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High-End Hotels Seeing Greater Guest Satisfaction, Says J.D. Power Survey

Luxury and upper upscale hotel segments are showing strong guest satisfaction scores, while limited-service properties have experienced declines in guest satisfaction year over year, according…

Written by:

Harvey Chipkin

Published on:

July 17, 2024
High-End Hotels Seeing Greater Guest Satisfaction, Says J.D. Power Survey

Luxury and upper upscale hotel segments are showing strong guest satisfaction scores, while limited-service properties have experienced declines in guest satisfaction year over year, according to the J.D. Power 2024 North America Hotel Guest Satisfaction Index Study.

Virtually every traveler in every hotel price bracket is paying more for a hotel room, according to the survey. With May’s average daily rate (ADR) of $158.45 being the second highest ever behind October 2023 ($159.01), said the report, “travelers’ perceived value for those higher prices is very much dependent on how well the hotel delivers on their expectations.”

Andrea Stokes, hospitality practice lead, said the company is seeing changes in guests’ travel behavior. With post-pandemic travel prices still elevated, it is not surprising that hotel guests say they are taking fewer trips on average. Yet, she said, those hotel guests are staying longer on their trips, and this puts a real focus on the hotel property for everything from room cleanliness and facilities maintenance to interactions with front desk personnel. Ultimately, said Stokes, “traveler expectations have increased along with hotel room rates, and when hotels do not meet or exceed those expectations, the perception of value for money declines.”

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Following are additional findings of the study:

  • Strong performance among full-service hotel brands: Overall satisfaction is steady or has increased year over year in the luxury and upper upscale hotel categories, even though these categories have seen some of the sharpest increases in average room rates. In the limited-service upper midscale, midscale and economy hotel segments, however, overall guest satisfaction is down significantly year over year.
  • Fewer trips, longer stays: On average, North American hotel guests are taking nine trips per year, down from 10 in 2023, and are staying an average of 3.43 days, up from 3.36 in 2023. This changing dynamic of fewer, but longer, stays is putting a greater focus on the details of the hotel experience.
  • Investment in staff, service and facilities is critical: Despite having the highest average room rates, the full-service luxury and upper upscale hotel segments also outperform limited-service hotel segments on satisfaction with value for prices paid. Operators of limited-service hotels, said the report, should focus on guest rooms; property/facilities maintenance; and renovating older hotels to improve guests’ value perceptions, in addition to overall satisfaction.

The following hotel brands rank highest in guest satisfaction in their respective segments:
Luxury: The Luxury Collection
Upper Upscale: Margaritaville Hotels & Resorts (for a second consecutive year)
Upscale: Element
Upscale Extended Stay: Hyatt House (for a third consecutive year)
Upper Midscale: Drury Hotels
Upper Midscale/Midscale Extended Stay: Home2 Suites by Hilton (for a second consecutive year)
Midscale: Tru by Hilton (for a second consecutive year)
Economy: Microtel by Wyndham (for a second consecutive year)
Economy Extended Stay: WoodSpring Suites (for a second consecutive year)

Categories: Lodging | NewsTags: J.D. Power Survey | Lodging

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