Guests much more satisfied with hotels, study says

Travelers have reached their highest level of satisfaction with hotels in years because of improvements in facilities and services, a new study released Wednesday finds.

But there's one group of travelers that remains most critical of hotels: Millennials, those typically ages 18 to 30, who are starting to travel more and spend more.

Still, J.D. Power and Associates' annual survey of North American hotel guests found that Millennials aren't necessarily less loyal to hotel brands. The percentage of Millennials who said they're highly committed to a brand was 27%, compared with 25% of travelers of other generations.

"If you treat a Millennial traveler well and take them seriously, take their concerns seriously, you can have the Millennial traveler for life," says Rick Garlick, global travel and hospitality practice lead at J.D. Power. "They absolutely represent a great opportunity for a hotel company."

The survey, now in its 18th year, is based on responses gathered from more than 67,000 guests who stayed in hotels in North America from May 2013 to May 2014.

Overall satisfaction among travelers of all age groups averages 784 points on a 1,000-point scale, up 27 points from 2012. It's the highest level of satisfaction reached since J.D. Power started using a new methodology in 2006.

The guests rated hotels based on these factors: the reservation process; check-in and checkout; rooms and other facilities; food and beverage options; and rates and fees.

Garlick says hotel guests are satisfied with the investments hotels are making to facilities and amenities after years of cutting back during the economic downturn. They also prefer hotels they perceive as exciting and trendsetting.

"We've just seen a lot of rebounding from the recession when renovations were put off and service cuts were realized by the guests," he says.

Among hotel guests' biggest gripes: dirty rooms and Internet connectivity, regardless of whether it is complimentary or comes with a fee.

Garlick says hotels are struggling to provide enough bandwidth to cover the multiple devices each guest has.

"This massive data addiction is growing, and it's basically outpacing the industry's ability to keep up with it," he says.

Midscale hotel chains, which tend to provide more freebies such as Internet and breakfast, had the biggest improvement year over year. Satisfaction with those brands jumped 10 points to 801.

"It's a thriving segment, and it's been very good at addressing consumers' wants and needs and providing great value for the money," Garlick says.

Holiday Inn led the midscale full-service category for the fourth-consecutive year.

Heather Balsley, senior vice president of Americas Core Brands and Brand Operations for parent company InterContinental Hotels Groups, attributes that to a three-year, $1 billion overhaul of the brand that included a new modern design and improved amenities.

"We see this as a great endorsement for actions we are taking to bring the brand forward and our commitment to quality, consistency and innovation," she says. "We are continuing to design spaces and amenities to make that guest feel at home."

For the first time in years, Candlewood Suites, another IHG brand, topped the extended stay category.

Balsley says Candlewood Suites has also gone through a refresh that has included a collaboration with graduate students from the Savannah College of Art and Design to create a more contemporary feel. So far, 86 properties are sporting the new look.

"Our guests are responding to the fresh, modern design of properties we recently opened," she says.

For the second straight year, Kimpton Hotels was named the top upper upscale brand.

"Throughout our 33-year history, we've been driven by one thing: providing personal, authentic service to all our guests," says Mike Depatie, president and chief executive officer at Kimpton Hotels & Restaurants. "We've empowered our employees to go the extra mile for our guests and it's entirely because of them that we've been recognized with this honor two years in a row."

Hilton Garden Inn was the favored upscale brand, and Homewood Suites by Hilton led the upper extended stay category for the second consecutive year.

Jim Holthouser, executive vice president of global brands for Hilton, says that Hilton Garden Inn has focused on updating food and beverage options and renovating the lobby in the last two years. The hotel chain also upgraded in-room coffee by introducing Keurig at all hotels in the USA.

Homewood Suites' public spaces have also gotten updates, and staff has gotten more training in service.

"Homewood Suites – a brand celebrating its 25th anniversary in 2014 – has a very strong brand service culture and value proposition for guests," he says.

Here is the full list of hotel brands with the highest guest-satisfaction scores, by category:

• Luxury: Four Seasons Hotels and Resorts

• Upper Upscale: Kimpton Hotels (second consecutive year)

• Upscale: Hilton Garden Inn

• Midscale Full Service: Holiday Inn (fourth-consecutive year)

• Midscale: Drury Hotels (ninth-consecutive year)

• Economy/Budget: Microtel Inn & Suites by Wyndham (second-consecutive year)

• Upper Extended Stay: Homewood Suites by Hilton (second-consecutive year)

• Extended Stay: Candlewood Suites