J.D. Power and Associates Reports: Hotel Guest Satisfaction With Costs and Fees Improves From 2010, Despite a Decline in Overall Satisfaction Drury Inn & Suites, Embassy Suites Hotels, Holiday Inn, Homewood Suites, Hotel Indigo, Microtel Inns & Suites And The Ritz-Carlton Each Rank Highest in Customer Satisfaction in Their Respective Segments

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


J.D. Power.com Power Circle Ratings

(Based on a 1,000-point scale)


For Consumers




Luxury Segment



The Ritz-Carlton

858

5




Four Seasons Hotels and Resorts

852

4




W Hotels

833

3

JW Marriott Hotels & Resorts

832

3

Luxury Segment Average

829

3

Fairmont Hotels & Resorts

822

3

Loews Hotels & Resorts

815

2

InterContinental Hotels & Resorts

809

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

817

5

Omni Hotels & Resorts

811

5




Marriott Hotels & Resorts

808

3

Westin Hotels & Resorts

801

3

Renaissance Hotels

799

3

Hilton Hotels & Resorts

796

3

Upper Upscale Segment Average

795

3

Hyatt Hotels & Resorts

788

3

DoubleTree by Hilton

786

3

Sheraton Hotels & Resorts

768

2

Millennium Hotels and Resorts

713

2

NOTE: Le Meridien is included in the segment, but not ranked due to small sample size.







Upscale Segment



Hotel Indigo

838

5




Hyatt Place

819

4

Hilton Garden Inn

817

4

SpringHill Suites

814

4




Aloft

800

3

Courtyard

798

3

Upscale Segment Average

794

3

Delta Hotels and Resorts

792

3

Wyndham Hotels & Resorts

791

3




Four Points by Sheraton

772

2

Radisson

761

2

Crowne Plaza Hotels & Resorts

760

2

NOTE: Cambria Suites is included in the segment, but not ranked due to small sample size.
















Mid-Scale Full Service Segment



Holiday Inn

775

5




Best Western

765

4




Mid-Scale Full Service Segment Average

752

3




Ramada Inn/Plaza

725

2

Clarion

721

2

Quality

719

2

Howard Johnson Hotels/Plaza

691

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

836

5

Hampton Inn/Suites

824

5




Wingate by Wyndham

817

4




Holiday Inn Express

797

3

Fairfield Inn & Suites

793

3

Country Inns & Suites

788

3

Mid-Scale Limited Service Segment Average

787

3

Comfort Suites

778

3

La Quinta

771

3

Sleep Inn

766

3




Comfort Inn

752

2

AmericInn

751

2

Baymont Inn & Suites

746

2

Ramada Limited

700

2




Economy/Budget Segment



Microtel Inns & Suites

740

5




Howard Johnson Express/Inns

704

4

Days Inn

701

4

Red Roof Inn

700

4




Super 8

685

3

Travelodge

679

3

Economy/Budget Segment Average

679

3

Econo Lodge

664

3

Motel 6

662

3




Americas Best Value Inn

643

2

Rodeway Inn

629

2

Knights Inn

615

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

821

5




Residence Inn

819

4

Staybridge Suites

817

4

TownePlace Suites

806

4




Hawthorn Suites by Wyndham

792

3

Candlewood Suites

787

3

Extended Stay Segment Average

782

3




Extended StayAmerica

709

2

Homestead Studio Suites Hotels

703

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



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