Dive Brief:
- Kid-friendly hospitality could be a $175 billion opportunity for hotels globally, according to Wanderland’s first annual Kids Hospitality Report.
- The London-based kids- and teens-focused hospitality consultancy found that though urban luxury hotels are offering more adult-focused amenities than ever, kids’ amenities are often overlooked — despite the fact that some 77% of parents say they are influenced by their children when selecting vacation activities.
- Families “don’t just vacation at resorts,” according to the report, which noted that 65% intend on taking city vacations, per the Family Travel Association. And yet, these travelers “are not catered to nearly well enough by city hotels and other properties that are not resorts or family destinations,” the report contends.
Dive Insight:
Up to 25% of brand preferences formed in childhood persist into adulthood, the report noted, meaning that attracting children can be a “lucrative long-term investment for companies,” including hotels.
Globally, the hotels market is worth $1 trillion, and “kids industries” such as gaming and children-focused retail are worth $850 billion. Wanderland estimates that the area these two overlap, kids hospitality, is worth $175 billion.
And yet, the report contends, innovation in the space has stagnated. “It would appear as though a colouring book marks the cutting edge of amenities for kids,” and has been for more than 20 years, according to the report’s authors. “We have also found that the quality of amenities provided by the very top echelons of luxury hotels is often the same quality of amenities as one might find in entry-level economy locations.”
Wanderland found that the most common kids’ hospitality provisions in luxury city hotels are coloring or activity books, bath products, kid-sized robes and slippers, individually selected gifts, “welcome packs,” a stuffed teddy bear or mascot and food treats.
Less frequently, but sometimes on offer, are amenities such as a tent, a treasure hunt around the hotel, a kids’ passport, a hotel-specific story book or a video game console.
The report asserts that luxury hotels can offer more unique kid amenities than they currently are — even if they’re not primarily family-friendly resorts. “Hotels do not need to be Disney to profit from meaningful and memorable moments with media icons,” the report reads, noting that thoughtful amenities can create lasting impressions.
Wanderland also partnered with kids marketing agency Kids Know Best to conduct surveys of kids and parents about their travel and hotel opinions and preferences. Their findings showed that a large majority of kids find hotels “fun and exciting,” and most of them said it was “very important” for a hotel to have offerings specifically for kids. However, on the whole, kids believe hotels do not do enough for them, the survey found.
When asked what they enjoyed most about hotels, American kids said they enjoyed swimming pools, fun and excitement, and “big comfy beds,” according to the full report obtained by Hotel Dive. When asked what they would like hotels to offer, they replied free food and drinks, swimming pools with slides and an arcade room.
Some 71% of U.S. parents are “more inclined” to spend money on their kids for treats, gifts and experiences when on vacation, the report noted. And families stay longer at hotels than other guests, require larger or more rooms, consume more on-property food and beverage and spend more on on-site services and amenities, the report said, citing research by Deloitte, STR, Phocuswright, Euromonitor, the U.S. Travel Association and the Family Travel Association.
Multigenerational luxury travel is a “growing trend,” according to McKinsey & Company’s “State of Tourism and Hospitality 2024” report, released in May. McKinsey also found that working to attract younger customers is key for travel industry players, as they can offer “lifetime value.”
Some 37% of travelers plan to go on multigenerational trips in 2025, according to Hilton’s annual trends report.
