Hotel Online
News for the Hospitality Executive

.
 

Despite the Economy, Hotel Customer Satisfaction Improves in First Half of 2008,
Reaching 5-year High 75% of Airlines Decline in Customer Satisfaction
.
Market Metrix Announces Second Quarter 2008 Hospitality Index Results
.

SAN RAFAEL, Calif. – August 13, 2008 -- Despite the current downturn in the U.S. economy, the hotel industry continues to satisfy customers at near-record levels, according to the most recent results of the Market Metrix Hospitality IndexTM (MMHI) for the second quarter of 2008.  Customer satisfaction among all hotels is up (+1.0 to 82.7) compared to 2007.   This is the highest score for the industry in nearly five years and close to the all time high score of 83 recorded in 2001, just before 9/11.  The American Customer Satisfaction IndexTM (ACSI) also reports improved customer satisfaction for hotels for 2008 with the industry reaching record high scores.

Customer satisfaction up in a down economy

“The increase in customer satisfaction with hotels is certainly good news and surprising given the current economic pressures to reduce staff and services,” said Jonathan Barsky, Ph.D., vice president of research for Market Metrix.   “But in this economy hotels are focusing more on their current customers.  And with occupancy rates down 2.6 % in the first half of 2008, guest staffing ratios have remained stable.  Other factors helping to maintain or improve customer satisfaction include recent investments in customer technology, facilities and new services; expanded satisfaction measurement programs and pay-for-performance compensation; and the growth of online customer reviews which help to manage guest expectations and deliver more pleasing hotel experiences.”

Comparing performance across the hospitality industry

For the first half of 2008, luxury hotels and midscale w/o food & beverage hotels showed the most improvement.  Luxury brands showing the biggest gains include Intercontinental (+ 3.3), Taj Hotels (+ 2.8), and Ritz-Carlton (+ 2.8).  The most improved midscale w/o food & beverage brands are Howard Johnson (+ 2.7), Ramada (+ 2.2), and Red Lion Hotels (+ 1.9).  The only down-trending segment was Casinos with Flamingo Las Vegas (- 6.1), Excalibur Hotel & Casino (- 1.4), and Rio (- 0.8) posting the biggest declines. 

Customer satisfaction with airlines rebounded slightly (+.5 to 73.8) from last quarter’s all-time record low score.  But due to higher fuel prices there is no real improvement in sight.  “Airlines continue to reduce flights and staff while raising fares and adding fees,” said Dr. Barsky. ”That is not a formula to win consumer sentiment.”   Further, according to the MMHI, three-quarters of all airlines have seen their satisfaction scores drop in the first half of 2008.  Among the large carriers, United and Southwest show the biggest declines.  Midwest is one bright spot, earning the award for most-improved airline, as well as top score in customer satisfaction for the first half of 2008. 

Other MMHI Results Include Top Scoring Drury Hotels

Drury Inns posted the highest score (91.8) among all hotels in the industry, demonstrating that exceeding expectations is the key to guest satisfaction.  Guests rave about the personal treatment they receive.  Drury Inns was one of the first hotels in the limited-service segment, and all the Drury hotels are still owned and operated by the Drury family. 

Among rental car companies, satisfaction is down slightly for 2008 (-0.9 to 79.7).  Enterprise placed first despite a drop in its score (-1.6 to 81.7) for the first half of 2008.  Thrifty and Alamo, however, show significant gains in 2008 (+1.6 to 79.2 and +1.3 to 79.5, respectively).  The rental car industry continues to be tightly clustered (less than 5 points separate the top and bottom brands), indicating that the customers do not see significant differences among the brands.  And there is a new kid on the block, car sharing companies (ZipCar and others), that appear to be benefiting from spiraling gas prices and appealing subscription model (renting cars for short periods of time, often by the hour). 

Market Metrix Hospitality Index 2008
2nd Quarter YTD Winners

Winner
 .
Segment
Hotels . .
St Regis Hotels & Resorts 89.2 Luxury
Kimpton Hotels 89.4 Upper Upscale
Staybridge 89.0 Upscale
Holiday Inn SunSpree 83.5 Midscale w/ F&B
Drury Inns 91.8 Midscale w/o F&B
Jameson Inns 87.2 Economy
Casinos . .
Wynn Las Vegas 93.8 Upscale casino
Rio 88.4 Casino
Web Sites . .
Fairfield Inn by Marriott 89.8 Hotel Brand Web Site
Hotwire.com 78.8 Hotel Travel Web Site
Airline . .
Midwest Airlines 85.7 AIRLINE
Car Rental . .
Enterprise 81.7 CAR RENTAL
Timeshare . .
Disney Vacation Club 90.5 Timeshare Accommodations

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 SaaS-based 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.

.
Contact:

Kristin Nash
Market Metrix
415-302-7951

 

.

Also See: Shell Vacations Hospitality Selects Market Metrix for Customer and Employee Feedback Solutions; Vacation Ownership Developer Uses Intelligence to Yield Continuously Improving Satisfaction / August 2008
Market Metrix Launches Employee Metrix Express™, an Affordable Alternative to Capture Feedback and Create an Engaged Workforce / July 2008
Market Metrix Selected to Measure Feedback and Help Maintain Rosewood Hotels & Resorts Distinct Ultra-luxury Guest Experience / May 2008
Luxury Hotels Buck Recession: Prices and Customer Satisfaction Are Up, Well-heeled Guests Still Willing to Pay More / Market Metrix First Quarter 2008 Hospitality Index Results / May 2008
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
.
.
.

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch
Home | Welcome| Hospitality News | Classifieds| One-on-One |
Viewpoint Forum | Industry Resources | Press Releases
Please contact Hotel.Onlinewith your comments and suggestions.