How Hilton is targeting young consumers and why it matters | Cindy W. Hodnett

Insanity is often defined as doing the same thing over and over again and expecting different results, and when it comes to what will work with consumers now and in the future, one thing is certain: It will not be the same playbook as it has been in the past.

The past six years, and more before, have taught all of us that things can change in a nanosecond. However, despite what might seem to be elusive solutions, there are interesting initiatives occurring outside of the home furnishings industry that could inspire fresh approaches to attracting new consumer audiences.

Undergraduate by Hilton

Yesterday, Hilton launched Undergraduate by Hilton, an upper-midscale brand the company developed to serve a broader range of college and university markets. The new program is building on the success of Graduate by Hilton, part of Hilton’s Lifestyle portfolio and a brand that brings what the company calls a “locally inspired approach to more university towns across the country.”

Officials noted that Graduate by Hilton continues to build momentum with openings as well as new food and beverage concepts designed for college markets. Undergraduate by Hilton has been designed to extend Hilton’s presence with a flexible model that will “unlock development opportunities at scale and a cost structure suited to the demand in more campus-driven markets.”

The company expects the first Undergraduate by Hilton property to open in 2027, and notes that the brand has long-term expansion potential of 400 to 500 hotels, growth that is in addition to the Graduate by Hilton properties.

See also:

• From college to customer: Dorm makeover contest acquaints Gen Z with Urban Outfitters’ furnishings
• Dormify relaunches under Williams-Sonoma ownership

The long-term potential of building brand awareness and loyalty with these two Hilton Lifestyle brands is impressive. With Undergraduate by Hilton, the hotel chain is providing an important “third space,” aka a social environment separate from the two primary environments of home and work or school. The social public spaces are designed to feel like off-campus hangouts with a barista-led all-day market featuring grab-and-go retail, curated essentials and a signature cocktail program that “channels the spirit of a favorite college dive bar.”

Talk about “build it and they will come.” Humans are creatures of habit, and it isn’t hard to imagine that a substantial number of college students will become comfortable with Hilton through these Undergraduate-branded hotels only to later “move on up” to more traditional and expensive Hilton hotels.

So how is this applicable to our industry?

Lifestyle brands: There is no shortage of information about the current and growing importance of storytelling in marketing messaging these days. Many companies successfully navigating turbulent waters have recognized this and moved beyond a lowest-price race to a value proposition that is about more than cost. Yes, consumers are cost-conscious, but the definition of value has shifted to include much more than dollar signs.

Third spaces: At markets, I’ve had this conversation with numerous “down the rabbit hole” industry friends. Post COVID, many “in-person” activities became virtual, and now there is a real desire and need for comfortable public spaces that allow people to get together. Coffee shops within a retail store could be one answer, but so could monthly or even weekly community events designed for connection.

These third spaces are believed to strengthen communities, but at a minimum, if designed to attract younger consumers, they build early brand awareness and loyalty.

Retail experience: First impressions matter. Most retailers get one chance to make a good impression in person, and it’s important to see your store from the viewpoint of a customer walking in for the first time. Invite locals to come in and leave their suggestions for what works and what doesn’t and what they’d like to see, whether it’s more “local” flavor or events or even a product wish-list, the insights might inspire.

Of course, the hospitality industry is a different entity than home furnishings. However, as some hotels have discovered, consumers are often willing to intermingle the two, whether through a search for a specific mattress or a “grab and go” retail product that takes the experience back home.

Take a look at Undergraduate by Hilton on social media and see how the company is defining its Lifestyle portfolio. There are definitely ideas worth consideration.