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Tale of Two Travel Markets: High-End Hotel Segments See Steady Guest Satisfaction Improvement, While More Affordable Hotel Segments Post Declines, J.D. Power Finds

Higher Room Rates, Longer Stays and Fewer Trips Put Focus on Quality of Guest Rooms and Hotel Maintenance

With an average daily rate (ADR) for a U.S. hotel room of $158.45 in May 2024—the second-highest month ever behind $159.01 in October 20231—virtually every traveler in every hotel price bracket is paying more for a hotel room. According to the J.D. Power 2024 North America Hotel Guest Satisfaction Index (NAGSI) Study,SM released today, travelers’ perceived value for those higher prices is very much dependent on how well the hotel delivers on their expectations. This year, the luxury and upper upscale segments show strong guest satisfaction scores while limited-service hotel segments have experienced declines in guest satisfaction year over year.

“We are seeing changes in hotel guests’ travel behavior,” said Andrea Stokes, hospitality practice lead at J.D. Power. “With post-pandemic travel prices still elevated, it is not surprising that hotel guests say they are taking fewer trips, on average. Yet, those hotel guests are staying longer on their trips, and this puts a real focus on the hotel property for everything from room cleanliness and facilities maintenance to interactions with front desk personnel. Ultimately, traveler expectations have increased along with hotel room rates, and when hotels do not meet or exceed those expectations, the perception of value for money declines.”

Following are additional key findings of the 2024 study:

  • Strong performance among full-service hotel brands: Overall satisfaction is steady or has increased year over year in the luxury and upper upscale hotel categories, even though these categories have seen some of the sharpest increases in average room rates. In the limited-service upper midscale, midscale and economy hotel segments, however, overall guest satisfaction is down significantly year over year.
  • Fewer trips, longer stays: On average, North American hotel guests are taking nine trips per year, down from 10 in 2023, and are staying an average of 3.43 days, up from 3.36 in 2023. This changing dynamic of fewer, but longer stays is putting a greater focus on the details of the hotel experience.
  • Investment in staff, service and facilities is critical: Despite having the highest average room rates, the full-service luxury and upper upscale hotel segments also outperform limited-service hotel segments on satisfaction with value for prices paid. Operators of limited-service hotels should focus on guest rooms; property/facilities maintenance; and renovating older hotels to improve guests’ value perceptions, in addition to overall satisfaction.

Study Rankings

The following hotel brands rank highest in guest satisfaction in their respective segment:

Luxury: The Luxury Collection (772)

Upper Upscale: Margaritaville Hotels & Resorts (726) (for a second consecutive year)

Upscale: element (707)

Upscale Extended Stay: Hyatt House (696) (for a third consecutive year)

Upper Midscale: Drury Hotels (744)

Upper Midscale/Midscale Extended Stay: Home2 Suites by Hilton (695) (for a second consecutive year)

Midscale: Tru by Hilton (688) (for a second consecutive year)

Economy: Microtel by Wyndham (618) (for a second consecutive year)

Economy Extended Stay: WoodSpring Suites (603) (for a second consecutive year)

See the rank chart for each segment at http://www.jdpower.com/pr-id/2024066.

The North America Hotel Guest Satisfaction Index (NAGSI) Study, now in its 28th year, measures overall hotel guest satisfaction based on performance in six factors (in alphabetical order): communications and connectivity; food and beverage; guest room; hotel facility; staff service; and value for price. The study benchmarks the performance of 103 brands across nine hotel segments and is based on responses from 39,468 branded hotel guests for stays between May 2023 and May 2024.

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 55 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 Source: CoStar/STR

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