Millennials say that problems contacting a hotel are the biggest barrier to loyalty
22 November 2016

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Source: Facebook IQ 1 November 2016

To assess the state of customer loyalty today Facebook IQ surveyed 14,700 American adults about their loyalty to suppliers in five verticals including hotels.

Across verticals, they found that 77% of people are brand-loyal to varying degrees: 37% (dubbed Brand Loyalists) say they make repeat purchases and are loyal to a supplier, while another 40% (Repeat Purchasers) say they make repeat purchases but aren’t loyal to a specific supplier.

Here’s what they found about loyalty to hotel brands today:

Drivers of loyalty:

  • Brand Loyalists – driven by emotion
    • Service (23%)
    • Trust (21%)
  • Repeat Purchasers – driven by function
    • Location (31%)
    • Price (30%)

Millennials face unique barriers to loyalty: compared with Boomers, Millennials are twice as likely to cite difficulty in reaching or contacting a hotel as a barrier to loyalty.

Likelihood to be loyal increases as household income increases: people with HHIs of $150K+ are 32% more likely to be loyal than those whose HHI is <$35K.

The top words used by Brand Loyalists to describe the brands they love:

  • Quality
  • Fun
  • Good
  • Affordable

34% of new parents describe themselves as loyal to hotel brands vs. 24% of non-parents.

Social media: People who use Facebook more than 5 times a day are 1.25X more likely to be loyal that those who use FB “at least once a month”.

That difficulty in reaching a hotel seems to be a barrier to loyalty that’s specific to Millennials probably means that hotels need to do better in communicating one-to-one in real time. Millennials are digital natives, and they want whatever they want now.

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