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Industry NewsJ.D. Power: 2024 NAGSI Study Shows Travelers Are Paying More for Hotel...

J.D. Power: 2024 NAGSI Study Shows Travelers Are Paying More for Hotel Rooms

TROY, Michigan—With an average daily rate (ADR) for a U.S. hotel room of $158.45 in May 2024—the second-highest month ever behind $159.01 in October 2023 —virtually every traveler in every hotel price bracket is paying more for a hotel room. According to the J.D. Power 2024 North America Hotel Guest Satisfaction Index (NAGSI) Study, travelers’ perceived value for those higher prices greatly depends on how well the hotel delivers on their expectations. This year, the luxury and upper upscale segments show strong guest satisfaction scores while limited-service hotel segments have experienced declines in guest satisfaction year over year.

“We are seeing changes in hotel guests’ travel behavior,” said Andrea Stokes, hospitality practice lead at J.D. Power. “With post-pandemic travel prices still elevated, it is not surprising that hotel guests say they are taking fewer trips, on average. Yet, those hotel guests are staying longer on their trips, and this puts a real focus on the hotel property for everything from room cleanliness and facilities maintenance to interactions with front desk personnel. Ultimately, traveler expectations have increased along with hotel room rates, and when hotels do not meet or exceed those expectations, the perception of value for money declines.”

The following are additional findings of the 2024 study:

  • Strong performance among full-service hotel brands: Overall satisfaction is steady or has increased year over year in the luxury and upper upscale hotel categories, even though these categories have seen some of the sharpest increases in average room rates. In the limited-service upper midscale, midscale, and economy hotel segments, however, overall guest satisfaction is down significantly year over year.
  • Fewer trips, longer stays: On average, North American hotel guests are taking nine trips per year, down from 10 in 2023, and are staying an average of 3.43 days, up from 3.36 in 2023. This changing dynamic of fewer but longer stays is focusing on the details of the hotel experience.
  • Investment in staff, service, and facilities is critical: Despite having the highest average room rates, the full-service luxury and upper upscale hotel segments also outperform limited-service hotel segments on satisfaction with value for prices paid. Operators of limited-service hotels should focus on guest rooms; property/facilities maintenance; and renovating older hotels to improve guests’ value perceptions, in addition to overall satisfaction.
Study Rankings

The following hotel brands rank highest in guest satisfaction in their respective segment:

  • Luxury: The Luxury Collection (772)
  • Upper Upscale: Margaritaville Hotels & Resorts (726) (for a second consecutive year)
  • Upscale: element (707)
  • Upscale Extended Stay: Hyatt House (696) (for a third consecutive year)
  • Upper Midscale: Drury Hotels (744)
  • Upper Midscale/Midscale Extended Stay: Home2 Suites by Hilton (695) (for a second consecutive year)
  • Midscale: Tru by Hilton (688) (for a second consecutive year)
  • Economy: Microtel by Wyndham (618) (for a second consecutive year)
  • Economy Extended Stay: WoodSpring Suites (603) (for a second consecutive year)

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