Study
Travel and Hospitality

Third-Party Hotel Management Guest Satisfaction Benchmark

The Challenge

The third-party hotel management market is a unique niche for which there is very limited information available on competitor performance on guest satisfaction. While hotel operators rely on franchisor-executed guest satisfaction survey programs and external feedback platforms such as TripAdvisor®, neither provides in-depth diagnostics of how hotel staff deliver the guest experience. With no benchmark for third-party hotel management, how can third-party operators identify strengths and weaknesses—and those of their competitors—in responding to guest expectations?  Further, how can operators address critical guest experience issues to improve Owner retention and ROI?

The Solution

J.D. Power’s Third-Party Hotel Management Guest Satisfaction Benchmark enables third-party hotel management firms to:

  • Measure service quality and key factors driving guest satisfaction across properties under management
  • Benchmark guest satisfaction performance against other third-party operators
  • Identify strengths, weaknesses, and opportunities via performance diagnostics in all areas of operation including front-of-house staff service, guest rooms and housekeeping, food & beverage, services/amenities and more
  • Align strategic planning and guest experience initiatives to optimize Owner satisfaction and to support new business development

The Benchmark subscription provides access to the tools needed to gain a comprehensive, in-depth understanding of how your company is performing relative to your competitors from the viewpoint of the guest and to identify areas needing improvement.

Subscription deliverables include:

  • Competitive benchmarking of guest experience across a set of properties under management, enabling direct comparisons to competitors. Third-party management firms are benchmarked on an “apples-to-apples” basis because we eliminate portfolio size and segment effects on guest satisfaction scores. (See methodology details below.)
  • An executive presentation that provides in-depth analysis of your company’s results compared with those of your industry peers, improvement areas with the biggest impact on guest satisfaction and recommendations for action
  • A simulator tool allowing you to simulate hotel operations improvements' impact an overall guest satisfaction and to understand how improvements put your firm ahead of the competition
  • The Benchmark raw dataset plus access to J.D. Power subject matter experts and analysts for assistance in using the raw data

The Benefits

Third-party management companies that subscribe to the program will be better able to understand their competitive position at a detailed level, enabling them to pinpoint critical areas for improvement as well as to guide owners and developers to make prudent investments in the areas that matter most to guests.

Methodology

The J.D. Power Third-Party Hotel Management Guest Satisfaction Benchmark is based on our own Hotel Guest Satisfaction Study survey which collects guest feedback for branded hotel stays during the months of May to April/May each year across every STR segment. (For example, our 2020 survey collected nearly 38,000 hotel stays.) Hotel stays are identified via a screening process in the survey that:

  • The guest stayed in a branded hotel in North America in the past 30 days. (Stays at non-branded/independent hotels are not included.)
  • The guest can verify the property at which they stayed (prompted with the actual hotel name as reported by STR).

The survey captures satisfaction ratings across the entire stay experience with multiple elements within each of the following:

  • Arrival and departure (front desk, staff service, etc)
  • Guest room (cleanliness, condition, quality of linens, etc)
  • Food & beverage (includes breakfast and other F&B such as restaurants and bars in full-service properties)
  • Services and Amenities (such as fitness centers, pools, etc)
  • Hotel facilities (includes parking, grounds, and safety and security)
  • Costs & fees (given the quality and service received for room rate and any fees paid)

Property-level stay data is aggregated to the operator/management company for the property as reported by STR. Stay ratings are calculated and aggregated to obtain the overall satisfaction with the hotel stay. Data also include:

  • Guest profiling (demographics, loyalty program membership, hotel amenity preferences and more)
  • Stay profiling (purpose of stay, length of stay, companions, booking method via direct or indirect/OTA, services/amenities used during stay, facilities used during stay, food & beverage used during stay, and more)