How AI Can Help Decipher Hotel Guest Demographics

The hospitality industry is witnessing a seismic shift in guest preferences and behaviors across different age groups. From Baby Boomers to Generation Z, each demographic cohort brings its expectations, preferences, and values to the table, compelling hotels to adapt and reinvent to stay ahead.

However, in today’s digital world, advanced technology has enabled hotels worldwide to understand their customers like never before. Among these technologies, artificial intelligence (AI) is a powerful tool to bridge the gap between generational differences and tailor travel experiences to meet diverse needs. 

So, what enables AI to accomplish such personalization? Simply put, training. Here’s how. 

Equipping AI with Generational Trends 

Teaching AI how different generations interact with technology can significantly enhance the user experience. By infusing AI training with detailed insights into generational insights like booking behaviors, the technology can offer tailored responses that resonate on a deeper level.

Let’s start with some 2024 travel trends by generation from Hilton’s latest report: 

Baby Boomers (Born 1946-1964): Embracing Luxury and Comfort 

Baby Boomers, now entering or enjoying retirement, are increasingly prioritizing travel. They seek luxurious and comfortable hotel experiences. Restaurants and culinary experiences are their top priority for their travel budget (45%) as they seek out local and regional cuisine when traveling (86%), and they are more than twice as likely to say the ‘human’ factor of hospitality makes the travel experience.

Generation X (Born 1965-1980): Seeking Cost-Effective and Efficient Experiences 

Generation X, often juggling their careers and family responsibilities, values cost-effective, flexible, and family-centric travel experiences. Gen Xers still expect their personal devices to work seamlessly while traveling (79%) and say it is important to book their travel entirely online (79%).  

Millennials (Born 1981-1996): Prioritizing Experiences and Family-Friendly Options 

Millennials have been the trendsetters in demanding exceptional services and valuing experiences over material goods. Millennials agree it is essential that they feel cared for while traveling (83%). Family-friendly options are especially important to Millennial parents when booking travel (91%). 

Generation Z (Born 1997-2012): Digital Natives Demand Tech 

As true digital natives, Generation Z expects technology to be seamlessly integrated into their travel experiences. They say it is important that they can book their trips entirely online (83%) and bundle their reservations and services with their hotel bookings (74%). It is important that they can use their personal devices seamlessly while traveling (84%).  

Training AI to Recognize Generational Differences 

In addition to recognizing trends, when AI chatbots are informed about specific characteristics of different generations, they can make educated assumptions that improve interaction. For example, knowing how each generation typically asks questions and interacts with technology enables the AI to respond even better. 

Here’s an example set of information that can be used to help AI ascertain generational nuances: 

Language Usage 

• Baby Boomers: Prefer formality and politeness with detailed queries. They value complete sentences and thorough responses. 

• Generation X: Opt for a balance between formality and informality, prioritizing efficient communication. 

• Millennials: Favor informality and often include tech references, preferring concise and straightforward communication. 

• Generation Z: Highly informal, commonly using slang, emojis, and abbreviations for fast and expressive communication. 

Interaction Style 

• Baby Boomers: Enjoy direct human interaction with an emphasis on advanced planning. They appreciate comfort and convenience. 

• Generation X: Show interaction flexibility, are comfortable with human and tech-driven services, and are sensitive to pricing. 

• Millennials: Value speed and convenience, often relying on social proof like reviews and ratings.

• Generation Z: True digital natives who expect instant responses and prefer digital, automated interactions. 

By understanding trends in language and tech use, AI can tailor interactions to match customer patterns. Hotels using such AI ensure more effective and satisfying interactions with their guests.

How Shift Digital Can Help 

Starting with AI may seem like an enormous undertaking, but it doesn’t have to be. At Shift Digital, we are helping hotels worldwide embrace the power of AI to transform how you connect with your guests, one interaction at a time. Our expertise lies in delivering advanced tech solutions that seamlessly blend with your hotel’s operations, enabling you to understand and cater to the distinct preferences of each generation. Contact us today to learn more about how we can help.