Hotel prices in the U.S. are rising — guests paid an average daily rate of $158.45 in May 2024. That’s the second-highest month ever, behind $159.01 in October 2023. And new research suggests that as prices rise, customers say the best hotels for value for money aren’t those that provide no-frills accommodation, but the luxury brands that are big on service and cost a small fortune to stay in.
The 2024 North America Hotel Guest Satisfaction Index Study from J.D. Power surveyed 39,468 hotel guests for stays between May 2023 and May 2024, measuring their overall satisfaction based on the hotel’s performance in six factors: communications and connectivity; food and beverage; guest room; hotel facility; staff service; and value for price.
It found overall guest satisfaction was down significantly year-over-year for hotel brands in what’s called the “limited-service” upper midscale, midscale and economy categories, which include well-known chains Extended Stay America, Ramada by Wyndham and OYO.
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In contrast, although hotels in the luxury and “upper upscale” categories, such as the Ritz-Carlton and Waldorf Astoria, have seen some of the sharpest increases in average room rates, overall guest satisfaction is steady or has increased year-over-year.
J.D. Power noted that operators of cheaper hotels would do well to focus on guest rooms, property and facilities maintenance and renovating older hotels to improve guests’ perceptions of value.
Fewer trips, longer stays
The study also found that U.S. travelers are taking fewer trips, but staying longer when they do travel. 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 pulling the finer details of a hotel stay into sharper focus — and making customers more demanding.
“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,” said Andrea Stokes, hospitality practice lead at J.D. Power. “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.”
Best hotels for every budget
If you’re budgeting for a vacation and want to ensure your hotel doesn’t disappoint, it pays to do your research before you travel.
The 2024 North America Hotel Guest Satisfaction Index Study shows the following hotel brands rank highest in guest satisfaction in their respective segment (with their customer satisfaction index ranking, based on a 1,000 point scale, in brackets):
Enjoy your travels!
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