Hotel prices in the U.S. are rising; guests paid an average daily rate of $158.45 in May 2024. This marks the second-highest month ever, just behind $159.01 in October 2023. Moreover, recent research suggests that as prices increase, customers are recognizing that the best hotels for value for money are not the no-frills accommodations. In fact, they are more likely to seek out luxury brands that prioritize exceptional service, despite the higher costs involved.
The 2024 North America Hotel Guest Satisfaction Index Study from J.D. Power surveyed 39,468 hotel guests who stayed between May 2023 and May 2024. This study measured overall guest satisfaction based on the hotel’s performance across six crucial factors: communications and connectivity, food and beverage quality, guest room conditions, hotel facilities, staff service, and perceived value for price.
Interestingly, the study revealed that overall guest satisfaction has markedly decreased year-over-year for brands in the “limited-service” upper midscale, midscale, and economy categories. These include well-known chains like Extended Stay America, Ramada by Wyndham, and OYO.
Guest Satisfaction Trends
In contrast, hotels categorized as luxury and “upper upscale,” such as the Ritz-Carlton and Waldorf Astoria, have experienced some of the most significant increases in average room rates. However, these brands have maintained or even improved overall guest satisfaction year-over-year.
Operators of more economical hotels could enhance their appeal by concentrating on maintaining guest rooms, investing in property upkeep, and renovating older facilities to improve guests’ perceptions regarding value.
Travel Patterns: Fewer Trips, Longer Stays
The study found that U.S. travelers are taking fewer trips but spending more time at their destinations. On average, North American hotel guests are making nine trips per year, down from ten in 2023, while the average stay has lengthened to 3.43 days, up from 3.36 days in 2023. Consequently, this shift is sharpening the focus on the finer details of a hotel stay, leading to higher customer expectations.
According to Andrea Stokes, hospitality practice lead at J.D. Power, “Hotel guests are staying longer on their trips, which places a greater emphasis on the hotel property in terms of cleanliness, maintenance, and interactions with staff. Ultimately, traveler expectations have surged alongside room rates. Consequently, when hotels fail to meet or exceed these heightened expectations, the perception of value diminishes.”
Best Hotels for Every Budget
When budgeting for your next vacation, it’s essential to conduct thorough research to avoid disappointment in your hotel choices. The 2024 North America Hotel Guest Satisfaction Index Study highlights the following hotel brands as the highest-ranked in guest satisfaction within their respective segments (based on a 1,000-point scale):
- 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
Enjoy your travels and remember to choose accommodations that align with your needs and expectations!
