Hilton falls, Starwood jumps


Summer brings long nights, barbecues, vacations and, for some, cheap hotels. A new survey by the University of Michigan suggests that consumers with a few extra pennies to spend on trips should consider putting them into high-end hotels over bargain accommodations.

Across the board, the hotel industry dropped from last year in the University of Michigan's American Customer Satisfaction index, released Tuesday. USAToday reports that despite ambitious upgrades and new goodies at luxury chains, the hotel industry scored 71 out of 100, down from 75 last year, in the Michigan survey, which is compiled annually and based on responses from 80,000 U.S. consumers. Blame the budget and mid-priced chains -- including those lining favorite summer tour routes -- for the drop. According to the study, chains such as Days Inns Worldwide Inc., Best Western International Inc. and Red Roof Inns helped pull down the overall hotel industry.

One hotel expert suggests that poor franchisees are to blame for consumer disappointment in some cheap accommodations. Some large hotel companies performed well in the survey, thanks to investments in finer pillows, duvets, in-room technology and other amenities. Marriott International Inc. (NYSE: MAR), and Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) scored well above the industry average. Among the biggies, only Hilton Hotels Corp., (NYSE: HLT) fell in survey results from last year. There may be some good news for the hotel industry: business travelers say they're happier with customer service among hotel chains than they are with rental car operators or commercial airlines.

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Last updated: February 10, 2012: 03:55 PM

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