Leroy Lita's late goal condemned Palace to a 10th away game without a win and lost them ground in the automatic promotion race.
Holloway said: "We struggled to get our game going and they seemed to have a bit more belief about them than us.
"The second half was better and I thought we looked the team more likely to grab a goal but it just wasn't to be.
"The defending for the goal was poor, we let them get a cross in and Leroy did what Leroy Lita does and put the ball in the back of the net.
"I don't think we deserved to lose, but did I think we did enough to win it? Probably not, I felt a draw would have been a fair result."
When asked whether the pitch affected his side's performance, Holloway said: "I saw one of the greatest players I have ever seen play football on a beach with a grapefruit and that was Pele.
"These players are here to entertain and we can't use the pitch as an excuse."