Luxury Hotels Buck Recession
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Luxury Hotels Buck Recession
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Category: Worldwide - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2008-05-22
Prices And Customer Satisfaction Are Up, Well-Heeled Guests Still Willing To Pay More
Market Metrix Announces First Quarter 2008 Hospitality Index Results
Despite the current downturn in the U.S. economy that includes a drop in overall hotel occupancy and revenue growth, luxury hotels continue to show strength, according to the most recent results of the Market Metrix Hospitality Index (MMHI) for the first quarter of 2008. Despite price increases (see table below), customer satisfaction with these high-priced hotels is up for the first quarter, out-performing all other segments. Other indicators are positive for luxury hotels - reduced price sensitivity and improved perceptions of value - underscoring the strength of this segment. The luxury brands showing the biggest gains in the MMHI were Starwood's The Luxury Collection (+3.7), Grand Hyatt (+3.6), and Intercontinental (+2.7).
Customer satisfaction for all hotels is up slightly (+.2 to 82) compared to 2007. This is good news and surprising given the current economic pressures to reduce hotel staff and services.
More Bad News for Airlines
The bad news continues for airlines, as well as the industry's consumers. Customer satisfaction with airlines declined by .7 percent, falling to an all time low (73.3) since the MMHI began tracking the industry in 2001. While airlines continue to struggle with higher fuel prices, flight delays, labor contracts and crowded planes, consumers feel they are getting less for their money. Midwest Airlines, one of the few bright spots, earned the highest score in customer satisfaction among all airlines in the first quarter.
Other MMHI Results Include Top Scoring Kimpton Hotels
Kimpton Hotels posted the highest score (92.3) among all hotels in the industry. Kimpton's unique collection of boutique hotels continues to outscore higher priced luxury hotel chains such as The Ritz-Carlton, Four Seasons and Fairmont Hotels.
Among rental car companies, Enterprise continues their superior performance with the highest customer satisfaction score in the industry (81.9). But for the first time, National (80.8) and Thrifty (80.7) are not far behind. In fact, the entire rental car industry is very tightly clustered, indicating that customers do not see much difference among the brands. Overall, car rental companies posted a decline in customer satisfaction of .1.
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