J.D. Power and Associates Reports: Overall Satisfaction with Hotel Brands in Europe Declines across All Areas of the Guest Experience
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1 Reports: Overall Satisfaction with Hotel Brands in Europe Declines across All Areas of the Guest Experience Hilton Garden Inn; Premier Inn; Ramada Hotels; and Steigenberger Hotels and Each Rank Highest in Customer Satisfaction among Hotel Guests in Europe WESTLAKE VILLAGE, Calif.: 27 October 2011 After several years of improvement, overall satisfaction among hotel guests in Europe has declined notably, with deterioration occurring across all levels of the guest experience, according to the J.D. Power and Associates released today. The study, now in its seventh year, examines the overall satisfaction of European hotel guests based on seven measures (in order of importance): guest room; costs and fees; hotel facilities; check-in/check-out; food and beverage; hotel services; and reservation. Forty-five hotel brands are measured and ranked in four segments 1 : upper upscale, upscale, midscale and economy. Overall satisfaction averages 735 on a 1,000-point scale in 2011, down by 10 points from While satisfaction has decreased across all measures from 2010, the largest decline occurs in the cost and fees measure. Cost and fees satisfaction averages 682 in 2011, down by 32 points from Cost and fees satisfaction in 2011 is comparable to 2009 levels (681). However, in 2009, overall satisfaction averaged points higher than in This indicates that aspects of the guest experience outside of cost and fees have deteriorated considerably from Prior to the economic downturn, hoteliers improved their offerings, increasing satisfaction with the overall guest experience as well as cost and fees satisfaction. Subsequently, during the recession, hotel chains reduced prices to stimulate demand which continued to improve satisfaction with cost and until higher rates began driving satisfaction back down in Hoteliers also made cutbacks in staffing levels, services and investment in the property to reduce operating costs during this period, which led to the deterioration of satisfaction with the broader guest experience. As guests have been coming back, so have their expectations, said Stuart Greif, vice president and general manager of the global travel and hospitality practice at J.D. Power and Associates. Hoteliers, like many businesses, are feeling the strain of trying to maintain lower cost structures until they see more sustainable levels of demand. There is danger, however, in allowing their product and service to continue to deteriorate. It is critically important that hoteliers focus on improving the guest experience. If not, they risk losing customers, market share and financial viability. According to Greif, increasing the frequency of guest interactions with hotel staff can help elevate satisfaction and loyalty. While nearly all guests interact with hotel staff at check-in, each additional interaction with a different type of staff member (e.g., housekeeper, manager, concierge), increases satisfaction by an average of 28 points. The study also finds that the availability of Internet service at hotel properties has become increasingly important. For the first time, complimentary Internet access has surpassed complimentary breakfast as the most important amenity. 1 Luxury hotel brands are also included in the study but are not ranked due to insufficient number of award-eligible brands. (Page 1 of 3)
2 In addition, Internet use by hotel guests has nearly tripled during the past six years, with 47 percent of guests saying they used their hotel s Internet connection in 2011, compared with 17 percent in Guests increasingly expect hotels to offer Internet access that is consistently available and working properly, particularly since Internet access is becoming more widely available in non-hotel settings, such as restaurants and cafes, said Greif. We have reached a point where problems with Internet access will more severely impact guest satisfaction levels with each passing year. Hotel guests who are required to pay a separate fee for Internet connectivity are considerably less satisfied with costs and fees, compared with guests who receive Internet access for free or as part of their room rate. In addition, among guests who indicate they experienced a problem with Internet connectivity at their hotel, only 13 percent say they would return to the property for a future stay. In contrast, 28 percent of customers who did not experience a problem with the Internet say they would return. Hotel rankings by segment are as follows: Upper Upscale Segment Steigenberger Hotels and ranks highest in the upper upscale segment for a fourth consecutive year, performing particularly well in all seven measures. Following in the segment rankings are Marriott Hotels & and Sheraton Hotels &, respectively. Upscale Segment Among upscale hotel brands, Hilton Garden Inn ranks highest in guest satisfaction and performs particularly well in four of the seven measures: guest room; hotel services; hotel facilities; and costs and fees. Following in the segment rankings are Riu Hotels & and Dorint Hotels &, respectively. Midscale Segment Ramada Hotels ranks highest in guest satisfaction in the midscale segment and performs particularly well in six of the seven measures: guest room; hotel facilities; check-in/check-out; food and beverage; hotel services; and reservation. Following Ramada Hotels in the segment rankings are Holiday Inn and Park Inn, respectively. Economy Segment In the economy segment, Premier Inn ranks highest for a fourth consecutive year and performs particularly well in six of the seven measures: reservation; check-in/check-out; guest room; food and beverage; hotel facilities; and costs and fees. B&B Hôtels and Travelodge, respectively, follow in the segment rankings. The 2011 European Hotel Guest Satisfaction Index Study is based on responses from more than 18,000 guests who stayed at a hotel in Europe between April and September The study was fielded between May and September About J.D. Power and Associates Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit. J.D. Power and Associates is a business unit of The McGraw-Hill Companies. About The McGraw-Hill Companies: McGraw-Hill is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor's, S&P Capital IQ, S&P Indices, Platts energy information services and McGraw-Hill Education. With sales of $6.2 billion in 2010, the Corporation has approximately 21,000 employees across more than 280 offices in 40 countries. On September 12, 2011, the Corporation announced its intention to separate into two public companies McGraw-Hill Markets (working name), primarily focused on global capital and commodities markets and McGraw- (Page 2 of 3)
3 Hill Education focused on digital learning and education services worldwide. Additional information is available at J.D. Power and Associates Media Relations Contacts: John Tews; Troy, Mich., USA; (248) ; Syvetril Perryman; Westlake Village, Calif., USA; (805) ; # # # (Page 3 of 3) NOTE: Four charts follow.
4 Upper Upscale Segment Overall Satisfaction Index Steigenberger Hotels and 805 Marriott Hotels & 785 Sheraton Hotels & 775 Upper Upscale Segment Average 774 Westin Hotels & 772 Radisson Blu Hotels & 768 Hilton Hotels & 767 Le Méridien Hotels and 766 Included in the study but not ranked due to small or insufficient sample size are: Hyatt Hotels &, Pullman Hotels and, Renaissance Hotels and Swissôtel Hotels &. as the publisher and the J.D. Power and Associates 2011 European Hotel Guest Satisfaction Index Study (Page 2 of 3) SM as the source.
5 Upscale Segment Overall Satisfaction Index Hilton Garden Inn Riu Hotels & Dorint Hotels & Maritim Hotels Four Points by Sheraton Meliá Hotels & Crowne Plaza Hotels & Iberostar Hotels & Scandic Novotel Hotels Upscale Segment Average H10 Mercure AC Hotels Hesperia nh Hoteles Courtyard Included in the study but not ranked due to small sample size are: De Vere Hotels &, Hoteles Silken, Husa Hoteles, Mövenpick Hotels &, NH Jolly, Park Plaza and Thistle. as the publisher and the J.D. Power and Associates as the source.
6 Midscale Segment Overall Satisfaction Index Ramada Hotels Holiday Inn Park Inn All Seasons Hotels Barceló Hotels & Clarion Best Western Golden Tulip Hotels, Inns & Holiday Inn Express Midscale Segment Average Sol Hoteles Quality Campanile Hotel Ibis Hotel Comfort Inn/Hotel Kyriad TRYP Hotels NOTE: Tulip Inns is included in the study but not ranked due to small sample size. (Page 2 of 3) as the publisher and the J.D. Power and Associates as the source.
7 Economy Segment Overall Satisfaction Index Premier Inn 757 B&B Hôtels 725 Economy Segment Average 699 Travelodge 685 Etap Hotel 677 Première Classe 668 Hotel F1 662 Included in the study but not ranked due to small or insufficient sample size are: Balladins, Days Inn/Days Hotels and Motel One. as the publisher and the J.D. Power and Associates as the source.
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