Peninsula Hotels Rated #1 in Guest Satisfaction for Q3 2011; Price Sensitivity of Guests on the Rise

Larkspur, CA, November 23, 2011 --(PR.com)-- Guest satisfaction with hotels remained steady in the third quarter of 2011 (-0.05 to 84.5). Peninsula Hotels posted the top customer satisfaction score among hotel brands. The largest gains occurred among casinos (+0.2 to 83.5) while Luxury hotels posted the biggest decline (-0.2 to 89.2) compared to the previous quarter.

Guests are becoming more price sensitive, perhaps in response to recent rate increases and the weak economy. Price sensitivity is measured by tracking guests' willingness to pay more before switching brands. In 2009 the average hotel guest was willing to pay 20% ($12.38) more per night before switching to another hotel. In 2011 that number has declined to 18%. This decline has been more severe among casino (-10% to 30%) and luxury hotel guests (-5% to 18%). Only upscale hotel guests have become less price sensitive since 2009. Customers who are satisfied with their hotel stay show a larger price tolerance and are willing to pay more compared to other customers. But with customer satisfaction remaining flat, increased price sensitivity can negatively impact occupancy and average daily rate.

Performance across the Hotel Industry
Luxury hotels received the highest satisfaction scores (-0.2 to 89.2) led by Peninsula Hotels (98.9). Sofitel Hotels also showed marked improvement compared to the prior quarter (+1.7 to 89.9). Timeshares ranked second (86.7) with Disney Vacation Club retaining the top spot despite slightly lower scores (-0.1 to 88.0). Affinia Hotels led the Upper Upscale hotel segment (-1.0 to 93.8) with Le Meridian posting the biggest gain (+1.1 to 87.5).

Among Casinos, customer satisfaction improved (+0.2 to 83.5) with South Point Hotel Casino Spa (88.4) taking first place. In this segment Rio (+1.6 to 84.8) showed the biggest improvement compared with last quarter. Upscale Casinos were down slightly (-0.22 to 84.5) with Wynn Las Vegas (-0.5 to 89.8) receiving the highest evaluations from guests. Las Vegas Hilton (+1.8 to 82.0) posted the biggest gain compared to last quarter.

Market Metrix Hospitality Index 2011 Winners (3rd Quarter YTD)*

Winner

Segment -

Hotels:

Peninsula Hotels

98.9

Luxury:

Affinia Hotels

93.8

Upper Upscale:

Hyatt Summerfield Suites

92.4

Upscale:

Drury Inns

91.0

Upper Midscale:

Wingate Inns

87.8

Midscale:

Jameson Inns

85.7

Economy -

Casinos:

Wynn Las Vegas

89.8

Upscale casino:

South Point Hotel Casino Spa

88.4

Casino -

Web Sites:

Fairfield Inn By Marriott

87.7

Hotel Brand Web Site:

AOL Proprietary Travel

81.4

Hotel Travel Web Site -

Timeshare:

Disney Vacation Club

88.0

Timeshare Accommodations

*Segment groupings are based on STR Global Chain Scales. Results are based on a US-based travel panel. Results for international brands may vary from that of local and regional travelers.

About MMHI
Based on 35,000 customer interviews conducted each quarter, the Market Metrix Hospitality Index (MMHI) is the largest and most in-depth measure of hospitality company performance available today. Our annual MMHI Awards are coveted by lodging and travel enterprises around the world. These benchmarks, delivered through our flagship product Customer Metrix™, enable Market Metrix clients to compare their results to competitors by STAR segment, AAA classification, Brand, SMSA, industry averages, performers in the top 10% and other classifications. The MMHI is also available by subscription.

About Market Metrix
Market Metrix provides the leading guest and employee feedback systems to the worldwide gaming and hospitality industry. The company combines award–winning research and powerful technology to help clients make the right business decisions based on their objectives. In addition to CustomerMetrix, Market Metrix assists in employee retention and targeted training using EmployeeMetrix™, as well as the management of Social Media, using ReviewMetrix™. Its Software–as–a–Service (SaaS) products are used by more hospitality companies than any other, supporting thousands of hospitality businesses in 70+ countries. Market Metrix has been helping hospitality companies turn feedback into performance since 1996. For more information, visit www.marketmetrix.com.

###