(EMAILWIRE.COM, August 29, 2002 ) Most major hotel chains are providing a higher level of customer satisfaction despite the tragic events of September 11 and difficult economic times in the hotel industry, according to the J.D. Power and Associates 2002 North America Hotel Guest Satisfaction Study(SM) released today. Overall customer satisfaction increased in five of six segments compared to 2001.

"The widely publicized predictions of dramatic and sustained declining room rates and a move toward trips closer to home after 9/11 generally have not come to pass," said Linda Hirneise, partner and executive director of the hotel practice at J.D. Power and Associates. "This fact, coupled with the increases in satisfaction for nearly all hotel segments, is good news for the hotel industry."

Now in its sixth year, the study evaluates the customer satisfaction of business and leisure guests at 52 different major hotel chains across six segments: luxury, upscale, mid-price full service, mid-price limited service, economy/budget and extended stay.

The study confirms the general perception that business travel is down. The mix of guests in most segments has shifted toward a higher percentage of leisure travelers than business travelers. Yet, the study finds that consumers are not necessarily staying closer to home. The distance hotel guests are traveling from their homes to a hotel has not dropped significantly compared to pre-September 11 levels.

Though the news is promising for most hotel segments, the economy/budget segment has unfortunately suffered decreases in both guest satisfaction and room rates compared to 2001. Room rates have declined 5 percent among the economy/budget chains analyzed, while satisfaction is down an average of 4 percent overall in the segment.

The study also finds that the Internet is playing an increasing role in the way consumers book hotel reservations. Over the past year, Internet bookings have virtually doubled in every segment. Guests using the Internet to book their reservations tend to receive lower room rates and report greater satisfaction with the accuracy of the reservation. "Consumers can find bargains on the Internet by comparing both independent travel Web sites and hotel brand sites," said Hirneise. "As much of the travel industry is quickly realizing, the popularity of Internet booking reveals a new kind of consumer. The hotel industry needs to pay close attention to this growing trend."

The study indicates that there was significant industry improvement with two key guest satisfaction attributes within the departure factor: accuracy of billing and the speed of check-out. Other factors evaluated were satisfaction with guest room, hotel services, food and beverage and pre-arrival/arrival.

A new feature added to the study was to ask guests what features they desire in their hotel stay. An interesting finding was that approximately one-half of guests would like to have complimentary bottled water in their rooms, and are not receiving it.

"As consumer expectations rise, complimentary bottled water could serve as a point of differentiation for some hotels," said Hirneise.

Luxury Chain

Four Seasons Hotels and Resorts ranks highest in overall guest satisfaction for the second consecutive year, with strong performance in the arrival, departure and hotel service factors. Ritz-Carlton follows closely behind Four Seasons.

Upscale Market

The upscale segment demonstrates the largest improvement in guest satisfaction, with a 5 percent gain over 2001. Embassy Suites Hotels ranks highest in the upscale segment for the second consecutive year, followed by Renaissance Hotels and Resorts, Westin Hotels & Resorts, Hyatt Hotels & Resorts, Marriott Hotels, Resorts and Suites, and Omni Hotels.

Mid-Price Full Food Service

Hilton Garden Inn leads the segment, followed closely by Courtyard. Holiday Inn Select and Holiday Inn Hotels and Resorts follow in the rankings, respectively. Mid-Price Limited Food Service

Country Inns & Suites is the new guest satisfaction leader in the segment, followed by Hampton Inn & Suites, Drury Hotels and Holiday Inn Express, respectively.

Economy/Budget

Microtel Inns & Suites dominates the economy segment in every factor. Microtel is followed in the rankings by Super 8 Motels and Ramada Limited, respectively.

Extended Stay

Residence Inn ranks highest in the extended stay segment, followed by Homewood Suites by Hilton. The 2002 North America Hotel Guest Satisfaction Study is based on responses from nearly 13,000 business and leisure hotel guests who stayed at 52 different hotel chains and/or resorts in the United States and Canada between December 2001 and July 2002.

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. Media e-mail contact: michael.greywitt@jdpa.com or john.tews@jdpa.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpa.com

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Produced for J.D. Power and Associates

Contacts:

Michael Greywitt
(805) 418-8000, West Coast

John Tews
(248) 267-6800, East Coast

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