Everyone is feeling different levels of effects from the pandemic and the economic crisis that it has brought with it. And, as we know by now, the hospitality industry has taken one of the hardest hits amongst all industries due to lockdowns and strict public health and safety guidelines. 

As hotels and restaurants start to plan for the eventual recovery and rehiring for positions, there is one generation they should keep at the forefront: millennials. 

Millennials not only make up a large portion of the hospitality industry workforce, but also contribute greatly to the recovery of the industry due to their love of traveling and eating out. 

The Great Recession

During the Great Recession of 2007-2009, the first round of graduated millennials was just entering the job market. Unfortunately, with the economic crisis, the unemployment rate jumped up to 10%, leaving millions of experienced workers looking for jobs. Millennials found themselves competing with seasoned workers for jobs – with less experience and qualifications. Most entry-level jobs were asking for years of experience, and millennials didn’t have much built up yet. So, millennials found themselves having to accept whatever job offer they were able to get, which often had a low starting salary. If they already had a job, then many faced a pay cut that set them back. 

As previously stated, this wasn’t particular to millennials, however, millennials were also facing higher living expenses and larger amounts of student debt than previous generations on top of the Great Recession. 

The pandemic and economic crisis 

We are now facing our second economic crisis on top of the pandemic, and unfortunately, millennials are once again one of the hardest hit generation. They are facing a 9.7% unemployment rate, which is higher than Gen X or baby boomers unemployment, on top of getting pay cuts if they are still employed, while still paying off student loan debts and living expenses. We faced a 14.7% unemployment rate in April, which left millions from all generations unemployed and Gen Z graduates entering a tough job market. 

For those who are back on the job market, they are once again facing lower starting salaries, now with more experience to offer. From having started at lower wages due to the Great Recession and now getting again lower salaries due to the pandemic, millennials are being severely underpaid and will continue to be underpaid throughout their career. 

Why do millennials matter to the hospitality industry? 

As we know by now, the leisure and hospitality industry is one of the hardest hit from this pandemic, due to international travel bans, regional lockdowns and public health and safety concerns. Many restaurants are operating at a low capacity rate and hotels are having trouble securing reservations. 

Not only are hospitality companies struggling to make profits, but they are also cutting large percentages of their workforce. The industry is still facing a 21.3% unemployment rate, which has steadily decreased from 35.9% in May, but is still at a record high. 

This has of course affected every generation, but the hospitality workforce does tend to be younger. Millennials make up 44% of the hospitality workforce.

Aside from the workforce, this has also affected the hospitality industry because industry sources said that millennial travelers make up more than 50% of all hotel guests. According to a 2019 CNBC survey, 52% of Millennials were working on saving up for vacation, higher than all other generations, and in 2016, millennials spent nearly $50.4 billion on domestic travel.

They also make up most of restaurant patrons, due to the foodie culture that has developed. Millennials eat out more often than any other generation, and are willing to spend more money on food, normally. 

In conclusion 

With more millennials being unemployed or facing pay cuts, they will be saving more money for their necessary living expenses rather than saving up and booking vacations or going out to eat or ordering delivery. 

An important factor of the hospitality recovery will be focusing on marketing to millennials to entice them to start traveling and vacationing again and going out to eat or ordering delivery, as well as bringing them back into the workforce.