Customer satisfaction results for five industries show improvement for dining and lodging, but a downturn for air travel, according to a report released today by the American Customer Satisfaction Index (ACSI). The report covers satisfaction with the quality of products and services provided by airlines, hotels, full-service restaurants, fast food, and express delivery and mail services…
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Customer satisfaction results for five industries show improvement for dining and lodging, but a downturn for air travel, according to a report released today by the American Customer Satisfaction Index (ACSI). The report covers satisfaction with the quality of products and services provided by airlines, hotels, full-service restaurants, fast food, and express delivery and mail services.
Airlines: Poor Service Leaves Passengers Wanting More
Passenger satisfaction with airlines drops by 1.5% to an ACSI score of 65- a very low score that keeps getting worse. Poor service, higher fuel prices, and fees for baggage and other services are contributing to discontent among travelers. Passengers who pay for checked bags are much less satisfied than those who don’t (an ACSI score of 58 compared to 68). They also are more dissatisfied now than a year ago (-3%). Since nearly half of all fliers pay bag fees, the negative impact on their satisfaction is significant. Airlines have another concern as well. Their most profitable market segment, business passengers, is the least satisfied (ACSI score of 61).
Southwest Airlines rises 2% to 81, leading the category as it has for the past eighteen years. Continental is next in line, but far behind after plunging 10% to 64 as it becomes absorbed by United, which itself improves 2% to 61 to tie US Airways. Between these companies is American Airlines, unchanged at 63. Delta Air Lines hits the industry’s bottom with a 10% dive to 56-one year after completing its acquisition of Northwest.
“Airline mergers typically have a destructive effect on passenger satisfaction,” said Claes Fornell, founder of the ACSI and author of The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference. “In 2005, US Airways fell 8% to an industry low following its merger with America West, and now Delta falters in the same way. Past experience points to more customer satisfaction challenges ahead for United and raises the question of whether Southwest can escape customer satisfaction problems from its acquisition of Air Tran in May.”
Hotels: Are Promotions Spurring Price Shopping?
Guest satisfaction with hotels rises 2.7% to a score of 77. Lower rates and more perks have enhanced customers’ views of value for money. The aggregate of smaller brands -including small hotel and motel chains, individual luxury hotels, and bed and breakfasts- make the most progress, up 4% to an ACSI score of 77. The industry is having more success with leisure travelers, as their satisfaction improves 1% to 77 compared to a 1% drop to 75 for business travelers.
“Although guest satisfaction has benefited from lower rates and various perks, there has been no effect on customer loyalty and repeat business,” said Fornell. “Price-induced satisfaction tends to make people shop around for the best deal rather than promote loyalty.”
Hilton leads, unchanged at 80, with both Marriott (-1%) and Starwood (+3%) close behind at 79. Hyatt comes next at 77 (-3%). Budget brands occupy the next tier below the industry average, with Intercontinental (Holiday Inns) down 3% to tie Best Western at 76. Choice Hotels follows, unchanged at 74, while Wyndham Worldwide (Ramada, Super 8, Days Inn) makes the biggest gain, up 4% to 73, but this is still not enough to pull Wyndham out of the industry basement.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
