North America Hotel Guest Satisfaction Declines as Travel Volume, Room Rates Rise, J.D. Power Finds

Rise in Demand and Room Rates Puts Pressure on Guest Satisfaction as Hotels Manage Delicate Balance Between Recovery and Guest Experience

Hotel occupancy rates are on track to approach pre-pandemic levels this year¹ 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.”

Following are additional key findings of the 2022 study:

• Pricing up across all segments but many travelers not perceiving good value for money: The single biggest factor driving this year’s 8-point decline in overall satisfaction is hotel cost and fees. Another factor driving the decline is satisfaction with guest rooms, which suggests that hotel guests are feeling like they are paying more, but not getting more in return.

• Satisfaction with guest rooms decreases: While hotels still get relatively high satisfaction scores for guest room cleanliness, scores for décor and furnishings, in-room amenities and quality of bathrooms decline from a year ago.

• More guests paying for internet access: The one hotel amenity that guests can’t live without is Wi-Fi. A large majority (81%) of guests accessed the internet in their hotel rooms. The percentage of guests who paid extra for that privilege has increased four percentage points from pre-pandemic 2019.

• Fewer staff interactions: After emerging as the heroes of the pandemic by helping to keep hotels up and running through one of the most challenging periods in history, frontline hotel staff are spread thinner this year due to the industry labor shortage. However, while fewer guests are interacting with front desk staff and breakfast attendants this year compared with pre-pandemic 2019, they still give staff high ratings for courtesy.

Study Rankings

Upscale Extended Stay and Upper Midscale/Midscale Extended Stay are two new segments included in this year’s study. The following hotel brands rank highest in guest satisfaction in their respective segments:

Luxury: The Ritz-Carlton (885) (for a second consecutive year)

Upper Upscale: Hard Rock Hotels (883) (for a second consecutive year)Upscale: Hilton Garden Inn (868)

Upscale Extended Stay: Hyatt House (857)

Upper Midscale: Drury Hotels (877) (for a 17th consecutive year)

Upper Midscale/Midscale Extended Stay: Sonesta Simply Suites (852)

Midscale: Wingate by Wyndham (849)

Economy: WoodSpring Suites (798)

See the rank charts for each segment at http://www.jdpower.com/pr-id/2022079.

The 2022 North America Hotel Guest Satisfaction Index (NAGSI) Study, now in its 26th year, analyzes guest responses to more than 150 questions regarding branded hotel stay experiences and benchmarks the performance of 101 brands across eight market segments. This year’s study is based on responses from 34,407 hotel guests for stays between May 2021 and May 2022.

For more information about the North America Hotel Guest Satisfaction Index (NAGSI) Study, visit https://www.jdpower.com/resource/jd-power-north-america-hotel-guest-satisfaction-index-study.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

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

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

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