Hotel Guest Satisfaction Declines as Travel Volume, Room Rates Rise

Hotel occupancy rates are on track to approach pre-pandemic levels this year^[1] as travelers get back on the road and in the air to make up for two-plus years of deferred vacation plans. However, according to the J.D. Power 2022 North America Hotel Guest Satisfaction Index (NAGSI) Study,^SM released today, the surge in demand and steadily climbing prices have not been met with a corresponding improvement in amenities or services. As a result, overall hotel guest satisfaction declines 8 points (on a 1,000-point scale) from 2021, driven primarily by dissatisfaction with cost and fees and guest rooms.

 “The phenomenon we’re seeing this year tracks closely with the rise in average daily room rates since late 2021, putting hotel property owners squarely in recovery mode,” said Andrea Stokes, hospitality practice lead at J.D. Power. “During the fielding period of the study—June 2021 through May 2022—the average daily rate for branded hotels has risen 34.8%.^[2] Many hotel owners and operators are using this post-pandemic surge in travel to get back on a steady financial footing, yet they held back on investing in upgrades and improvements during the pandemic. Hotel operators must carefully balance a focus on recovery with the heightened guest expectations that come with higher room rates.”

Click here to read the press release, including which hotel brands rank highest in guest satisfaction and additional key findings from the 2022 study.

[1] American Hotel & Lodging Association 2022 State of the Hotel Industry Report https://www.ahla.com/sites/default/files/AHLA%20SOTI%20Report%202022%201.24.22.pdf

[2] Source: CoStar/STR