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Saint Louis
Hotel News

August, 2006
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'No Smoking' at Hotels Could Be the Latest Marketing Strategy to Meet Customer Satisfaction
ST. LOUIS, (PRNewswire), July 30, 2006 - Offering a completely smoke-free environment is poised to become the latest differentiator in the competitive hotel industry, according to the J.D. Power and Associates 2006 North America Hotel Guest Satisfaction Index Study(SM).

The study finds that 79 percent of hotel guests prefer a smoke-free environment that exceeds the boundaries of their guest room. While guests of luxury hotels (Four Seasons, Ritz-Carlton, etc.) are most likely to prefer a non-smoking environment, upscale hotels (Hilton, Westin, Marriott, etc.) have been quicker to adopt this policy.

Marriott International Inc., for example, recently announced that all of its lodging brands in the United States and Canada will be 100 percent smoke-free starting in September, and Westin Hotels & Resorts have been 100 percent smoke-free since earlier this year.

"Creating a smoke-free environment demonstrates a new level of service and care for our guests and associates," said J.W. Marriott, Jr., chairman and chief executive officer of Marriott International. "Our family of brands is united on this important health issue and we anticipate very positive customer feedback."

The new policy includes all guest rooms, restaurants, lounges, meeting rooms, public space and employee work areas. Currently more than 90 percent of Marriott guest rooms are already non-smoking and smoking is prohibited in many public spaces due to local laws. Demand for non-smoking rooms continues to rise with new information from the Surgeon General on the hazards of secondary smoke.

"What was once a differentiator is now expected by consumers," said Linda Hirneise, executive director of the travel practice at J.D. Power and Associates. "We saw this in the case of branded premium beds and online check-in/check-out, where one hotel introduced the concept and others followed suit. We could see the same kind of trend with the issue of smoking. Banning smoking is increasingly commonplace at restaurants across the country, and is gaining a lot of public support; thus, doing so in hotels is a natural next step. However, while going smoke-free could be a powerful marketing strategy, at the end of the day, the key differentiator in a guest experience remains the quality of service."

The study, now in its 10th year, measures overall hotel guest satisfaction across six hotel segments: luxury, upscale, mid-scale full service, mid-scale limited service, economy/budget and extended stay. Seven key measures are examined within each segment to determine overall satisfaction: reservations, check-in/check-out, guest room, food and beverage, hotel services, hotel facilities, and costs and fees.

Overall hotel satisfaction has increased in five of six segments in 2006, with only the luxury segment declining slightly in satisfaction versus 2005. This may be a result of many hotel brands investing in massive renovations and bundling more amenities and services as a way of enhancing the overall guest experience.

The following hotel brands rank highest in guest satisfaction within their respective segments:

  • Luxury: Four Seasons Hotels and Resorts
  • Upscale: Omni Hotels
  • Mid-Scale Full Service: Hilton Garden Inn
  • Mid-Scale Limited Service: Drury Inn & Suites
  • Economy/Budget: Microtel Inns & Suites
  • Extended Stay: Residence Inn
The study finds that the costs and fees factor has significantly increased in importance to hotel guests, becoming either the most or second-most-important influencer of overall satisfaction across all six segments. At the same time, satisfaction with this factor has also declined significantly across several brands.

"Although there is a lot of optimism surrounding the hotel industry with respect to increased occupancy and development, several factors are still taking a toll on the industry," said Hirneise. "Economic forces such as soaring gas prices and increased cost of living are taking their toll on discretionary income. More than ever, travelers are looking for the best value for their money and are becoming more conscious of what each hotel offers as far as complimentary services and amenities when deciding where to stay."

The amenities that guests most often mention as "must haves" across the various segments include: high-speed Internet access, pillow-top mattresses, complimentary breakfast, in-room coffee/tea maker and a 27-inch or larger television. The quality of the high-speed Internet access, in particular, can have a strong impact on a guest's likelihood to return to the property and the brand. Fourteen percent of guests experienced difficulties connecting to the Internet during their most recent hotel stay.

"Customers are extremely pleased with the availability of high-speed Internet access, but it absolutely has to work properly," said Hirneise. "Otherwise, satisfaction declines significantly, and it ends up hurting a brand more than helping."

The study also finds that 43 percent of guests book their hotel reservations on the Internet -- up from 41 percent in 2005. Guests are twice as likely to book their reservation through a hotel brand Web site (28%) compared to an independent travel Web site (15%).

The 2006 North America Guest Satisfaction Index Study is based on responses from 42,211 guests who stayed in a hotel between January and June 2006.


Stevan Porter and Secretary of Commerce Carlos Gutierrez Discuss Immigration Reform
WASHINGTON, DC, (PRNewswire), July 30, 2006 - Stevan Porter, president of the Americas region of InterContinental Hotels Group (IHG), the world's largest hotel group, and chair of the American Hotel & Lodging Association (AH&LA) Governmental Affairs Committee, met July 25, with U.S. Secretary of Commerce Carlos Gutierrez to discuss comprehensive immigration reform. AH&&LA and six other industries discussed the importance of restructuring the nation's immigration laws to meet the dual goals of border and economic security.

"It was an honor to meet with Secretary Gutierrez today," said Porter. "We discussed the immense difficulties employers like IHG have with finding workers, as well as the shortcomings of our current immigration system and the employment verification process. Our nation's economic security depends on having a stable and sufficient workforce. Secretary Gutierrez listened carefully to our concerns and affirmed President Bush's commitment to passing comprehensive legislation this year."

In May, the U.S. Senate passed historic immigration reform legislation, S. 2611, the Comprehensive Immigration Reform Act of 2006. This AH&LA-supported legislation would increase border security and enforcement and create a guest worker program that will allow access to foreign-born workers when no American workers can be found. For those currently working in the United States without documentation, the legislation would create a stringent identification and screening process, and for those who qualify, establish a rigorous process through which workers could earn the right to remain in the United States after being punished and fined.

In December 2005, the U.S. House of Representatives passed an immigration bill that has no provisions for a guest worker program. In a highly unusual move, the House and Senate have not agreed to form a conference committee to work out their differences on the bills. Instead, both bodies of Congress have scheduled a series of field hearings throughout the country examining the need for immigration reform and proposed solutions.

"The House bill is unacceptable for the lodging industry because it ignores a crucial element of the problem," said AH&LA Executive Vice President for Public Policy Marlene Colucci. "It fails to recognize the contributions of foreign-born workers to the U.S. economy and does not resolve the problem of undocumented workers. We support efforts to improve control of our nation's borders. However, we will never truly have secure borders if we do not also address the desire of immigrants to come into our country to work and the need for these workers by the U.S. economy. Legislation that excludes this piece of the puzzle will not provide a real and permanent solution to securing our borders or to our economic needs. Congress must find a way to iron out the differences between the House and Senate bills. An adequate guest worker program is an absolute necessity to maintain our nation's economic growth and secure our borders."

According to AH&LA, the lodging industry employed 1,795,000 people in 2004. The Bureau of Labor Statistics predicts a 16.4 percent growth rate in hospitality jobs, requiring 304,200 additional employees by 2014. "Hoteliers cannot fill positions with the workforce that currently exists," said Colucci. "Jobs are growing in the hospitality industry, and the workforce is shrinking."

A recent national poll sponsored by the American Hotel & Lodging Educational Foundation (the not-for-profit affiliate of AH&LA) found that more than 80 percent of registered voters want Congress to pass an immigration reform bill this year. More than seven in 10 voters surveyed said they would rather have Congress pass a bill that includes border security, employer enforcement, and a temporary worker program rather than pass no bill at all.


Archived Hotel News:
Hotel Customers Demand Flexibility, Responsiveness and Innovation
Summer Travelers Are Forecast to Spend More for Hotel Rooms and Service
Holiday Inn(R) Asks Consumers To 'Look Again'
Major League Baseball Announces Holiday Inn Hotels as 'Official Hotel of Major League Baseball'
Hospitality Industry Presses Congress for 'Comprehensive' Immigration Reform
Hilton St. Louis Ballpark Hotel Undergoes $16 Million Renovation
RLJ Development to Franchise 90 Marriott International Brand Hotels
Sheraton Westport Chalet Completes Remodeling
Intercontinental Hotels Group Launches Virtual Concierge Service for Holiday Inn® Hotels and Resorts
Family Owned Drury Hotels Build on Guest Services & Customer Satisfaction
Kansas City's Landmark President Hotel Reopens
Doubletree Introduces Newest Full-Service
Hotel in St. Louis

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