Hotel Satisfaction Hits New Low
The American Customer Satisfaction Index has Bad News for Hotels
The major hotel chains that cater to corporate business travelers and conventions have low guest satisfaction. Corporate discounts and rebates are not the answer.
Corporate frequent flyers get to travel on their boss's dime, but business travelers know that their companies rarely put them up at luxury class hotels. Major hotel chains, like Doubletree, Marriott, and Sheraton, depend on business travel guests for much of their income. What with the cash windfall hotels get from hosting conventions and individual corporate guests, you'd think that the hotel management would be falling all over themselves to please the business travel set. You'd think wrong.
The first quarter results of U. Michigan's respected American Customer Satisfaction Index (ACSI) are in, and the hotel industry's consumer satisfaction rating is at its lowest since 2002. This low score is due to several factors, and most obvious among smaller hotel chains. I spoke with Prof. Claes Fornell, the Director of the National Quality Research Center at U. Michigan, who developed the 14-year old ACSI, about these low scores.
The ACSI is a national economic indicator of consumer evaluation of various services, and Prof. Fornell said that customer satisfaction was basically flat across the board. Notably, chain hotels see a substantial dip in their scores. In terms of hotels commonly frequented by business travelers, the only hotel chain to see a significant rise in customer satisfaction was Marriott. The ACSI indicates that this is largely due to recent chain-wide renovations including new and better bedding, and flat screen TVs.
Some ACSI hotel industry consumer satisfaction findings:
- Hotel industry consumer satisfaction drops 5%, to 71 out of a 100 point scale.
- Overall, lowest hotel satisfaction ACSI score since 2002.
- Marriott up to 79, the highest score among chains catering to business travel and conventions.
- Hyatt up to 77.
- Hilton guest satisfaction score drops to 76.
- Starwood drops to 76.
- Holiday Inn drops to 72.
- Ramada drops to ACSI score of 69 out of 100.
- Hotels compete on price, rather than quality.
- Some hotels try to buy loyalty with rebates and deals.
- Investments in consumer satisfaction leads to repeat customers and genuine loyalty.
The highest hotel satisfaction rating is only a C+. What does that tell those of us who travel for work? Sadly, nothing that we don't already know. When hotel management offer financial incentives to entice repeat business, we know we're in trouble. After all, it's our companies that pick up the tab, and our bosses always have their eyes on the bottom line. But it's the weary business traveler who suffers. Companies don't have to sleep on uncomfortable hotel pillows and sheets. Corporations don't have to eye the shower stall suspiciously, before sighing and resignedly stepping in for a 5-minute rinse.
To see a substantial raise in guest satisfaction, hotels have to follow Marriott's lead: Renovate, modernize, improve. A pleasant hotel stay, and a good night's sleep, will result in better work performance, happier employees, and even true hotel brand loyalty. Who knows? A couple positive experiences at a hotel-based business convention, and we may even return on our own volition, for a family vacation. Happy guests: You'd think the hotel industry would like that.
Related, on Suite 101:
Blackberry 8800 Product Review
Airline Travel Satisfaction is Low
Copyright Jennifer Miner and Suite 101. All rights reserved.
