SOURCE: Market Metrix

 

SAN RAFAEL, CA--(Marketwire - May 21, 2008) - Despite the current downturn in the U.S. economy that includes a drop in overall hotel occupancy and revenue growth, luxury hotels continue to show strength, according to the most recent results of the Market Metrix Hospitality Index (MMHI) for the first quarter of 2008. Despite price increases (see table below), customer satisfaction with these high-priced hotels is up for the first quarter, out-performing all other segments. Other indicators are positive for luxury hotels -- reduced price sensitivity and improved perceptions of value -- underscoring the strength of this segment. The luxury brands showing the biggest gains in the MMHI were Starwood's The Luxury Collection (+3.7), Grand Hyatt (+3.6), and Intercontinental (+2.7).

                                     Q1 2008 vs 2007
                                                        Customer
                       Price (ADR)      Occupancy     Satisfaction
Luxury                    +5.1%           -1.9%            +.6
Industry                  +4.7%           -2.7%            +.2
                       -----------     -----------    ------------

Source: Market Metrix, Smith Travel

Customer satisfaction for all hotels is up slightly (+.2 to 82) compared to 2007. This is good news and surprising given the current economic pressures to reduce hotel staff and services.

More Bad News for Airlines

The bad news continues for airlines, as well as the industry's consumers. Customer satisfaction with airlines declined by .7 percent, falling to an all time low (73.3) since the MMHI began tracking the industry in 2001. While airlines continue to struggle with higher fuel prices, flight delays, labor contracts and crowded planes, consumers feel they are getting less for their money. Midwest Airlines, one of the few bright spots, earned the highest score in customer satisfaction among all airlines in the first quarter.

Other MMHI Results Include Top Scoring Kimpton Hotels

Kimpton Hotels posted the highest score (92.3) among all hotels in the industry. Kimpton's unique collection of boutique hotels continues to outscore higher priced luxury hotel chains such as The Ritz-Carlton, Four Seasons and Fairmont Hotels.

Among rental car companies, Enterprise continues their superior performance with the highest customer satisfaction score in the industry (81.9). But for the first time, National (80.8) and Thrifty (80.7) are not far behind. In fact, the entire rental car industry is very tightly clustered, indicating that customers do not see much difference among the brands. Overall, car rental companies posted a decline in customer satisfaction of .1.

         Market Metrix Hospitality Index 2008 1st Quarter Winners

WINNER                                          SEGMENT
------                                          -------

Hotels
------
Grand Hyatt                          87.3       Luxury
Kimpton Hotels                       92.3       Upper Upscale
Staybridge                           89.9       Upscale
Best Western                         80.3       Midscale w/ F&B
Drury Inns                           90.9       Midscale w/o F&B
Microtel Inns & Suites               81.9       Economy
-------

Casinos
-------
Bellagio                             90.3       Upscale casino
Rio                                  89.3       Casino
---------

Web Sites
---------
Westin Hotels & Resorts              94.5       Hotel Brand Web Site
Hotwire                              79.2       Hotel Travel Web Site
-------

Airline
-------
Midwest                                86       AIRLINE
----------

Car Rental
----------
Enterprise                           81.9       CAR RENTAL
---------

Timeshare
---------
Disney Vacation Club                 91.1       Timeshare Accommodations

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. 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 helps hospitality companies around the world foster loyal customers and engaged employees. Based on award-winning research and breakthrough concepts, our products deliver instant survey results, analysis and management tools for increasing revenue and reducing staff turnover. Our benchmarking database, MMHI, is the most comprehensive, independent comparison of consumer brand satisfaction in the industry. Our annual MMHI Awards are coveted by lodging and travel enterprises around the world. With clients that include more than 120 brands across 70 countries, Market Metrix has been helping leading hospitality companies turn feedback into performance since 1996. For more information, visit www.marketmetrix.com.