Hotel Online  Special Report



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Luxury Hotels Buck Recession: Prices and Customer Satisfaction
Are Up, Well-heeled Guests Still Willing to Pay More
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Bad News Continues for Airlines: Satisfaction at All-time Low

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--Market Metrix Announces First Quarter 2008 Hospitality Index Results --

SAN RAFAEL, Calif. – May 20, 2008 -- Despite the current downturn in the U.S. economy that includes a drop in overall hotel occupancy and revenue growth, luxury hotels continue to show strength, according to the most recent results of the Market Metrix Hospitality Index (MMHI) for the first quarter of 2008.  Despite price increases (see table below), customer satisfaction with these high-priced hotels is up for the first quarter, out-performing all other segments.  Other indicators are positive for luxury hotels – reduced price sensitivity and improved perceptions of value – underscoring the strength of this segment.  The luxury brands showing the biggest gains in the MMHI were Starwood’s The Luxury Collection (+3.7), Grand Hyatt (+3.6), and Intercontinental (+2.7).

Q1 2008 vs 2007

Price
(ADR) 
Occupancy  Customer Satisfaction
Luxury + 5.1% -1.9%  + .6
Industry +4.7%  -2.7%  +.2
Source: Market Metrix, Smith Travel

Customer satisfaction for all hotels is up slightly (+.2 to 82) compared to 2007.   This is good news and surprising given the current economic pressures to reduce hotel staff and services. 

More Bad News for Airlines

The bad news continues for airlines, as well as the industry’s consumers.  Customer satisfaction with airlines declined by .7 percent, falling to an all time low (73.3) since the MMHI began tracking the industry in 2001.  While airlines continue to struggle with higher fuel prices, flight delays, labor contracts and crowded planes, consumers feel they are getting less for their money.  Midwest Airlines, one of the few bright spots, earned the highest score in customer satisfaction among all airlines in the first quarter.

Other MMHI Results Include Top Scoring Kimpton Hotels

Kimpton Hotels posted the highest score (92.3) among all hotels in the industry.  Kimpton’s unique collection of boutique hotels continues to outscore higher priced luxury hotel chains such as The Ritz-Carlton, Four Seasons and Fairmont Hotels. 

Among rental car companies, Enterprise continues their superior performance with the highest customer satisfaction score in the industry (81.9).  But for the first time, National (80.8) and Thrifty (80.7) are not far behind.  In fact, the entire rental car industry is very tightly clustered, indicating that customers do not see much difference among the brands.  Overall, car rental companies posted a decline in customer satisfaction of .1.
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Market Metrix Hospitality Index
2008 1st Quarter Winners
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About MMHI
Based on 35,000 customer interviews conducted each quarter, the Market Metrix Hospitality Index (MMHI) is the largest and most in-depth measure of hospitality company performance available today.  These benchmarks, delivered through our flagship product Customer Metrix™, enable Market Metrix clients to compare their results to competitors by STAR segment, AAA classification, Brand, SMSA, industry averages, performers in the top 10% and other classifications.   The MMHI is also available by subscription.

About Market Metrix 
Market Metrix helps hospitality companies around the world foster loyal customers and engaged employees.  Based on award-winning research and breakthrough concepts, our products deliver instant survey results, analysis and management tools for increasing revenue and reducing staff turnover.  Our benchmarking database, MMHI, is the most comprehensive, independent comparison of consumer brand satisfaction in the industry.  Our annual MMHI Awards are coveted by lodging and travel enterprises around the world.  With clients that include more than 120 brands across 70 countries, Market Metrix has been helping leading hospitality companies turn feedback into performance since 1996.  For more information, visit www.marketmetrix.com.

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Contact:

Mike Pharis
Market Metrix
1-800-239-7515
http://www.marketmetrix.com

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Also See: Rosewood Hotels and Sun Country Airlines Take First Place Away from Industry Leaders; Market Metrix Announces Third Quarter 2007 Hospitality Index Results / November 2007
Rosewood Hotels and Sun Country Airlines Take First Place Away from Industry Leaders; Market Metrix Announces Third Quarter 2007 Hospitality Index Results / November 2007
It's Not Just About Winning - Improved Customer Service Pays off for Casinos; Market Metrix Introduces Customer Metrix 3.0 for Casinos - Web-Based Customer Feedback for Global Gaming Industry / September 2007
Market Metrix Unleashes Employee Metrix™ 2.0 - Web-Based Product Line for Hospitality Industry; Employees are central to delivering a superior customer experience / August 2007
Airlines and Luxury Hotels Disappoint: Customers Want More Comfort and Pampering; Market Metrix Announces Second Quarter 2007 Hospitality Index Results / August 2007
Hotels, Airlines at Opposite Ends of Satisfaction Scale: Hotels Highest, Airlines Lowest in 4 Years; Market Metrix First Quarter 2007 Hospitality Index Results / May 2007
Market Metrix Announces 2006 Hospitality Index Results; Drury Inns, JetBlue Airlines and Enterprise Rent-A-Car Win First Place 2006 Awards / February 2007
Market Metrix Announces Third Quarter 2006 Hospitality Index Results; Drury Inns, JetBlue Airlines and Enterprise Rent-A-Car Win for Second Consecutive Quarter / November 2006
Market Metrix Announces Second Quarter 2006 Hospitality Index Results; Drury Inns Ranked Number 1 in Customer Satisfaction for the Hotel Industry / August 2006
Market Metrix Announces First Quarter 2006 Hospitality Index Results / Drury Inns Ranked Number 1 in Customer Satisfaction for the Hotel Industry / May 2006
Market Metrix Announces Fourth Quarter 2005 Hospitality Index Results; Kimpton Hotels Ranked Number One in Hotel Customer Satisfaction / February 2006
Market Metrix Announces Third Quarter 2005 Hospitality Index Results; W Hotels Ranked Number One in Hotel Customer Satisfaction / November 2005
Market Metrix Announces Second Quarter 2005 Hospitality Index Results; New measure of guest problems show that hotel staff have biggest impact on loyalty / August 2005
Market Metrix Announces First Quarter 2005 Hospitality Index Results; Customer Satisfaction with Hotels Drops for First Time Since 9-11, First-Ever Measure of Satisfaction With Vacation Clubs / May 2005
Market Metrix Announces Fourth Quarter 2004 Hospitality Index Results; Wingate Inns, Midwest Airlines and Enterprise Rent-A-Car Take Top Industry Categories / February 2005
Market Metrix Announces Third Quarter 2004 Hospitality Index Results; Four Seasons, Midwest Airlines and Enterprise Rent-A-Car Take Top Industry Categories / November 2004
Market Metrix Announces Second Quarter 2004 Hospitality Index Results Four Seasons, Jet Blue Airways and Enterprise Rent-A-Car Take Top Industry Categories / August 2004
Market Metrix Announces First Quarter 2004 Hospitality Index Results - Staybridge Suites, Jet Blue Airways and Enterprise Rent-A-Car Take Top Industry Categories / May 2004
Walt Disney World Resorts Ranks Number One in Hotel Customer Satisfaction; Market Metrix Fourth Quarter 2003 Hospitality Index Results / February 2004
Market Metrix Third Quarter 2003 Hospitality Index Results; First-Ever Measure of Satisfaction With Online Hotel Reservations Places Radisson and Yahoo! Travel on Top / November 2003
Market Metrix Second Quarter 2003 Hospitality Index Results -- Fairmont Hotels & Resorts Improves Satisfaction Score to Take Top Hotel Prize / Aug 2003


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