The Influence of Third-Party Management on Hotel Guest Satisfaction

In the realm of hospitality, a remarkable hotel experience often hinges on an unseen factor: the third-party management company that runs the establishment. These entities play a pivotal role in shaping consistent, delightful, and hassle-free guest encounters. The J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark unveils an intriguing revelation – branded hotels overseen by major third-party management firms have showcased a remarkable enhancement in overall guest satisfaction this year, surpassing both chain-managed and independently operated counterparts.

“Third-party management companies operating branded hotels are truly excelling in their operations by consistently delivering well-maintained premises, pristine guest accommodations, and an overall superior guest experience compared to independently managed and chain-managed establishments. Of particular significance is the enhanced standard of staff service provided by the largest third-party hotel operators, even amid escalating room rates that raise guest expectations,” stated Andrea Stokes, hospitality practice lead at J.D. Power.

Key Insights from the 2024 Benchmark

• Notable Increase in Overall Satisfaction: The average guest satisfaction score for hotels managed by third-party companies stands at 683 points (out of 1,000), marking an 8-point surge from the previous year. The upsurge primarily stems from better ratings in areas such as room cleanliness, hotel maintenance, and staff responsiveness to guest queries and needs.
• Value Perception Balances Higher Costs: While guests report higher room tariffs this year, they also acknowledge a 6-point rise in perceived value for the price they pay at the leading third-party managed hotels compared to 2023. This indicates a collective sentiment among guests that these establishments offer commendable value concerning the quality and service rendered.
• Swift Front Desk Service and Enhanced Staff Responsiveness: Staff service emerges as the top-performing aspect across all operational domains in the benchmark. The year-over-year boost in satisfaction is underscored by significantly improved efficiency and responsiveness of front desk personnel to guest inquiries and concerns.

Benchmark Rankings

Davidson Hospitality Group secures the top position in overall guest satisfaction for the third consecutive year, boasting a remarkable score of 735. HEI Hotels and Resorts (705) clinch the second spot, followed closely by White Lodging (704).

The 2024 edition of the North America Third-Party Hotel Management Guest Satisfaction Benchmark evaluates guest contentment levels at branded hotels managed by the largest third-party management firms across six key dimensions: communication, food and beverage, guest room, hotel facilities, staff service, and value for price. Based on feedback from 4,907 guests who stayed at branded hotels between May 2023 and May 2024, the benchmark encompasses third-party hotel operators overseeing over 14,000 branded rooms.

About J.D. Power

J.D. Power stands as a global authority in consumer insights, advisory services, and data analytics. Leveraging cutting-edge technologies like big data, artificial intelligence, and algorithmic modeling, J.D. Power unveils astute industry intelligence on consumer interactions with brands and products, drawing on over 55 years of experience. Leading corporations across diverse sectors rely on J.D. Power to inform their customer-centric strategies.

J.D. Power maintains a global presence with offices in North America, Europe, and Asia Pacific. For comprehensive insights into the company’s business offerings, visit J.D. Power.

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