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2024 Q1 Trends in Hotel Guest Experience: Surge in Satisfaction and Responsiveness.

  • Bruno Saragat
  • 16 May 2024
  • 4 minute read
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This article was written by Shiji Insights. Click here to read the original article

2024 kicked off with exceptional growth in the hospitality sector, particularly in Q1, where we observed a notable surge in hotel guest satisfaction and responsiveness. This trend, especially pronounced in the 3 and 4-star hotel categories, not only mirrors but also exceeds the upward trajectory seen in the previous year’s first quarter. The latest Guest Experience Benchmark Report reveals key trends shaping the sector in early 2024. 

The report has analysed various aspects of the industry, providing a better understanding of how guests experience their stay in hotels. Looking into the details, it becomes evident that while global satisfaction metrics have improved, regional disparities and platform dynamics illustrate a complex, evolving landscape. 

  • GRI Growth Across the Board: The Global Review Index (GRI), a key hotel review benchmark, has climbed by 1.1 points from Q1 2023, showcasing a global uptrend in hotel guest satisfaction. This rise is more pronounced than in Q1 2022, showing a steady upward trajectory in guest experience metrics.
  • 3-Star Hotels Surpassing Luxury Segments in Guest Satisfaction: The increase in the Global Review Index has been particularly pronounced for 3-star hotels, which saw a rise of 1.3 points over the past year, outpacing the 0.8-point increase observed in 5-star accommodations. This suggests that mid-range accommodations successfully meet or exceed guest expectations more so than their luxury counterparts.
  • Decline in Europe’s Review Volume: Contrary to global trends, Europe experienced a 6.6% decrease in hotel review volumes compared to Q1 2023, underscoring unique regional challenges in the European Hospitality market. This includes a change in review pattern by major players like Booking.com.
  • Shifts in Online Booking Market Share: Online booking platforms like Expedia and Agoda have registered significant increases in review volumes, especially in North America and Asia-Pacific, reflecting a shift in guest booking preferences. This shift underscores travellers’ changing preferences and a competitive shake-up in the online booking space.
  • Improved Industry Responsiveness to Online Reviews: The hospitality sector has significantly enhanced its responsiveness to online reviews, cutting the average response time to 3 days and boosting overall guest satisfaction. This increase in responsiveness not only boosts guest satisfaction but also enhances hotels’ reputation management efforts.

Global and Regional Insights

The start of 2024 has shown a promising rise in the Global Review Index (GRI), with an increase of 1.1 points over the first quarter of 2023 and 1.3 points over the same period in 2022. This uptick signals a broader satisfaction among hotel guests, with particular strength in 3-star accommodations, which have outpaced the GRI growth of their 5-star counterparts. Specifically, 3-star hotels saw a GRI increase of 1.3 points compared to 0.8 points for 5-star hotels. This suggests a robust performance in the budget-friendly sector, possibly reflecting greater value alignment in guest expectations and hotel offerings.

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While most regions experienced growth, Europe emerged as an outlier with a 6.6% decrease in review volume. This contraction starkly contrasts with the global trend, where review volumes increased slightly by 0.5%. This dip in Europe might be partly due to Booking.com’s change in review pattern in the region, which saw a 12.2% drop in review volume. 



Conversely, platforms like Expedia and Agoda not only increased their review volumes significantly in North America and Asia-Pacific but also enhanced their market share globally.

Shifts in Online Engagement

Booking.com, traditionally a giant in the online booking arena, may have experienced a slight contraction in the average number of reviews per hotel. However, it maintained growth in total review volume year-over-year. This nuanced performance indicates a shifting landscape where no single platform dominates uncontested. 

In contrast, Expedia showcased a robust increase in its review volume, particularly in the North American market, which saw a 51.9% rise over Q1 2023, and Asia-Pacific with a staggering 68.6% increase. Such figures not only demonstrate Expedia’s growing influence but also signal a diversification of guest preferences and booking behaviours.

Enhanced Guest Experience and Responsiveness

One of the most positive trends observed in the early part of 2024 is the rise in positive mentions, which increased by 1.0 points to 75.8% globally. This improvement is further emphasised by a significant reduction in negative comments about room quality, particularly in the Asia-Pacific and Middle Eastern markets, which saw increases of 2.0 and 1.4 points, respectively, in positive room mentions.

Another critical area of progress is the industry’s responsiveness to reviews. The average response time has decreased significantly across the board, with the time taken to address positive reviews down from 5.1 days in Q1 2023 to 3.4 days in Q1 2024 and from 7.0 days to 4.3 days for negative reviews. This enhanced responsiveness reflects the industry’s commitment to guest feedback and contributes to higher guest satisfaction and potentially stronger loyalty.

Conclusion

Overall, the Q1 2024 Guest Experience Benchmark Report highlights a period of notable adaptation and opportunity within the hospitality industry. The marked increase in the Global Review Index, particularly among 3-star hotels, alongside improvements in review volume and engagement across diverse online booking platforms like Expedia and Agoda, underscores a competitive, dynamic landscape. Additionally, the significant enhancements in response times to guest reviews reflect a proactive approach to improving guest satisfaction, which is essential for fostering loyalty in a rapidly evolving industry.

Please click here to access the full original article.

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