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Hotel Industry Sees Remarkable Turnaround in Guest Satisfaction - J.D. Power 2023 Report

The hospitality sector is witnessing a resurgence in guest satisfaction

Hotel Industry Sees Remarkable Turnaround in Guest Satisfaction: J.D. Power 2023 Report

In a significant shift following years of adversity, the hospitality sector is witnessing a resurgence in guest satisfaction. Recent investments by hotel management companies in renovations, maintenance, and staffing are paying off, as revealed in the J.D. Power 2023 North America Third-Party Hotel Management Guest Satisfaction Benchmark.

Andrea Stokes, hospitality practice lead at J.D. Power, noted the transformation, stating, “In the span of a year, staffing has gone from being the biggest pain point for hotel management companies to one of the greatest strengths. Interactions with staff are one of the most critical aspects of a hotel stay, and guests are noticing that they are receiving better service.”

Key findings from the 2023 benchmark include:

  1. Anticipation is Key: Guest interactions with hotel staff are primarily judged by the staff’s ability to anticipate guest needs. This criterion was met in 82% of guest interactions across all third-party hotel management companies evaluated.
  2. Lobby and Common Areas Need Work: Hotel guests are seeking modern and distinctive designs in hotel lobbies and common areas. Currently, only 13% of branded hotels evaluated meet these criteria.
  3. EV Charging Gains Importance: While good quality Wi-Fi and ample USB ports remain top technology features, the availability of EV charging stations is emerging as a factor influencing hotel selection and satisfaction. Approximately 19% of hotel guests express the need for EV charging stations, but only 6% report actually using hotel-provided EV charging.

Benchmark Rankings: In a tie for the highest overall guest satisfaction score of 725, Davidson Hospitality Group and Dimension Hospitality lead the rankings. This marks the second consecutive year that Davidson Hospitality Group has claimed the top spot. HEI Hotels and Resorts follow closely with a score of 714, securing the third position.

The 2023 North America Third-Party Hotel Management Guest Satisfaction Benchmark has been redesigned for this year. Now in its fourth iteration, the benchmark assesses guest satisfaction in branded hotels operated by the largest third-party management companies.

It evaluates six key factors: communications and connectivity, food and beverage, guest room, hotel facilities, staff service, and value for price. The benchmark encompasses third-party hotel operators overseeing over 14,000 branded hotel rooms and is based on 3,942 guest responses from stays between May 2022 and May 2023.