Millennials favor premium On Premise products at luxury hotels

CGA by NIQ’s latest Hotel BevAl Opportunity Study explores the wealth of opportunities for brands to supply increasing demand in the growing domestic leisure travel in the US.
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It includes an up-close look at why younger consumers are over-indexing on luxury hotels and experiences right now, and how drinks brands can maximize current and future sales by tapping into this lucrative opportunity.


A millennial priority for experiences above possessions has made higher-end and luxury hotels the third most popular hotel type for the 21-34 age group, behind standard hotels and independent rented accommodation and home stays.  


The significance of this demographic to higher-end hotels and other luxury accommodation types is further underlined when compared to other age groups. With 33% of 35–54-year-olds and just 17% of the 55+ market opting for higher-end hotels its clear luxury accommodation doesn’t have the same allure. 


So, what’s driving younger consumers to treat themselves with stays at higher-end and luxury hotels and spa hotels more than other age groups?  


21–34-year-olds characteristically prefer to spend on high quality experiences and wellness compared with other consumer demographics. Additionally, the over-indexing (+11pp) by millennials in luxury accommodation types (41%) can be attributed to overnight stays for celebrations or leisure functions, such as weddings and spa retreats.  


These treat occasions are exceptional opportunities for drinks brands to strategically position and promote premium products where consumer spend is likely to be higher.  


What’s more, the report demonstrates that over two thirds of On Premise consumers are likely and willing to pay more for a better-quality drink when visiting a hotel to take advantage of its leisure facilities. This is especially true of a younger audience that places high importance on self-care.  


Consequently, the preferences and spending habits of millennial consumers in this category present a compelling case for drinks brands to pursue mutually beneficial partnerships with luxury and higher-end hotels and spa hotels, ensuring premium offerings are featured to capitalize on those consumers looking to indulge and treat themselves.  


Matthew Crompton, regional director – North America said: “The US Hotel BevAl Opportunity Study reflects the many and varied opportunities for drinks brands to optimize the ongoing trend for domestic leisure travel. Within this market segment, the 21–34-year-old age group epitomizes a particularly captivating window of engagement with younger consumers who not only have disposable income but are ready and willing to spend it in order to elevate their stays at higher end hotels and spas. And with their propensity for prioritizing treats, tapping into this market can create brand equity that lasts long after these consumers have checked out of their hotels.”  


CGA by NIQ’s Hotel BevAl Opportunity Study 2023 explores beverage opportunities across the US hotel channel, helping brands to capitalize on consumer appetites in different amenity areas during specific types of trips​. For more information, click here or contact 

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