Hotel Online  Special Report

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Nothing Shy of an �Outstanding� 
Experience is Key to Guest Loyalty
-
Top U.S. Hotel Chains Ranked by J. D. Power and Assoc. 
on Guest Satisfaction 
AGOURA HILLS, Calif. - August 31, 2001 � As the U.S. economy slows, competition intensifies among hotel chains to provide outstanding guest satisfaction in order to capture a larger share of the business and leisure hotel guest market. While the majority of the hotel industry continues to provide guests with high levels of satisfaction, significant challenges still exist in delivering products and services that create loyal repeat customers, according to the J.D. Power and Associates 2001 Domestic Hotel Guest Satisfaction StudySM released today.

"More than one-half of all guests rate their overall satisfaction as high, but only approximately one-third show strong loyalty to a given hotel chain," said Linda Hirneise, partner and director of the hotel practice at J.D. Power and Associates. "Instead of concentrating on the 1 percent of guests rating their stay as �unacceptable,� managers should be striving to increase the proportion of guests who have an �outstanding� experience. That�s what creates hotel guest loyalty."

While the study also reveals that location is the primary reason business or leisure guests choose their hotel, potential guests also select hotels based on past experience, recommendations from friends and family, and brand reputation. 

The top three major contributors to guest satisfaction continue to be the guest room, departure process and pre-arrival/arrival experiences. These account for more than 70 percent of guest satisfaction in each of the six market segments, followed by hotel services and food and beverage.

Economy/Budget Hotel Chains

Fairfield Inn by Marriott ranks highest in guest satisfaction among economy / budget hotel chains for the third year in a row. Fairfield Inn performs especially well in all areas, including reservations/check-in, guest room, hotel services and departure experience. In addition to Fairfield Inn, above-average hotel chains in this segment, in order of performance, include Microtel Inns & Suites, Motel 6, Super 8 Motels and Budget Host. The economy/budget market segment has the lowest average room rate at $63 per night and provides the fewest hotel services or amenities. Hotels in this market segment have no on-premise restaurants. 
 

Economy/Budget 
Market Segmentation
Guest Satisfaction Ranking
Fairfied Inn 116
Microtel Inns & Suites 114
Motel 6 102
Super 8 Motels 102
Budget Host 101
Economy/Budget Market Segment Average 100
Finishing at or below the industry average in alphabetical order are: Days Inn, Econo Lodge, Knights Inn, Ramada Limited, Red Roof Inns and Travelodge.

Special Note: Guest Satisfaction Index (GSI) scores shown in this graph are based on guest responses to 35 specific questions addressing their hotel experience. Index scores show the relative performance of each hotel chain within its respective market segment. It is not appropriate to compare GSI scores between different market segments.

Mid-Price Hotel Chains with Limited Food Service

Hampton Inn ranks highest in guest satisfaction among mid-price hotel chains with limited food service for the third year in a row. Hampton Inn performs well in nearly all aspects of the guest experience, especially in the areas of reservations/check-in, hotel services and departure experience. Following Hampton Inn in the ranking are Country Inns & Suites, Drury Inn, Holiday Inn Express and Sleep Inn, all performing at or above the market segment average. Hotel chains in this segment have room rates that average $75 per night, have no on-premise restaurants and provide only limited hotel services. 
 

Mid Price Limited Food Service 
Market Segment
Guest Satisfaction Ranking
Hampton Inn 109
Country Inns & Suites 108
Drury Inn 105
Holiday Inn Express 102
Sleep Inn 100
Mid Price Limited Food Service Market Segment Average 100
Finishing at or below the industry average in alphabetical order are: Baymont Inns & Suites, Comfort Inn and LaQuinta Inns

Mid-Price Hotel Chains with Full Food Service

Courtyard by Marriott ranks highest in guest satisfaction among mid-price hotel chains with full food service. Courtyard demonstrates strong performance in the areas of reservations/check-in, guest room, hotel services and departure experience. Hilton Garden Inn, Wyndham Garden Hotels, Holiday Inn Select, Holiday Inn Hotels and Resorts, and Four Points by Sheraton, respectively, follow Courtyard by Marriott and are above the market segment average. This segment has an average room rate of $83 per night.  An on-property, full-service restaurant and more complete hotel services and facilities, such as meeting rooms, characterize these chains. 
 

Mid Price Full Food Service 
Market Segment
Guest Satisfaction Ranking
Courtyard by Marriot 115
Hilton Garden Inn 110
Wyndham Garden Hotels 108
Holiday Inn Select 107
Holiday Inn Hotels & Resorts 106
Four Points by Sheraton 102
Mid Price Full Food Service 
Market Segment Average
100
Finishing at or below the industry average in alphabetical order are: Best Western, Clarion Hotels, Howard Johnson, Quality Inns and Ramada Inns 

Extended Stay Hotel Chains

Homewood Suites by Hilton ranks highest in guest satisfaction among extended stay hotel chains, a new market segment reflecting the growth of this category. Homewood Suites performs well in the arrival, guest room and hotel services aspects of the hotel experience. Residence Inn and Hawthorn Suites follow Homewood Suites and perform at or above the segment average.  Extended stay chains offer accommodations that include a sitting room, a bedroom and a kitchen area. The average daily room rate of $89 per night often includes a full breakfast.
 

Extended Stay Market Segment
Guest Satisfaction Ranking
Homewood Suites by Hilton 112
Residence Inn 110
Hawthorn Suites 100
Extended Stay Market Segment 100
Finishing at or below the industry average in alphabetical order are: AmeriSuite, Comfort Suites and Quality Suites

Upscale Hotel Chains

Embassy Suites Hotels ranks highest in guest satisfaction among upscale hotel chains. This is the third year the chain has received a top ranking in the study.  Embassy Suites performs especially high in the areas of arrival, guest room and departure experience. Following Embassy Suites are Marriott Hotels, Resorts and Suites; Renaissance Hotels, Resorts and Suites; Omni Hotels; Hilton Hotels & Resorts; Hyatt Hotels & Resorts; and Westin Hotels & Resorts, respectively. Upscale chains have full-service restaurants, multiple meeting facilities and a complete range of hotel services. These chains have an average room rate of $121 per night.
 

Upscale Market Segment
Guest Satisfaction Ranking
Embassy Suites Hotels 110
Marriott Hotels, Resorts & Suites 107
Rennaissance Hotels, Resorts & Suites 106
Omni Hotels 104
Hilton Hotels & Resorts 102
Hyatt Hotels & Resorts 100
Westin Hotels & Resorts 100
Upscale Market Segment Average 100
Finishing at or below the industry average in alphabetical order are: Adam's Mark Hotels & Resorts, Crowne Plaza Hotels & Resorts, Doubletree Hotels & Resorts, Radisson Hotels & Resorts, Sheraton Hotels & Resorts and Wyndham Hotels & Resorts

Luxury Hotel Chains

Four Seasons ranks highest in guest satisfaction among luxury hotel chains.  Four Seasons performs especially high in the areas of food and beverage service and the departure experience. Ritz-Carlton Hotels and Resorts closely follows Four Seasons in performing above the market segment average.  Luxury hotel chains have an average room rate of $199 per night. Customers staying at luxury hotels report the highest level of guest satisfaction, on average, with their hotel stay compared to all other market segments.
 

Luxury Market Segment
Guest Satisfaction Ranking
Four Seasons Hotels & Resorts 107
Ritz Carlton Hotel & Resorts 105
Luxury Market Segment Average 100
Finishing below the industry average is: Fairmont Hotels & Resorts

The 2001 Hotel Guest Satisfaction Study is based on 13,335 individual evaluations from a national representative sample of business and leisure hotel guests. Fifty-two hotel chains in six market segments are included in the study. Sixty percent of guests across all segments report that they visited a hotel for leisure purposes, staying an average of 2.4 nights. 

Headquartered in Agoura Hills, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm�s quality and satisfaction measurements are based on actual responses from millions of consumers annually. 

This press release is provided for editorial use only. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written consent of J.D.  Power and Associates.

 
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Contact:
Michael Greywitt
 (818) 889-6330
[email protected]
http://www.jdpa.com

 
Also See Omni Hotels, Embassy Suites, Courtyard by Marriott, Hampton Inn and Fairfield Inn areTops in Respective Segments When Ranked for Customer Satisfaction / J.D. Power and Associates 2000 Domestic Hotel Guest Satisfaction Study / August 2000 
1999 Domestic Hotel Guest Satisfaction Study Ranks Top Hotel Chains in Five Segments / April 1999 

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