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By Stacy Straczynski
European hoteliers' recent commitment to enhancing the guest experience seems to be paying off. According to the J.D. Power and Associates' 2009 European Hotel Guest Satisfaction report, hotel loyalty has increased overseas to 11 percent this year, marking a 2 percent increase from 2008. The annual study surveyed 42 hotel brands on seven measures, such as costs and fees, guest room and hotel facilities.
"Despite lower occupancy rates and discounting and pricing, what we're finding is that the guest experience is improving and quite substantially," says Michael Drago, director of the global hospitality and travel practice at J.D. Power and Associates. "We're seeing a perceived increase in value among consumers which is helping to drive up loyalty."
Additionally, overall hotel guest satisfaction rose at least 16 points (based on a 1,000-point scale) across all four hotel segments—upper upscale, upscale, mid-scale full service and economy. The greatest gains were seen in the upscale (up 25 points) and the upper upscale (up 24 points) segments. Top brands in the upscale tier included Movenpick Hotels & Resorts (up 38 points), Crowne Plaza Hotels & Resorts (up 24 points) and Hotel Novotel (up 27 points); while Steigenberger Hotels and Resorts (up 20 points), Radisson BLU Hotels & Resorts (up 36 points) and Maritim Hotels (up 27 points) were listed among the top upper upscale brands.
Park Inn (up 73 points) stole the No. 1 spot in the mid-scale segment, rising up from its No. 16 spot in 2008, with outstanding performance in reservation, food and beverage, and costs and fees. Dorint Hotels & Resorts and Clarion brands followed, gaining 15 and 17 points respectively. Premier Inn (up 18 points) saw its second year as the top economy brand hotel, with Travelodge (up 26 points) and Etap Hotel (up 15 points) ranking at No. 2 and No. 3.
When it came to making a hotel selection, guests cited convenience/location (48 percent) and price (41 percent) as the most influential factors overall. However, hotel reputation (44 percent) held more sway in the upper upscale sector, and price (68 percent) was most important in the economy sector.
But it's important for hoteliers to remember that while these factors and other must-have amenities—such as air conditioning and a complimentary breakfast—drive business in the door, only a universally solid product can drive loyalty, according to Drago. "A great deal of the differentiation comes in staff service—the consumer contact moments where hopefully we're having a rewarding experience and the building of a relationship as opposed to something that's non-descript and forgettable."
And hoteliers had best continue their focus on the customer experience, according to President and CEO of Hospitality Sales & Marketing Association International Robert A. Gilbert, as the expectation of guests will continue to rise.
"With the supply growth that's still in the pipeline globally, there's an awful lot of new supply still under construction," says Gilbert. "Supply has not slowed down in spite of the economy because many of these projects that were under construction have to be finished out."
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European Hotel Loyalty Increases to 11 Percent
Oct 23, 2009By Stacy Straczynski
European hoteliers' recent commitment to enhancing the guest experience seems to be paying off. According to the J.D. Power and Associates' 2009 European Hotel Guest Satisfaction report, hotel loyalty has increased overseas to 11 percent this year, marking a 2 percent increase from 2008. The annual study surveyed 42 hotel brands on seven measures, such as costs and fees, guest room and hotel facilities.
"Despite lower occupancy rates and discounting and pricing, what we're finding is that the guest experience is improving and quite substantially," says Michael Drago, director of the global hospitality and travel practice at J.D. Power and Associates. "We're seeing a perceived increase in value among consumers which is helping to drive up loyalty."
Additionally, overall hotel guest satisfaction rose at least 16 points (based on a 1,000-point scale) across all four hotel segments—upper upscale, upscale, mid-scale full service and economy. The greatest gains were seen in the upscale (up 25 points) and the upper upscale (up 24 points) segments. Top brands in the upscale tier included Movenpick Hotels & Resorts (up 38 points), Crowne Plaza Hotels & Resorts (up 24 points) and Hotel Novotel (up 27 points); while Steigenberger Hotels and Resorts (up 20 points), Radisson BLU Hotels & Resorts (up 36 points) and Maritim Hotels (up 27 points) were listed among the top upper upscale brands.
Park Inn (up 73 points) stole the No. 1 spot in the mid-scale segment, rising up from its No. 16 spot in 2008, with outstanding performance in reservation, food and beverage, and costs and fees. Dorint Hotels & Resorts and Clarion brands followed, gaining 15 and 17 points respectively. Premier Inn (up 18 points) saw its second year as the top economy brand hotel, with Travelodge (up 26 points) and Etap Hotel (up 15 points) ranking at No. 2 and No. 3.
When it came to making a hotel selection, guests cited convenience/location (48 percent) and price (41 percent) as the most influential factors overall. However, hotel reputation (44 percent) held more sway in the upper upscale sector, and price (68 percent) was most important in the economy sector.
But it's important for hoteliers to remember that while these factors and other must-have amenities—such as air conditioning and a complimentary breakfast—drive business in the door, only a universally solid product can drive loyalty, according to Drago. "A great deal of the differentiation comes in staff service—the consumer contact moments where hopefully we're having a rewarding experience and the building of a relationship as opposed to something that's non-descript and forgettable."
And hoteliers had best continue their focus on the customer experience, according to President and CEO of Hospitality Sales & Marketing Association International Robert A. Gilbert, as the expectation of guests will continue to rise.
"With the supply growth that's still in the pipeline globally, there's an awful lot of new supply still under construction," says Gilbert. "Supply has not slowed down in spite of the economy because many of these projects that were under construction have to be finished out."
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