Enhancing Guest Experience Vital Amid Hotel Occupancy Surge

As the hotel industry saw a resurgence with a projected 63.8% occupancy rate in 2023, just shy of pre-pandemic levels, both business and leisure travelers were flocking to hotels across North America for another year running. In response to this trend, hotels have ramped up their staffing and intensified their focus on customer service. Notably, according to the latest findings from the J.D. Power 2023 North America Hotel Guest Satisfaction Index (NAGSI) Study, guest satisfaction is most significantly influenced by staff service, reflecting the positive impact of increased hiring in the leisure and hospitality sector over the past year.

The ongoing surge in hotel hiring, particularly in leisure and hospitality, is reflected in notably high customer satisfaction ratings. Staff service has emerged as the leading factor across all hotel segments, highlighting the pivotal role frontline staff play in shaping the guest experience.

Key insights from a 2023 study include:

• Staff performance correlates with lower incidence of issues: With an overall satisfaction score of 701 (on a 1,000-point scale), hotel staff service stands out as the top-performing factor. Effective staff support contributes to problem avoidance and resolution, with 86% of guests reporting no issues during their stay.
• Crafting an inviting lobby: The guest experience in hotel lobbies and common areas significantly influences overall satisfaction, albeit with nuances across different hotel segments. For luxury hotels, a modern and distinctive lobby is crucial, while upscale establishments, especially extended stay hotels, prioritize a welcoming and cozy ambiance.
• Value proposition paramount: Guests continue to prioritize value for money, weighing the quality and service against the price paid. Notably, guests who rate their guest room’s value for price paid as excellent or perfect report satisfaction levels 302 points higher than those who do not.

The North America Hotel Guest Satisfaction Index (NAGSI) Study, now in its 27th year, was revamped for 2023. Assessing overall customer satisfaction across six factors—including communications and connectivity, food and beverage, guest room, hotel facility, staff service, and value for price—the study evaluates 102 brands across nine market segments. The insights were based on feedback from 33,754 hotel guests who stayed between May 2022 and May 2023.