INTERNATIONAL
REPORT — Luxury and upper upscale hotels are showing strong guest satisfaction
scores while limited-service hotel segments have experienced declines in guest
satisfaction year-over-year, according to the new J.D. Power 2024 North America
Hotel Guest Satisfaction Index (NAGSI) study.
The study
found that the ADR for a U.S. hotel room was $158.45, the second-highest month
ever recorded behind $159.01 in October 2023. According to the study,
travelers’ perceived value for those higher prices is dependent on how well the
hotel delivers on their expectations.
“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.”
Stoke said a
strong correlation exists between hotel rate increases and traveler
expectations. “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,” she said.
The study
found strong performance among full-service hotels, with overall satisfaction
steady or increasing year-over-year (YOY) in the luxury and upper-upscale hotel categories, even
though these categories have seen some of the sharpest increases in ADR.
Overall
guest satisfaction is down significantly YOY in the limited-service upper
midscale, midscale and economy hotel segments.
The study
also found that hotel guests take fewer trips but stay longer. On average,
North American hotel guests are taking nine trips per year, down from 10 in
2023, but are staying an average of 3.43 days, up from 3.36 in 2023. This
changing dynamic is putting a greater focus on the details of the hotel
experience.
The J.D.
Power study also says that investment in staff, service and facilities is
critical. Despite having the highest ADRs, the full-service luxury and
upper upscale hotel segments also outperform limited-service hotel segments on
satisfaction with value for prices paid.
The study
concludes that hotel operators of limited-service properties should focus on
maintaining guest rooms, property and facilities and renovating older hotels to
improve guests’ value perceptions.
This is the
28th annual NAGSI study, which measures overall hotel guest satisfaction based
on performance in six factors:
- Communications
and connectivity
- Food and
beverage
- Guest room
- Hotel
facilities
- Staff
service
- Value for
price
The study
benchmarks the performance of 103 brands across nine hotel segments and is
based on responses from 39,468 branded hotel guests for stays between May 2023
and May 2024.
Click here
for a ranking chart from the study of each hotel segment.
For more
information on the NAGSI study, click here.