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Ugh. New Report Finds Hotel Rates are Rising But Guest Satisfaction is Declining

July 25, 2012 at 12:55 PM | by | ()

The latest J.D. Power & Associates report on hotels is out and it's kinda troubling.

The 2012 North America Hotel Guest Satisfaction Index Study measures overall hotel guest satisfaction across seven different types of hotels--ranging from luxury to economy/budget and extended stay. Within those groupings, seven key measures are also examined ranging from reservations to hotel services and most importantly, costs and fees.

This year, the overall guest satisfaction rating has slid down to 757 (out of a 1,000-point scale), down about seven points from last year. That doesn't sound too bad but J.D. Power points out that guest satisfaction with check-in and check-out, food and beverage, hotel services and hotel facilities are at new lows since 2006. Also, guest satisfaction with the guest room has sunk to within one point of its lowest level in the past seven years.

Making all this new research even grimmer is that hotel rates are rising--meaning that we hotel guests are getting charged more for worse service. Ugh.

Not surprisingly, the report also found that getting charged for internet will be down satisfaction levels during a hotel stay. This is nothing new for us as we've long been telling hoteliers that offering free WiFi can makeup for lack of other amenities. Some guests have even told us they will overlook a dirty room if the internet is free! (The report also found that 55 percent of hotel guests use the internet during their stay, which seems kind of low to us.)

It's clear that the hotel industry is anxious to recoup their losses from the economic collapse of 2008 but we shouldn't let them raise rates without raising their quality of services or amenities. Really, we need to take Gordon Ramsay's words to heart and start complaining more.

Here's how the hotel brands stand in their various segments, according to the J.D. Power report which polled more than 61,700 guests from the United States and Canada who stayed in a hotel in North America from June 2011 to May 2012.

· Luxury: Ritz-Carlton Hotels
· Upper Upscale: Omni Hotels
· Upscale: Hilton Garden Inns and Springhill Suites
· Mid-Scale Full Service: Holiday Inns
· Mid-Scale Limited Service: Drury Hotels (seven years in a row!)
· Economy/Budget: Jameson Inns (We've not heard much about these inns to be honest)
· Extended Stay: Homewood Suites

What have been your experiences lately in the North American hotel scene? Is service worse while rates are higher? Any hotel brands stand out for you? Let us know in comments below!

Archived Comments:


Good reporting... eye-opening report to make us think. Nice job -