of Gen Zers are interested in taking an international trip this year, with popular destinations including Paris, Dubai, and Greece.
Their predecessors, however, are sticking to domestic trips, with almost two-thirds of Gen Xers and half of Millennials planning to travel domestically this year. In contrast, only 20% and 35% respectively plan to travel overseas.
Like every generation in the past couple of years, it’s missed out on experiences, but for Gen Z, who are becoming adults and learning who they are, this was like having their lives put on pause. They missed birthday milestones, graduations, and spring breaks.
Now restrictions have eased, they’re ready to get out there and take back their youth – in a big way! 72% of Gen Zers are even considering splurging on a once-in-a-lifetime trip to make up for the lost time! Can we blame them?
It’s clear, Gen Z is an underestimated travel market with heaps of potential. Let’s look at how their power can be harnessed:
3 steps to creating a Gen Z friendly short-term rental
1. Make it sustainable
Gen Zers hold high standards for sustainability, especially when it comes to tourism. This is reflected in their ethically motivated travel choices, such as choosing cultural immersions over visiting overcrowded hot spots to reduce environmental impact. They’re also three times more likely to volunteer while on vacation than other generations.
Show potential guests you share their values by streamlining your short-term rental’s energy consumption with property automation technology, such as a Water Management system.
2. Make it cozy
For Gen Z, materialistic belongings are incomparable to memories. And so the treasures they aim to collect from around the globe aren’t touristy trinkets but experiences. They’re chasing simple pleasures over extravagant adventures.
Create an environment where they can spend time with nature or connect with loved ones by providing cozy communal areas, such as outdoor seating around a fire pit.
3. Make it modern
Some stereotypes are true – Gen Z has a technology dependency, having been raised alongside its uprising. They’re hyper-connected to the world and used to the convenience and simplicity tech offers.
Appeal to their weakness; keep your short-term rentals up-to-date with the latest innovative tech, such as hassle-free keyless guest access, to improve your appeal to this generation group.
What about those looking to stay in a rental for longer? How do these trends differ? And how can property managers make multifamily properties appealing to these residents?
3 steps to creating a Gen Z friendly multifamily rental
1. Tech it up
More than anything, Gen Z values time. And if we’ve learned anything from hospitality technology, it’s that it’s efficient for everyone involved. From smart thermostats adjustable through an easy-to-use app and keycode contactless buildings to worry-free security and Water Management monitoring, which instantly highlights risks, smart home tech is the key to convenient living for rental residents.
2. Include communal areas
Arguably, Gen Z lives a different lifestyle from many other generations. They place higher importance on their wellbeing, whether that’s in the form of exercise or simply a better-balanced work/life.
With this in mind, this residential group will likely be on the lookout for units with secure communal areas, including exercise facilities and co-working spaces.
3. Be flexible
An obstacle many prospective residents face when searching for accommodation is finding the time to view a property. It’s especially challenging when in-person tours rely on the prospective resident and the property manager’s schedules lining up. And since we’ve already established Gen Z values time, they’ll likely stop pursuing properties with a complicated viewing process.
Being more flexible when it comes to accommodation tours can help you avoid losing future residents. For example, advancing your tour process to a tech-powered contactless option, such as Self-Guided Tours, removes the need for your coordination and attendance. Instead, it allows prospective residents to view the rental at a time that’s most convenient for them. It’s a win-win all round!
Stay ahead of competitors this year by appealing to the hospitality market’s underdog – Generation Z. Speak to their eco-conscious, tech-savvy minds and reap the benefits of their travel and real estate spending power.
Read more on PointCentral’s property automation solutions to discover the tech Gen Z already know and loves.