Loyalty Takes a Backseat to Deals

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According to Accenture Hospitality’s Global Consumer Pulse Research, in the hotel and lodging industry loyalty takes a backseat to price.  The results of this survey, which questioned more than 12,000 customers in 32 countries, showed some information that hoteliers should keep in mind when planning marketing campaigns in 2014.

Accenture’s research found that 41 percent of customers find offers and deals as a top differentiator when choosing a hotel.  Umar Riaz, the North American lead for Accenture’s Hospitality practice believes that customer loyalty has dissipated with the rise of digital channels, which has made it incredibly easy for customers to shop around for deals.

According to the survey, 79 percent of customers made their hotel and travel bookings online.  This was a seven percent increase when compared to 2012. Currently, 41 percent of consumers use their mobile device frequently for online product searches and 33 percent use a device to make online purchases.

Customers are moving more and more towards digital and mobile channels.  Online travel agencies have made it easy and transparent to shop for deals.  Travelers may think that a particular product is good, but with so much technology at their fingertips, they still feel there’s a better deal out there.

If all of these other numbers did not convince, this may be the most important statistic of all: 75 percent of hotel customers have conducted business with two or more providers over the past three years, while only 14 percent stayed loyal to one company.

The travel industry as a product is strong, but the loyalty is low and this is one of the biggest challenges facing a lot of companies in the industry right now.  This may just make 2014 the year of increasing loyalty rates.

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