Are location, location, location the three most important things that determine the success of a property? The purpose of a recent Market Metrix global study of the hotel industry was to analyze the reasons why guests select a particular hotel. The results of this study offer insight into the current behavior of hotel guests and the corresponding market opportunities.
“Location” is an important reason for selecting a hotel, especially for economy and mid–scale guests. But the results of this study found that it is the guest experience that has the most influence on hotel selection.

“GUEST EXPERIENCE” IS MORE IMPORTANT THAN HOTEL LOCATION OR PRICE
The experiences of guests during their hotel stay directly impact repeat visits and recommendations (personal and online reviews, e.g., TripAdvisor). A positive/negative guest experience can impact a hotel’s reputation and may trigger recommendations or reviews about that experience. “Guest experience factors” which include past experience, reputation, recommendations, and online reviews, are critical to selecting a hotel by the majority of hotel guests (51%) and are now more important to guests than either hotel location (48%) or price (42%).

Not surprisingly, the guest experience impacts hotel selection for Luxury guests more than any other segment. Among brands, the luxury guests from Rosewood (83%) and Pan Pacific (79%) utilize guest experience factors more when choosing a hotel. Among the big chains, Hampton Inns ranks highest with 74% of their guests relying on these factors when choosing a hotel.
“Price” was the next most popular reason why guests choose a hotel. These results varied by hotel price. Fewer luxury and timeshare guests stated that “Price” was a primary reason for their selection while twice as many economy guests highlighted price as a key factor. Among all hotels, more Motel 6 guests (79%) reported that price is a critical element in their selection of a hotel.
Loyalty programs are also important in hotel selection with 18% of guests saying loyalty programs benefits are a primary reason for selecting a hotel. More casino guests (30%) value loyalty programs as a key element when selecting a casino. Harrah’s loyalty program is mentioned by an incredible 62% of their guests as a key reason for selecting their brand.
With an increasing number of user–generated reviews and people reading and acting on them, the impact of the guest experience (guest satisfaction and dissatisfaction) directly impacts hotel selection and consequently, has a quicker economic impact. The guest experience has never mattered more.
About Market Metrix | Market Metrix is helping hospitality companies around the world succeed in the tough economy. With guest feedback collected 24/7/365, and built-in service recovery and investment decision support tools, we help clients save money and reduce risk of client defections. Based on award-winning research and breakthrough concepts, our SaaS-based 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. Visit www.marketmetrix.com.
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