Consumers’ choice paralysis impacts hotel bookings and revenue

Accenture’s 2024 Consumer Pulse Survey has revealed the top challenges impacting consumer decision-making for hotel and resort bookings.

The process involves identifying and comparing potential destinations, deciding on budget, setting travel dates, researching potential hotels, comparing them, selecting preferences, confirming availability, checking loyalty benefits and finally paying.

In the last three months, 73% of respondents reported that they’d given up and walked away from making a hotel booking.

The research also found that consumers feel that booking a hotel can be harder than buying a car.

Choice complexity drains consumer confidence

When looking to book a hotel stay, 70% of consumers feel that they need to check too many sources to understand the available accommodation options.

77% wish they could identify options that would meet their needs more quickly and easily.

The amount of time needed to research the right accommodation can be daunting, and 71% of consumers wish it took less time to research potential purchases.

Price is the deciding factor

Amid a challenging macroeconomic environment and squeezed wallets, 79% of respondents agree price can make or break their decision to book a hotel or resort.

A massive 89% of consumers report a hotel or resort purchase has a significant impact on their expenses.

Hotel brands are paying the price for consumers’ paralysis, and it could be impacting their bottom lines and hard-earned customer loyalty.

Accenture advises that hotels invest in generative AI booking systems for personalisation and convenience.

According to the research, 60% of consumers are open to using gen AI advisors to help them find and book a stay and 65% are open to using gen AI agents that can take on a more proactive role in managing their trip.

However, as Accenture Travel global lead and senior managing director Emily Weiss explained: “As adoption of gen AI technology grows, it is important for hotels to consider their competitive differentiators, as experiences could start to blend across brands.”

"Consumers’ choice paralysis impacts hotel bookings and revenue" was originally created and published by Hotel Management Network, a GlobalData owned brand.

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