by Lacey Pfalz
Last updated: 7:00 AM ET, Tue July 16, 2024
Luxury and upper upscale hotels are ranking higher in guest satisfaction compared to limited-service hotel segments in a year when travelers are paying record-high prices for hotel stays, according to the 28th annual J.D. Power 2024 North America Hotel Guest Satisfaction Index (NAGSI) Study.?
According to the report, U.S. hotel rooms had an average daily rate of $158.45 in May, 2024, the second-highest month ever reported, second only to $159.01 reported in October, 2023.?
We are seeing changes in hotel guests travel behavior, said Andrea Stokes, hospitality practice lead at J.D. Power. With post-pandemic travel prices still elevated, it is not surprising that hotel guests say they are taking fewer trips, on average. Yet, those hotel guests are staying longer on their trips, and this puts a real focus on the hotel property for everything from room cleanliness and facilities maintenance to interactions with front desk personnel. Ultimately, traveler expectations have increased along with hotel room rates, and when hotels do not meet or exceed those expectations, the perception of value for money declines.
Guest Satisfaction: Full-Service Reigns Supreme
Full-service hotel brands, especially in luxury or upper upscale hotel categories, are seeing steady or stronger guest satisfaction this year, though these rates have increased the most dramatically.?
Guests of limited-service upper midscale, midscale and economy hotels are experiencing less satisfying hotel stays, likely in part due to the higher prices theyre paying for limited services.?
The report suggests that limited-service hotels should focus on increasing guest satisfaction by upgrading older hotels, properly maintaining the hotel property and ensuring that guest rooms are sufficiently clean and offer good experiences for guests.?
Less Trips, Longer Trips
Guests at North American hotels are traveling about nine times each year on average, down from last years 10. However, theyre also staying longer, a trend we've been seeing grow since the end of the pandemic. The average trip length has risen from 3.36 days in 2023 to 3.43 days this year. Longer stays mean more opportunities to make or break the guest experience for hotels.?
The Highest Ranking Brands for Guest Satisfaction
The J.D. Power 2024 North America Hotel Guest Satisfaction Index (NAGSI) Study also identified the hotel brands with the highest overall customer satisfaction rating, which is based on a 1,000-point scale.?
In the luxury segment, The Luxury Collection was ranked highest, followed closely by The Ritz-Carlton, Waldorf Astoria and Four Seasons brands.?
Margaritaville Hotels & Resorts ranked the highest in the upper upscale category, followed by Kimpton, Hyatt Centric and Tapestry Collection by Hilton brands.?
Guests are the most satisfied in the upscale element brand, followed by AC Hotels by Marriott, Best Western Premier and Delta Hotels brands.?
One upper midscale brand fared much higher than all the rest: Drury Hotels had 744 points followed by Wyndham Garden, with 684 points. Tru by Hilton was ranked the best midscale brand for guest satisfaction, while Microtel Inn & Suites by Wyndham ranked the best in the economy category.
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