Dive Brief:
- The luxury and upper upscale segments showed strong guest satisfaction scores in J.D. Power’s 2024 North America Hotel Guest Satisfaction Index study, published today. The segments outpaced limited-service hotels, which saw year-over-year declines in guest satisfaction from May 2023 to May 2024.
- Marriott International’s The Luxury Collection led other hotel brands in the luxury segment for the highest guest satisfaction scores, while Margaritaville Hotels & Resorts, for a second consecutive year, led the upper upscale segment for guest satisfaction.
- Guests reported getting more “value for prices paid” at hotels within the luxury and upper upscale hotels, which had higher ADRs than their lower-tier competitors, the study found. To boost satisfaction scores, the low-tier segments should focus on property improvements, according to J.D. Power.
Dive Insight:
Marriott’s Ritz-Carlton followed The Luxury Collection for highest guest satisfaction in the luxury segment, according to J.D. Power. Four Seasons and Hilton’s Waldorf Astoria also ranked above the benchmark average for the segment.
In the upper upscale category, IHG Hotels & Resorts’ Kimpton followed directly behind Margaritaville for guest satisfaction. More than 10 brands ranked above the benchmark average in the segment, including Hilton’s growing Tapestry Collection and Canopy brands and Hard Rock Hotels.
Tru by Hilton took the top spot in the midscale category, while Microtel Inn & Suites by Wyndham led the economy segment for highest satisfaction ratings. And Choice Hotels’ WoodSpring Suites ranked No. 1 among economy extended stay brands.
Overall satisfaction was “steady or increased” year over year in the luxury and upper upscale hotel categories, even with the segments having some of the “sharpest increases in average room rates.”
Despite their high ADRs, the full-service luxury and upper upscale hotel segments outperformed limited-service hotel segments on “satisfaction with value for prices paid,” according to J.D. Power.
“We are seeing changes in hotel guests’ travel behavior,” said Andrea Stokes, hospitality practice lead at J.D. Power. “[H]otel 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, 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,” she added.
To improve guests’ value perceptions and overall satisfaction, operators of limited-service hotels need to focus on property maintenance and renovating older hotels, according to J.D. Power.
Branded hotel renovations help attract and satisfy guests while also keeping the property competitive in the marketplace, Kobita Mukherjee, associate partner and director of interior design and hospitality lead at design firm BKV Group, previously told Hotel Dive.
In the first quarter of this year, renovation and brand conversion projects in the U.S. hotel construction pipeline were at record highs, according to Lodging Econometrics.
The J.D. Power study measured the performance of 103 brands across nine hotel segments and is based on responses from 39,468 branded hotel guests for stays between May 2023 and May 2024.
