UK travellers: Only 27% rebook same hotels amid cost-of-living crisis

Friday, January 19, 2024

Agilysys (NASDAQ: AGYS), a prominent global provider of hospitality software solutions and services, has unveiled the findings of the 2023 UK Hospitality Impact Study today. The study, which surveyed 1,000 UK consumers who have frequently traveled in the past year, disclosed that only 27% of UK travellers have rebooked a hotel in the last 12 months. The research also highlighted that 85% of respondents altered their holiday plans in response to the cost-of-living crisis over the same period.

Nearly half (44%) of UK consumers acknowledged a decrease in their leisure spending in the past year, while a third (36%) reported it remained constant. Additionally, 41% of respondents claimed to have traveled less, with reasons including taking fewer holidays (38%), shorter breaks (18%), or opting for staycations (16%) as strategies to mitigate the impact of the cost-of-living crisis.

Matthew Prosser, Regional Director UK, Agilysys, emphasized the escalating consumer economic concerns and the heightened importance for hotels and resorts to deliver a seamless guest experience. Prosser suggested that a combination of technological advancements and personalized service is crucial to enhance guest retention and returns.

Prosser referenced a Bain & Company estimate that a mere 5% improvement in guest retention could potentially boost profits by up to 25%. Therefore, he emphasized the need for hoteliers to understand the reasons behind guests not returning to address the issue effectively.

Respondents who did not rebook the same hotel identified factors that would make them more likely to do so, including reducing wait times (64%), tailoring experiences to individual preferences (62%), a strong loyalty program (62%), and the flexibility to manage their stay via staff or technology (61%).

For those who did rebook at the same hotel, the reasons included an exceptional end-to-end experience (48%), friendly and courteous staff going “above and beyond” (42%), and personalized touchpoints (24%).

Prosser highlighted the importance of creating an exceptional experience for every guest, meeting high expectations for personalization and flexibility among UK travelers. Investing in the right technology platform, according to Prosser, empowers staff to create unforgettable memories, build lasting connections, and ultimately boost economic returns.

Jane Pendlebury, Chief Executive of HOSPA, noted that the research confirmed the challenges faced by the hospitality industry, often serving as an early indicator of economic downturns. Pendlebury suggested that small adjustments to business models, particularly enhancing loyalty through technology, could substantially increase profitability and automate processes for efficiency.

« Back to Page