Press Release
August 31, 2001 (Newstream) -- As the U.S. economy slows, competition intensifies among hotel chains to provide
outstanding guest satisfaction in order to capture a larger share of the business and leisure hotel guest market.
While the majority of the hotel industry continues to provide guests with high levels of satisfaction, significant
challenges still exist in delivering products and services that create loyal repeat customers, according to the
J.D. Power and Associates 2001 Domestic Hotel Guest Satisfaction StudySM released today.
"More than one-half of all guests rate their overall satisfaction as high, but only approximately one-third
show strong loyalty to a given hotel chain," said Linda Hirneise, partner and director of the hotel practice
at J.D. Power and Associates. "Instead of concentrating on the 1 percent of guests rating their stay as 'unacceptable,'
managers should be striving to increase the proportion of guests who have an 'outstanding' experience. That's what
creates hotel guest loyalty."
While the study also reveals that location is the primary reason business or leisure guests choose their hotel,
potential guests also select hotels based on past experience, recommendations from friends and family, and brand
reputation.
The top three major contributors to guest satisfaction continue to be the guest room, departure process and pre-arrival/arrival
experiences. These account for more than 70 percent of guest satisfaction in each of the six market segments, followed
by hotel services and food and beverage.
Economy/Budget Hotel Chains
Fairfield Inn by Marriott ranks highest in guest satisfaction among economy/budget hotel chains for the third year
in a row. Fairfield Inn performs especially well in all areas, including reservations/check-in, guest room, hotel
services and departure experience. In addition to Fairfield Inn, above-average hotel chains in this segment, in
order of performance, include Microtel Inns & Suites, Motel 6, Super 8 Motels and Budget Host. The economy/budget
market segment has the lowest average room rate at $63 per night and provides the fewest hotel services or amenities.
Hotels in this market segment have no on-premise restaurants.
Mid-Price Hotel Chains with Limited Food Service
Hampton Inn ranks highest in guest satisfaction among mid-price hotel chains with limited food service for the
third year in a row. Hampton Inn performs well in nearly all aspects of the guest experience, especially in the
areas of reservations/check-in, hotel services and departure experience. Following Hampton Inn in the ranking are
Country Inns & Suites, Drury Inn, Holiday Inn Express and Sleep Inn, all performing at or above the market
segment average. Hotel chains in this segment have room rates that average $75 per night, have no on-premise restaurants
and provide only limited hotel services.
Mid-Price Hotel Chains with Full Food Service
Courtyard by Marriott ranks highest in guest satisfaction among mid-price hotel chains with full food service.
Courtyard demonstrates strong performance in the areas of reservations/check-in, guest room, hotel services and
departure experience. Hilton Garden Inn, Wyndham Garden Hotels, Holiday Inn Select, Holiday Inn Hotels and Resorts,
and Four Points by Sheraton, respectively, follow Courtyard by Marriott and are above the market segment average.
This segment has an average room rate of $83 per night. An on-property, full-service restaurant and more complete
hotel services and facilities, such as meeting rooms, characterize these chains.
Extended Stay Hotel Chains
Homewood Suites by Hilton ranks highest in guest satisfaction among extended stay hotel chains, a new market segment
reflecting the growth of this category. Homewood Suites performs well in the arrival, guest room and hotel services
aspects of the hotel experience. Residence Inn and Hawthorn Suites follow Homewood Suites and perform at or above
the segment average. Extended stay chains offer accommodations that include a sitting room, a bedroom and a kitchen
area. The average daily room rate of $89 per night often includes a full breakfast.
Upscale Hotel Chains
Embassy Suites Hotels ranks highest in guest satisfaction among upscale hotel chains. This is the third year the
chain has received a top ranking in the study. Embassy Suites performs especially high in the areas of arrival,
guest room and departure experience. Following Embassy Suites are Marriott Hotels, Resorts and Suites; Renaissance
Hotels, Resorts and Suites; Omni Hotels; Hilton Hotels & Resorts; Hyatt Hotels & Resorts; and Westin Hotels
& Resorts, respectively. Upscale chains have full-service restaurants, multiple meeting facilities and a complete
range of hotel services. These chains have an average room rate of $121 per night.
Luxury Hotel Chains
Four Seasons ranks highest in guest satisfaction among luxury hotel chains. Four Seasons performs especially high
in the areas of food and beverage service and the departure experience. Ritz-Carlton Hotels and Resorts closely
follows Four Seasons in performing above the market segment average. Luxury hotel chains have an average room rate
of $199 per night. Customers staying at luxury hotels report the highest level of guest satisfaction, on average,
with their hotel stay compared to all other market segments.
The 2001 Hotel Guest Satisfaction Study is based on 13,335 individual evaluations from a national representative
sample of business and leisure hotel guests. Fifty-two hotel chains in six market segments are included in the
study. Sixty percent of guests across all segments report that they visited a hotel for leisure purposes, staying
an average of 2.4 nights.
Headquartered in Agoura Hills, Calif., J.D. Power and Associates is a global marketing information services firm
operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction.
The firm's quality and satisfaction measurements are based on actual responses from millions of consumers annually.
J.D. Power and Associates can be accessed through the Internet at www.jdpa.com.
Media e-mail contact: michael.greywitt@jdpa.com or john.tews@jdpa.com.
This press release is provided for editorial use only. No advertising or other promotional use can be made of the
information in this release or J.D. Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.
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Produced for J.D. Power and Associates Contacts:
Michael P. Greywitt (818) 889-6330 John Tews (248) 267-6800