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News for the Hospitality Executive

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The Economic Tailspin Flattens Hotel Satisfaction in Q4
with Cuts in Staff and Services
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Luxury Hotels Still Shine; Casinos and Timeshares Decline
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--Market Metrix Announces Fourth Quarter YTD 2008 Hospitality Index Results --


SAN RAFAEL, Calif. – February 24, 2009 – Despite the budget cutbacks, in 2008 Customer Satisfaction was up for hotels (+0.9) and airlines (+1.5) but down for car rental companies (-0.9) compared to 2007.  Among hotels, the luxury segment showed the biggest improvement (+1.4), with Le Meridian, Loews and The Ritz-Carlton posting the biggest year over year gains.  Casinos (-0.7) and Timeshares (-0.2) were the only segments showing a decline in satisfaction compared to 2007.  The Sahara Hotel and Casino (-6.3), Binion's Horseshoe (-6.1) and Trendwest Resorts (-4.2) posted the biggest annual declines within these segments. 

Comparing performance across the hospitality industry
Although the hotel industry reached near-record highs in guest satisfaction in 2008, scores were flat in Q4 as the severity of the economic downturn forced significant reductions in staff and services.  In the grueling fourth quarter hotel guests reported lower product scores but gave higher marks for “Pampered”, “Entertained” and “Welcome” indicating that while hotels are cutting back, they are also working hard to please guests.  And with lower rates taking on greater urgency for most guests, loyalty programs and green initiatives played less of a role in hotel selection compared to the previous quarter.

Car Rental satisfaction scores were down for the year.  This industry continues to face a difficult operating environment with fewer people renting cars and rising costs (e.g. higher vehicle maintenance and repair costs).  Alamo (+2.5) and Thrifty (+1.8) showed the biggest annual improvements in customer satisfaction scores despite the industry’s downward slide.  Enterprise continues their industry dominance with overall satisfaction and loyalty scores well above competitors, although their winning margin was smaller this year with Alamo making a big jump to finish in second place for 2008. 

Although airlines continue to frustrate customers, their scores did improve slightly over last year.  And there is a new winner - Virgin Atlantic.  For the first time this airline scored highest among 23 airlines in 2008.  Passengers love the airline’s “mood lighting”, “plugging in laptops at your seat” and “the movies… they’ve got an awesome in-flight entertainment system!”  The most improved airline was Lufthasana (+5.7) boosting its ranking from 7th place in 2007 to second place in 2008.

Top Scoring Hotel Brands
The top hotel score among all segments for 2008 went to Pan Pacific Hotels & Resorts - a portfolio of hotels, resorts and serviced suites throughout Asia and North America.  Guests rave about the staff’s “Asian hospitality”, “incredible response time” and “sumptuous amenities” in the guestrooms.  Riu Hotels won the Upper upscale category, Sandals was the highest scoring upscale hotel and South Point Hotel, a new Mediterranean themed Las Vegas property, led the casino segment in customer satisfaction for 2008.  Kimpton and Hotwire delivered the best online reservation experiences to their customers. 

Market Metrix Hospitality Index
2008 Annual Winners

Winner
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Segment
Hotels . .
Pan Pacific Hotels & Resorts 92.6 Luxury
Riu Hotels 91.4 Upper Upscale
Sandals  92.2 Upscale
Holiday Inn SunSpree Resorts 83.0 Midscale w/ F&B
Drury Inns 91.3 Midscale w/o F&B
Jameson Inns 86.1 Economy
Casinos . .
Wynn Las Vegas 92.2 Upscale casino
South Point Hotel Casino Spa 90.6 Casino
Web Sites . .
Kimpton Hotels 89.8 Hotel Brand Web Site
Hotwire.com 78.3 Hotel Travel Web Site
Airline . .
Virgin Atlantic 90.8 AIRLINE
Car Rental . .
Enterprise 82.2 CAR RENTAL
Timeshare . .
Disney Vacation Club 91.0 Timeshare Accommodations
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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 is helping hospitality companies around the world succeed in the tough economy.  With guest feedback collected 24/7/365, and built-in service recovery and investment decision support tools, we help clients save money and reduce risk of client defections.  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.

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Contact:

Mike Pharis
1-800-239-7515

 

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Also See: 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 / August 2008
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
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