In a recent study conducted by J.D. Power, it was revealed that while room rates in the U.S. have been on the rise, higher-end hotels have managed to maintain high levels of guest satisfaction. On the other hand, affordable properties have seen a decline in satisfaction levels year after year. The average daily rate (ADR) for a U.S. hotel room reached $158.45 in May, coming close to the all-time high recorded last October. Despite the steep pricing, luxury and upper-upscale hotels have been able to meet or exceed guest expectations, leading to steady or improved satisfaction scores. However, in the limited-service upper-midscale, midscale, and economy hotel segments, overall guest satisfaction has taken a hit compared to previous years.
The study also highlighted a shift in travel behavior among North American hotel guests. While guests are now taking an average of nine trips per year, which is down from 10 trips last year, the average length of stay has increased slightly from 3.36 days to 3.43 days. This change in behavior can be attributed to the still-elevated post-pandemic travel prices. Guests are opting to take fewer trips but are making their stays longer. This has put a spotlight on hotel properties, emphasizing the importance of room cleanliness, facilities maintenance, and guest interactions with hotel staff.
When it comes to guest satisfaction, certain hotel brands have stood out in their respective segments. Marriott’s Luxury Collection was a leader in the luxury segment, while Margaritaville Hotels & Resorts topped the upper-upscale category. In the upscale and upscale extended stay spaces, Marriott’s Element brand and Hyatt House were recognized for their high levels of guest satisfaction. In the upper-midscale, midscale, and economy tiers, brands like Drury Hotels, Home2 Suites by Hilton, Tru by Hilton, Microtel by Wyndham, and Choice Hotels‘ WoodSpring Suites excelled in guest satisfaction.
Overall, the hotel industry is experiencing a shift in guest preferences and behavior, with higher-end hotels managing to maintain guest satisfaction despite rising room rates. It is clear that hotel properties need to focus on providing exceptional customer experiences to ensure guest loyalty and satisfaction in this evolving landscape.
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