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J.D. Power Report Issued by Cornell Demonstrates the Financial Benefits of Hotel Guest Satisfaction
Hospitality research says: deliver on key performance indicators
30 July 2010

The Center for Hospitality Research at Cornell University

An industry white paper issued by Cornell's Center for Hospitality Research (CHR) demonstrates the clear connection between guest satisfaction and hotels' financial results. Conducted by researchers from J.D. Power and Associates, the study, "Making Customer Satisfaction Pay: Connecting Survey Data to Financial Outcomes in the Hotel Industry," is available at no charge from the CHR's website at www.hotelschool.cornell.edu/research/chr/pubs/perspective/. The hospitality research was written by Gina Pingitore, Dan Seldin, and Arianne Walker, all of J.D. Power and Associates. In a survey of over 4,000 guests at an upscale hotel chain, they found that fulfilling certain key performance indicators is essential to hotel guest satisfaction.

"When we focused on the connection between measurements of customer satisfaction and hotel financial outcomes, we discovered the importance of four key performance indicators," said Pingitore. "Guests who were satisfied on all four of these indicators rated the hotel as delivering outstanding service. In turn, those highly satisfied guests reported far greater ancillary spending than those who were merely pleased with their stay." Pingitore is the chief research officer for J.D. Power; Seldin is a director in the firm's corporate research and marketing sciences department; and Walker is director of U.S. automotive research.

The key performance indicators that emerged from the study are fundamental to hotel operation. They are: the reservation was accurate, check-in was completed within five minutes, no problems were experienced during the stay, and no billing errors occurred. Guests who experienced all four of these performance indicators were most likely to grant the hotel a top guest satisfaction rating.

About J.D. Power and Associates | Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit www.JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies | Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights, and analysis in the financial, education and business information sectors through leading brands, including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at www.mcgraw-hill.com/.

J.D. Power and Associates Media Relations Contact: John Tews; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com.

About The Center for Hospitality Research
A unit of the Cornell School of Hotel Administration, The Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the center's 77 corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial and operating practices. The center also publishes the award-winning hospitality journal, the Cornell Hospitality Quarterly. To learn more about the center and its projects, visit www.chr.cornell.edu.

Center Senior Partners: ASAE Foundation, Carlson Hotels, Hilton Worldwide, McDonald's USA, Philips Hospitality, SAS, STR, and Taj Hotels Resorts and Palaces

Center Partners: Davis & Gilbert LLP, Deloitte & Touche USA LLP, Denihan Hospitality Group, eCornell & Executive Education, Expedia, Inc., Forbes Travel Guide, Four Seasons Hotels and Resorts, Fox Rothschild LLP, French Quarter Holdings, Inc., HVS, Hyatt Hotels Corporation, InterContinental Hotels Group, Jumeirah Group, LRP Publications, Maritz, Marriott International, Inc., Marsh's Hospitality Practice, priceline.com, PricewaterhouseCoopers, Proskauer, Sabre Hospitality Solutions, Sathguru Management Consultants (P) Ltd., Schneider Electric, Thayer Lodging Group, Thompson Hotels, Travelport, WATG and Wyndham Hotel Group

Center Friends: 4Hoteliers.com • Berkshire Healthcare • Center for Advanced Retail Technology • Cleverdis • Complete Seating • Cruise Industry News • DK Shifflet & Associates • ehotelier.com • EyeforTravel • Gerencia de Hoteles & Restaurantes • Global Hospitality Resources • Hospitality Financial and Technology Professionals (HFTP) • hospitalityInside.com • hospitalitynet.org • Hospitality Technology Magazine • HotelExecutive.com • International CHRIE • International Hotel Conference • International Society of Hospitality Consultants (ISHC) • iPerceptions • JDA Software Group, Inc. • J.D. Power and Associates • The Lodging Conference • Lodging Hospitality • Lodging Magazine • LRA Worldwide, Inc. • Milestone Internet Marketing • MindFolio • Mindshare Technologies • PhoCusWright Inc. • PKF Hospitality Research • Questex Hospitality Group • Resort and Recreation Magazine • The Resort Trades • RestaurantEdge.com • Shibata Publishing Co. • Synovate • UniFocus • USA Today • Vantage Strategy • WageWatch, Inc. • The Wall Street Journal • WIWIH.COM

CONTACT
Glenn Withiam
Phone: 607.255.3025
Email: grw4@cornell.edu

ORGANIZATION
Hospitality NetThe Center For Hospitality Research (CHR) at The Cornell School Of Hotel Administration
www.chr.cornell.edu/
537 Statler Hall
USA - Ithaca, NY 14853
Phone: 607-255-9780
Fax: 607-254-2922
Email: hosp_research@sha.cornell.edu

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