As hotel rates rise, guests are more critical of different aspects of their stay, according to a new hotel operations survey from J.D. Power.
According to a news release for the J.D. Power 2022 North America Third-Party Hotel Management Guest Satisfaction Benchmark, guest satisfaction dipped four points on a 1,000-point scale this year. Guests are scrutinizing hotel décor, amenities and food and beverage options to a higher degree now that average room rates are nearly $150, approximately a 15% premium over pre-pandemic prices.
“It is no secret that many of the major hospitality companies have put off upgrades and deferred maintenance while they were in survival mode during the pandemic,” said Andrea Stokes, hospitality practice lead at J.D. Power, in a news release. “Now, however, as demand has climbed above pre-pandemic levels and consumers are paying record rates for hotel rooms, expectations are rising rapidly. Now is the time for hotel operators to invest in the maintenance and renovations that improve quality in the eyes of guests.”
Among third-party management companies, Atlanta-based Davidson Hospitality Group ranked the highest with 875 points. Atrium Hospitality, in Alpharetta, Georgia, ranked second at 870 points. Fairfax, Virginia-based Crestline Hotels & Resorts came in third with 856 points.
The survey found that overall guest satisfaction with third-party management companies decreased by 4 points to 837 compared to a year ago. That drop is the result of lowered satisfaction with room rates and fees, guestroom furnishings and the variety of food and drinks available.
Guests gave higher marks to front-desk staff, indicating they appreciated the speed of check-in, courtesy and knowledge. Fewer than half of guests noted, however, being greeted by staff prior to reaching the front desk.
The survey said that beyond investing in the physical aspects of a hotel, focusing on service training for staff can have an immediate effect on improving the guest experience. Overall satisfaction scores are 139 points higher when guests feel valued. Scores also improve by 135 points when staff show concern for guests' needs or provide “warm, sincere treatment.”
This survey evaluates guest satisfaction with branded hotels that are operated by the largest third-party management companies. It focuses on arrival/departure; cost and fees; food and beverage; guest room; hotel facilities; and services and amenities. It includes third-party hotel operators with more than 14,000 rooms under management and is based on 3,804 guest responses for branded hotel stays from May 2021 through May 2022.