My friends at J.D. Power and Associates are out with their latest hotel ratings this morning, and the winner is … I have no idea.
Don’t get me wrong, I think anyone who tries to evaluate the travel industry from a customer-service perspective deserves a medal. But J.D.’s grading system — also known as “Power Circle” ratings — leave me with more questions than answers.
J.D. separates the the hotel industry into six categories, ranging from “Economy/Budget” to “Upscale.” Why so many categories? That’s unclear. The average hotel customer doesn’t divide hotels into that many categories. I certainly don’t.
Did J.D. just create six categories in order to give away more awards?
Here’s another mystery: these Power Circles. What do they mean?
Just have a look at this report for the Economy/Budget category. Can you tell me what Microtel Inns & Suites, the award recipient, actually got as a score? Four circles?
J.D. Power doesn’t offer raw numbers from the customers it surveys — at least not to the public. That’s a criticism I’ve made in the past, and I would argue that without actual numbers, the Power Circles are pointless.
As a hotel guest, I’d like to see fewer categories and real numbers behind the ratings. That would help me determine if a “winner” in any given group was really the best of of the best — or simply the best of the worst.
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I use to work at an international market research firm and we did industry awards. This part of the firm was patterned after JD Powers. We researched industries and companies and categories that we think we can SELL the award promotion to. Once you win the award you can not promote it in any way – on your Web site or in print or TV ads unless you PAY for the right. We, like JD Power, offered different packages that allowed you to promote that you received the award (at different levels). We did not necessarily award to the best candidate but to the best candidate with the money (and willingness)to pay for the award promotion. You can find any marker or level at any company that can be “Best in Class” against another company and allow the paying company to “win” the award. The big guys in the research and award division were ex-JD Power guys. So, your concerns are correct. A JD Power award is not a true measure of industry excellence.