Meeting News - August 10, 2009 - (Page 3)

J.D. Power: Hotel Guests More Satisfied With Costs, Checkin, Reservations Hotel guest satisfaction rose in 2009 compared with 2008 in most tiers despite cuts in spending and staff, according to the J.D. Power and Associates 2009 North America Hotel Guest Satisfaction Index Study released last month. Drops in average daily rates as the industry switched from a seller’s to a buyer’s market helped boost scores. The study, now in its 13th year, is based on responses from more than 66,000 guests who stayed in a hotel between May 2008 and June 2009. Hotels are rated on seven measures: reservations, checkin and checkout, guest rooms, food and beverage service, hotel services, hotel facilities and costs and fees. Overall satisfaction levels in the upscale, midprice full-service, midprice limited-service and economy tiers improved compared with 2009. The luxury tier’s satisfaction level was stable, and only the extended stay tier saw a decline in satisfaction. Across all tiers, guests were more satisfied with reservations and checkin processes and less satisfied with the guest rooms. “The main general drivers continue to be costs and fees and the guest room,” said Michael Drago, director of the global hospitality and travel practice at J.D. Power and Associates. “People want to believe they’re getting a reasonable rate and have it live up to expectations.” Travelers rated Four Seasons Hotels and Resorts as the top luxury brand, ending a two-year reign by Marriott’s Ritz-Carlton brand, which finished second. Four SeaFour Seasons scored better in cost satisfaction in the survey despite having a higher self-reported average daily rate than Ritz-Carlton, according to Drago. Hilton’s Embassy Suites brand received the highest upscale score News By Michael B. Baker mbaker@meetingnews.com service marks to Hilton Garden Inn, followed by Hyatt Place, the top brand last year, and Courtyard by Marriott. Drury Inn & Suites topped the midprice limited-service segment and had the third-highest satisfaction score overall, behind only Four Seasons and Ritz-Carlton, Drago said. InterContinental Hotels Group’s Staybridge Suites was the highestrated extended stay brand, followed closely by last year’s top brand, Hilton’s Homewood Suites, and Marriott’s Residence Inn. “The extended stay group is the most stable, with the top three brands changing only slightly over the past few years,” Drago said. Wyndham’s Microtel Inns & Suites maintained a healthy lead over its economy/budget competition. The brand has topped the tier in J.D. Power’s survey for eight consecutive years. r Hotel Brands With Top Customer Satisfaction Scores Luxury: Four Seasons Hotels and Resorts Upscale: Embassy Suites Hotels Midprice Full-Service: Hilton Garden Inn Midprice Limited-Service: Drury Inn & Suites Extended Stay: Staybridge Suites Economy/Budget: Microtel Inns & Suites Source: J.D. Power and Associates 2009 North America Hotel Guest Satisfaction Index Study sons had the biggest year-over-year jump in guest satisfaction in any tier, Drago said. Lower occupancies might actually have helped the scores, as hotels had more time to devote to individual guests, he said. for the third year in a row. Other high-performing upscale brands included Wyndham Hotels & Resorts, Omni Hotels, Marriott and Renaissance. Travelers gave top midprice full- Hotel Chains Report Declining Rates, Revenue By Michael B. Baker Multibrand hotel companies are reporting significant year-over-year drops in rates and revenue for the second quarter of 2009, as industry analysts continue to move expectations for the year downward. Smith Travel Research in July said U.S. hotel average daily rates will drop by 9.7 percent year-overyear in 2009, revenue per available room will be down 17.1 percent and moderate declines would continue through 2010. In April, the firm had forecast a RevPAR drop of 9.8 percent and a rate drop of 3.6 percent. STR also said occupancy will drop 8.4 percent to 55.4 percent this year, slightly down from the 56.5 percent it forecast in April. Recent hotel company earnings reports support those expectations. Starwood Hotels & Resorts last month reported that systemwide RevPAR dropped 27.7 percent for the quarter. Swine flu concerns cost Starwood about $10 million in revenue during the quarter, said Starwood CEO Frits van Paasschen. Average daily rates for the quarter dropped by 18.4 percent worldwide. Luxury and upper upscale brands saw the steepest drops. Occupancy was down 8.1 percent worldwide, though W dropped only 4.4 percent. Marriott International last month reported more than a 20 percent decline in revenue per continued on page 4 Contents 33, No. 11 August 10, 2009 Vol. s Meetings Spotlight . . . . . . . 6 s MeetingNews Research . . . 12 s Meeting People . . . . . . . . . 14 s Construction Cites . . . . . . 16 s Travel Dashboard . . . . . . . 17 s West Regional . . . . . . . . . . .18 MEETING NEWS (ISSN 0145-630X, USPS No.356-010, August 10, 2009, Vol. 33, No. 11 is published monthly by Nielsen Business Media, 770 Broadway, New York, NY 10003-9595, tel. 646-654-5000. Subscriptions are offered free of charge to individuals actively engaged in planning meetings or conventions in the U.S. and Canada. The cost of a subscription to non-qualified subscribers is $79 in the U.S. and $95 in Canada (Canada Post Publications Mail Agreement No. 40031729). The cost of a foreign subscription, payable in U.S. dollars, is $195. Periodicals postage paid at New York, NY, and additional mailing offices. MeetingNews is a trademark owned exclusively by Nielsen Business Media. Copyright © 2009 by Nielsen Business Media Inc. All rights reserved. Reproduction of this magazine, in whole or in part, is prohibited unless authorized by the publisher. For address changes (please include mailing label), single copy sales ($10 per issue including shipping and handling, prepayment required), subscription information, and other customer service inquiries, write to MEETING NEWS, P.O. Box 1189, Skokie, IL 60076-8189 or call 847-7639050. Printed in the USA. POSTMASTER: Send changes of address to MEETING NEWS, P.O. Box 1189, Skokie, IL 60076-8189. www.meetingnews.com August 10, 2009 MeetingNews 3 http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - August 10, 2009

Meeting News - August 10, 2009
Contents
Meetings Spotlight
MeetingNews Research
Meeting People
Construction Cites
Travel Dashboard
West Regional

Meeting News - August 10, 2009