Written by Kaitlyn Skov
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The hospitality industry is positioned at the crossroad of an exciting and disruptive lifestyle movement some are terming neo-nomadism. Neo-nomads are quickly becoming a sizable market segment, bringing new demand and opportunities to the most forward-looking hospitality brands and entrepreneurs.
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Digital Nomad has become a somewhat trendy term while Neo-Nomad has remained lesser known. There is general consensus that a digital nomad is someone who performs their occupation largely online digitally while traveling, not bound or defined by a static physical location. Digital nomads represent one form of the broader category of neo-nomads.
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A neo-nomad, (new nomad), is; a person who values freedom, mobility and exploration; pursuing prolonged immersive travel or a transient lifestyle away from their “home base” city or country. Neo-nomads are considered counter-cultural, seeking to live their lives in a very different context from the historical norm. Opposed to digital nomads, neo-nomads may or may not work while they “wander”. A retiree or a person taking a mid-career break who adopts a nomadic lifestyle are examples of neo-nomads that are not categorized as digital nomads.
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Evidenced by a lack of consensus on naming, formal definition or even spelling (neonomad vs. neo-nomad vs. neo nomad), it is clear that neo-nomadism is in an early stage of development. Understanding this movement and predicting how it will evolve holds opportunities for multiple industries, in particular, hospitality.
Understanding the Neo-Nomad.
Understanding the neo-nomad market is an exercise in psychographics opposed to demographics. The neo-nomadic segment is defined by a shared mindset - a genuine philosophy - and set of values that govern their lifestyle and consumption.
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Neo-nomad Values :
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Freedom : Freedom of choice, lifestyle, environment, community, movement
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Flexibility & Mobility : Lifestyle, location, access
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Community & Belonging : Community and sense of belonging, not bound by place, deep connections
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Self Actualization : Opportunity to discover themselves and their place in the world
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At its core, neo-nomadism is centered around a sense of freedom and mobility. Neo-nomads see exploring the world as an opportunity to leave their home base and experience more, frequently adapting while seeking to build a sense of belonging that isn’t tied to a physical place.
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Neo-nomadism is not a polar extreme segment of consumers. Neo-nomads range from individuals who seek an element of nomadism in their lives, to those who live for long periods without establishing roots in a single location. While the neo-nomad market is not exclusive to particular age groups or generations, neo-nomads do skew towards younger generations, with the majority of consumers averaging 20 - 40 years of age. This correlation can largely be tied to lifestyle, with younger consumers delaying or bucking traditional commitments such as starting a family or purchasing family homes.
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The needs of this unique market segment are being reflected in the growing demand for more flexible, shared live/work/play platforms and wider access to global networks, events and technologies. The demand resulting from this lifestyle movement is sending tremors through multiple major industries on a global scale.
What’s Driving Neo-Nomadism?
A nomadic evolution has been underway for generations, but until recently, has been moving so slowly with too few participants to warrant attention. This has rapidly changed in the past few decades with the world becoming more mobile and connected.
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There are three major drivers enabling the growth of the neo-nomad market segment and larger lifestyle movement.
1.Globalization - Global connectivity and access has increased rapidly in the 21st century. This includes greater access to travel, communications, commerce and information, enabling individuals to interact, visit and live in nearly every corner of the world. These greater global opportunities have enabled the neo-nomadic lifestyle and growth within its participant base.
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2. Digital Enablement - The greatest and most rapid enabler of the modern nomadic lifestyle is the development of digital capabilities and services through technology. Digital nomads can now work from anywhere provided an outlet and Wi-Fi connection. Lately, the growing delivery of critical services like remote education, healthcare, entertainment and a plethora of other services have reduced the most challenging impediments to a more nomadic lifestyle.
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3.The Pandemic Effect - The COVID pandemic propelled forward a number of neo-nomad enabling elements. The forced remote work experiment helped companies understand the viability of a digital workplace and enabled many employees to discover a new work-style with many refusing to return to the in-person office full time. In 2021, 15 million American workers self-identified as a “digital nomad”; a 112% increase since 2019, MBO Partners reports. Beyond remote work, many consumers have discovered greater lifestyle benefits through digital services and connectivity, including remote education, virtual doctor consultations, groceries, financial management and even virtual religious services. The pandemic has demonstrated the viability of living in far away places with connectivity, convenience and limited compromise.
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How Hospitality is Serving Neo-Nomads Today.
The neo-nomadic movement is driving change in travel and hospitality. Extended work and stay options tuned to the popular digital nomad market has created a new segment for the most forward-looking hospitality companies.
Edyn has long been at the forefront of serving the digital and neo-nomad segment, building brands and hybrid platforms like its popular Locke aparthotels that bring together a like-minded community through supportive live / work / explore hospitality spaces.
Locke’s apartment-style hotels appeal to the growing interest in longer stays and more immersive local travel experiences offering design-led flexible accommodations, dynamic lifestyle amenities, coworking spaces and cultural programming across a growing network of international properties. “Working from anywhere is here to stay. The more people that do it, the more others will want to do it too.” says Edyn’s CDO and Creative Director, Eric Jafari. Post-pandemic, Edyn’s Locke platforms have never been more relevant, driving Edyn’s continued expansion of the brand across Europe, with upcoming properties in notable cities like Lisbon, Munich, Copenhagen and, just announced this week, Paris.
Through years of service, Edyn has gained a valuable understanding of neo-nomads. Jafari mentions, “one of the biggest questions we face in serving this market is “how do we solve the loneliness factor?”. While other hotel groups have focused on creating buzzy in-house restaurants and bars to attract a mix of locals and travelers, Locke has focused on “creating shared experiences and cultural programming to forge meaningful relationships and communities” within their properties. By understanding neo-nomads’ deeper desire for community and connection, Edyn is playing the long-game for value creation. Other enterprising hospitality groups like Selina and NomadX have identified and targeted the emerging market of nomadic consumers, developing hybrid platforms and “villages” to build early brand leadership and greater community networks around the world.
Photo Credit : Edyn Hospitality
These brands' global networks of physical platforms, flexible hybrid space designs and curation of lifestyle communities will naturally appeal to the needs of existing and newly adapting neo-nomads. Membership model offerings will only grow in popularity within the neo-nomadic segment.
While a newer and still developing movement and market, neo-nomadism has inspired and conjured the attention of opportunistic players in the hospitality space looking to serve future consumers.
Even outside of curated solution companies, global players like WeWork and Soho House are positioned to enjoy greater success as neo-nomads seek out trusted brands for flexible, global offerings aligned with and supportive of their nomadic lifestyle.
There will be rewarding opportunities including platform innovation and brand leadership for the early hospitality companies and entrepreneurs catering to the growing neo-nomad market. At the same time, this is not a one-dimensional trend that is fully predictable.
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For companies looking to engage and serve the neo-nomad market, I offer four “Keys to Success” :
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Value / Opportunity Intersection : Neo-Nomads & Hospitality.
1. Understanding - Success will require effort and discipline to follow developments and the evolution of this market. Changes may come from non-traditional sources such as new visa programs to attract digital nomads or the dynamics of remote work as we move out of the peak pandemic. Investing in market research, environment scanning and participating in the larger neo-nomadic conversation will be rewarded.
2. Global Models & Brands - Creating value on a larger, global scale will be of greater importance to neo-nomads, whether physical or digital. International membership models, platform networks and digital communities will rise in demand. Where global platforms do not or can not exist, strategic partnerships and acquisitions should be considered. The key here is to provide neo-nomads greater global location and community options with the flexibility to freely engage with them.
3. Purpose-built Offerings - Designing and developing offerings that cater to the unique needs and core values of neo-nomads will be important. Values like - flexibility, freedom, mobility, community, connection - should be intentionally designed into the ethos and operational components of hospitality concepts, experiences and the brand. Hybrid models, unique functional designs of primary and secondary spaces, digital infrastructure and a focus on local culture and experiences are important.
4. Owning the Customer Relationship - Until offerings mature to cater to this group, it will be vital for today’s hospitality brands to expertly coordinate and support the unique complexities of neo-nomad and digital nomad lifestyles. The ultimate value will be in owning the customer relationship; being the trusted brand behind serving and supporting this growing market from the beginning. Much can be learned from groups like Selina and NomadX here.
Photo Credit : Selina, Chicago
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Bringing it all Together.
While the neo-nomadic movement is on the rise, over the next decade the majority of neo-nomads will still be forced to retain some element of a fixed base until practical issues like income tax regimes, currency platforms (including crypto), health care systems, insurance and social services evolve to accommodate them.
The hospitality industry will play an important role in enabling and supporting the growing number of neo-nomads, creating “homes”, “offices”, “social clubs” and other basic lifestyle platforms for this growing alternative group. Innovative and disciplined hospitality leaders are seizing the opportunities presented by this market today and those looking over the horizon can move towards intersecting this dynamic trend to meet neo-nomads in the future.