Hotel loyalty drops - thanks to staff?

WM Circle Logo

By: Wise Marketer Staff |

Posted on August 9, 2005

Overall hotel loyalty scores have resumed their upward climb, increasing by a modest 0.1%, according to the Q2 2005 Market Metrix 'Hospitality Index'. This follows a year-on-year decline in hotel guest satisfaction.

However, Market Metrix's results indicate a year-over-year decline in overall satisfaction (2003 vs. 2004) and a half-over-half decline (Jan-June 2004 vs. Jan-June 2005).

These results may help to explain the surprise drop in hotel guest loyalty - the first since 9-11. This is the first quarter in the past several years that self-reported loyalty for hotels has declined. This is confirmed by an increase (Q1 2005 vs. Q2 2005) in staff related problems - and problems with hotel staff have biggest impact on loyalty.

On a year-over-year basis, the decline in hotel guest loyalty is broad-based with the biggest decline in loyalty occurring among luxury guests (down 10.8%) followed by Casino (down 5.2%) and Economy segment guests (down 4.4%). Recent declines in customer satisfaction may have played a role in this outcome.

Other highlights of the study's findings include:

  • Customer Satisfaction in the Extended Stay segment dropped 2.71% year-on-year - the lowest level ever (82.9).
  • Problems with hotel staff are the most severe and lead to reduced loyalty of guests. Hotel guests who report having a problem with a hotel staff member are 43 percentage points less likely to return to that hotel than guests who did not experience a problem.
  • Women business travellers seem to have the most problems (17.6%), much more than their male counterparts (12.4%). In fact, the most likely guests to report a problem are 40-something females, travelling on business.
  • Ritz-Carlton ranked top among hotels in the Q2/2005 survey.

More Info: