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J.D. Power and Associates Reports: Hotel Guest Satisfaction With Costs and Fees Improves From 2010, Despite a Decline in Overall Satisfaction

July 20, 2011

WESTLAKE VILLAGE, Calif., July 20, 2011 /PRNewswire/ — Hotel guest satisfaction with costs and fees has improved despite higher room rates, while satisfaction with other service and product-related aspects has declined amid increasing occupancy rates, according to the J.D. Power and Associates 2011 North America Hotel Guest Satisfaction Index Study(SM) released today.

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Now in its 15th year, the study measures overall hotel guest satisfaction across seven(1) hotel segments: luxury; upper upscale; upscale; mid-scale full service; mid-scale limited service; economy/budget; and extended stay. Seven key measures are examined within each segment to determine overall satisfaction: reservations; check-in/check-out; guest room; food and beverage; hotel services; hotel facilities; and costs and fees.

The study finds that satisfaction with costs and fees has increased to an average of 739 (on a 1,000-point scale) in 2011–20 points higher than 2010. Meanwhile, occupancy and average daily rate in the U.S. hotel industry have been steadily increasing during the past year. According to Smith Travel Research, Inc., occupancy is up to an average of 65.1 percent as of May 2011, an increase of 4.6 percent compared with May 2010. During the same time frame, average daily rate has increased to an average of $101.54, up by 4 percent from last year.

The improvement in hotel guest cost and fee satisfaction, despite higher room rates, runs counter to the general pattern of customers being less satisfied with higher prices. For example, in the J.D. Power and Associates 2011 North America Airline Satisfaction Study,(SM) each airline that implemented price increases experienced a decline in satisfaction with fare costs.

“Unlike the airline industry, in which prices were raised aggressively amid limited seat supply and high demand, the hotel industry has enacted more modest price increases and has had spare room capacity,” said Stuart Greif, vice president and general manager of the global hospitality and travel practice at J.D. Power and Associates. “The benefits of higher occupancy have outweighed taking a more aggressive posture on average daily rates, as putting ‘heads in beds’ has taken priority.”

“The bright spot for hotel guests is that costs and fees remain relatively low, so the value received for the price paid is still quite high,” said Greif. “The bright spot for hoteliers is that there appears to be more upward opportunity on rates.”

While satisfaction with cost and fees is higher in 2011, compared with 2010, satisfaction with other areas of the guest experience–ranging from facilities and operations to services–has decreased. As a result, overall satisfaction averages 764 in 2011, down from 771 in 2010.

According to Greif, many chains are now making investments that were delayed due to the downturn in the economy, but which will take time to complete. Hoteliers are also being careful not to add more staff until they believe higher levels of demand will be sustained. At the same time, guests are returning to hotels in greater numbers, reversing satisfaction gains realized when hotels were less busy during the downturn. The decline in overall satisfaction in 2011 reflects that hotel improvement efforts and investments are lagging behind rising customer expectations.

The following hotel brands rank highest in guest satisfaction within their respective segments:

The study finds that 18 percent of hotel guests in 2011 report having experienced a problem during their stay. However, the rate at which guests report a problem to hotel staff varies widely by the type of problem experienced. For example, noise is the problem most commonly experienced by guests, with 16 percent indicating experiencing the issue. However, only 43 percent of these guests indicate they reported the noise to hotel staff. In contrast, just 13 percent of guests say they experienced a problem with the Internet connection or speed at their hotel, but 60 percent reported the problem.

Despite the difference in the rate at which these problems were reported, resolution rates were similar. Among guests who reported noise problems to hotel staff, 35 percent say their problem was resolved. Among guests who reported Internet usage problems, the resolution rate averages 39 percent.

Problem occurrence has a strong negative impact on overall hotel guest satisfaction. Satisfaction among guests who experience a problem during their hotel stay averages more than 100 points lower than satisfaction among guests with a problem-free experience.

“Hotel guests should feel justified in reporting any problem that negatively impacts their satisfaction with a hotel,” said Mark Schwartz, director of the global hospitality and travel practice at J.D. Power and Associates. “Hotel staff and management will usually try their best to resolve these issues, particularly since they understand that solving a problem can result in a happier, more loyal customer.”

The 2011 North America Hotel Guest Satisfaction Index Study is based on responses gathered between June 2010 and May 2011 from more than 61,300 guests from Canada and the United States who stayed in a hotel in North America between May 2010 and May 2011.

(1) The upper upscale segment has been added to the study in 2011 to reflect standard segmentation used by the hotel industry.


    Customer Satisfaction
     Index Ranking
    (Based on a 1,000-point
     scale)

    Luxury Segment
    The Ritz-Carlton                         858

    Four Seasons Hotels and
     Resorts                                 852

    W Hotels                                 833
    JW Marriott Hotels &
     Resorts                                 832
    Luxury Segment Average                   829
    Fairmont Hotels & Resorts                822
    Loews Hotels & Resorts                   815
    InterContinental Hotels &
     Resorts                                 809
    Included in the segment,
     but not ranked due to
     small sample size are:
     Park Hyatt Hotels,
     Sofitel, St. Regis
     Hotels & Resorts and The
     Luxury Collection.

    Upper Upscale Segment
    Embassy Suites Hotels                    817
    Omni Hotels & Resorts                    811

    Marriott Hotels & Resorts                808
    Westin Hotels & Resorts                  801
    Renaissance Hotels                       799
    Hilton Hotels & Resorts                  796
    Upper Upscale Segment
     Average                                 795
    Hyatt Hotels & Resorts                   788
    DoubleTree by Hilton                     786
    Sheraton Hotels & Resorts                768
    Millennium Hotels and
     Resorts                                 713
    NOTE: Le Meridien is
     included in the segment,
     but not ranked due to
     small sample size.

    Upscale Segment
    Hotel Indigo                             838

    Hyatt Place                              819
    Hilton Garden Inn                        817
    SpringHill Suites                        814

    Aloft                                    800
    Courtyard                                798
    Upscale Segment Average                  794
    Delta Hotels and Resorts                 792
    Wyndham Hotels & Resorts                 791

    Four Points by Sheraton                  772
    Radisson                                 761
    Crowne Plaza Hotels &
     Resorts                                 760
    NOTE: Cambria Suites is
     included in the segment,
     but not ranked due to
     small sample size.

    Mid-Scale Full Service
     Segment
    Holiday Inn                              775

    Best Western                             765

    Mid-Scale Full Service
     Segment Average                         752

    Ramada Inn/Plaza                         725
    Clarion                                  721
    Quality                                  719
    Howard Johnson Hotels/
     Plaza                                   691
    NOTE: Wyndham Garden
     Hotels is Included in
     the segment, but not
     ranked due to small
     sample size.

    Mid-Scale Limited
     Service Segment
    Drury Inn & Suites                       836
    Hampton Inn/Suites                       824

    Wingate by Wyndham                       817

    Holiday Inn Express                      797
    Fairfield Inn & Suites                   793
    Country Inns & Suites                    788
    Mid-Scale Limited
     Service Segment Average                 787
    Comfort Suites                           778
    La Quinta                                771
    Sleep Inn                                766

    Comfort Inn                              752
    AmericInn                                751
    Baymont Inn & Suites                     746
    Ramada Limited                           700

    Economy/Budget Segment
    Microtel Inns & Suites                   740

    Howard Johnson Express/
     Inns                                    704
    Days Inn                                 701
    Red Roof Inn                             700

    Super 8                                  685
    Travelodge                               679
    Economy/Budget Segment
     Average                                 679
    Econo Lodge                              664
    Motel 6                                  662

    Americas Best Value Inn                  643
    Rodeway Inn                              629
    Knights Inn                              615
    Included in the segment,
     but not ranked due to
     small sample size are:
     America's Best Inns &
     Suites, Budget Host Inn
     and Country Hearth Inn &
     Suites.

    Extended Stay Segment
    Homewood Suites                          821

    Residence Inn                            819
    Staybridge Suites                        817
    TownePlace Suites                        806

    Hawthorn Suites by
     Wyndham                                 792
    Candlewood Suites                        787
    Extended Stay Segment
     Average                                 782

    Extended StayAmerica                     709
    Homestead Studio Suites
     Hotels                                  703
    Included in the segment,
     but not ranked due to
     small sample size are:
     Hyatt Summerfield
     Suites, MainStay Suites
     and Studio 6 Extended
     Stay.


    Customer Satisfaction       J.D. Power.com Power
     Index Ranking              Circle Ratings
    (Based on a 1,000-point
     scale)                    For Consumers

    Luxury Segment
    The Ritz-Carlton                                   5

    Four Seasons Hotels and
     Resorts                                           4

    W Hotels                                           3
    JW Marriott Hotels &
     Resorts                                           3
    Luxury Segment Average                             3
    Fairmont Hotels & Resorts                          3
    Loews Hotels & Resorts                             2
    InterContinental Hotels &
     Resorts                                           2
    Included in the segment,
     but not ranked due to
     small sample size are:
     Park Hyatt Hotels,
     Sofitel, St. Regis
     Hotels & Resorts and The
     Luxury Collection.

    Upper Upscale Segment
    Embassy Suites Hotels                              5
    Omni Hotels & Resorts                              5

    Marriott Hotels & Resorts                          3
    Westin Hotels & Resorts                            3
    Renaissance Hotels                                 3
    Hilton Hotels & Resorts                            3
    Upper Upscale Segment
     Average                                           3
    Hyatt Hotels & Resorts                             3
    DoubleTree by Hilton                               3
    Sheraton Hotels & Resorts                          2
    Millennium Hotels and
     Resorts                                           2
    NOTE: Le Meridien is
     included in the segment,
     but not ranked due to
     small sample size.

    Upscale Segment
    Hotel Indigo                                       5

    Hyatt Place                                        4
    Hilton Garden Inn                                  4
    SpringHill Suites                                  4

    Aloft                                              3
    Courtyard                                          3
    Upscale Segment Average                            3
    Delta Hotels and Resorts                           3
    Wyndham Hotels & Resorts                           3

    Four Points by Sheraton                            2
    Radisson                                           2
    Crowne Plaza Hotels &
     Resorts                                           2
    NOTE: Cambria Suites is
     included in the segment,
     but not ranked due to
     small sample size.

    Mid-Scale Full Service
     Segment
    Holiday Inn                                        5

    Best Western                                       4

    Mid-Scale Full Service
     Segment Average                                   3

    Ramada Inn/Plaza                                   2
    Clarion                                            2
    Quality                                            2
    Howard Johnson Hotels/
     Plaza                                             2
    NOTE: Wyndham Garden
     Hotels is Included in
     the segment, but not
     ranked due to small
     sample size.

    Mid-Scale Limited
     Service Segment
    Drury Inn & Suites                                 5
    Hampton Inn/Suites                                 5

    Wingate by Wyndham                                 4

    Holiday Inn Express                                3
    Fairfield Inn & Suites                             3
    Country Inns & Suites                              3
    Mid-Scale Limited
     Service Segment Average                           3
    Comfort Suites                                     3
    La Quinta                                          3
    Sleep Inn                                          3

    Comfort Inn                                        2
    AmericInn                                          2
    Baymont Inn & Suites                               2
    Ramada Limited                                     2

    Economy/Budget Segment
    Microtel Inns & Suites                             5

    Howard Johnson Express/
     Inns                                              4
    Days Inn                                           4
    Red Roof Inn                                       4

    Super 8                                            3
    Travelodge                                         3
    Economy/Budget Segment
     Average                                           3
    Econo Lodge                                        3
    Motel 6                                            3

    Americas Best Value Inn                            2
    Rodeway Inn                                        2
    Knights Inn                                        2
    Included in the segment,
     but not ranked due to
     small sample size are:
     America's Best Inns &
     Suites, Budget Host Inn
     and Country Hearth Inn &
     Suites.

    Extended Stay Segment
    Homewood Suites                                    5

    Residence Inn                                      4
    Staybridge Suites                                  4
    TownePlace Suites                                  4

    Hawthorn Suites by
     Wyndham                                           3
    Candlewood Suites                                  3
    Extended Stay Segment
     Average                                           3

    Extended StayAmerica                               2
    Homestead Studio Suites
     Hotels                                            2
    Included in the segment,
     but not ranked due to
     small sample size are:
     Hyatt Summerfield
     Suites, MainStay Suites
     and Studio 6 Extended
     Stay.

Power Circle Ratings Legend:

5 – Among the best

4 – Better than most

3 – About average

2 – The rest

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training, Web intelligence and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on travel ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies:

Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

Media Relations Contacts:
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 317-3070; jperlman@brandwaregroup.com

John Tews; J.D. Power and Associates; Troy, Mich.; (312) 248-4119; media.relations@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

SOURCE J.D. Power and Associates


Source: newswire



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