Dive Brief:
- Amid ongoing economic uncertainty, American consumers are shifting their spending to brands they perceive as having more value for their price, including hotels, according to a Deloitte report published earlier this week.
- Americans’ value-seeking behavior has increased in recent months, and four in ten respondents to Deloitte’s survey are “value-seekers,” per the report. While value and price are linked, the report notes, perception of value includes other factors. Brands that offer merely low prices may lose out to ones seen as offering more value.
- Atmosphere, rooms and food and beverage offerings were rated highly at hotel brands perceived as having more value, the report found. Hotels across chain scales should consider offering something extra, or a “little luxury,” to make guests’ stays feel more special, according to the report.
Dive Insight:
In an analysis of transactions from 5 million credit cards over three years, Deloitte found a roughly 2% shift in purchasing from brands perceived as offering lower value to brands perceived as offering more value — including hotels.
This value-seeking behavior affects American consumers across income levels, according to Mike Daher, Deloitte’s vice chair and U.S. consumer industry leader.
“[While] low-income earners may look for value out of necessity, higher-income households increasingly put value at the top of their shopping lists,” Daher said in a statement. “As economic uncertainty lingers, consumers across demographics actively seek brands that deliver value, whether through quality, trust, friendly attitudes, or a combination thereof.”
For hotels, these trends mean that low-cost brands should consider offering something extra, and expensive ones could offer “little luxuries” to make guests’ stays feel more special, according to the report.
Hotel brands perceived as offering more value also “excel” in room quality and service consistency, Deloitte found.
In an April report, Deloitte projected that President Donald Trump’s tariffs would increase inflation and curb consumer purchasing power.
In May, the firm found that while summer 2025 travel demand is strong, travelers would manage costs by taking shorter trips, staying at budget hotels and staying with family and friends.
