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Hotel Prices Are Up And Internet Service Is Lousy, But Guests Don't Mind, Here's Why

You know you’re doing something right when you raise the price of your product yet customers are the happiest they’ve been in nearly a decade.

That’s what’s happening in the hotel industry in 2013.

The average daily rate of hotel rooms is up 5% so far this year and hotel owners are making more money off each room they sell.

Meanwhile, hotel guest satisfaction has reached its highest levels in the past seven years, according to the J.D. Power 2013 North America Hotel Guest Satisfaction study released today.
Overall satisfaction averaged 777 on a 1,000-point scale, up 20 points from 2012. The study considers seven factors: reservation, check-in/check-out, guest room, food and beverage, hotel services, hotel facilities, and cost and fees. Satisfaction was up on every one of those...

It’s not all great news for hotels though. Guests say the internet is the top problem at hotels. Among guests who experienced a problem during their hotel stay, 31% had an issue with their Internet service in terms of connection and/or speed. Satisfaction level drops about 130 points for those guests.

Still though, travelers are willing to pay more for a better experience. Sites like TripAdvisor encourage that trend allowing consumers to research the good, bad and ugly of the hotel world. “Before these sites became mainstream, guests tended to choose a property based on price, previous experiences or location,” says Rick Garlick, head of global travel and hospitality practice at J.D. Power.

Also boosting customer satisfaction are the investments hotel owners are making once again in their properties. The economic downturn put a hold on renovation projects and resulted in cut backs in staff and service. The industry has been deploying more capital into existing properties and also building new ones.

Looks like guests are seeing the results of that effort.