Loyalty Programs Deliver More Hotel Guests Oberoi Hotels and Resorts Rated #1 in Guest Satisfaction for 2009

With occupancy and revPAR falling in 2009, customer satisfaction held its own during a tumultuous year (+0.4 to 82.8). Satisfaction with airlines increased slightly (+1.0 to 78.7) but declined among rental cars companies (–0.9 to 78.4). Oberoi Hotels and Resorts, Virgin Atlantic, and Enterprise Rent–A–Car ranked number one in hotel, airline, and rental car industry customer satisfaction, respectively in 2009.

With revenues plummeting in 2009, hotel companies focused on making their loyalty programs more attractive — and it worked. The percentage of rooms filled by loyalty program members increased 5 percent in 2009 (to 35%) which is a positive trend for hotels as these customers tend to spend a little more during their stay. The increase was higher among upscale casinos (+9.2% to 45%) and upscale hotels (+5.4% to 40%) with The Venetian, Novotel and SuperClubs posting the biggest gains.

Comparing performance across the hospitality industry

In 2009 Oberoi Hotels and Resorts, an Indian brand associated with ultra luxury hotels, earned the highest customer satisfaction score among all hotels (93.7). Midscale without food and beverage (+0.5 to 84.0) improved more than any other segment in 2009 with Drury Inns earning the top score (90.9) and Lees Inns of America, Inc. showing the biggest improvement (+4.4 to 79.6). Among all hotels, the brands with the biggest improvement include McIntosh Inns, Inc. (+8.1 to 75.0), Red Carpet Inns (+6.3 to 79.9) and Husa Hotels (+5.8 to 82.3). Brands that did not fare as well include Gaylord Entertainment ( –4.9 to 83.6), and St. Regis Hotels & Resorts (–2.1 to 87.6).

Passenger satisfaction with airlines improved slightly in 2009 despite the struggling economy. High volatility in fuel prices, indifferent service, labor problems, congested airports, and financial challenges have plagued the industry for a long time and even with the current improvement, airlines remain the lowest scoring industry in the MMHI. Virgin Atlantic (86.8) was the top scoring airline for the second year in a row. British Airlines jumped from 7th to 2nd place with an impressive gain (+5.5 to 86.1) and JetBlue received the highest customer loyalty score with 83% of passengers stating they are very likely to book another flight on the airline.

The car rental industry continues to face a difficult operating environment with fewer people renting cars and rising costs. Increased excise taxes imposed by local and state governments and fleet reductions that decrease consumer options, have further impacted the perceived value of renting cars. Alamo (+0.9 to 77.4) showed the biggest improvement in customer satisfaction while Thrifty (–2.8 to 76.6) and Payless (–2.8 to 72.8) showed the biggest declines. Enterprise continues their industry dominance with overall satisfaction and loyalty scores well above competitors.

About Market Metrix
Market Metrix is helping hospitality companies around the world succeed in the tough economy. With guest feedback collected 24/7/365, and built-in service recovery and investment decision support tools, we help clients save money and reduce risk of client defections. Based on award-winning research and breakthrough concepts, our SaaS-based products deliver instant survey results, analysis and management tools for increasing revenue and reducing staff turnover. Our benchmarking database, MMHI, is the most comprehensive, independent comparison of consumer brand satisfaction in the industry. Our annual MMHI Awards are coveted by lodging and travel enterprises around the world. With clients that include more than 120 brands across 70 countries, Market Metrix has been helping leading hospitality companies turn feedback into performance since 1996. For more information, visit www.marketmetrix.com.

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