Only 27% travellers rebook same hotel amid cost-of-living crisis

Just 27% of UK travellers rebooked the same hotel in the last year due to the cost of living crisis, according to the 2023 UK Hospitality Impact Study by hospitality software solutions and services provider Agilysys.

The study, which canvassed the opinion of 1,000 UK consumers who travelled frequently in the last year, revealed that 85% made changes to their holiday plans due to the same reason during the last 12 months.

According to the study, almost half (44%) of UK consumers agreed that their leisure spending has decreased in the last year, with a third (36%) saying it has stayed the same, while two in five (41%) of respondents claimed they had travelled less.

Guests also cited taking fewer holidays (38%), taking shorter breaks (18%) or opting for staycations (16%) as personal strategies for combating the cost-of-living crisis.

When asked what would make them more likely to rebook a venue, respondents who did not rebook the same hotel cited various factors, including 64% said reducing wait times across all touchpoints would make them more likely to rebook.

Meanwhile, 62% said tailoring experiences to their individual preferences would make them more likely to rebook. 62% also said a strong loyalty program would make them more likely to rebook.

Some 61% said having the flexibility to manage their stay via hotel staff or via technology was important and 58% said little surprises, such as having chocolate left on their pillow, would make them more likely to rebook.

For those that did rebook at the same hotel this past year, the reasons they cited were similar, with 48% saying the hotel or resort delivered an “exceptional” experience end-to-end, from booking to check-in to services to dining and activities to check-out.

Some 42% also said the staff was friendly and courteous and went “above and beyond” to make my stay memorable and 24% said every touchpoint from staff to self-service and mobile was tailored to their preferences.

Matthew Prosser, regional director UK at Agilysys, said: “Consumer economic concerns have escalated the need for hotels and resorts to provide a seamless guest experience through every touchpoint.

While some tend to think this can be achieved through personal high-touch service alone, research shows the most impactful way to increase guest retention and returns is to combine technology advances with personal and attentive service so that guests are surrounded by choice, convenience, and personalised encounters.”

Jane Pendlebury, chief executive, HOSPA added: “This research has confirmed what we always suspected; hospitality can be a tough industry. Hospitality has often proved to be an early indicator of an economic downturn and these businesses, sadly, are also usually slow to recover as consumer confidence catches up with an improving economy.

“However, small tweaks to business models can substantially increase profitability. Loyalty is a major player in the key to success and if that aspect can be enhanced by clever technology, then why not consider the benefits of increased automation?”