Third-party hotel management companies face higher guest expectations as room rates rise, says JD Power

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TROY, Mich.–(BUSINESS WIRE)–With average daily rates at hotels across North America now averaging nearly $150, about 15% higher than before the pandemic,1—Hotel guests have become more critical than ever of the decor, amenities, and dining and dining options offered by the world’s largest third-party hotel management companies. According to the JD Power 2022 North America Third-Party Hotel Management Guest Satisfaction Benchmark,SM released today, customer satisfaction is down 4 points (on a 1,000 point scale) this year as higher prices lead to increased scrutiny.

“It’s no secret that many large hotel companies have postponed upgrades and deferred maintenance while in survival mode during the pandemic,” said Andrea Stokes, Head of Hospitality Practice at JD Power. “Now, however, as demand has exceeded pre-pandemic levels and consumers are paying record rates for hotel rooms, expectations are rising rapidly. Now is the time for hoteliers to invest in the maintenance and renovations that improve quality in the eyes of customers.

Here are the key additional findings from the 2022 study:

  • Overall satisfaction decreases as the bar increases: On average, overall customer satisfaction among the largest third-party management companies is 837 this year, down 4 points from a year ago. The decline is due to lower satisfaction with room cost and charges; guest bedroom decor/furnishings; and variety of food and drink.
  • Busy reception staff carrying heavy loads: Guest satisfaction with front desk staff is up slightly this year, with staff receiving high marks for speed of check-in, courtesy and knowledge. However, before reaching reception, less than half of hotel guests (48%) report being greeted by staff, down 10 percentage points from 2021.
  • Bring back true hospitality: Beyond investments in maintenance, installations and furnishing updates, training service staff is one area where third-party management companies can have an immediate positive effect on the guest experience. When guests say hotel staff make them feel like a valued customer, overall satisfaction scores are 139 points higher. When staff care about customer needs or warm and sincere treatment, satisfaction scores increase by 135 points.

Reference ranking

Davidson Hotel Group ranks first for overall customer satisfaction, with a score of 875. Atrium Hospitality (870) ranks second and Crestline Hotels & Resorts (856) takes third place.

Now in its third year, the North America Third-Party Hotel Management Guest Satisfaction Benchmark measures guest satisfaction with branded hotels operated by the largest third-party management companies. It is based on six factors (in alphabetical order): arrival/departure; cost and fees; food and drink; guest room; hotel arrangements; and services and amenities. The benchmark includes third-party hotel operators with over 14,000 rooms under management and is based on 3,804 guest responses for stays at branded hotels from May 2021 through May 2022.

For more information on the JD Power North America Third-Party Hotel Management Guest Satisfaction Benchmark, visit https://www.jdpower.com/business/travel-and-hospitality/third-party-hotel-management-guest-satisfaction -benchmark.

See the press release online at http://www.jdpower.com/pr-id/2022123.

About JD Power

J.D. Power is a global leader in consumer insights, advisory services, data and analytics. A pioneer in using big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been providing incisive industry insights into customer interactions with brands and brands for more than 50 years. products. The world’s leading companies in key industries trust JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia-Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto buy tool is available at JDPower.com.

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

1 STR Market Recovery Monitor, June 2022

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