2024 Hotel Guest Satisfaction Report: Luxury and Upper Upscale Hotels Lead Amidst Rising Travel Costs
In 2024, luxury and upper upscale hotels are leading the pack in guest satisfaction, outperforming limited-service segments amidst record-high hotel prices, according to the latest findings from the 28th annual J.D. Power North America Hotel Guest Satisfaction Index (NAGSI) Study.
Recent data reveals that the average daily rate for U.S. hotel rooms reached $158.45 in May 2024, marking the second-highest month on record, just shy of the peak reported in October 2023 at $159.01.
Andrea Stokes, J.D. Power’s hospitality practice lead, notes, “We are observing shifts in hotel guests’ travel behaviors. With travel costs still elevated post-pandemic, guests are opting for fewer trips but longer stays. This heightened focus on hotel experiences underscores the importance of factors like room cleanliness, facilities maintenance, and guest interactions at the front desk. As expectations rise alongside room rates, hotels must meet or exceed these expectations to maintain perceived value for money.”
Guest Satisfaction: Full-Service Dominance
Full-service hotel brands, particularly those in luxury and upper upscale categories, have shown robust or improved guest satisfaction this year, despite higher price points. Conversely, guests at limited-service upper midscale, midscale, and economy hotels report less satisfying stays, potentially due to elevated prices coupled with limited amenities.
The report advises limited-service hotels to enhance guest satisfaction by revitalizing aging properties, ensuring meticulous property maintenance, and providing consistently clean and enjoyable guest rooms.
Travel Trends: Fewer Trips, Longer Stays
The average North American hotel guest now embarks on about nine trips annually, down from last year’s ten. However, the length of each stay has increased from 3.36 days in 2023 to 3.43 days this year. Longer stays present greater opportunities for hotels to significantly influence guest experiences positively or negatively.
Top-Ranked Brands for Guest Satisfaction
According to the J.D. Power 2024 NAGSI Study, the highest-rated hotel brands for overall customer satisfaction include:
- Luxury Segment: The Luxury Collection leads, followed closely by The Ritz-Carlton, Waldorf Astoria, and Four Seasons.
- Upper Upscale: Margaritaville Hotels & Resorts tops the list, followed by Kimpton, Hyatt Centric, and Tapestry Collection by Hilton.
- Upscale: Guests are most satisfied with Element by Westin, followed by AC Hotels by Marriott, Best Western Premier, and Delta Hotels.
- Upper Midscale: Drury Hotels stands out with the highest satisfaction, followed by Wyndham Garden.
- Midscale: Tru by Hilton emerges as the top-rated brand.
- Economy: Microtel Inn & Suites by Wyndham leads in guest satisfaction.
As the hospitality landscape evolves, these insights underscore the critical role of meeting and exceeding guest expectations to drive satisfaction and loyalty in a competitive market environment.
For more information on the latest trends and rankings in hotel guest satisfaction, consult the J.D. Power 2024 NAGSI Study or speak with your preferred travel advisor today.