GENERATION Z CONSUMER HABITS ARE RESHAPING HOTEL AND RESTAURANT STRATEGIES

Generation Z is exerting a growing influence on the hospitality industry, transforming how restaurants and hotels plan technology investments, design guest experiences, and manage revenue. While older generations are dining out less frequently, younger consumers are showing unexpected resilience and a willingness to spend — but under different conditions.

PHOTO: Ilustracija / Generacija Z

According to an analysis by Revenue Management Solutions (RMS), which processes transaction and consumer behavior data from more than 120 global hospitality brands, the market is clearly divided. Consumers earning under $50,000 annually remain financially constrained, while the QSR (quick-service restaurant) segment in the United States is seeing fewer visits overall but a higher average check. In this environment, Generation Z stands out as a key growth driver.

GENERATION Z AS A GROWTH ENGINE IN HOSPITALITY

In the final quarter of 2025, Generation Z increased visits to quick-service restaurants by 34 percent, despite declining frequency among older generations. Notably, 40 percent of young consumers reported spending more on restaurants than the previous year, expressing optimism about dining out even more often in the near future.

For restaurant owners, hoteliers, and technology executives, this is more than a demographic statistic — it is a clear signal of where digital infrastructure and personalization investments are likely to generate the strongest return.

EXPERIENCE OVER PRICE: WHAT GENERATION Z REALLY VALUES

Although Generation Z is often described as digitally driven and price-sensitive, RMS data presents a more nuanced picture. As many as 78 percent dine at a restaurant at least once a week, while 22 percent plan to increase the frequency of their visits.

Interestingly, 25 percent of Generation Z consumers are increasingly choosing full-service restaurants — nearly three times the rate of baby boomers.

For this generation, value extends beyond price. Transparency, personalization, and quality of interaction are just as important as digital convenience. Young guests seek experiences that seamlessly blend the online and physical worlds, without aggressive discounting or forced sales tactics.

THREE KEY SIGNALS FOR HOSPITALITY TECHNOLOGY TEAMS

1. Personalization as the Standard, Not the Exception

Generation Z expects continuity — systems that “remember” them across mobile apps, loyalty programs, and in-property experiences. Personalization must be embedded into technological infrastructure rather than treated as a one-off marketing campaign. Consistency across locations and communication channels is becoming critical, especially in franchise systems.

2. The Physical Experience as Part of the Digital Ecosystem

While digital tools are now standard, physical spaces still hold significant value. Young guests expect clear information about availability, wait times, and pricing, along with simple ordering, check-in, and payment processes. Loyalty programs must function seamlessly, without technical disruptions.

3. Flexible Revenue Management Strategies

As Generation Z and millennials increase visit frequency, older consumers are pulling back. This makes static pricing models and one-size-fits-all offers less effective. Advanced analytics, artificial intelligence, and smart revenue management systems enable businesses to adjust pricing, menus, and packages to match real-time local and generational demand.

TECHNOLOGY INFRASTRUCTURE AS THE FOUNDATION FOR 2026 GROWTH

The transformation of hospitality in 2026 will not depend on a single tool or platform, but on how well systems are integrated and aligned with actual guest behavior. Key priorities include integrating POS systems, CRM platforms, loyalty programs, and digital ordering solutions, as well as leveraging AI-driven insights for pricing and operational decisions.

Generation Z is already shaping the future of hospitality — a future where value is defined by the quality of experience and technology is intuitive, unobtrusive, and guest-centered.

Businesses that adapt their digital and operational strategies to meet these evolving expectations will gain a decisive advantage in building loyalty and achieving long-term profitability in an increasingly competitive market.