The loss has dealt a serious blow to Ireland's chances of qualification for next year's FIFA World Cup, and the veteran Italian manager feels his players lacked belief to go on and win the game after taking the lead in Dublin.
Speaking after the game, Trapattoni told RTE: "We started very well, and took advantage in the first half.
"But two episodes decided the match. They played physically. They took the two opportunities very well. They scored. They took these two opportunities. In the first half we had more shots."
The disappointing result has left the 74-year old under no illusions about what is required of his side if they are to reach Brazil 2014, as they now sit three points behind second-placed Sweden in Group C.
"We think about what we can do. At the moment, we are third. We need to win in Austria. We need a result in Germany, and after we must beat Kazakhstan," he added.
"I had conviction that we had a possibility to increase more our personality. Against Georgia we showed this personality, and we have to have more conviction. We can't give Austria the same opportunities. We have to think about our mentality, our attitude."
