If your hotel isn’t actively targeting LGBTQ+ Travellers, you’re missing out on a market segment that books more often, spends more, and priorities positive, inclusive brand values when travelling.
The spending power of the LGBTQ+ community has become something to sit up and take notice of. The Rainbow pound– also called the pink pound, pink money, pink dollar or Dorothy dollar – has been mentioned in business circles for years. But it’s become a focal point of niche marketing strategies to target high value customers. And hospitality is one sector that can gain massively from the rainbow pound, if hoteliers play their cards right.
With almost 30% of Gen Z adults identifying as LGTBQ+ – you are missing a huge section of society as a hotel or other hospitality business if you are not actively targeting these guests.
The changing attitudes towards LGTBQ+ individuals is something to celebrate. The fact that more people are identifying as LGTBQ+ shows they are living in communities and societies where they’re comfortable to be themselves. We know this is a work in progress still, but the push towards ensuring full and genuine inclusivity for the LGBTQ+ community is making great strides.
Often falling under Corporate Social Responsibility (CSR) strategies, many businesses are helping to further the rights and inclusive attitudes towards the LGBTQ+ community. It’s the right thing to do, and being a part of this movement makes society better for everyone. But beyond this, it makes great business sense too, particularly in the hospitality sector.
What is the economic value?
According to the latest research from Community Marketing and Insights (CMI), LGBTQ+ travellers make up 7% of the global travel market. By 2030, it’s predicted they will comprise an astounding 35% of the market – more than a third. Currently, the LGBTQ+ tourism market is worth more than $200 billion annually, and one research paper even predicts the market will surpass a value of $610 billion by 2032.
These numbers pose a tremendous opportunity for hotels. The value of the LGBTQ+ market is growing as destinations and hotels become more inclusive and welcoming. It’s a self-perpetuating cycle on a distinctive upward trajectory.
The more LGBTQ+-inclusive travel experiences there are, the more people travel. And the more they travel, the more they want to travel. Studies also show that LGBTQ+ travellers travel more often and spend more than other travellers.
What do LGTBQ+ travellers look for?
For the hospitality sector, the economic, societal and brand value of appealing to LGBTQ+ travellers is clear. But what exactly makes a hotel LGBTQ+-friendly, and what are LGBTQ+ travellers looking for?
World Rainbow Hotels has 150 metrics that a hotel has to meet before being added to its collection. These fall under five key areas: location, characteristics, knowledge of the local LGBTQ+ scene, involvement with the LGBTQ+ community, and policies for staff. It’s important to travellers that it’s not just tokenism when a hotel says it’s LGBTQ+-friendly.
Data shows that 55% of LGBTQ+ travellers research experiences and brands before they book, specifically to understand how they connect with the LGBTQ+ community. And 64% are more likely to book with a brand that is making efforts in this direction.
This same research also shows that 60% of LGBTQ+ travellers are more likely to choose a destination that celebrates its local LGBTQ+ community and history. For example, local Pride events give a huge boost to local hotels and businesses, with an increasing number of people travelling for Pride events. Statistics show that savvy Airbnb hosts earned more than $77 million during Pride celebrations in 2022, and the number of hosts using LGBTQ+-inclusive language on their rental postings has increased by 90% since 2017.
Genuine and inclusive
If hotels can respond to some of these consumer behaviours and requirements, it will open up immense opportunities. To appeal to LGBTQ+ travellers, hotels must ultimately provide a genuinely inclusive experience on-site, plus connect with LGBTQ+ communities and activities in the locality. The LGBTQ+-friendly reputation of a hotel is the third most important motivator for LGBTQ+ travellers to book, after location and price.
Being genuine is really important if hotels want to appeal to LGBTQ+ travellers – it’s not enough to add rainbow branding during Pride – travellers can spot tokenism a mile off. By having inclusive policies for employees and training staff, hotels can ensure LGBTQ+ inclusivity is thoroughly embedded. Being authentically engaged with the LGBTQ+ community helps too. For example, an article by Condé Nast Traveller highlights how The Standard supports causes that are close to the hearts of its LGBTQ+ team members, and the #BeWhoYouAre campaign by Andaz London helped the hotel have valuable conversations with stakeholders about what inclusion means to them.
Awareness of growing trends within the LGBTQ+ travel sector is also key. One such trend is known as Queer Family Travel, given the fast increase of rainbow families in some countries. Hotels that can appeal to all kinds of travellers within the LGBTQ+ community will certainly benefit.
Be present
The value of the rainbow pound comes in many guises for hoteliers. Being a genuinely LGBTQ+-inclusive brand is a must for any hotel that wants to earn the respect of its target audiences, as well as the local and international communities who visit and interact with them.
But being present in this sector is also a lucrative and growing economic opportunity. Marketing strategies for hotels in the current context must be highly segmented, with audiences defined and pinpointed with absolute clarity. The ability to tailor experiences to distinctive audiences – tapping into their specific needs – will be a key indicator of success for all hotels in the very near future. And that future is looking distinctly rainbow-coloured.
Do you want to position your property as a top LGBTQ+ friendly destination? Join World Rainbow Hotels today and become part of a trusted global network.