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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
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.
2008 1st Quarter Winners  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
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