Guest satisfaction for hotels was down in every region of the globe during the second quarter of 2012, according to the Market Metrix Hospitality Index (MMHI). The measure of perceived value for price paid, also declined in the second quarter. This appears to have made guests more price sensitive in the Americas and Asia where the incremental amount they would be willing to pay before switching brands declined compared to the first quarter of this year.
“The industry is gaining strength. You can see average daily rate and occupancy going up in many regions of the world. But although demand is strong, hotels’ ability to service that demand continues to be restrained by economic uncertainty,” reported Dr. Jonathan Barsky, Chief Research Officer at Market Metrix.
MMHI data also indicated that hotels are catering to their best customers by making it easier for loyalty club members to redeem points. Satisfaction with loyalty clubs increased significantly in the second quarter, especially in Asia where it rose eight percentage points. “The majority of this increase is probably attributable to the ease with which loyalty club points can be redeemed,” he said. “This is because market conditions are still very competitive and hospitality companies are aggressively protecting their most valuable guests. They need to do everything they can to take care of their best customers.”
Performance by industry segment
The Ritz-Carlton received the highest customer satisfaction score (91.9) for Luxury class hotels, and outscored competitors in every other price segment. Drury Hotels won the Upper Midscale segment with a 91.2, and for the second quarter in a row beat more expensive hotels in every category except Luxury.
About Market Metrix
Market Metrix is the leading provider of customer and employee feedback solutions for hospitality companies around the globe. By connecting feedback with revenue, Market Metrix helps hospitality businesses make smart investment decisions that both improve the guest experience and produce higher profits. Real-time feedback and action management drive timely service recovery, turning potential negative reviews into online raves. And no other feedback program offers the detailed global benchmarking of MMHI, allowing clients to spot gaps and opportunities in the context of key competitors. Market Metrix is essential to more than 14,000 businesses in over 70 countries, and has been helping forward-thinking executives profit from feedback since 1996. For more information, visit www.marketmetrix.com.