Brand loyalty in the hospitality industry across Ireland and the UK is experiencing notable shifts, influenced by economic pressures, evolving consumer expectations, technological advancements and shrinking consumer spending.
Potential customers are no longer swayed by points programmes alone; they seek experiences, personalisation, and value for money from the brands they choose.
In particular, in the short space of two months the value for money factor is shooting up the decision chain as the current economic unease caused by trade barriers and tariffs is sending shock waves through all areas of commerce.
This is impacting in significant reductions in business travel as companies put expansion plans on hold, and employees are feeling the fear, and trimming their budgets accordingly.
Well before Trumponics, the Qualtrics 2025 Consumer Trends Report found that rising costs have led to decreased brand loyalty, with consumers prioritising affordability.
So, in today’s rapidly evolving hospitality landscape, building and maintaining brand loyalty is more challenging — and more essential — than ever.
The Comarch Customer Loyalty Predictions for 2025, with over 3000 participants across 15 countries and 4 continents, highlights the key consumer thinking, and what drives their buying decisions.
The report highlighted the factors influencing consumer purchasing decisions as follows:
Quality – 68%
Price – 58%
Promotions – 44%
Sustainability – 34%
It also explores how personalisation, sustainability, and digital innovation are shaping loyalty practices and programs worldwide.
However, in the current volatile economic circumstances we would place an increased focus on perceived value as a new driver of consumer thinking.
- Personalisation
- Sustainability as a Loyalty Driver
- Perceived Value
Personalisation over Standardisation
-Loyalty is measured not on what you offer but on how you make people feel-
The traditional ‘‘one size fits all’’ approach has been overtaken by the technology that allows operators to streamline packages based on survey information.
Transactional loyalty — earning points for stays — is being overshadowed by emotional loyalty. Guests now seek brands that align with their lifestyles and personal lifestyle values.
Discerning guests expect experiences tailored to their preferences — from room selection to dining options, to recreational preferences based on guest history.
Leading hospitality brands are using data analytics and AI to customise guest experiences at every touchpoint, making guests feel valued and increasing the personal interactions.
In this regard brand authenticity and genuine sustainability efforts are key to forging emotional connections.
-There is no cost for courtesy-
Sustainability
Sustainability isn’t just a “nice to have” anymore; it’s a loyalty differentiator. Eco-conscious guests are increasingly choosing hotels and outlets that align with their environmental values. Brands that invest in green operations, support local communities, and are transparent about their impact are gaining a loyal customer base.
Perceived Value
In 2024, Ireland welcomed nearly 6.6 million overseas visitors, marking a 5% increase from 2023. Of these, North American visitors contributed almost €2.2 billion, a 19% rise compared to the previous year.
The Financial Times notes that in early 2025 political tensions about a hostile U.S. border environment have already led to a 17% drop in European travel to the U.S., with countries like Ireland experiencing over 20% decreases . Such sentiments could reciprocally affect American travel abroad, including to Ireland.
-Half of Irish consumers prioritise cost over brand loyalty, a higher percentage than the 39% average across the EMEA region– Think Business+3Irish Tech News+3Business Plus+3
While losing some of the American market, Ireland may benefit from the European, and Irish tourists, boycotting the US as a tourist location.
While there is a perception in the domestic market that Ireland is an expensive location when compared to short-haul European locations, such as Portugal and Spain, the current prices reflect the reality of increased labour, energy and ingredient costs over a three-year period.
Summary
Brand loyalty in the hospitality industry is no longer simply about offering perks — it’s about creating meaningful, personalised, and flexible experiences that resonate emotionally and ethically with guests. Hospitality brands that embrace these trends are better positioned to build lasting relationships and thrive in a competitive market.
However, while the consumer still places and emphasis on quality and, in increasing volatile financial circumstances, price underscores the enduring role of affordability in purchase decisions.
In the current circumstances the domestic market will have to consider fighting harder for the hearts of the Irish customers by increasing the perceived value concept.
This can be helped dramatically by a renewed focus on customer care, with an emphasis on personalisation.
There is one piece of good news – the customer will remember how you made them feel long after they have forgotten the value you gave them.
At Customer Care Insights we can help you and your staff provide memorable customer care for all your guests – invest in creating memories!
Call Frank on 087 206 1934 or frank @customer.ie
