Price hikes at hospitality venues would cause 37% of consumers to feel less loyal, finds survey
November 2023 - Sport, Leisure and Tourism
Price hikes at hospitality venues would cause 37% of consumers to feel less loyal: A recent survey, conducted by Zonal and CGA by NIQ, has uncovered that 37% of UK consumers are less inclined to revisit a hospitality venue if they experience price hikes.
The survey, which questioned over 5,000 UK adults, revealed that increasing prices ranked as the second most significant factor in diminishing consumer loyalty, second only to a string of negative experiences (49%).
Additional factors affecting customer loyalty included a single negative experience (24%) and the perception of not receiving value for money, particularly during the cost-of-living crisis (also 24%). Furthermore, 23% of respondents expressed that their loyalty to a brand might decrease if the brand became embroiled in controversy.
Furthermore, the survey showed that over half (52%) of respondents now expect more from the hospitality brands they are loyal to due to the cost-of-living crisis, with this sentiment reaching 64% among the 18-24-year-old demographic.
The research also delved into consumers' perceptions of loyalty schemes at hospitality venues. More than half of those surveyed agreed that loyalty schemes provide value for money. Additionally, nearly half (47%) revealed that they had joined a loyalty scheme to save money, in light of the cost-of-living crisis.
Olivia FitzGerald, Chief Sales and Marketing Officer at Zonal, said of the findings: “Having a digital loyalty tool in place makes it easy for operators to control accruals, rewards and redemptions, even for completely bespoke schemes. All this feeds into providing those exceptional experiences that customers expect, encouraging them to return time and time again.”
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