Sogolytics released the Sogolytics Report: The Non-Negotiables of CX in Hospitality, examining what 1,003 U.S. adults will pay more for at airlines, hotels and restaurants, and what would send them to a competitor.
The tension is not that customers refuse to spend. It is that they do not want to pay for things that used to be free. Willingness to pay more never exceeds 20% in any industry, and the amenities customers say are expected included in their purchase or service are the same ones that would lead nearly half of them to a competitor if they were charged an extra fee.
< Download the Full Hospitality CX Report Here >
Key Findings
- Airfare is the most price-driven category, with 62% of air travelers choosing or leaning toward the lowest price, versus 52% for hotels and 47% for dining.
- Nearly two-thirds of air travelers (64%) expect a carry-on bag at no charge, and 50% would book a different airline if charged for it.
- A reputation for exceptional customer service is the only driver that would incentivize customers to spend more on their purchase in the top three of all three industries. Strong reviews and ratings made no top five list.
- Price concern peaks in late career, rising from 18% of 18 to 24 year olds to 48% at ages 55 to 64.
- More than a third of unhappy customers take the problem somewhere the business cannot answer it, and 30% have posted a review without telling the business first.
Airfare Is the Most Price-Driven Category, Dining the Least
Among air travelers, 62% always choose the lowest price or lean towards lower prices, and only 16% will pay more for better service. Hotels have a bit more flexibility at 52% and 16%. While diners reported the most willingness to pay more with, 47% opting for the lowest-price and 20% willing to pay more.
Business travelers report that they are less concerned about price, but their reported buying behavior shows they are choosing the lowest price. Airfare shows the widest gap among traveler types, 52% of business travelers choose the lowest price compared 27% of leisure travelers.
Fees on Once-Free Amenities Send Customers to Competitors
Airlines: Nearly two-thirds (64%) expect a carry-on bag at no charge, and 50% would book a different airline if charged for it. A checked bag fee would push 39% to consider a competitor, a meal or snack fee 35%.
Hotels: Two-thirds expect free breakfast (66%) and free WiFi (65%). A charge for breakfast, WiFi or parking would each move 45% of guests to a different hotel.
Restaurants: Sixty-six percent expect complimentary water and 55% expect free bread, chips or a starter. A charge for water would send 48% elsewhere, and 37% would consider a competitor if charged for bread or a starter.
< Download the Full Hospitality CX Report Here >
A Reputation for Service Is the Only Premium Driver in Every Category
Asked what would make a 15% higher price worth paying, respondents put a reputation for exceptional customer service in the top three of every category, third among flyers, second among hotel guests, third among diners. Strong reviews and high ratings made no top five, which suggests customers weigh reputation over ratings.
The category leaders differ. Flyers ranked a free meal on board first, hotel guests a convenient location, diners a complimentary item.
Price Concern Peaks in Late Career and in the Midwest
The market splits rather than skews. Overall, 35% are very concerned about price or say it always comes first, while 37% are not at all or only a little concerned. Age is the clearest pattern, rising from 18% of 18 to 24 year olds noting they are very concerned or saying price considerations come first, to a peak of 48% at ages 55 to 64.
Region shifts the level. Concern is highest in the Midwest (41%) and Mountain (40%) regions and lowest in the Northeast (30%), where 43% report little or no concern.
More Than a Third of Unhappy Customers Never Give the Business a Chance to Respond
After a poor experience, 57% told the business directly first. Twenty percent posted a public review before saying anything to anyone, 17% told family or friends and 6% did nothing. Separately, 30% of respondents reported that they have posted a negative review without expressing the concern to the business first.
The groups least likely to raise a complaint are the ones most likely to publish it. Men posted first at nearly twice the rate of women (29% vs. 15%), while women more often told the business directly (64% vs. 45%). Business travelers posted first twice as often as leisure travelers (30% vs. 16%), and posting first falls with age, from 31% at 18 to 24 to 6% at 65 and older. A business that never hears the complaint cannot show the problem was fixed.
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About the Study
Sogolytics surveyed 1,003 U.S. adults on what benefits, service standards and signals of reliability justify a price premium in travel and dining. The survey ran online through the Sogolytics platform, with respondents recruited through a managed panel and screened as U.S. adults 18 and older. Category questions were asked only of respondents who had paid for that category in the past 12 months, covering airline travel (n=307), hotel or other paid lodging (n=554) and a sit-down restaurant meal (n=765). Most travel primarily for leisure (71%), 12% for business and 17% an equal mix. This is a non-probability convenience sample, unweighted, with no margin of error reported.
The Sogolytics Report: The Non-Negotiables of CX in Hospitality is an independent study. Sogolytics received no funding or input from any of the industries, companies or brands referenced in the results.
Opinions expressed are those of Sogolytics and are for informational purposes only. The results do not represent industry-specific advice or an endorsement of any company or brand.
Sogolytics is an enterprise experience management platform that helps organizations listen to, understand, and act on employee and customer feedback. Trusted by leading organizations across industries, Sogolytics combines Employee Experience (EX), Customer Experience (CX), and research capabilities in a single platform. Learn more at sogolytics.com.
